What Is a Vacation Rental Franchise?
According to the International Franchise Association, a franchise is a way to distribute products and services. It consists of the franchisor, who oversees the brand as a whole, and the franchisee, who pays the franchisor to be able to do business under their brand.
In terms of vacation rentals, franchising allows the franchisee to manage short-term rental properties on their own terms while still reaping the benefits of operating under a well-established brand.
This type of business model is advantageous to all parties: the franchisor, franchisee, and the vacation rental guests.
It benefits the franchisor by helping them to expand the company’s locations and size efficiently. Short-term rental guests are benefitted from the peace of mind they can receive through booking with a reputable, well-established organization. Benefits to the franchisee are outlined below.
Benefits of Owning a Vacation Rental Management Franchise
Being a franchisee in the vacation rental industry means that you can receive initial and ongoing support from a team of experts who want to help you grow your business.
As you manage your short-term rental properties, you can maintain a level of independence to run your day-to-day operations as you see fit. That said, when you need assistance, you’ll have the staff and systems in place — through your franchisor — to be successful.
In addition to support, running a vacation rental management franchise also comes with a pre-existing customer base of people who are already familiar with and loyal to the organization.
Look at it this way: a vacationer is probably more likely to book their stay through a well-known and trustworthy brand vs an independent mom-and-pop company. You’ll still be able to provide a welcoming, boutique-like experience for your guests, but they’ll have increased trust and security knowing that they’re booking with a reputable and established brand.
Is the Vacation Rental Industry Profitable?
In short, yes.
Owning or franchising a short-term rental doesn’t guarantee rapid financial success, but the vacation rental industry continues to grow year over year with no sign of slowing down.
In fact, in the latter half of 2021, Airbnb had its best quarter in the company’s history, amassing a revenue of $2.2 billion in Q3. This quarter was also Airbnb’s most profitable, with the company bringing in a net income of $834 million.
Additionally, as of 2020, vacation rentals are used by over 450 million people around the world. In fact, short-term rentals in Europe have been around for over 70 years.
Our Top Picks: Vacation Rental Property Management Franchises
If you’re interested in buying and operating your own vacation rental franchise, here is some helpful information about the industry’s leading franchisors.
Grand Welcome
Grand Welcome is a top vacation rental management company that helps franchise owners expand their businesses without having to handle the day-to-day operations on their own.
“We handle the revenue management, marketing, backend support, reservations, technology and optional customer service, staffing, and accounting, allowing you to focus on growing your business even without previous experience in the industry.”
One reason why Grand Welcome is so well-loved is that aspiring franchisees don’t need any experience in the vacation rental industry to start their own franchise. The company’s world-class training and support help just about anyone to run a successful vacation rental management business.
Grand Welcome is partnered with Airbnb, Expedia, Trip Advisor, and Booking.com — to name a few. These big-name organizations trust Grand Welcome because they provide property owners with unlimited growth opportunities, decades of industry experience, and more.
SkyRun
SkyRun helps entrepreneurs create and manage businesses in the vacation rental industry. The company offers a licensing program that allows aspiring business owners to build and run their own vacation rental business under the trusted SkyRun brand name.
To help short-term rental hosts get their businesses off the ground, SkyRun provides access to full-service software and communication tools, comprehensive training, continual support, and other perks.
iTrip
iTrip helps those who want to buy a vacation rental franchise achieve the ultimate work/life balance. Their business model allows for flexible management, meaning up-and-coming vacation rental business owners can work from home, receive consistent support, and don’t even have to own property.
iTrip has available markets all across the United States, including California, Florida, Tennessee, and more.
PMI
Property Management Inc. (PMI) has over a decade of industry experience. The company’s unique pillar system allows franchisees to operate a business in the residential, commercial, association, and/or vacation industries.
With PMI, property managers will experience low investment costs and access to high-quality marketing and operational support.
Vacation Rental Franchise or Start Your Own Business?
The decision of buying a vacation rental management franchise or starting your own business from the ground up is ultimately up to you. There are certainly pros and cons involved in either choice.
A Hawaii Grand Welcome franchisee says that franchising has allowed her to be “continuously improving and growing the number of vacation rental properties we are able to offer to our guests.”
Ultimately, if you’re new to the vacation rental industry, or if you don’t have ample time or experience to invest in starting your own business from scratch, a franchise may be the right choice for you.
For more tips on running a vacation rental business, visit these resources.
