Did you know: In 2012, 42% of stories shared to users' Facebook timelines were travel experiences-- more than double that of the next category.

Consumer adoption of social media has shifted the online marketing landscape and with this change in consumer behavior, marketers have had to reevaluate their marketing plans.

According to the 2013 Portrait of American Travelers^SM study, 82% of travelers trust recommendations from friends and family, 74% of U.S. travelers have a Facebook profile and 1 our of 3 travelers reference social media as a main source of travel ideas and inspiration.

With an increasing amount of individuals communicating, reviewing and recommending products and experiences to their friends and family through social media, online word of mouth is vital to successful organic referrals, leads and conversions in today’s marketplace.

VRMA's public relations agency MMGY Global (formerly known as Ypartnership) has created a great resource for any tourism-industry professional looking to better leverage the power of Facebook marketing. First presented at the Facebook Global Travel Marketing Summit, MMGY has shared this 20-page white paper to help vacation rental management companies better understand and use Facebook as a marketing tool.

Download now: Facebook Marketing For Tourism Organizations

Guest Blog: A Look Back at How the Marketing and Competitive Landscape Has Changed for Vacation Rental Managers

Contributed by: Amy Hinote, VRMIntel.com; Originally published April 6, 2013

For vacation rental managers who have been around long enough to remember an offline life, the marketing of vacation rentals "ain't what it used to be."

An office on the strip, branded signs on the homes, and a rental brochure were enough to light up the phones on January 1st, with vacationers trying to secure their favorite house for one of the few weeks of the season.

But change is inevitable, and the sales and marketing of vacation rentals is no different. The first part of this series of articles takes a brief look back at some of these changes and how they impact the determination of key performance indicators for today's vacation rental management article.

Professional Property Managers initially offered comprehensive, full-scale services to vacation home owners, including but not limited to:

· Accounting

· Reporting

· Marketing

· Reservations

· Maintenance and Services

· Furnishing Services

· Local Check-in/Check-out

· Local Assistance

· Housekeeping

· Guest Services

· Real Estate Services and Accounting

As technology progressed in the early to mid 1980’s, vacation-rental-specific property management systems were created to help VRMs manage these services, including Resort Data Processing (RDP) and AV Main (FRS). AV Main creator First Resort Software was instrumental in bringing VRMs together with the first user conference called "The Forum,” which later became known as RezFest after Instant Software’s acquisition of the company.

In 1985, the Vacation Rental Managers Association (VRMA) was founded, and ten vacation rental managers gathered in Lake Tahoe for the first Annual Conference, which featured sessions on marketing and advertising and a presentation from the California Department of Real Estate. The industry expanded rapidly.

By the mid 1990’s, the internet as a vacation planning tool began to transform VRMs, vacation rental websites with online booking components began to appear around the country, and web-based software developed.

However, many vacation destinations were located in areas with unreliable internet connections, so technology growth was sluggish. In addition, adoption of new software was painful and creating a successful online presence was costly. Consequently, the road was paved for 3rd party channels to sell and market vacation rental properties online.

In recent years, the traditional Vacation Rental Management Company (VRM) has seen considerable changes in the competitive landscape:

The impact of 3rd party websites

From 1995 until 2008, multiple 3rd party vacation rental websites were born. However, during this period, the only 3rd party website causing disruptive competition for the traditional VRM was HomeAway’s VRBO.

Learning to navigate a distribution strategy related to VRBO.com was faced by VRMs with varying levels of success and angst. Many chose to place their own professionally managed properties alongside for-rent-by-owner properties on VRBO.com causing a consequential expansion of the source of competition. Other VRMs chose to pour their marketing dollars into heavy SEO/SEM initiatives to compete head-to-head with VRBO.com.

Simultaneously, TripAdvisor began compiling reviews which worried many VRMs who at the time lacked the ability to adequately respond to negative comments.

With the real estate market collapse, the number of rentals available to consumers increased; with easy access online marketing outlets, the number of rent-by-owner properties grew exponentially; and with double digit industry growth, the investment community got on board.

In 2008, TripAdvisor’s took a majority stake in Flipkey, HomeAway raised $250 million in capital, the 3rd party website competition began to increase, and new 3rd party websites were born. Some of these include Airbnb (with a current $2.5 billion valuation), HouseTrip (just received $40m in capital), and the metasearch platform by StubHub execs Tripping.com.

By 2013, the vast majority of VRMs have adopted:

1. A marketing strategy which incorporates 3rd party channels.

2. An operational strategy which handles inquiries and bookings from distribution channels.

3. A guest relationship strategy which converts one-time guests into long-term customers.

Search engine results

As vacationers turned to the search engines to plan their vacations, it became extremely important for VRMs to dominate the Search Engine Results Pages (SERPs). SEO/SEM experts such as Blizzard Internet Marketing, Blue Tent Marketing, and Visual Data Systems began dominating the programming lineup of industry conferences with the latest and greatest tips to achieving a listing on page 1 of Google for "[Your destination here] Vacation Rentals”.

