The global Vacation Rental Market's 150 billion dollars in value are tempting. But what are the pitfalls when a company wants to go Global? Coming soon...
First pitfall: remain local...and get caught up by competition!
When business is good, it is tempting to stay local. The comfort of knowing laws, language, geography is sweet...but poisonous in a Global Market.
You risk not seeing a competitor come in from abroad with a better product.
You miss the benefits of scale.
If you are in the U.S., the local vacation rental market can seem big to you - indeed 35 billion is a lot. But your competitors who go Global will have a base market of 150 billion, and these economies of scale will kill you in the end. Staying local is as if a U.S. company chose to stay on the West Coast only. Valid in some businesses, but in most National companies will overtake you. Can you imagine amazon.com remaining East Coast only?
You miss the benefits of internationalization.
Yes it is a pain to deal with localization and internationalization, all these i10n and i18n scare both your product managers and developers. But remember, even in the U.S. domestic market, many destinations like Hawaii and Florida get many international visitors. For example, in Hawaii, Japanese visitors represent more than 20% of tourists and spend 30% more on accommodation than tourists from the U.S. In the same way, many cleaning apps are not so user friendly for Hispanic speakers in the U.S. And Airbnb mentioned that more than 1/3 of U.S. hosts' earnings come from foreign guests.
Second pitfall: underestimate the effort and skills to go Global
You already know that the vacation rentals market is complicated, fragmented and so on. But going international exponentially increases that complexity- due to differences in technology, legal and languages.
Third pitfall: not leverage partnerships
In conclusion, companies in the vacation rental industry must go Global to survive and thrive. At the same time, the huge complexity of the international vacation rental market means that going too soon or poorly will destroy cash. We outlined our solutions to this business development dilemma in our guide to get the Global vacation rentals market - you can download it for free now! And you can also book us for a free 15 minutes consultation by clicking here TBD.