Companies that don’t use trust accounting will go bankrupt.
Trust Accounting simply means that companies will hold owner & guest money on their behalf and not take it to run their business exactly for times like these.
Who would have thought trust accounting & rental regulations may have saved countless local businesses. Cheers to North Carolina regulators!
Acquisition & Leasing models are dead……for now
Companies like Vacasa that have “rolled up” property managers will put their buying spree on hold, but with companies starved for cash and low valuations the landscape is wide open for anyone with cash.
Glorified WeWorks that leased apartments to rent out short term like Sonder, StayAlfred, & Oyo will face a reckoning as lease payments are due with no guests
Travel Insurance Purchases will Increase
I am normally the first to say buying travel insurance is for suckers, but even I will be buying travel insurance till the end of 2020.
Rental Guardian’s cancel for any reason policy might be the only product that is going gangbusters right now.
Booking Windows Will Shorten
Increased uncertainty will come more last minute travelers.
OTA Payment’s Will Move to Post Checkout
Online Travel Agencies will make sure they do not pay owners or property managers before guests stay so they are not left holding the bag.
Cleaning Staffs Will be Appreciated
The unsung heroes of the hospitality industry will finally be appreciated as guests, managers, & owners care about home cleanliness more than ever.
Venture Capital Funding will Dry Up
A flood of new companies has entered the vacation rental space over the last decade funded by venture capital and promises of riches. The crisis will force every company to see if they can run on their own profits or fold.
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