With everything to play for in the holiday rentals sector, HouseTrip’s chief executive George Hadjigeorgiou shares the company’s change in strategic direction and why a debate on regulatory reform is necessary

Picking the perfect place to stay plays a big part in any travel plans. Most people dedicate as much as 35% of their budget to accommodation, and as one of the world’s largest home holiday market places this is somewhere we’re looking to make our mark. It’s also a competitive and disruptive market so finding a niche has been a central to our strategic direction of focusing on couples and families.

Our rationale is simple. We know that these groups are looking for a home-away-from-home, not simply a budget, no-frills place to crash. We also have a geographical focus on Europe, where 60% of the holiday rentals market lives. What we also know is that ultimately, today’s discerning travellers want more choice. They may be looking for an apartment on a shoestring budget, but increasingly – and interestingly – they’re willing to pay a premium for more comfortable accommodation.

Our company strategy is underpinned by our scepticism of the so-called sharing economy George Hadjigeorgiou, CEO, HouseTrip

One thing I would say is that our company strategy is underpinned by our scepticism of the so-called sharing economy. ‘But it's cool to share’ claim the many shared-services start-ups dominating the headlines today. Yet many people are opting not to rent their car to their neighbour, lawn mower to the family doctor or spare room to a student.

In fact, a recent Nielsen survey found that:

• 63% of Britons responded ‘no thanks’ to the suggestion of sharing their primary house, car or personal wardrobe in return for cash.

We agree, and as such our target markets are couples and families looking to holiday in a private, self-catered space of their own. That’s why our portfolio largely consists of second homes and permanent holiday rental properties.

To reach couples and families we launched our first major piece of consumer marketing in the UK this May. The £2.5m marketing campaign included TV and out-of-home advertising, digital and social marketing and a national PR push. This marketing drive aimed to establish our consumer brand in this market for the first time.

The campaign aims to tell the story of what makes HouseTrip different highlighting freedom of choice, service and value for money that holidaying in a whole home offers compared to the usual hotel trip, or the ‘crashing in someone’s spare room’ option. Ultimately, with a holiday home people get more. More space, more privacy and extra services such as kitchen, WiFi and laundry facilities at no extra charge.

Too many options

It’s been a significant marketing investment and the reason for this is that we see branding as a key battleground in the holiday home rentals war. A recent HouseTrip survey showed that 60% of Londoners are open to booking holiday accommodation online but with so many options they’re lacking a clear brand leader that they can turn to.

60% of Londoners are open to booking holiday accommodation online but with so many options they’re lacking a clear brand leader that they can turn to

Of course, the holiday homes sector is not new. But our aim to perfect the whole holiday home booking experience is. In our experience, customers want quality and the reassurance that the home will meet a certain standard. So we have a team that vets every single property listed on our website, which is just one of the reasons for our high customer satisfaction scores.

Aiming to improve a process that is currently far from perfect isn’t easy. Like many other start-ups with a big vision we expect challenges. Many firms using new transaction models have found that the regulatory landscape is much slower to adapt to their business, coming up against taxi metre regulation battles or taking flak for renting out unqualified, uninspected properties. Similar to exploiting a tax loophole, companies dodging regulations designed to protect consumers mean there’s only really one winner – companies who can find a way to benefit from disruptive economies without protecting the end user.

There is need for an honest debate about the future of the industry and whether a common regulatory framework would benefit consumers

At HouseTrip, we agree that our hosts should pay taxes and contribute to the local economy. We agree that there needs to be a level playing field for all members of the hospitality industry to adhere to. But ultimately consumers will determine the services they want. One thing seems clear, there is need for an honest debate about the future of the industry and whether a common regulatory framework would benefit consumers.

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