Expedia Group is considering launching sponsored listings on their vacation rental platform Vrbo, as it is currently a significant part of their advertising business on Expedia.com and Hotels.com. Rob Torres, senior vice president of media & affiliate solutions at Expedia Group, is pushing his team to figure out a way to incorporate sponsored listings for short-term rentals on Vrbo. The idea is still in a nascent discovery phase, but there is interest from both individual property owners and large property management companies.
Expedia Group currently allows hotels to purchase TravelAds and airlines to buy Flight Sponsored Listings to increase visibility on Expedia.com and Hotels.com. Recent changes to Expedia’s sponsored ads include automated bidding and providing advertisers with information on their budget and competition. While there are limited vacation rental sponsored listings on Expedia and Hotels.com, Vrbo has not yet had this feature. With Vrbo transitioning to a common tech platform with Expedia and Hotels.com, it may soon be possible to offer these features to Vrbo listings as well.
Expedia claims to have an advantage over competitors in terms of targeting capabilities and data insights. They have a full funnel approach, which allows them to track whether a user has converted on their site, providing better targeting for advertisers. Expedia’s sponsored ads have proven successful for hotels during big events, leading to revenue boosts in various locations. Independent hotels and big brands are both utilizing TravelAds, with about a 50-50 split between the two.
Airbnb’s CEO Brian Chesky had previously hinted at the possibility of introducing sponsored listings for short-term rentals on their platform, but it has not yet materialized. Expedia’s Torres did not comment on whether Airbnb was missing an opportunity by not offering sponsored listings, but emphasized the potential of such a business. There is interest in sponsored listings for short-term rentals, and Expedia is taking steps to ensure they are able to offer this feature on Vrbo.
Overall, sponsored listings could be the next frontier for short-term rentals, presenting a new opportunity for both individual property owners and property management companies to increase visibility and bookings. Expedia Group is actively exploring ways to launch these listings on Vrbo, leveraging their experience with sponsored ads on Expedia.com and Hotels.com. With the potential for increased revenue and targeting capabilities, sponsored listings could be a beneficial addition to the vacation rental industry.
