The travel industry was booming before the pandemic began. Everything slowed down due to health concerns but many are still bullish about industry prospects. Vacasa is a startup that is betting on a big industry rebound once the pandemic subsides. It is a rental management company from Portland, Oregon launched back in 2009. With more than 30,000 vacation homes and 6,500 employees, Vacasa is a major player that turned heads with its IPO.
Vacasa took the unconventional route of merging with a SPAC called TPG Pace Solutions Corp for about $4 billion. The executives behind TPG have already completed several successful transactions before this deal. This should boost the confidence of prospective investors, although risk remains due to the volatile environment. People are eager to go on vacations after spending more than two years mostly at home. Time will tell how quickly they can do so safely.
Vacasa Operating Results
Vacasa isn't profitable yet but it is enjoying increased revenues and reduced losses. In the third quarter of 2021, the company recorded a 77% surge in revenue year-on-year with a total of $330 million. It has revised its forecast by $100 million given better than expected earnings. According to its chief financial officer Jamie Cohen, only 10% of shares are publicly floated with ticker symbol VCSA. Existing shareholders of Vacasa stock are keen on holding on to their equity, showing belief in the company's future.
Vacasa vs AirBnb
Many compare Vacasa and AirBnB but the two have different business models. With AirBnB, homeowners get a platform on which to list their properties and get reservations. However, they will need to manage guest screening, overlapping requests, visitor support, online marketing, and more. On the other hand, Vacasa is a full-service vacation rental management company. It does repairs, maintenance, cleaning, stocking, support, marketing, and everything else necessary to keep the rental units thriving.
AirBnB is good for people who want to be more involved in the daily operations while Vacasa is perfect for property owners who prefer a hands-off investment approach. The latter provides more opportunities to scale up while maintaining a high standard of care for the properties. People do not have to worry about time commitments and the stress of running a hospitality business. They don't even have to live near the rental units so they can just keep adding more wherever they find great spots.