To diversify, or not to diversify, that is the question.
Should you be listing on multiple platforms? Or is it better to stick with just one?
Richard Fertig is the host of Short Term Rental Secrets, a YouTube channel dedicated to building a community of short-term rental hosts who learn from each other’s experience. Richard is an entrepreneur and former Wall Street Hedgefunder who signed up for Airbnb four years ago. In that time, he has generated over $500,000 in income hosting his small portfolio of real estate investments.
Listen to understand the differences among Airbnb, HomeAway, VRBO and Booking.com. Richard also shares his experience with listing on multiple platforms, discussing the advantages of diversifying as well as the complications that can arise. This is a must-listen for hosts who are weighing the benefits of listing on more than one vacation rental site!
Topics Covered
How Airbnb is different from HomeAway/VRBO
•Superior user experience
•Focus on building community
•Mutual review of host/guest
The pricing structures of each platform
•Airbnb charges 3% fee for each reservation
•HomeAway employs a flat rate pricing model ($399/year)
The advantages of HomeAway/VRBO
•Long-time player in the vacation rental space (ski resorts, beach houses)
•More profitable than Airbnb if property located in popular tourist destination
Why Airbnb is the better choice for new hosts
•No risk
•3 million Airbnb listings (vs. 1.2 million on HomeAway)
The case for sticking with only one platform
•Build strong reputation, credibility (Superhost status)
•If demand is high enough (80-90% occupancy), one platform is simpler
The argument for diversification
•Don’t leave money on the table (higher occupancy)
•HomeAway typically generates more bookings for popular vacation destinations
•Safer to have several business partners (not beholden to single company)
How to avoid the complications of listing on multiple platforms
•Update and sync calendars on each platform
•If double-booking does occur, assist guest in finding accommodations
The benefits of creating your own vacation rental website
•Functions as online business card
•Easier to share URL
•Increase in return customers
•Ability to post additional content (i.e.: videos)
•Builds reputation
•Guests book directly and avoid fees
Booking.com’s short-term rental component
•Richard is testing site, will review on channel
•Serious short-term hosts recommend
•Guests more transactional (fewer questions, demands)
•Interface difficult to navigate
•Higher fees force hosts to raise rates
Resources
HomeAway
VRBO
Kelly Kampen’s Open Letter to Airbnb
Lodgify
Booking.com Vacation Rentals
Vacation Rental Website Fee Comparison
Connect with Richard
Short Term Rental Secrets YouTube Channel
Connect with Jasper
Email: jasper@getpaidforyourpad.com
Twitter: @GetPaidForUrPad
Instagram: @GetPaidForYourPad
Facebook: www.facebook.com/getpaidforyourpad
This episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests!
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