Nearly a year has passed since we last delved into the troubles at Vacasa, Hawaii’s largest vacation rental company, which had a that point announced massive layoffs and suffered an 88% plunge in stock value.
The intervening months haven’t brought much calm; the company continues to face significant challenges amid the broader troubles in Hawaii’s vacation rental market. In Hawaii, as of today, their website reflects a total number of Hawaii properties as 879. That is down another 25% since we last reported on their inventory last year.
Recent developments at Vacasa, including 13% further layoffs.
Vacasa’s ongoing crisis appears to be escalating with CEO Rob Greyber’s announcement of further layoffs and a “significant restructuring.” The details of the changes were just revealed when Vacasa announced its latest financials. The company said it expects booking weakness is likely to persist through 2024. They said they hope to become profitable in the future. Another 13% of the workforce, will again be shed, it was just announced.
For the first quarter of 2024, gross bookings, were down 18%.
The financial picture at Vacasa remains grim. Vacasa’s last financials reflected three consecutive quarters with declining reservations. Year-over-year, gross booking value and revenue were down 19%, with the year’s total bookings also down 10% to $2.3 billion. It is not surprising that Vacasa reported a reduction in the total number of properties it manages.
Impact on the Hawaii vacation rental customers and Vacasa stakeholders.
The implications of Vacasa’s struggles are profound for Hawaii homeowners and vacation renters. Homeowners, on one hand, continue to be uncertain regarding property management and the profitability of their properties under Vacasa’s guidance. Renters continue to contend with inconsistent service quality. Public reviews easily found by searching for “Vacasa” yield much negative user feedback that highlights numerous concerning issues that further erode Vacasa brand trust.
Vacasa shares once traded at $200.
As of today, however, shares closed at just $6.51. In contrast, Airbnb shares, which have also traded as high as $200, are at $148 today. Airbnb continues to outperform, primarily because of its diverse and decentralized business model. The challenges facing Vacasa have also provided an opening for other local Hawaii vacation rental management companies to enhance their services and capture more market share by focusing on customer satisfaction and local service.
Vacasa says it will pivot towards more local rather than national teams.
Greyber said “We have the opportunity to completely transform Vacasa.” Such a shift will be a blend of national reach together with local Hawaii expertise. If successful, this may better leverage their scale while improving service quality and responsiveness here in Hawaii.
The company’s future will significantly impact Hawaii vacation rentals going forward. They will navigate their problems with the Hawaii vacation rental management companies watching.
We invite our readers to share their thoughts and experiences: How do you view the future of vacation rentals in Hawaii? What have your experiences been with Vacasa?
These homestays in Hawaii can be problematic because of cleaning problems and cleaning fees..and they are plan expensive…Hotels as well…. Hawaii is declining and popularity because the price of staying there is just too high…
This is not my first time reading about this, and education for tourists is important. Also wonder what kind of mortality rates are in other diving resorts world-wide. Is there any research? Long flights would also apply.
My love for Hawaii is immense. I was visiting the islands 3 times a year. Myself including many other people today are finding the islands have overpriced themselves to where we no longer find it inviting.
I had a great time, August 2023, in a Waikoloa Vacasa rental with mainland family. Zero issues. Stunning setting, with awesome views of all Big Island mountains, and close to the beach & our luau. Truly a wonderful rental. Peaceful, quiet, and private. Not cheap, but far less expensive than getting 4 separate hotel rooms ! Visitors, including locals need options like this, and I hope that Vacasa can recover from whatever the issues are.
I see why rental companies like vasa are going to shutter. Many people are hoping that large chain hotels will be shuttered as well. That would make a bigger difference than the smaller companies
I find that in Hawaii it is essential to use local property management. They have the best staff, all the necessary experience and contacts, and lots of aloha. Why anyone would book or use Vacasa or Evolve for Hawaii is a mystery to me. Keep it local.
Vacasa managed my rental property for 1 year and they were horrible! Reviews were bad and my nightly rental rates went way down! I would never recommend them to anyone. After finding a local manager that was a Super Host on Airbnb, my bookings shot way up and my nightly rents went way up as well. I was losing about $1,000/mo with Vacasa and now on track to turn a profit this year with my new management.
There were other issues I had with Vacasa too but don’t care to go into it. But they are bad for homeowners!!!
In the last several years Vacasa has laid off hundreds of employees.
Blaming small individual out of state str owners like myself for your housing problem, when you have internationally owned corporate hotels in place and building more, as we speak? How is that discouraging tourism, by cutting out small time legal competition and forcing folks to spend hundreds more/night for a room?
Afforable housing? Who can pay 2500/mo. or more on the $14-26 hourly wage? Tax revenue will be in the dumps, but no worries, right? Not a tourist-based economy, right? Quit the knee jerk reaction and think it through. I hope you are not “bought and paid for”. It appears that way….
Bill A. Your comment has me wondering why you are not answering the topic question on Vacasa. The articles was not criticizing you being an out of state STR owner. It’s not talking about housing shortages either. You obviously have never booked a vacation with them as you have your own place to stay. How nice for you. Long distance complaining doesn’t get too much sympathy from me. Count your blessings while you had it good. Change is inevitable in life. I have had experience with Vacasa. It got progressively worse.
Beginnings of the end.
We had a horrible experience with Vacasa in Lake Tahoe a year ago. I’d never book with them again.
We got pitched to switch our STR management to Vacasa back when they first came on the scene. Best “no thanks” I’ve ever spoken (OK, at least in the top 20). We use a local broker who has lived and managed rentals (short and long term) for several decades on Kauai north shore. Her fee (20% of gross rent, excluding TAT/GET – Vacasa wanted more) is very reasonable, and she handles everything (reservations, collections, utility bills, emergency maintenance, supplies). Basically, I handle the big stuff (taxes, insurance, “new roof” type projects) and she does the rest. She is also focused as much or more on pleasing guests than owners, which is really doing the owners a favor whether or not they realize it.
Hi David.
Thanks for the feedback about your experience using a local management company.
Aloha.
I did not name her, but you must know …
Same reason that we no longer rent through VRBO and AirBnB.
When we go to Kauai, we always rent through a local agency.
This is a great example as to why a free market is the best.
Same here
Can you mention the local agency in Kauai? We try to come 1-2x per year, and usually thru VRBO or Airbnb because of kitchens. Used Vacasa once in West Maui. Experience was fine.
But we would Love to support locals if we knew how/who to contact that are reputable firms. Any info is appreciated.
Mahalo. 🤗