Exploring 6 Alternative Vacation Rental Models for 2024

While large platforms like Airbnb and Vrbo dominate the vacation rental industry, there are numerous alternative vacation rental models worth considering. These short-term rental (STR) alternatives not only offer more flexibility but can also cater to specific needs and niches, ultimately helping you attract new guests and retain control over your business.

In this article, we’ll explore 6 alternative vacation rental models for rental businesses to consider.

Beyond Airbnb and other big booking platforms

The convenience of using large platforms like Airbnb, Vrbo, Booking.com, Tripadvisor, and Expedia is undeniable. These platforms offer global reach, a vast audience, and a user-friendly booking process.

However, for property managers looking to take full control of their short-term rental operations, relying solely on these giants may not be the best choice. Here’s why:

High fees and commission structures

One of the most significant drawbacks of using a major platform like Airbnb is the high fees they charge. These platforms often take a substantial cut of each booking (both in their host service fees and guest fees), sometimes as high as 20%, eating into your revenue. With alternative models, property managers can potentially reduce or eliminate these fees, keeping more money in their pockets.

Lack of flexibility and control

Using large OTAs also means conforming to their rules and policies. This can include restrictions on how you interact with guests, cancellation policies, and even pricing strategies. If you want the flexibility to set your own rules, terms, and pricing models, alternative platforms or a direct booking process can give you that freedom.

Limitations on reaching niche audiences

The major rental sites have a vast global audience, but they aren’t always the best at targeting niche vacation rental markets. Whether you’re catering to pet-friendly travelers, eco-conscious renters, or adventure-seekers, relying on a platform that doesn’t specialize in your property’s unique offerings may result in missed opportunities. Alternative models allow you to focus on reaching the right audience for your property.

6 alternative vacation rental models for success

Exploring alternative vacation rental models opens up a world of opportunities for property managers and those working in the travel industry. But what are the best Airbnb alternatives?

Here are five business models that offer distinct advantages:

1. Medium-term rentals: catering to professionals and minimizing turnover

Medium-term rentals (MTRs) offer a flexible alternative to the traditional vacation rental model, focusing on stays ranging from one to six months. This model is often appealing to traveling professionals, digital nomads, or individuals between relocations who need more stability than a short-term rental (STR) provides but don’t want a long-term lease. With the right property management system (PMS), such as Hostfully, you can easily sync MTRs and STRs on one calendar, streamlining the management of both types of bookings.

Pros:

• Reliable guest profile: Typically, the guest profile for MTRs consists of professionals, such as business travelers or remote workers, who are less likely to cause wear and tear on the property compared to short-term guests.
• Lower operational costs and stress: Since medium-term rentals involve fewer guest turnovers, there’s less stress on cleaning and operations teams, reducing the frequency and cost of preparing the property between stays.
• Simplified management with a good PMS: If you have a comprehensive PMS like Hostfully, it’s easy to manage MTRs and STRs on the same calendar, allowing for seamless coordination between both rental types.

Cons:

• Complex accounting: Managing MTRs can complicate accounting since rental revenue may span over multiple month ends, requiring more attention to detail in tracking income and expenses across billing cycles.
• Irregular booking flow: MTRs typically don’t have as consistent a demand as STRs, meaning you’ll need to be flexible and able to pivot back to shorter-term rentals during gaps in MTR bookings.
• Longer vacancy periods: When an MTR ends, there’s a risk of extended vacancy between bookings if the property isn’t immediately transitioned to a short-term rental, potentially leading to revenue loss.

Example:

• FurnishedFinder: FurnishedFinder is a popular listing platform designed specifically for medium-term rentals, catering primarily to traveling professionals, such as nurses and corporate workers. What sets it apart is its focus on longer stays, offering property owners access to high-quality, pre-screened tenants seeking accommodations for a month or more. With no booking fees and direct guest communication, it simplifies the rental process for both property owners and renters looking for flexible, furnished housing options.

2. Direct booking site: Owning your online presence

Setting up a direct booking website allows property owners to take full control of their listings, customer interactions, branding, and pricing structures. By doing so, you’re creating a space where guests can book directly with you, bypassing any third-party fees.

