Background
- For vacation rental owners looking to drive sales to holidaymakers, there are currently two main options: build their own website and take bookings directly and/or list their property on a third-party ‘online travel agents’ (OTAs) like Airbnb or Booking.com.
- However, there are a few key challenges with these approaches: 1) for rental owners, creating a website that is optimised to finding the right customer and handling direct bookings is difficult and not cost effective, 2) commissions paid to OTAs are high at c. 15%-25% of the value of a sale and 3) manually co-ordinating short-term bookings across a range of different OTAs and websites is complex and inefficient.
- Lodgify’s vacation rental SaaS platform addresses these challenges by enabling its customers to seamlessly set-up a direct bookings website and manage their inventory across the OTA platforms all in one place, reducing their customers dependencies on a single OTA provider.
- The total addressable market is significant with 15 million vacation rental properties worldwide, of which 80% of these properties are operated by long-tail hosts – a segment of the market which is overlooked by SaaS vendors. Lodgify has identified this opportunity and has built the leading pure play provider for the long-tail market.
