Foreign Perspectives

One of the more interesting things that came up when I was in discussions about buying a commercial holiday accommodation listings site a year or so ago was the level of turnover in the properties listed on it.

Would you believe that the renewal rate of property listings is around 50-70%? Think about it: that means that there is pretty much a complete change in content of the listings sites every two or three years.

The turnover is presumably at the higher end of the range of the scale for smaller sites (say around 500 entries) but even then that means that they need to attract around 250 new entries per year merely to replace those that don’t renew which in turn means around 25, 000 e-mails to do that for the small sites (assuming a 1% return on marketing). For a large country-specific site (say around 2000 entries), the dropout % is lower but the absolute number of dropouts is higher at around 700 thus requiring something like 70,000 e-mails (assuming a 1% return on marketing).

Those stats are particularly interesting to me in that my own dropout rate is made up of those getting out of the business and is therefore somewhat lower at around 1%. This in turn means that, slowly but surely, I will become one of the larger listings sites. I’ve already caught up with the scale of that listings site that I was going to buy and hope to finish the year with around twice the number that they had when I was looking at them.

With that extra scale comes extra hits on the site and I’ve needed to upgrade the hosting package I use three times since Christmas as a consequence of that jump in size since Christmas a year ago. This, of course, means extra bookings for all those listed on the sites too.

One Response to “Turnover in accommodation listings sites”