A few words about TripAdvisor
TripAdvisor is one of the largest platforms globally in the field of travel and tourism, operating in approximately 40 countries and 20 languages. The platform includes around one billion reviews and ratings from around the world, submitted by users after their personal experiences with accommodations, meals at restaurants, visits to tourist attractions, and more.
The platform provides tools for comparing hotel prices, flights, and holiday packages, helping users find the best deals, thereby becoming one of the most reliable and widespread websites for travel information.
25% of TripAdvisor’s revenue for the previous year came from pay-per-click advertising. As a result, it was decided to prioritise other areas beyond accommodation to increase the platform’s profit share from its other activities.
Following this, the company announced earlier this month that it would cease offering bookings for short-term rental accommodations from 1st November 2024, causing disruption for property owners and managers.
What does the cessation of bookings for short-term rental accommodations mean?
The significant change announced via email to renters and hosts is yet another move to regulate short-term rental properties, as the phenomenon has reached uncontrollable proportions. An increasing number of owners are offering their properties through short-term rental platforms, resulting in an informal unfair competition between short-term rental properties and hotels, as well as between short-term and long-term rentals.
According to TripAdvisor’s official announcement, the platform aims to reshape its business model to focus on more long-term and stable forms of accommodation. The strategy the company has outlined is to concentrate on other services related to tourism and hospitality, such as hotel bookings, holiday packages, and attractions.
It is worth mentioning that TripAdvisor’s booking sites have been popular tools for owners and managers of short-term rental properties, as the financial burden incurred is quite minimal. Particularly in our country, no collaboration has been signed between TripAdvisor and the Independent Authority for Public Revenues, unlike with other platforms, with all that this entails.
How are owners and guests of short-term rental properties affected?
TripAdvisor Rentals’ support team announced that it will no longer support any bookings between short-term rental property owners and guests, making it clear that from 1st November, such bookings will be made at the sole responsibility of the parties involved.
Property owners who relied on the platform for advertising and managing their bookings will need to seek alternative solutions, such as Airbnb, Vrbo, Booking.com, etc.
Travellers using the platform who have planned their holidays beyond this date have begun requesting refunds from the company for the transportation tickets they have already booked.
What will happen to existing bookings?
Bookings made through TripAdvisor and the websites it includes for stays from 1st November 2024 onwards will be cancelled, and refunds will be issued to the visitors.
Short-term rental accommodations will no longer be available on the platform, so travellers will need to turn to other options to find accommodation for their holidays.
How can you prepare for this change?
If you are an owner or manager of a property that used TripAdvisor for bookings, you can look for and transition to alternative booking platforms, such as Airbnb, Vrbo, Booking.com, etc., which have a broad audience and a strong presence in the short-term rental market.
If you have your own short-term rental property website, you can invest in SEO and online visibility. By outlining the appropriate strategy, you can increase your direct bookings and reduce reliance on third-party platforms.
If you are knowledgeable in Digital Marketing, you can maintain your market presence by using social media and Google Ads.
If you are not familiar with technology, a more traditional approach is to seek partnerships with local travel agents to enhance your visibility and attract new visitors.
In conclusion
While the cessation of property management by TripAdvisor may disrupt the short-term rental market, which has recently been under pressure from various directions, it provides an opportunity for owners and managers to seek new ways to promote their properties.
By choosing Sparrow for the management of your property, you need not worry about any changes occurring in the short-term rental landscape, nor concern yourself with terminologies such as alternative booking platforms, Digital Marketing, SEO, social media, Google Ads etc.
