Proof that vacation rentals are a huge segment of the industry is confirmed with analysis showing there are a staggering 115,000 vacation rental companies worldwide. The study by rental technology provider Hostfully draws on a number of reports and market sizing initiatives, including those from PhocusWire sister research powerhouse Phocuswright.

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VR ownerVR owner
3 months ago

Great to see some numbers, but the tech suppliers amnd managers margins may see trouble ahead based on these numbers:

Hostfully calculates from its analysis around 70% of global vacation rental companies own between one and 19 properties.

70,000ish (how many are urban I wonder) who aren't in great need of a tech supplier and will be accommodated by OTA's own systems eventually or cheap cloud based offers as prices slide quickly

Hostfully estimates rental companies that are managing more than 100 properties account for 80% of the technology and channel commission spend. Around 10% have a tally of more than 100 units in their portfolios, with 20% covering the 20-99 property range.

So thats 20,000 who really need more developed tech. There are probably 100-150 serious tech companies (different languages too, not just the ones we see on adwords all the time). Thats <200 clients each and the winner will be the best product at the cheapest price, which has to be cents per property per month. I can't help but notice some PMS systems are charging 5% per booking, 3% for non channel bookings and they don't even generate a booking. Why would a manager with 100 properties turning in $3m give up $150K just for managing some data? VC's may need to look at this report if this is the target market

The analysis found the average commissions paid to booking platforms is around 10% (Airbnb at the low end with 9% and Booking.com at the high end with up to 18%).

Thats going to change when Airbnb charge the managers, Service Fees are on their way out

The real money is being made by the booking sites still

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