In the first four months of 2016, startups in the vacation rental sector raised more than $100 million. Atlos Ventures Managing Director Anthony Lee believes that guests are looking for both the authenticity of a vacation rental as well as a quality, hotel-like experience.
“‘The short-term and vacation rental industry is about a $100 billion industry, but that’s only about a tenth of global hospitality,’ said Anthony Lee, who was involved in the TurnKey investment and is managing director of Altos Ventures. ‘But it’s a piece that’s for sure growing the fastest. With all of the things that are happening with the demand side, we thought there would be opportunities on the supply side.’”
Lee also believes that consumers will eventually search for a particular brand of short-term rentals, and companies that leverage technology to help property owners manage and market their properties are positioned to become indispensable to owners but also the sought-out brands for guests.
“‘What originally attracted us to TurnKey is that they started from the back-end,’ said Lee. ‘They built all of these operational processes and a technology platform that very efficiently lets you list, market, book, manage, clean and fulfill a vacation rental.’”