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  • Harsha M

SHORT TERM RENTAL MARKET IS BROKEN

"SHORT TERM RENTAL MARKET IS BROKEN", current implementation cannot support the Gen G + Gen Alpha nomadic human lifestyle.


Considering the innovations in data storage and cloud computing, we would think that the marketplaces could reduce the fees inline with technology costs to maximize benefits for customers (buyers, sellers, service providers) in a multi-sided marketplaces, but the answer is straight "NO".


Here is a glimpse of Vacation Rental Booking Site (OTA) Fees:

– Airbnb charges 0-20% service fee to guests and 3-5% transaction fee to hosts.

– Vrbo charges 6-12% service fee to guests and transactions fees of 8% or more to hosts.

– TripAdvisor charges an 8-16% to guests and transaction fees of 3% to hosts.

Booking.com does not charge guests but charges hosts 10-25%.

– Expedia does not charge guests but charges hosts 15-20%.


Each day technology is creating abundance in prosperity. Kudos to multi-sided marketplaces who built and took advantages of technology but looks like they are not catching up to customers requirements. With an increase in staycations due to work from anywhere choices, customers require bigger skin in the game. There should be a better way to handle short term rentals.


Here is a comparison snippet between hotels and short term rental bookings. After a decade of innovations, looks like we are heading backwards. In almost all the cities, hotels are the winners.




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