VaycayHero, previously known as Zaranga, is suspending operations as of February 28, 2017, and has notified its vacation rental suppliers that it will not take any bookings past January 31. To date, VaycayHero has raised approximately $4.8 million from angel investors and VCs, including a $836k investment from FundersClub just seven months ago.

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last year

The original "make an offer" would have challenged the micro-economics of the usual VR businesses and would see the traffic challenges in an overcrowded market.

Tansler another alternative model recently came out of stealth mode:

So be really interesting to see their progress.

I think we can expect to see a lot more marketplaces fold or be swallowed up (legacy and startups) in the next year.

Brands have been built off significant spend by the Unicorns and Stags (not so rare). Maybe Google is worried about the brands that were built from PPC, but they have entered the fray too. Guests can and will head to these big brands for convenience and due to lack of awareness but guests will also seek the best deal, which has a minimum threshold for price with quality and this is direct business. Insurance has proved this as have airlines.

Said it so often now, this market will polarise into the 800lb gorillas and the owners/managers and the latter are aggregating and challenging the status quo and will directly support these marketing businesses. The underfunded and older middle market places without a niche, taking their cut are on thin ice. Lean and mean and smart tech will win the asset side of the argument.

Add in AI and the big brands may see some challenges from the big and later the small asset managers and owners.

Predictions from the hotel OTA market show the same trends.

Justin UrichJustin Urich
last year

With no offense to VacayHero -- they sunk their own ship by implementing a flawed business model.

The add-on fees they charged guests were laughable.

Adding a 10% 'Service Fee' is not a winning model, especially when you don't have a clear and proven UVP.

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