Traveler bookings rose 12.5 percent, to $1.8 billion, in the third quarter compared to the same period a year earlier, according to an earnings call by parent company Expedia Group on Thursday.

New markets require new approaches and new tactics. Experts and industry leaders will take the stage at Inman Connect New York in January to help you navigate the market shift — and prepare for the next one. Meet the moment and join us. Register here.

Short-term rental platform Vrbo recorded $1.8 billion in traveler bookings between July and September, a 12.5 percent uptick compared to the same period a year earlier, according to a third-quarter earnings call by parent company Expedia Group on Thursday.

The strong performance, the second this week by a short-term rental platform, suggests economic turbulence hasn’t scared off vacation-loving Americans seeking travel destinations or homeowners interested in renting out their homes as an additional revenue stream.

The surge in Vrbo bookings stood among an overall 28 percent increased in the number of rooms booked among all Expedia brands, which includes Hotels.com, Travelocity, Orbitz, Expedia and others.

“Travel demand has remained strong and [average daily rates] remain substantially elevated relative to pre-pandemic levels,” Expedia CEO Peter Kern told investors in a call on Thursday. “There has been no real letup in ADR, and there has been no real letup in demand.”

Expedia’s net income rose 33 percent compared to the year before, to $482 million, for the third quarter. Overall revenue was $3.62 billion, up 22 percent from the prior year.

Despite Vrbo’s uptick in bookings, its biggest competitor, Airbnb, outperformed the company, according to an analysis.

Airbnb, the leader in the short-term rental platform space, released its earnings on Tuesday showing the firm grew revenue by 29 percent compared to a year before. Net revenue increased by 46 percent.

That was driven by a 25 percent growth in bookings of nights and experiences, plus a rise in the cost of each of those.

Vrbo also benefited from higher average daily rates (ADRs), or the price of each night booked on the platform.

Kern said repeatedly that both demand and average daily rates remained high heading into the final months of the year.

“The answer is no,” Kern said. “We have not seen any major moves [or] shifts in demand patterns.”

“The pacings for next year are strong,” he added. “A lot to still be filled in next year but we haven’t seen any (slowdown).”

Expedia has spent the better part of the year building and testing an app that will roll all of its companies into one platform, including Vrbo.

The goal is to create an incentive for repeat customers who book on the platform. Repeat bookings will lead to discounts and other loyalty benefits, Kern said.

He noted Expedia is going to be careful when testing Vrbo, given the booking process is different from reserving a hotel or rental car.

“We mean to disrupt it as little as possible,” Kern said.

This post will be updated as new information is received.

Email Taylor Anderson

rentals | websites
Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×