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Midweek Motivation Exercise Vacation Rental Trends for 2022

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JanS

Counselor
Inner Circle
Agreed! Our best hope to continue to compete is to enhance our limited edition properties with tech. Seems to me that guests prefer working with local smaller operators, we just need to stay visible and responsive.
 

StacyW

Counselor
Inner Circle
We have the last Block Buster in my home town :)

We are really pushing to have the best customer service, we are starting to implement some things like calling all guests week of arrival to make sure all is good, get arrival times, make sure we are texting the right number, and that they got the guide book. General information so we can prepare a special gift if we want etc. We did this for Thanksgiving arrivals and got amazing feed back in our reviews. We are bringing our inspectors and front desk teams to work together as they both play key rolls in the guests happiness. Will see how it goes as we fine tune it and get a system together.
 

Matthew

Counselor
Inner Circle
Very timely post....having the right tech stack is key. As you know, I am an early adopter, which causes some pain from time to time. The goal for 2022 (Q1) is make sure I have the right "stack". This will ensure that using technology to increase productivity will create the best homeowner and guest experience. As you said and I believe, having the right tech stack will allow the individual PMs to grow while still providing a Limited Edition Brand.
 

JeffJ

Counselor
Inner Circle
First, I hope that you all paid attention to the valuation. Vacasa received a multiple of gross revenue that we would normally see as a multiple of net income! This deal just drove up the value of our businesses tremendously; likely more than 10x. Related to tech enabled businesses, I agree completely! We are a consolidator, having completed two acquisitions in the last 24 months, we have also developed the operating system to differentiate our technology stack. The step we are currently working on is to consolidate all communication (text, email, social media) into one platform. We focus on high end luxury residences paired with unmatched personal services. These are our differentiators so we do not compete in the commodities side of the business. With that said, we are seeing margin pressure in every market. As a result we are trying to own or lease more of our inventory to reduce long term risk. If you are considering an exit, and you focus on luxury inventory, LMK, we are buyers. Happy Holidays! Enjoy your families. Mahalo
 

TomG

Counselor
Inner Circle
Hello community members, I'm sharing with you my big trend for independent owners and managers in 2022, along with links to all mentioned resources below.
Please use the thread below to share any trends you believe are worth doubling down on...


Resources Mentioned:
Matt you always deliver succinct and significant content in the midst of rapidly changing industry. Thank you for the guidance you provide us.
 

MichaelJ

Counselor
Inner Circle
Great update Matt Landau Matt Landau
Today's uninspiring move down in Vacasa's first day of trading as a public company under the ticker VCSA in what was a very good day of trading for the broad market shows how insanely they valued the company.
VSCA Tuesday 12/7/2021 = 9.84 -1.15 (-10.46%)

That said,... it now has hundreds of millions of dollars to spend to grow even faster.

In my market along 30A in North West Florida they are already showing us they are focused on growth and not operations as compared to other companies in this market. That's not a bad thing to me, because they have set the bar so low on expectations from owners leaving them that we will easily surpass their owners we are interviewing that are looking to leave them and move to other 30A management companies. One owner is telling us about how they arrived in the fall after their 1st rental season with them and there was a couch in the living room that was gone and nobody in the company could account for when it went missing. I don't care how "Tech Enabled" they advertise to be. Unless you have the proper ratio of boots on the ground that are actually inspecting and caring for the homes, all the tech in the world is useless.

Thankfully, there are quite a few owners that are thankful that we treat their homes as if they were our own. Providing that personal touch and a well balanced ratio of employees to homes under management.
 

MikeH

Counselor
Inner Circle
Columnist
Certainly times are a changing! Congrats to Vacasa on this. It's no small feat to get out into the public markets, even in a SPAC. I see it as a positive sign for the overall industry.

I think it remains to be seen how they perform over the long haul as a public entity. They'll have new requirements, new regulations to abide by, and growth expectations from the broader markets, so the pressure has just started for them. I think if anything they'll be a bigger acquisition target from some entity we are not even thinking about today.

As for valuations, I wouldn't put too much stock into what they are getting valued at vs. say, our small private business. It's really not apples to apples. Will it make good, well-run management companies in targeted markets more attractive/valuable by them and other's, probably, but I don't think they'll be out valuing companies on 10x revenue that have 100 to 300 properties under management anytime soon.

This really doesn't change anything for us. Vacasa is going to Vacasa, no matter what we do. We're just going to put our heads down and keep focusing on what makes us a good partner to begin with. Competition drives better outcomes for all!
 

MichelleR

Counselor
Inner Circle
I am so underwhelmed by Vacasa that if I find a VR managed by them I will look for another house to rent.....

In regards to that line of connecting and limited edition....I am always reminded that when I meet our guests during their stay they always write a positive review, take better care of our houses and we have a true connection in those moments.

When I have the time, I stop by to say hi, sometimes with a little something. A bottle of wine from our region, a homemade crisp made with our homegrown apples. Who doesn't like to receive a gift!

I do it as I love to spread joy and this is an easy way for me to do that. But the business benefits are beyond a doubt the single best thing I can do to get repeat guests, glowing reviews, houses left in good condition and happy customers. They feel loved and get a locals opinions for those 5-10 minutes. And they feel way more connected to our business and us.
 

JanS

Counselor
Inner Circle
In Vacasa's quest for more more more properties, they are going to run smack into the regulatory issues we are all struggling with. I'm waiting to see what they will do. Will they join the fray and make a positive difference?
 
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