A Data-Driven Breakdown of STR Distribution Platforms

 

The Right Data Can Make STR Distribution a Breeze

The vacation rental industry has seen rapid growth in recent years, particularly with the surge in post-pandemic travel. This boom has given property managers and hosts more platform options than ever to list their properties. However, with so many short-term rental platforms to choose from, it can be overwhelming to determine which one best suits your needs.

That’s where data comes in–by analyzing key metrics from each platform, hosts and property managers are able to make informed and educated decisions about where to list their vacation rental properties.

In this blog, we’ll first explore the top 3 platforms in the short-term rental world (Airbnb, Vrbo, and Booking.com) to see how each measures up and help you choose the best platform for your vacation property rentals. Then, we’ll dive into why multi-platforming could be the perfect solution for your short-term rental distribution needs.

Airbnb: King of the Short-Term Rental World

There’s no disputing that Airbnb is at the top of the short-term rental industry. Though they weren’t the first platform on the market, they are arguably the most well-known, and today, 52% of global vacation rental inventory is listed solely on Airbnb, according to data from Transparent. Since its founding in 2007, Airbnb has hosted over 1.4 billion guest stays in countries all around the world, and it doesn’t seem that this giant will topple anytime soon.

According to Transparent, in Q1 of 2023, Airbnb’s average nightly rate for a 2 bedroom accommodation was $209. Although this is lower than both Vrbo and Booking.com’s numbers from the same time period, Airbnb did have an edge on length of stay over Booking.com–in Q1 of 2023, guests stayed on average 4.22 days at their Airbnb accommodations. However, booking lead time was shorter for Airbnb than the other two, at an average of 41 days out, so if you like to have your calendar filled out early, Airbnb might not be the right choice for you. In spite of that, Airbnb still represents the lion’s share of accommodations in the short-term rental market and it generates the most bookings of any platform out there, according to Transparent.

Vrbo: A Great Place for Family Stays

Vrbo, formerly known as VRBO (Vacation Rental by Owner), is one of the pioneers in the vacation rental world. Started in 1995 by a Breckenridge property owner David Clouse, this site has since grown to become one of the giants in the industry. According to data from Transparent, Vrbo represents 23% of cumulative global short-term rental inventory.

Vrbo also sets itself apart from Airbnb–instead of renting out shared accommodations, this platform only lists whole-house rentals. That means Vrbo is typically better for families or larger parties, and they lean into that with their marketing.

When it comes to data from Transparent, Vrbo had the highest average nightly rate of the three platforms explored, with a 2 bedroom accommodation going for an average of $324 in 2023’s first quarter. It also had the longest stays of the three platforms, at an average of 4.3 nights. Another advantage of Vrbo is that it also has longer lead times than the other two platforms, with stays being booked on average at 70.63 days ahead of time. This means that hosts who like to see their calendars filled up early will have an easier time doing so on Vrbo.

Booking.com: The Overseas Market Leader

While Airbnb and Vrbo might dominate the American market for short-term rentals, Booking.com has become the leader in the overseas market. It used to be best known as a hotel and resort booking platform, but it has since expanded into the short-term rental world and today, 18% of global vacation rental listings are hosted exclusively on Booking.com, according to Transparent’s data.

In Q1 of 2023, Booking.com’s average nightly rate for a 2 bedroom space sat closer to Airbnb than Vrbo’s high rate, at $235 a night on average according to Transparent. However, in comparison to the other two platforms, Booking.com had the lowest average length of stay in Q1, at an average of 3.8 days, but it did have a longer lead time than Airbnb at 66 days on average.

How Multi-Platform Distribution Can Take Your Rental to the Next Level

So which platform is the best? That’s a complicated question and the truth is, each platform has its own strengths and weaknesses. The best option for your property depends on your specific needs and goals as a short-term rental owner. This is why many property management companies and rental owners are turning to a multi-platform approach to maximize their revenue and reach.

As we learned from the Transparent data summary, Airbnb might represent the bulk of global bookings, but there is a hidden opportunity available for owners: only 6% of global supply is listed on all 3 of these OTAs. When you widen your reach by listing your property on all 3 of these platforms, you’re more likely to be able to take advantage of the opportunities that they provide and your calendar will fill up much more quickly. Plus, if you use a channel manager to help you with this strategy, you can easily sync your calendars and rates across multiple platforms. This will reduce the risk of your property going empty and losing out on potential revenue.

 
 

Find a Property Management Company That Knows How to Multi-Platform

After taking a look at these three short-term rental platforms, it’s clear that each one comes with its own pros and cons. Airbnb dominates the market but may offer short lead times and lower nightly rates; Vrbo is great for families and its potential for revenue beats both other options, but it may not be right for anyone renting out shared accommodations; and Booking.com, while the leader in the overseas market, has shorter average stays than the others but is quite comparable to Airbnb when it comes to nightly rates.

However, you don’t have to choose–a multi-platform approach is becoming more and more popular amongst owners and property managers to maximize revenue and reach. By listing your property on all three platforms, you can take advantage of the strengths and weaknesses of each and increase your chances of your calendar filling up more quickly.

Looking for more short-term rental insights and tips? If you’re a newbie, take a peek into our first-timer’s guide to owning a vacation rental. Or, if you’re more established in the industry and want to look into managing multiple properties, we’ve written a great guide for you.

 

Related Posts

Previous
Previous

Top Art Galleries in Park City

Next
Next

7 Mountain Cabin Vacation Rental Decor Tips