Expedia Group transferred 1 million short-term rental listings from its Expedia brand to Vrbo, increasing variety in the vacation rental business and focusing more on urban stays. During a recent tech migration, Expedia reduced marketing efforts for Vrbo, impacting its performance. As a result, Vrbo is working to rebuild its brand and increase its inventory, including urban properties, to attract new customers. Expedia Group’s CEO, Ariane Gorin, expressed optimism about Vrbo’s growth potential and mentioned plans to continue expanding the brand further into new markets.
In addition to adding more inventory, Vrbo has introduced new features such as discounts for longer stays and more flexible cancellation policies. The company is also updating its app to enhance the shopping experience for users. A recent television ad campaign featuring Nick Saban aimed to increase brand awareness and attract more customers. Gorin emphasized the importance of improving the product, expanding the supply, and effective marketing strategies for Vrbo’s future success.
Gorin believes that Vrbo is currently underpenetrated in its existing markets, leading the company to appoint a new general manager to develop long-term growth plans. She also highlighted the potential for cross-promotion of vacation rentals between Vrbo and Expedia. Expedia Group’s strong performance in the third quarter of 2024, with increased room nights sold and total gross bookings, surpassed expectations. Executives predict a 5% growth in gross bookings for 2024 compared to the previous year, along with improved EBITDA and EBIT margins.
Despite the positive financial performance, Expedia Group announced that its CFO, Julie Whalen, would be stepping down from her role. A successor is expected to be appointed by February 17, 2025. The company’s focus is on continuing to drive growth and innovation, particularly for Vrbo, as it works to recover from the impact of the marketing reduction during the tech migration. The goal is to establish Vrbo as a key player in the vacation rental market, with a strong presence in both traditional vacation destinations and urban areas.
Overall, Expedia Group is optimistic about the future of Vrbo and its potential for growth and expansion in the vacation rental market. By leveraging its increased inventory, new features, and marketing strategies, Vrbo aims to attract a wider range of customers and increase its market share. The company’s strong financial performance in the third quarter of 2024 further supports its efforts to drive growth and profitability. With a focus on product improvement, market expansion, and effective marketing, Vrbo is positioning itself for continued success in the vacation rental industry.
