Hopper and Vrbo are ready to take global vacation rentals to the next level with an interesting but sensible partnership.
Find out what this means for real estate investors and how they can take advantage of it.
A Partnership That Makes a Lot of Sense
Hopper is an app that tracks how much airlines, hotel bookings, and car rentals cost at any given time. As an online travel agency, it uses prediction algorithms to process real-time data for travel recommendations. The app is especially useful for travelers who are on a tight budget.
Vrbo, on the other hand, is a vacation rental marketplace that is one of the pioneers in the home-sharing business. It was initially launched as VRBO, which stands for Vacation Rentals by Owner. It was later on acquired by the Expedia group and rebranded with a new logo, pronunciation, and capitalization.
These two companies are known in the travel and hospitality industry. Their partnership is something that has raised a few eyebrows and has piqued the interest of observers.
Since Vrbo has countless rental properties all over the world, Hopper is looking to tap into Vrbo’s inventory to launch its own vacation rental business. By doing so, it is giving travelers alternative lodging options. Users of the platform will find this new feature helpful as they make travel plans on a budget. This feature will also make Hopper a one-stop shop for all travel needs.
However, to further strengthen its foothold in the vacation rentals scene, Hopper also tied up with other partners. According to Susan Ho, the head of Hopper Homes, this multi-sourcing strategy is vital to helping their customers get the best possible deals on vacation rentals.
A spokesperson for Expedia, Vrbo’s parent company, has this to say about the deal:
Hopper is an Expedia Group Rapid API partner — one of the tens of thousands of partners that we power with our lodging inventory and technology solutions.
Travelers can now book Vrbo vacation rentals while planning their flights on Hopper.
Why It Matters to Real Estate Investors
Vacation rentals are once again in high demand as travel restrictions have been lifted globally. The travel and tourism industries were one of those badly hit by the pandemic’s economic effects. Countless trips and, consequently, bookings were canceled at the time.
But with the ease of travel restrictions, short-term rental businesses are recovering at an impressive rate. A whole lot of them are even performing way better now than they did before COVID-19 happened.
This recently-formed partnership between the two tourism companies will also benefit real estate investors. Hopper is opening more doors for owners of Vrbo vacation rentals to get more exposure and bookings. Investors can also get a piece of the action by investing in income properties and starting a vacation rental business.
Hopper’s team-up with Expedia’s Vrbo gives them the upper hand over competitors like FLYR, KAYAK, Gogobot, and Allegiant Travel Company. For those who don’t know, Hopper’s valuation as of February 2022 was already at $5 billion. This latest valuation was caused by its fast growth amid a pandemic. With the huge possibility of an IPO in the near future, the company is well on its way to becoming a global industry giant.
Investors who know better will not let this chance to let money slip through their fingers. Sure, mortgage rates and property prices might be slowly inching their way up, but they’re still within reach. If an investor waits for the time when mortgage rates or property prices go down, it may already be too late for them to get into a good position. But don’t just take our word for it. Do your own research, too, and see whether it’s right for you.
Investing in Rental Properties
Even if you don’t get to join the Hopper-Vrbo bandwagon, investing in a rental property is still a sound move. Rental properties are a good income source that brings in a good return on investment. Especially if the subject property is in a good location. The right property in the right location can give a rental property owner a steady stream of income. To get to that, however, you will need to perform due diligence.
Investing in rental properties may be a lucrative business venture, but it is not without its own setbacks. One, unlike fix-and-flips, you will need to commit more time to run the business. Two, there is the risk of ending up with bad tenants. Three, maintenance and upkeep will cost you. Four, where vacation rentals are concerned, your opportunities might be limited due to state regulations.
However, if you feel that rental properties are still a good fit for you despite the setbacks, you will find that it has so much potential for equity and wealth building. You just need to conduct a thorough real estate market analysis as well as a rental property analysis. These are necessary to have a more accurate ROI projection. These two will allow you to have a greater understanding of the market you’re considering.
To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.
Wrapping It Up
This partnership between Hopper and Vrbo can open more doors for real estate investors in the area of vacation rentals. Those who have existing Airbnb properties might want to consider giving this some serious thought. Investors who want to capitalize on this opportunity will do well to invest in rental properties they can list on Vrbo. If you’re interested in exploring this idea, you need to do your homework.
A real estate website like Mashvisor can be of great help to investors looking for the best possible rental income properties for sale. Its database and investment tools have helped countless investors start a rental property business. You could be the next one.
To get access to our real estate investment tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.