Oasis launches long-term apartment rental subscriptions

0


Oasis, which professionally manages apartment and house rentals in several countries, has launched a subscription model for travelers looking for extended stays, as well as remote working during the pandemic.

Initially, the Oasis Passport will offer stays in approximately 350 homes in 11 markets out of the company’s 1,300 properties in 15 markets.

Oasis is betting on the rise of remote work, as many companies are experimenting with the distribution of teams during the pandemic. Given the uncertainty that reigns today, the temporary nature of subscriptions may be popular as an alternative to emphyteutic leases. One of Skift’s megatrends in 2020 was that subscription travel would be the next frontier in loyalty.

“I think the Oasis Passport takes away the ‘Road to Revolution’ excuse for knowledge workers, which means so many people want this kind of nomadic option and the ability to truly live within the framework of another. culture, but life and logistics get in the way and it never happens, ”said Andrew McConnell, CEO of Rented, a provider of revenue management services for professional vacation rental managers. “The Oasis passport makes it so easy and turnkey. “

Oasis, founded in Buenos Aires in 2009 and based in Miami, has taken its first steps in the rental of serviced homes. Yet his attempt to grow as a venture-backed startup stumbled.

Accor took a small stake in 2016, but it turned into a conflict of interest when the Parisian hotel giant bought Onefinestay. Hyatt then bought Accor and injected equity, ending up with around 40 percent of the equity. In 2018, Hyatt enabled more than 10 million members of its loyalty program to earn and redeem points through stays at Oasis properties.

An anonymous activist investor in Oasis essentially blew up that relationship, Stanberry said. Hyatt has cut ties.

Oasis restructured through a sale to Vacasa in 2018. Since then, Oasis has acquired the brand and international portfolio of Vacasa.

Today, Oasis is owned by Founder and CEO Parker Stanberry and Steve Frey, an entrepreneur who owns a corporate housing company in Tampa called Oasis Corporate Housing, a provider of serviced apartments for the business sector. since 2003. Oasis, a separate company, is no longer backed by venture capital.

Oasis sees the subscription model as a way to generate buzz and revenue.

How subscription travel works

Oasis subscribers can travel between different properties, cities and countries with a fixed monthly cost. The price is based on the region and the number of rooms.

Plans start at $ 1,625 per month for a three-month subscription and $ 1,550 per month for a six-month term. The price is set in a cheaper tier for Latin American destinations than for European destinations, which start at around $ 2,075 per month.

“To achieve this price point, designed to be accessible to young professionals or creatives, we have made a selection of the most affordable properties from our portfolio, in the most attractive areas for a stay of one to three months. experience, ”said Stanberry, who plans to include about 500 properties by March.

The Oasis subscription service currently covers Barcelona, ​​London, Madrid, Paris, Rome, Buenos Aires, Bogota, Mexico City, Rio, Santiago and São Paulo. The company plans to expand elsewhere, including Miami, Austin and Denver.

The program offers a choice of 25 to 50 unique apartments and houses in prime areas of these global cities, ranging from studios to 2 bedrooms. It includes professional housekeeping, access to a “field concierge” and reduced entry to coworking spaces managed by Spaces.

Here is an example of how the program can work. A customer chooses a package and makes an initial deposit of $ 250. The traveler chooses a destination and reserves a place. Let’s say it’s in a T2 in Buenos Aires for a two-month stay. When checking in at Argentine property, Oasis bills the guest for the first month ($ 1,550) and will continue to bill them monthly. The customer has one year to use the six months of travel. If a client chooses to move to Barcelona for two months, Oasis will charge them a different monthly price for that apartment.

Oasis has changed financial support

Last year, Hyatt Hotels CEO Mark Hoplamazian commented on an earnings call on his roommate investments, first with Onefinestay, then with Oasis. He said Hyatt’s experiences were ultimately “difficult”.

“When you deal with high-end properties and try to maintain a consistent level of quality, the delivery model is expensive and difficult to achieve to the point where you receive, from a financial performance perspective, a sustainable model.” , said Hoplamazian.

Asked this week about the Hyatt CEO’s comment, Stanberry said, “I really like Mark and I found him to be very smart, and I agree with his sentiment in a number of ways. I don’t think anyone has found a way to make profitable and perpetuate the concept managed by professionals for short-term leisure stays. This goes for Onefinestay, Sonder, Stay Alfred, Hostmaker, etc. It is very difficult to provide high quality and make money.

“I would also like to note that large public hotel groups do not have a great track record in enterprise venture capital and innovation,” Stanberry said. “The alternative accommodation sector is so far removed from its core business that it may not be the investors / partners to make it fly. “

Other hotel brands have entered the sector. Marriott started a test in 2018 to direct customers to around 200 vacation homes in London in partnership with UK property management company Hostmaker. But last year, Hostmaker collapsed and Marriott turned to other partners to manage its Homes & Villas by Marriott International in around 100 destinations.

Paris on teleworkers

Hyatt and other global hotel brands said they were continuing to assess whether there were ways to participate in what could be described as a more business-to-business, business-focused urban residential game in alternative accommodation. .

“It’s more the direction we went – an extended stay orientation, with an average stay of 50 nights,” Stanberry said. “We’ve had mostly corporate clients, with a few digital nomads dotted around. In addition, no risk of main lease, no purchase of furniture, etc. It may be a smaller total addressable market, but it is sustainable. We reached profitability from January to March, with revenue of around $ 1 million per month, and we have maintained our balance throughout the pandemic. “

For more background on the trend, see our recent articles: Selina Nabs Remote Year in Bet on Subscription Travel for Digital Nomads, Battling Isolation for Remote Workers With New Approaches to Rassembler Teams, and More Momentum Building on Subscription Services in Travel, Will It Post-pandemic help ?.


Share.

Leave A Reply