Vacasa is adding homes to manage in 2022 at half the pace of 2021 in the name of profitability. Without the big mergers and acquisitions of years past, Vacasa is pressuring its sales force to get more productive or hit the road.
They will be telling signals about where travel demand will be heading for the rest of 2022. That's why we will be closely following Alphabet and Meta's earnings calls this week.
Softness in occupancy rates, onerous long-term leases, and investor demands for profitability have contributed to a greater strain on the weaker companies in the short-term rental sector.
The short-term rental manager says the changes will let it turn cash flow positive next year, but it may face a cash squeeze before it gets there. Watch out for the very similar Vacasa, too.
Outsiders figure out what's wrong with an industry and rightfully disrupt it. Then they learn that the disrupted industry does things a certain way for a reason. It doesn't mean Sonder's overall strategy is wrong, but that's a lesson it is learning.