Pros:

• Customization: With a direct booking site, you can design your website to match your branding, creating a unique and personal experience for guests and carving out a name in the home rental market.
• Control over fees: You dictate the terms and conditions, without paying hefty commissions to third-party platforms.
• Data ownership: By managing bookings directly, you can gather valuable data on your guests, which can help with marketing and guest retention, including rewards program initiatives.

Cons:

• Marketing and SEO effort required: Running a successful direct booking site requires effort. You’ll need to invest in marketing strategies, such as search engine optimization (SEO), pay-per-click advertising, and content marketing to drive traffic to your site. So if those tasks seem like a huge hassle, this model may not work for you—or you may wish to hire other team members or services to assist.

Example:

• Boostly: Boostly is a service that helps property managers create their own direct booking websites. It provides tools to build a branded website and optimize it for search engines, helping hosts attract more direct bookings without relying on third-party booking sites.

  

3. Local booking platforms: Cater to specific demographics

Local booking platforms focus on specific regions or demographics, making them ideal for rental property managers who want to target a local audience. These vacation rental websites may include regional sites or those catering to specific traveler types, like eco-friendly vacationers or adventure enthusiasts.

Pros:

• Target local traveler market: By using a local platform, you’re more likely to reach guests who are specifically searching for accommodations in your region or tailored to their preferences.
• Potentially lower fees: Local platforms often charge lower fees than global giants, allowing you to hold onto more of your revenue.

Cons:

• Limited reach compared to major platforms: While local platforms can help target a niche audience, they don’t offer the same global exposure as Airbnb or Vrbo. This means fewer potential guests might see your listing.

Examples:

• RedAwning: This U.S.-based vacation rental platform focuses on helping property managers list their rentals across multiple regional and niche travel sites. It operates primarily in North America and offers integration with local and national platforms, providing a more targeted approach for property owners looking to reach domestic travelers.
• Cottages.com: A regional platform focusing on cottage rentals across the UK and Europe. It specifically targets travelers interested in rural and cottage-style vacations.
• Stayz: Stayz is an Australian-based vacation rental platform that caters to domestic travelers. It’s a strong local alternative for property managers in Australia looking to avoid international platforms.

4. Peer-to-peer networks: Collaborative communities for niche rentals

Peer-to-peer rental networks are platforms that operate on a collaborative, community-based model. These networks often cater to specific types of properties, such as eco-friendly homes, high-end vacation rentals or waterfront condos, and emphasize trust and transparency among hosts and guests.

Pros:

• Attract specific demographics: Peer-to-peer networks are ideal for property managers who cater to niche markets, such as adventure travelers or guests looking for a unique experience like trailer stays.
• Build trust with guests: Many peer-to-peer platforms prioritize building trust between hosts and guests through transparent reviews, communication, and community-driven features.

Cons:

• Smaller reach: These platforms may not attract as many guests as mainstream options, which could result in lower booking rates.
• Verification processes: Some peer-to-peer networks require hosts and guests to undergo verification, which can add time and effort to the process.

Examples:

• Glamping Hub: This network specializes in unique, nature-based accommodations such as treehouses, yurts, and cabins. Glamping Hub connects rental property managers with travelers seeking outdoor adventure and glamping experiences.
• Plum Guide: Plum Guide operates on a peer-to-peer model where only the top 3% of vacation homes in any given destination make it onto the platform. It’s highly curated with a rigorous vetting process before being listed. This makes Plum Guide ideal for property managers who own upscale or luxury properties and want to attract an exclusive, high-end demographic of travelers.

5. Vacation rental cooperatives: Leveraging group marketing power

A vacation rental cooperative is a model where multiple property managers pool their resources to create a larger, shared marketing and booking platform. By working together, they can achieve economies of scale and reach a wider audience, without relying on large third-party platforms.

Pros:

• Shared marketing efforts: A cooperative allows you to benefit from group marketing efforts, which can reduce the individual costs associated with promoting your property.
• Leverage group resources: Being part of a cooperative means you can access shared tools, such as booking management systems, customer support, and marketing resources.

