Why Your Booking Mix Matters When You Sell Your VRM Company
Here’s something many vacation rental management company owners don’t think about:
Not all revenue carries the same level of risk.
If 90% of your bookings come through one online travel agency, a buyer is going to notice.
That’s not necessarily a deal killer.
But it is a risk factor.
The OTA Advantage
Airbnb, VRBO and Booking.com can provide enormous exposure.
They give property managers access to customers without having to build a massive marketing machine.
That’s valuable.
But the relationship ultimately belongs to the platform.
Policies can change.
Fees can change.
Algorithms can change.
Ranking can change.
And your business has limited control over those changes.
Direct Booking Is Different
A strong direct-booking channel gives a management company something very important:
Control.
You control the website.
You control the customer relationship.
You control the email database.
You control remarketing.
And you don’t have the same degree of dependence on an outside platform.
That can make direct-booking revenue attractive to buyers.
But Don’t Confuse Revenue With Value
A company shouldn’t chase direct bookings simply because someone says they’re worth more.
The real question is:
How profitable and transferable is the revenue?
A company generating $2 million of highly profitable, diversified revenue may be much more attractive than one generating $3 million with poor margins and significant platform dependence.
The lesson is simple.
If you’re planning to sell someday, build multiple distribution channels.
Don’t put your entire business in somebody else’s hands.