DECLARATION OF DISTRIBUTION INDEPENDENCE
by
VACATION RENTAL MANAGERS ASSOCIATION

The Board of Directors of the Vacation Rental Managers Association (VRMA) formally declares its intent to facilitate the construction and management of centralized online distribution of vacation rentals (the Switch) to achieve the following goals:

Goals

• Create quick access and trusted experiences for consumers
• Create standardized data platform for vacation rental managers (VRMs) to easily distribute inventory
• Create a centralized location for distribution channels to access vacation rental inventory
• Provide a platform on which the industry can develop relevant merchandising and e-commerce tools such as reviews, tours, special insurance, etc… that would benefit the industry first before any 3^rd party distributor
• Require that all distribution channel partners who access the inventory abide by a set of rules that protect professional mangers’ best interests and corporate integrity
• Facilitate simple, cost-effective 3^rd party distribution that ultimately leads to greater volume of bookings and greater revenue per booking for the VRM industry
• A low cost to utilize the Switch for both VRMs and Distributors that will stimulate usage and ultimately facilitate significantly greater amounts of commerce
• Create a revenue stream to be used for the promotion of the VRM industry and its interests
• Create an revenue stream for any software provider who enables VRMs to simply and easily distribute through the switch by adopting its technology standard
• Create a revenue stream for distribution channels who abide by the rules of the switch enabling managers to choose which distribution partner they would like to distribute through based on that channels terms & conditions
• Provide a manual upload for property managers to distribute through the "Vacation Rental Switch” in the event their software provider does not participate
• Provide influence and control to Industry Stakeholders
• Have a Switch that is managed by a credible, experienced management team with 1)knowledge of the needs of VRMs and Distributors, 2) the technology expertise to deliver the solution, and 3) The financial stability and resources to fund the Solution and maintain it over a long term period

Concerns:

• The Solution should protect vacation rental managers from unfair exploitation from 3^rd party distributors while enabling distribution to propagate
• The Solution must not attempt to set market rates, rather it should facilitate more competition and market rate options
• The Solution should be constructed to benefit from the lessons learned from the hotel industry distribution world, and explicitly provide mechanisms to avoid allowing any 3^rd party distributor from gaining so much pricing power that it could "dictate terms” to the industry
• The Solution should not create the opportunity for a "choke point” in the industry that would allow any one party to take advantage of the industry
• The Solution should not be set up so that a sale of any particular vendor or participant in the Solution could seriously jeopardize the interests and well being of the VRM industry

Due to these concerns, VRMA’s preference would be a Solution that has the following characteristics:

• Be wholly owned by VRMA as a non-profit organization that cannot be sold
• Be governed by VRMA who would manage the switch and provide accounting and billing for all transactions happening on the switch
• Be overseen by a board of trustees representing industry stakeholders
• VRMA bylaws would require all funds garnered from transactions paid to VRMA to be used for management of the Switch and/or promotion of the vacation rental industry as a whole.

The vacation rental industry has reached a critical tipping point. This is the time for professional vacation rental managers to access the benefits of 3^rd party distribution in a safe and effective way that benefits the business of vacation rental managers and protects their interests.

The VRMA board has established a Committee ("Vacation Rental Switch” Committee) to help facilitate the development of the Switch and related business programs to meet the goals outlined above. (The Solution) The Switch Committee is committed to working with members and industry experts to achieve these goals, and just as importantly, to insure that the ultimate industry solution takes into consideration the above concerns.

The VRMA Board of Directors welcomes all ideas and feedback from the membership through the correctVRMA channelsto insure that this project results in a success for our industry as outlined in the request for letter of interest.

Do you have Questions about The Switch? Checkout the The Switch FAQ