Cons:

• Less individual control: With a cooperative, cooperation is the name of the game. While you’ll benefit from the group’s efforts, you may have less control over certain aspects of the platform, such as branding and pricing strategies.

Example:

• BookByOwner: This cooperative platform that helps independent property owners by offering tools and resources to streamline marketing, bookings, and property management. Members benefit from shared software and support services.

6. Property exchange networks: Cost-effective flexibility for host getaways

Property exchange networks allow property managers to “swap” homes with other hosts across the globe. This model is particularly appealing to hosts or homeowners who want to travel themselves while offering their property to like-minded travelers.

Pros:

• Affordable travel opportunities: As a host in an exchange network, you can travel to other destinations without paying for accommodations, making this a cost-effective option for globetrotters.
• Build a global network: Exchange networks create a community of hosts and guests who share properties, allowing you to build relationships and trust within a global network.

Cons:

• Limited revenue potential: Property exchange networks are more about flexibility and travel opportunities than generating income. If you’re looking to maximize profits, this model is not be the best fit.

Example:

• ThirdHome: This property exchange network caters to luxury vacation homes. Members can swap their high-end properties with other homeowners in the network, offering a cost-effective way to travel in style.
• HomeExchange Collection: An exclusive community for like-minded travelers to meet, share, and exchange their luxury homes across 85+ countries with over 5,000 homes. As a HomeExchange rep tells us, “Instead of booking a vacation rental, home swapping offers a more authentic and personal travel experience. HomeExchange Collection seeks to offer high-end accommodations for exchange, allowing travelers to enjoy luxurious comforts similar to those of their own homes.

Combining different vacation rental models

Many of the most successful property managers combine multiple short-term rental models to maximize bookings. For instance, you might list your property on a large platform like Airbnb while also running a direct booking website. This hybrid approach allows you to reach a broad audience while maintaining control over certain aspects of your business.

Alternative vacation rental models and software integrations

Regardless of which vacation rental model you choose, having the right tools in place is essential to manage bookings, communicate with guests, and optimize your revenue. Hostfully’s property management software (PMS) and digital guidebooks are designed to help vacation rental owners succeed across multiple models.

In addition to booking management across various platforms (including your own direct booking site), automated guest communications, revenue optimization, and custom digital guidebooks, Hostfully also integrates with software partners so whether you list on the major platforms like partners like Airbnb, Vrbo, smaller local ones, or want to find more new channels, you can distribute widely.

Some of Hostfully’s partners include:

• HomeToGo: a leading vacation rental search engine that aggregates listings across multiple platforms.
• b0arding: a vacation rental distribution platform integrated with Hostfully that focuses on simplifying the listing and booking process for property managers.
• bnbfinder: a distribution platform integrated with Hostfully charging a flat low monthly fee instead commissions, booking or service fees.
• Homads: a listing site catered to digital nomads. This site is a great place to book longer duration rentals.

With Hostfully, you’ll have the tools needed to thrive in any vacation rental model, giving you the flexibility and control to run your business your way.

FAQs:

What are the legal considerations for listing vacation rentals?

Before listing your property, be sure to research local laws and regulations surrounding vacation rentals. Many cities and regions have specific requirements, such as obtaining a short-term rental permit, paying local taxes, or adhering to zoning restrictions. Staying compliant with these regulations is crucial to avoid fines or penalties.

How can I market my vacation rental outside of major platforms?

To successfully market your vacation rental outside of major platforms, invest in creating a high-quality direct booking website, optimizing it for SEO, and leveraging social media. You can also use email marketing to stay in touch with past guests and encourage repeat bookings. Consider partnering with local tourism boards or travel influencers to expand your reach.

If I’m a homeowner, what are the pros and cons of using a property management company?

A property management company can handle the day-to-day operations of your vacation rental, including guest communication, maintenance, and marketing. While this can save you time and provide expert vacation rental managing, property management companies typically charge a percentage of your rental income, which can reduce your overall profits. However, the trade-off may be worth it if you prefer a more hands-off approach.