Once a driving force in Hawaii’s vacation rental market, this leading platform has faced a myriad of challenges—ranging from a sharp decline in properties to investor lawsuits and now a potential last-ditch take-over. Travelers and homeowners are left grappling with the aftermath. High fees, deteriorating service quality, and mounting legal troubles have fueled widespread dissatisfaction, prompting many to seek alternatives to Vacasa in an increasingly competitive market. Here’s why.
It started with a decline in Hawaii properties at Vacasa.
At its peak, this vacation rental giant managed thousands of Hawaii properties statewide, offering travelers an extensive range of accommodations. However, our recent investigation revealed a staggering reduction in listings.
While the platform’s homepage continues to advertise nearly 1,000 properties, deeper checks on availability suggest the number of bookable units has often fallen below 300. This discrepancy has frustrated users, with some reporting fewer options when planning their vacations. Rob M. asked, “What’s going on with the property listings on Vacasa? There were so many before, and now there are far fewer.”
For Vacasa homeowners, the decline has been equally alarming. Darrell K., a rental owner, shared his experience: “I was losing about $1,000 a month with them, but after switching to a local manager, my bookings and profits shot way up.” This sentiment echoes across many owners who feel their properties are undervalued and poorly managed.
Vacasa’s scaling issues also played a role in this decline. The company’s rollup strategy of acquiring smaller local Hawaii managers often resulted in inefficiencies, with reports indicating a high percentage of homeowners leaving after these acquisitions. This churn further compounded the reduction in available Hawaii vacation rental listings, frustrating both homeowners and travelers.
Lawsuits and layoffs plague Vacasa.
The company’s struggles extend beyond declining listings. Shannon, a commenter on Beat of Hawaii, highlighted repeated layoffs, noting, “Vacasa laid off 320 employees in one group, then rehired seasonal workers to replace them.” This cycle has drawn criticism for mismanagement and instability, leaving employees and users questioning the platform’s direction.
Adding to the turmoil, lawsuits alleging financial mismanagement have further strained resources. One legal filing accused the company of failing to meet financial expectations, a claim that has simultaneously rattled investor confidence.
The troubles at Vacasa have contributed to the plummeting demand for Hawaii vacation rentals.
Customer dissatisfaction is growing.
Guests have also voiced frustration with the platform’s service, reflected in the company’s Google reviews. With an average rating of just 1.7 out of 5, recurring complaints include poor communication, misleading property descriptions, and high fees.
Mike S. recounted his own disappointing experience during a nine-day Maui stay: “Construction noise greeted us every morning, and there was no warning. Maintenance issues and poor communication left us frustrated. I won’t book with them again.”
While some guests like John W. have praised past stays, these positive stories are becoming increasingly rare. A recurring theme among dissatisfied users is the high fees, which many feel are unjustified given the declining quality of service.
The struggling Hawaii vacation rental platform goes private.
The financial struggles of this once Hawaii vacation rental giant have far-reaching tentacles. After poor stock market performance, the company has agreed to be acquired by Arizona-based Casago for $128 million. Shockingly, the company’s market value was 4 billion dollars back in 2021 and has dropped 97% in value.
The company hopes to go private early in 2025, pending Vacasa shareholder approval. Vacasa CEO Rob Greyber described the merger as “a natural next step” in sharpening the company’s focus on homeowners, guests, and local teams.
However, with what others have reported a loss of some 4,000 properties in the past year and declining revenues, we’ll await seeing whether the combined company can overcome these challenges. Casago has a property management platform consisting of about 5,000 properties.
Casago plans to address some of these challenges by selling off local operations and transitioning them into franchise agreements, allowing local operators to manage properties with greater autonomy. This strategy aligns with Casago’s existing model and aims to bring localized expertise back into the fold.
The financial struggles at Vacasa are underscored by a drastic valuation drop from $4 billion in 2021 to only $128 million today, highlighting the precarious position of the company. Additionally, the Casago deal price could further adjust downward based on various concerns, adding more questions to the merger prospects.
Shift toward local management.
As the platform’s reputation falters, many homeowners and travelers return to local property managers. David B., a Kauai homeowner, shared, “We use a local broker who handles everything—from reservations to maintenance—and charges a reasonable 20% fee. It’s been a far better experience than what larger platforms offer.”
This shift highlights a broader trend in Hawaii’s rental market: the growing appeal of personalized, on-the-ground management services over large-scale operations that often lack a personal touch.