VRMs were able to compete with each other for coveted keywords and fight the Google battle with strategies and marketing budgets. As the search engine algorithms changed and the distribution channels started increasing in traffic and page rank, VRMs struggled to keep up online. The large VRMs have been able to retain beneficial presence in SERPs, but small to midsize companies in competitive markets have been forced to get more creative in their online marketing strategies, while new companies find themselves more reliant on third party distribution than on SEM.

 The increased competition from VRBOs

Before technology and communications allowed remote management, vacation home owners were heavily reliant on VRMs to manage their properties. The full service approach was beneficial for property managers, home owners and guests which made the relationship a win-win-win for all.

 

The real estate collapse brought major changes to the vacation rental market place, bringing in thousands of homeowners who had not previously considered renting their homes. Airbnb was one conduit who capitalized on the phenomenon in major cities.

 

Christine Karpinski made Amazon’s Best Seller List with her book How to Rent Vacation Properties by Owner, which supplied would be owners with rental policy and confirmation templates, marketing strategies and tips on maintenance and housekeeping accountability.

 

Looking back on some the services which traditional VRMs offered, many tools became available to homeowners:

· Accounting and Reporting: QuickBooks Pro worked well for many VR owners, and there are services available which show owners how to use effectively.

· Marketing: Distribution channels (VRBO.com, Airbnb.com, HomeAway.com. HouseTrip.com, Flipkey.com, etc.) and low cost website building tools allowed homeowners to effectively market their properties.

· Local Check-in/Check-out: Keyless entry options became more advanced and affordable.

· Local Assistance: Companies with hybrid business models sprouted which allow fee based services such as 24/7 on call service, housekeeping, maintenance and reservations.

· Housekeeping: Housekeeping tracking services are available for owners.

In addition the distribution channels provide support, communities, forums, conferences, training, credit card processing and travel insurance options for VRBOs.

Awareness of other destinations as vacation options

 

Among vacationers who utilize vacation homes, for many years the trend was to visit the same place year after year and establish family traditions. Vacations were often longer than a week, and it was typical to stay in the exact same home each year.

 

Developments in technology, transportation, communications, and the family composition allowed travelers to think outside the box about vacation choices. With more options to explore with the click of a mouse or the touch of a screen, destinations all over the world became accessible for vacationers.

 

However, for the same reasons, more travelers are finding and using vacation homes as a lodging option, and there is still substantial room for growth.

Trends in 2013 and 2014

The competitive and marketing landscape is still shifting for VRMs, and the following trends are currently reshaping how traditional VRMs market to their owners and guests:

· Mergers and acquisitions in the vacation rentals space (in management companies, technology and distribution channels)

· Increasing online marketing costs for VRMs

· Previously traditional timeshare inventory becoming available to the retail vacation rental market at lower rental rates

· Emerging technology/tools becoming available to individual homeowners

· An increased attention to data mining and usage

· A surge in tools to manage the guest experience and remarket to the guest after their stay

Coming soon…Part 2: Metrics should be used to measure performance for a Vacation Rental Management Company

Would you like to contribute as a guest blogger for the Key Insights blog? We are always looking for relevant industry content. Contact us!

For the first time, research reveals that the majority of travelers know the difference between staying with a vacation rental professional and renting by-owner, and most have a preference, though there are many "ease of use” factors affecting decision-making. This is according to PhoCusWright’s first look into the growing industry since 2008: A Market Reinvented: The U.S. Vacation Rental Landscape 2013. According to the survey, which will be available in the second quarter of 2013, while 35 percent of vacationers do not have a preference, 31 percent favor "going with a pro” versus 25 percent who want to book direct with a homeowner.

(Members of the VRMA receive a special discount of 25 percent off the price of the survey when it is released in Q2.)

VRMA members have been experiencing a steady uptick in bookings year over year. For example, January 2013 analytics data by the VRMA together with Navis Research, LLC points to a more than 15 percent growth in bookings last month versus the same time last year, and a nearly nine percent rise for the next six months.

"With vacation rental guests’ word-of-mouth record, we have seen many new travelers discovering the perks of professional hospitality,” explains Steve Trover, President of the VRMA. "Now we see the potential for huge growth among undecided travelers.”

Following is a first-look at key survey insights:

THE RISE OF THE PROFESSIONAL: More than half of the vacation rental market’s total rental revenue now goes to industry professionals, up from 43% in 2007. For vacation rental professionals this translated to a more than $11.6 billion marketplace in 2012. The total U.S. vacation rental industry is expected to reach $25.8 billion by 2014.

TOP ATTRIBUTES OF ‘GOING WITH A PRO:’ The survey shows guests are more likely to associate standard hospitality services with vacation rental professionals vs. owners, including such key attributes as:

· Services (daily maid service, concierge, dining)

· Customer service

· Safety and security

· Activities, services for children

· Modern amenities (flat-screen TV, wireless Internet)

BOOKING WITH CONFIDENCE: When asked about their reasons for booking a vacation rental with either a vacation rental professional or homeowner, primary motivators point to convenience and transparency: most often, they deemed it was the easiest/most convenient way, were more comfortable with the booking process, were used to booking that way or felt there was more information about the property. Guests who book with vacation rental professionals are more likely to do their research online, and more companies are offering the ability to book in real-time, with seven in 10 vacation rental professionals offering live online reservations vs. just 46 percent in 2008 – a statistically significant boost.