Impact of OTA Fees on Growth:
Ritzy Room was losing up to 15% of each booking to OTA platforms like Airbnb and VRBO. This amounted to $260,000 annually—funds that could have been reinvested to expand their portfolio in Los Angeles and Palm Springs. The OTA reliance stifled their ability to scale, delaying their entry into high-demand markets.
Customer and Operational Challenges with OTAs:
Guest communications were fragmented across platforms, leading to operational inefficiencies and inconsistent guest experiences. Additionally, reliance on OTA branding diluted Ritzy Room’s unique identity as a luxury corporate housing provider. This created unnecessary competition with properties that did not offer comparable quality or service.
Pre-Project Positioning:
Before the rebrand, Ritzy Room struggled to stand out on OTA platforms. While their properties offered luxury and curated experiences, their market presence did not effectively communicate these advantages. They were “just another option” in the crowded short-term rental marketplace.