Does the Vrbo MarketMaker Tool Work?

Want to know if Vrbo MarketMaker really works and whether or not you should use it? Find out in this blog post.

Disclosure: This post may contain affiliate links.

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Getting your nightly rates just right is key. It’s what drives bookings, fills up your rental, and boosts your earnings. 

If you’ve been searching for a way to pinpoint that competitive rate, you might’ve heard about Vrbo MarketMaker.

But does this tool live up to its promises, and how exactly can it benefit you? Let’s unpack this.

Does the Vrbo MarketMaker Tool Work?

The answer is yes, the MarketMaker tool works and is quite handy for hosts. 

Some find it super helpful, and they rely on it to set their rates based on real data instead of doing all the legwork themselves. 

However, a few have noticed that sometimes it suggests prices that are a bit too steep or too low for their liking. Still, they all appreciate how it keeps them in the loop about changes in competitor prices.

What is the Vrbo MarketMaker Tool?

The Vrbo MarketMaker is a comparison tool designed to help property owners and managers optimize their rental pricing strategy. It shows detailed data on what others are charging in your area for the next year, whether their places are booked or not. 

By analyzing market trends, competitor rates, and booking history, it gives you advice on what to charge. With this info, you can understand the going rates in your area and make informed decisions about your own pricing.

To use this tool, just go to your Vrbo dashboard and click on MarketMaker in the menu. 

How Does It Work?

MarketMaker gathers data from different sources like market demand, competitor pricing, booking data, and more. Here’s what it looks at:

  • Competitive rates of booked and unbooked properties
  • Average rates of similar properties
  • Real-time demand and supply data
  • Search data from this and last year
  • Historical listing performance
  • Local events impacting travel
  • Forecast occupancy data
  • Booking lead times

The tool will also take into account your location, rental size, number of rooms, amenities, and proximity to attractions to compare it to similar listings.

It crunches all this data to identify patterns and trends in the rental market, like when demand goes up or down or what competitors are up to. Then, it gives you smart suggestions on how to price your rental just right to fill up your calendar and make the most money.

You’ll see all these insights and tips neatly organized on your dashboard, making it easy to understand and use. Once you analyze the data, you need to make the updates manually.

You’re in control of how MarketMaker operates because it tailors its suggestions to your rate strategy settings. It’s up to you how you want to approach it. Do you want more bookings at a lower price, or are you aiming for fewer bookings but at a higher rate? Just set it up, and MarketMaker will make its recommendations accordingly. You can even opt for “top dollar,” matching the highest rates in your area.

If you decide to change your pricing approach, the algorithm will prompt you to adjust the rates yourself. It will never make changes automatically, it only makes suggestions.

Reasons to Use the Vrbo MarketMaker Tool

Maximize Rental Income

According to Expedia Group, properties that use MarketMaker insights at least twice a quarter tend to earn about 6% more revenue on average. How’s that? Well, you’ll have a wealth of real-time data at your fingertips helping you set your prices and adapt to trends. 

Stay Ahead of the Competition

The tool compares your rates with similar listings, so you can see what your competitors are charging and adjust your rates based on that. You can choose to lower your prices if you want to be more competitive, or you can match their prices to blend in and avoid standing out with higher prices.

Increase Occupancy

Using MarketMaker can help you fill up your calendar with more bookings. It gives you all the info you need to set the perfect price for your rental.

When your prices are just right, more guests will choose your place over others, boosting your occupancy rates.

Make Informed Decisions

MarketMaker looks at billions of data to give you a complete picture of your property’s potential. By trusting its insights, you can make strategic pricing decisions that align with your business objectives and financial goals.

Stay Competitive Year-Round

With the help of this tool, you can adjust your rates to match market changes, known as dynamic pricing. MarketMaker alerts you to these changes so you can adjust your pricing strategy to meet your goals and make the most of opportunities like last-minute bookings and high-demand periods. It also provides a calendar of local events and holidays that may impact travel demand, so you can also count that in when defining your rate.

Save Time and Effort

MarketMaker saves you time and effort by doing the hard work for you. Instead of spending hours researching market trends and competitor rates, you will get all the information you need in one place. With just a few clicks, you can learn all about what your competitors are charging, how demand is changing, and what events might affect travel in your area. 

Final Thoughts

Vrbo MarketMaker is a great tool if you want to get real-time data that can help you define your pricing. However, you will need to analyze the data and make the changes yourself which can be time-consuming, especially if you run several properties.

If you’d like to automate your pricing strategy, you can use third-party tools like Wheelhouse, Beyond, and PriceLabs. Find out more about them in our Wheelhouse, Beyond, and PriceLabs reviews.

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