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Global: Vrbo has launched sponsored listings for all partners, allowing property managers and hosts to pay for premium positions at the top of relevant search results.
The global rollout follows a six-month pilot involving nine property management companies, including AvantStay and Vacation Rental Collective.
Vrbo Sponsored Listings operates on a pay-per-booked-night model. Partners pay when a traveller clicks a promoted property and completes a booking rather than being charged for impressions or clicks that do not convert.
Campaigns are managed through the Expedia Group Advertising platform. Partners select their target audience and submit a bid for each booked night, with a minimum bid of $5 and no maximum.
An advertising score determines which properties win the auction and are eligible to appear in premium positions. Partners cannot see competing bids but can monitor impressions, clicks, bookings and return on advertising spend through the campaign dashboard.
Expedia Group said participating partners recorded average increases of 49 per cent in bookings, 39 per cent in revenue and 30 per cent in booked nights during the pilot. The figures are based on Expedia Group internal data, and further details about the sample and comparison period were not published.
Tim Rosolio, vice president of vacation rental partnerships at Expedia Group, said Vrbo’s migration to the group’s ecommerce technology platform had enabled it to develop the advertising product.
Sponsored listings introduce another cost for operators seeking greater visibility in competitive markets, while giving them more control over when and where individual properties are promoted. The model may be particularly useful for filling gaps during quieter periods, although campaign performance will depend on factors including the nightly rate, bid amount and conversion rate.
Booking.com already offers sponsored search placements to accommodation partners. Airbnb has not introduced an equivalent product globally, although it has reportedly tested promoted listings with selected hosts.
The launch forms part of a wider product rollout across Vrbo and property management software provider Escapia.
Vrbo properties are expected to become bookable within Expedia travel packages. The platform is also introducing same-day bookings and non-refundable rates alongside tools for sending digital welcome guides.
Two additional cancellation policies are already available, allowing operators to offer refunds until either five days or one day before check-in. A host protection programme covering chargebacks, property damage and income lost following guest-related damage is also planned.
Escapia has updated its reservation grid and distribution tools, while Vrbo Payments is being piloted within the property management system.
Rosolio said vacation rentals were no longer viewed solely as an alternative accommodation category, with guests increasingly expecting standards of cleanliness and service comparable with hotels.
Highlights
- Vrbo Sponsored Listings are now available to partners globally.
- Properties can pay for premium positions at the top of relevant search results.
- The advertising tool uses a pay-per-booked-night model.
- Bids begin at $5 per booked night, with no maximum bid.
- Advertisers only pay when a traveller clicks the promotion and completes a booking.
- Vrbo tested the product with nine property management partners for six months.
- Expedia Group reported average booking growth of 49 per cent during the pilot.
- Vrbo is also introducing same-day bookings and non-refundable rates.
- Vacation rentals will become available within Expedia travel packages.
- Escapia is piloting Vrbo Payments and has updated its distribution tools
