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Eric Breon is the CEO of Vacasa.com, which launched about the same time as Airbnb, but is quite different in its business model. We sat down with Eric to chat about the vacation rental market, the impact Vacasa is having on it, and what he sees as trending for travel in 2017.
Q: What is the biggest difference between Vacasa and Airbnb?
A: Airbnb is an excellent peer-to-peer marketing channel, especially for owners who want to self-manage their homes. At Vacasa, we also offer listing and booking services, but we also provide a full-service, professional experience from start to finish.
Our owners entrust us with the entire process of listing, insuring, marketing, booking, cleaning, servicing, and maintaining their homes. Guests who book with Vacasa can rest assured knowing that they’re working with a professional property manager. This means that the check-in process will involve a lockbox rather than a coffee shop meetup, and that every home is legally compliant with local regulations. Guests can also expect our homes to be stocked with essentials like towels and bath products, and our professional guest services team is available 24 hours a day, 365 days a year to resolve any potential issues during a stay.
Q: Why did you decide to start Vacasa?
A: In 2009, my wife Alia and I inherited the responsibility to take care of a small family cottage in Long Beach, Washington. After interviewing professional property managers, we found that they all lacked the marketing technology needed to make renting the home a financial success. So, we managed the home ourselves instead. In the first year, the home grossed over $20,000 in rental income – six times more than what the local property managers had expected.
Our experience identified the need for a professional start-to-finish vacation rental service that could also provide and guarantee optimal financial returns, so I decided to solve the problem myself. One by one, we brought on more homes, created more efficiencies, and invented more solutions and technologies. Before we knew it, the basis for Vacasa as a thriving business was up and running.
Q: Do you see the vacation home rental industry as here to stay?
A: Very much so! I think it’s quite clear that we’ve only hit the tip of the iceberg. Today more than ever, people are seeking more authentic travel experiences, and vacation rentals are a great way to get that. Vacation rentals are also a great option for families and groups who need the option of communal spaces and full kitchens.
Q: What will hotels have to do to compete with your growing industry? Or do you not see them as the same market competition — are the people who used to stay at hotels now switching to vacation home rentals? Or are they different consumers?
A: I think hotels and vacation rentals serve a different need. Vacation rentals are great for groups and families that want to spend time together in the homes they book. Hotels, in contrast, are typically much smaller and lack communal spaces and amenities, but can suit the needs of a traveler looking for a quick overnight option. In general, both industries will have to innovate to compete in the accommodations sector.
Q: What travel trends do you see in your industry for 2017?
A: Consumers today are much more willing to experiment with boutique lodging options and alternative accommodations, like vacation rentals, and place less of an emphasis on major brands. This is mostly driven by increased access to information and online reviews. According to a recent survey conducted by BrightLocal, 84 percent of people now trust online reviews as much as they would a personal recommendation.
Another major change agent in the travel space is the evolution of mainstream virtual reality. At Vacasa, we now offer 360-degree virtual Matterport tours at no cost to owners or guests. This helps us more transparently represent our homes during the booking process, which has resulted in increased bookings. In the coming years, I anticipate we’ll see more and more travel brands leveraging VR-based marketing tools and technology.
