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THE VACATION RENTAL INDUSTRY (USD BN)
MARKETS’ SHARE OF TOTAL INDUSTRY 2016 According to VRM Intel research, the percentage of adults who have stayed in a vacation rental has already quadrupled from 8 percent in 2011 to 32 percent in 2015. Source: Technavio 2016
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GROWTH OF THE CAPITAL INVESTED IN THE VACATION RENTAL PROPERTY MARKET
TREND 1: GROWTH OF THE CAPITAL INVESTED IN THE VACATION RENTAL PROPERTY MARKET As the yield on sovereign and corporate bonds has plunged in recent years, significant capital has flowed into the real estate market including vacation rental properties. Market research company Technavio estimates that foreign investment alone into vacation rental properties the US accounted for USD bn in 2015.
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TREND 2: SHIFT TO ONLINE BOOKING
Consumers’ habit of being able to have instant confirmation of bookings has entered into the vacation rental market as well. HomeAway announced in 2015 that all their listings would be instant-booking ready during This development also add to the migration from offline to online sales and booking channels.
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TREND 3: INCREASED PROFESSIONALISM
These are technavio stats The vacation rental business is morphing into the hospitality business. We need to offer value: professional tools, standardised products and personnel training. The professionalisation of the industry with an eco system of property managers and service providers, together with a hotel-like search and booking experience through online travel agencies, is expanding the market to new consumers. Overall, the utilization rate of vacation rental properties is lower than in the hotel market and therefore, there’s a vast scope for a more efficient marketing and booking process. Market research company Phocus Wright estimates that the average occupancy rate per property is 33 percent for the private market and 38 percent for the professional market run by the property managers.
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2 CHALLENGES Low Occupancy Rates Low Productivity
THE SITUATION OF VACATION RENTAL SUPPLIERS Vacation rental suppliers are facing two major challenges with the traditional set-up in how customers are acquired and bookings are managed: Low occupancy rates of average percent according to PhocusWright. This is a heavy weight on gross profits that of course are critical for the profitability of their business. Low productivity due to cumbersome manual processes handling bookings and marketing to acquire customer including managing integrations to travel websites. As online marketing today is the major customer acquisition channel and travel websites such as Booking.com, HomeAway and AirBnb are playing an increasingly important part of this, managing these integrations is a major pain-point in the traditional setup. The supplier must open accounts with all the travel websites as well as perform constant updates such as the availability calendar when they receive a new booking. Of course, this means that significant resources must be allocated to these integrations as well as the error-correction that arises from manual processes handling a large volume of bookings.
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Estimated +1,9 (of +10) million properties worldwide using a PMS
PROPERTY MANAGER INTERNAL ORGANISER OTHER SERVICES CHANNELS Estimated +1,9 (of +10) million properties worldwide using a PMS +650 known PMS worldwide Channel Manager Property Management Software (PMS) OWNER / MANAGER Yield Management GUESTS
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Property Management Software
PROPERTY MANAGER INTERNAL ORGANISER OTHER SERVICES CHANNELS Channel Manager Property Management Software (PMS) YOU Yield Management GUESTS +250 million monthly visitors
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We distribute to 55+ Channels
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Property Management Software
PROPERTY MANAGER INTERNAL ORGANISER OTHER SERVICES CHANNELS Channel Manager Property Management Software (PMS) YOU Yield Management Other VR Tech Services GUESTS
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Self-financed from 2012, First investment in 2014
Offices in Barcelona & Warsaw, Holding in Stockholm Quadrupling distributed vacation properties over the last 12 months, from to properties worlwide. 17 MEUR in net bookings for 2016, 4 x 2015 net bookings of 4 MEUR. Preferred Partner of HomeAway & Booking.com Connected to 40 PMS companies & 3 Yield Management companies MILESTONES
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PROPERTIES CONNECTED TO RENTALS UNITED PLATFORM QUARTERLY NET BOOKINGS
NUMBER OF VACATION PROPERTIES CONNECTED TO RENTALS UNITED PLATFORM QUARTERLY NET BOOKINGS (MEUR) ANNUAL NET BOOKINGS AND MARKET SHARE (MEUR / %) Growing the number of vacation rental properties connected to our platform is the primary driver of the company’s value creation as this directly translates into higher net bookings (value of confirmed bookings, i.e. after cancellations). The revenue follows as our pricing model is commission-based (2.8 percent of the net booking value). The net bookings are growing rapidly with a 44 percent average quarterly sequential growth in A market share (net bookings divided by the Technavio 2016 market forecast) of less than 1 percent even in 2020 also implies there's plenty room for further growth the next decade as well. Our projected annual net bookings is really but if you look at it this is still only 1% of a market that is growing exponentially
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OUR PLATFORM Synchronise all data Auto-creation of listings
Minimum content quality Payment Gateway Booking Engine Basic PMS Inventory for listing sites
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COMPETITORS MyBookingpal: Still suffering from not getting clients live and making bookings on many of the most important Travel Websites. Complaints about their customer service. Nextpax: Old platform, primarily focused on larger property managers and agencies. Question whether they are able to handle large volumes of clients both platform and staff perspective Xotelia: Primarily focused on french B&B´s. Not any noticable footprint globally. Kigo: Primarily a PMS company, suffering from not getting clients live on important Travel Websites (questions regarding connectivity skills).
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OUR CHALLENGES 30% gross margin >looking to grow this to 80%
Huge amount of free accounts. What’s next?
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PROPERTY MANAGER INTERNAL ORGANISER OTHER SERVICES CHANNELS
Channel Manager Property Management Software (PMS) YOU Yield Management Guest Management Tech Services Rental Management Tech Services GUESTS
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Thank you! Vanessa de Souza Lage vanessa@rentalsunited.com
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