A Reaction to VRBO's Report on Guest's Booking Habits: Understanding Your Target Audience

Kate Stoermer Author

How to leverage the data provided by VRBO/Expedia in their recent report on traveler booking behaviors

If you are a short-term rental host on VRBO, you may have received an email this week with a report on travelers behavior - their  "path to purchase".  I love it when we get reports like this - we can leverage those insights to help ensure our short-term rental businesses thrive!  I wanted to dive into the report, but to also talk about how to best leverage it and highlight some other data to help us apply these insights.

If you haven't seen the report, its a grab it HERE 

The Report Summarized;

On average in the U.S., people spend 40 days planning a trip, and 75% use social media during their planning phase. When it comes to making a decision, easy-to-navigate websites and price are paramount. Notably, 81% of travelers are influenced by early-stage advertising, and 57% say that compelling imagery is the most influential aspect of travel ads. The report also emphasizes the power of loyalty programs, something you might have guessed from Expedia's new focus on their One Key Cash program. (!!)  There are some other nuggets I think we can talk about as short-term rentalists - like the "inspiration phase" of the traveler path to purchase and the influence of friends in family for destination indecisiveness and how to leverage that 

The report cites 4 take-aways

• Stand out - travelers are consuming a lot of content, how do you stand out?
• Lean into loyalty  
• Being omnipresent -  cross-channel and cross-platform
• The OTA aren't just for booking, but research and inspiration 

What Short-term Rentalists Can Take Away: The Importance of Knowing Your Audience

To make these generalized observations actionable, you need to zoom in on your target audience. Knowing who you're talking to allows you to create more effective strategies, particularly when it comes to loyalty.  In fact, its my belief and experience that its not so much about standing OUT as it is SPEAKING TO that gets you booked!  For us as short-term rentalists, loyalty equals repeat guests, so once we have them - how do we keep them? Below offers some insights based on understood generational differences as they related to hospitality - which is a helpful lens if you haven't yet done the work to hone in on your target audience!  

Generational Preferences and Loyalty Building

Different generations have different loyalty triggers and preferences; its a helpful lens for informing our activities through the lens of our target audience.  Because of the various factors influencing the different generations, their focus and priorities will different and understanding these will aid in grabbing their attention - and keeping it. 

• Baby Boomers (~59 to 77 years in age today): This group focuses on utility and the hedonistic benefits of your offer. In your listings, emphasize practical amenities like Wi-Fi, parking, and accessibility features, as well as the "joy factors" like scenic views or unique architecture. Weave this through out all communications and make it easy for them to re-book; while they've learned to use technology its not with the same facility or reliance as the other generations - email remains a strong marketing tool and future discounts likely resonate for this audience. 
• Generation X (~43 to 58 years in age today): This group tends to have more skepticism toward flashy ads and rely more heavily on "tried and true" and social proof through  reviews. They often have lots of stress - aging parents and kids, so ease and assurances drive decision-making. Prioritize highlighting the safety, cleanliness, and convenience of your property in your marketing efforts. Use platforms where this demographic is active, which may include email newsletters and targeted online advertisements. This crew may appreciate items like fully-stocked pantry, contactless check-in/out, or digital guest book with suggestions for the best places to have food delivered from or grocery delivery to ease their way. 
• Millennials (~27 to 42 years in age today): With a penchant for unique experiences, use social media channels to showcase live events, local attractions, or even cooking classes that guests can enjoy during their stay. Make your property not just a place to stay, but a place to experience.
• Generation Z (~26 years old and under): Leverage visual storytelling through Instagram posts, TikTok videos, or YouTube vlogs that feature your property. Authenticity and strong imagery are your keys to captivating this age group. Increasingly evidence, this group shops based on their values and social consciousness, eco-awareness and sustainability woven through your offer will garner their loyalty and business. 

Actionable Strategies Based In Understanding Your Target Audience

As we consider the proposed takeaways from the VRBO report, we can leverage some of those insights by bringing it down to our target audience and their likely drivers. 

1. Standing Out: Depending on your primary audience, focus your content. For example, Baby Boomers might appreciate detailed listings that highlight practical amenities, while Gen Z might be more captivated by aesthetic visuals and authentic storytelling.
2. Lean into Loyalty: Customize your messaging to speak directly to your target audience. For instance, Baby Boomers might appreciate a more  straight-forward relationship based approach, while Millennials might be more enticed by unique experiences and respond more to social media based communications. 
3. Being Omnipresent: Be strategic about where you make your property visible. Older generations have learned to utilize online platforms but direct mail/email would continue to work well;  while young generations are likely to be influenced by social media and OTAs.
4. Research and Inspiration: Knowing that OTAs are used for both research and booking, consider offering booking incentives right at the point of research for your audience. It could be a popup on your website offering a discount for first-time bookers, or a special offer featured on an OTA site.

Wrap Up: Your Audience is Your North Star

In the crowded landscape of short-term rentals, the key to standing out is a deep understanding of your target audience. By aligning your strategies with what your guests value most, you can not only be present but also memorable in their 'path to purchase,' thereby building loyalty and boosting your business.  Join my email list HERE and get notified when new blogs post - we're going to stay on topic for a couple weeks and lean into how we can best leverage this data!

So, dig deep into who your audience is, speak their language, and watch how understanding their preferences can convert them from one-time guests into loyal advocates for your property. 

Not Sure HOW to Identify your Target Audience or Why You Should? 

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Bibliography

Romero, A. Criscione-Naylor, N. (2023). Identifying Brand Loyalty Requirements by Generations for Organizational Success and Renewability. International Journal of Gaming Hospitality and Tourism. 3(1). https://stockton.edu/light/doc... rand_l oyalty-6.7.23.pdf

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Hey Boss! I'm Kate, owner/founder of The CEO Host. If you are interested in taking a leap into short-term rentals - or have some questions about your existing business, my goal - passion, and career, is to help YOU succeed. I've coached hundreds of folks getting started or looking to optimize, analyzed more deals (and duds) than I could count, completed thousands of hours of education and training, attended conferences... So don't be shy. A good CEO knows to bring in expert help - and that's what I'm here for! Lets HOP ON A CALL and chat!   

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