Vrbo has successfully expanded its urban accommodation offering, adding 1 million new listings to its platform, many of which are in cities increases urban supply on the platform.
Expedia Group has moved 1 million short-term rental listings from the Expedia brand to Vrbo. The move gives the group’s short-term rental platform a wider range of properties and a greater presence in urban areas.
Ariane Gorin, president and CEO of Expedia Group, said the move is part of a strategy to strengthen Vrbo’s home inventory and elevate its brand.
Vrbo and Hotels.com have come under pressure as Expedia Group pulled back on marketing during its recently completed transition to the cloud.
Change in strategy increases urban supply
Gorin said Vrbo was historically known for its beach and mountain vacation rentals and typically longer length of stay (LOS). With an offering of about 1 million short-term rental units, the platform is turning to cities and shorter LOS offerings to appeal to a wider audience.
The Group CEO said that this led to a slow start for Vrbo this year, but they are confident that its new profile will lead to continued growth. “We need to continue this growth formula, continue to improve the product, continue to expand the offering and have great marketing” said Gorin.
Vrbo offering entire homes in city locations
The platform’s customers have traditionally been oriented toward beach and mountain destinations. Now there’s room for Vrbo to grow as consumers realize the increased supply in cities.
“Ultimately, what we want to do is make sure people are aware of the brand [and] understand that when it comes to Vrbo, they’re going to have entire homes and apartments. They’re not going to have shared spaces,” she said.
When asked about anti-short-term rental regulations in states like California and Hawaii, CEO Ariane Gorin said Expedia works with local governments to ensure that properties listed on the platform are compliant.
“We believe there is a big market out there for alternative accommodations, just like there is for hotels and other hospitality. That doesn’t affect our view of our growth potential,” she said.
Gorin also provided an update on OneKey, Expedia’s rewards program that integrates all of its major brands and launched back in July 2023. She said the company is “pleased with the results so far.”
About 30% of the company’s travelers are members, accounting for about 50% of its room nights. She said 30% of travelers who redeem OneKey cash on Vrbo after earning it on another Expedia platform are new Vrbo customers.
The technological aspects of the loyalty rewards program have allowed Expedia to increase demand.
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