“We are observing an evolution of market shares”
How is the seasonal rental market evolving? The response of Simon Lehmann (AJL Atelier), defector of Interhome and HomeAway.
It is also a growing market, with a redistribution of the cards, according to Simon Lehmann, founder of the consulting company AJL Atelier. “We are seeing an evolution in market shares,” explains Simon Lehmann, who is also the former CEO of Interhome France (2005-2014) and former member of the HomeAway.com administration. A market where competition is changing, driven by huge marketing budgets.
TripAdvisor less aggressive
How does this redistribution of cards work? “Vrbo / Expedia is a big winner in the United States. Booking.com was stopped in its growth strategy in the United States, but moved to Europe, where Airbnb has a strong presence. But don’t forget that Airbnb has lost part of its inventory in cities like Paris, many ads are no longer active. Very aggressive in the past, TripAdvisor is much less in the competition than in the past, and more focused on hotels and activities ”. Alongside these emerging historical players, new players, such as HomeToGo and the comparator Holidu, who recently raised 37 million euros.
“Today, the market remains very fragmented. We will see a lot of consolidation moves over the next few months, but not necessarily on the OTA side. We are also witnessing a convergence between the world of seasonal rental and that of the hotel industry. “
What role does Google play?
Google also wants its piece of the pie, as we explain in an article from 2019. The Mountain View giant has developed a section dedicated to advertisements for houses and other apartments.
However, not all operators approve of its comparator strategy. Vrbo (Expedia) has also withdrawn from Google’s vacation rental meta-product, preferring to promote direct traffic, and optimize its marketing investments.
Google, for its part, continues to bet on this very promising niche, and can help certain operators according to Simon Lehmann. “Google plays an important role. It is positioned as an additional channel for property managers and aggregators. But for Simon Lehmann, there is less interest in OTAs specializing in seasonal rentals.
When Airbnb drops customer fees
Another hot topic in the sector: Airbnb is changing its price display on certain advertisements, in particular those of professionals, the costs incumbent on travelers being indicated. “This ‘Host-only fee’ option allows hosts who register on multiple platforms to better control the prices displayed on Airbnb,” explained the platform’s press service. These hosts can ensure that their ad prices remain the same – and therefore competitive – across all platforms. “
“Airbnb thus broadcasts a ‘commission only’ model, as Booking.com always has. “It remains to be seen whether this model will eventually become the standard, which allows customers to display an all-inclusive rate from the outset.
A partnership with Cambon Partners
A French investment bank specializing in travel, Cambon Partners recently entered into a partnership with AJL Atelier, a consulting firm dedicated to seasonal rentals in 2018. “We have very complementary skills,” estimates Morgann Lesné, partner at Cambon. We know that vacation rental is an industry in its own right, which has its own ecosystem and its own codes. Simon knows this ecosystem by heart, which allows us today to become a benchmark investment bank in the sector, ”continues Morgann Lesné. “At the level of technology providers for vacation rentals, which represent a very segmented market, we will see consolidation movements over the next twelve months, estimates Simon Lehmann.
p style = »text-align: center; “> ________________________________________________________________________________