Casago plans include selling off local operations and partnering with franchisees to manage properties. This strategy could leverage local expertise while maintaining the support of a larger corporate entity, potentially addressing some of the inefficiencies that plagued Vacasa’s corporate model. At this point, there are more questions than there are answers.
Lessons for Hawaii travelers and owners.
The ongoing collapse of this vacation rental giant serves as a cautionary tale. For travelers, it emphasizes the importance of carefully reading reviews and vacation rental companies before booking. For homeowners, it’s a reminder to evaluate management companies based on their ability to maintain properties and guest satisfaction.
As Hawaii’s vacation rental market evolves, the focus is shifting toward quality over quantity. Smaller, locally managed options are gaining traction, offering a more dependable alternative for those seeking a slice of paradise without the pitfalls of corporate mismanagement. Many of these companies have been in business for years and are locally based. Interestingly, when Vascasa started, many of these smaller companies were concerned about their very existence. The tables have now turned.
Have you used Vacasa for your Hawaii vacation rental?
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We had Vacasa for a short period of time in 2019. We dropped them due to dissatisfaction with their service.
I feel this article is mainly intended to get people away from using rental companies. Until Maui deals with the aftermath of Lahaina there will be issues with all vacation home rentals.
Like I’ve been saying….shoot yourselves in the foot comes immediately to mind…..virtue signaling woke councils trying in vain to make a difference without having a clue what they’re actually doing!
I rented a beach front home and Vacasa was the PM. Never again. Horrible experience. Property listed AC. No AC (100 degrees outside and in). Couldn’t get a call back, etc.
Haven’t reentered a home since- back to hotels unfortunately.
We used to go to Hawai’i annually, but we’ve switched to Mexico (even though we like Hawai’i more and it is much easier to travel to). We can get a rental unit for 50-70% of the cost of Hawai’i now for a comparable property (beachfront).
As an Inn owner / operator I’m glad to see the change. Expedia and BDC , represent 12 of the best known booking platforms. And they book long term weekly/ monthly as well. People get tired quick of dirty linen and bathrooms in a household situation. With operators on the property, quality control is guaranteed! And there is someone to communicate with. Today people pay more for everything, and won’t return to mismanaged property. For their vacation dollar!
The fees these rentals are charging have kept me away for the past several years. 40%-60% increase is totally unacceptable. I’ve found St Thomas and the Virgin Islands are a much better value for those of us who aren’t loaded.
All vacation rentals need to be banned from residential and AG zoning across the entire State of Hawaii.
Vacation rentals should only be permitted in areas zoned resort.
I Totally Agree With You!°
Can’t mention other Islands but, we have owned on Big Island going on 22 years. We learned early on to go with local agencies to handle rental and all property management. Yes, check who you book with as alot of the companies are ” off Island “. Our team is on Island and available 24/7,365. Others in our complex use managers who are in California and one is in Texas. Yes, they say they are available but usually from 9 to 5, and not on weekends.
As I local Maui vacation rental manager, I was scared at first that they they were going to put me out of business by their size and financial strength. Look how fast that whole situation turned around. They were arrogant too and it came to bite them.
I’ve started avoiding Vacasa because of all the bad press lately. It seems like they’re the ones struggling to keep up when once it was the other way around. Weird how fast this all changed.
I’ve had mixed experiences with using Vacasa. Some properties have been amazing and problem free, while others were poorly managed and overpriced.
As a homeowner, I felt like Vacasa wasn’t marketing my property as effectively as they should have. Switching to a local manager was the best decision I’ve made. I think their goals were too lofty under the circumstances.
I actually had a great experience with Vacasa in Maui last year. The property was beautiful and well-maintained, but the fees were high as noted.
I’ve heard about their financial troubles but didn’t realize how bad things had gotten. I’m hesitant to book with them again unless there is a major turnaround under the new company.
Just for starters, construction noise near our rental wasn’t disclosed, and Vacasa refused to issue a refund. I’ll wouldn’t ever book with them again.
After years of managing my Maui property through Vacasa, I finally switched to a local company. My bookings are up, and I’m making more money with less grief.
Vacasa used to be great when they first came to Hawaii, but their fees have become ridiculous and their service non existent. I’ve switched to renting using a local property manager instead. Way more responsive, and overall better situation.
My last experience with Vacasa was simply a nightmare. The property wasn’t cleaned properly, and customer service didn’t help at all to resolve the issue. Never again.
Unless I missed it, what about the world of timeshare vacation rentals where you get a lot more than a “home” but also amenities that only timeshares offer like Marriott, Hilton and Outrigger?