Aided by $2 million in venture capital, WanderJaunt is taking on short-term rental properties company AirBnB with a unique differentiation model. In order to be highly competitive, WanderJaunt has made deals with home goods providers such as Leesa Sleep to guarantee a quality level of experience across the board for their consumers.
WanderJaunt is currently making inroads to negotiate with property owners with the goal of achieving one of two positive outcomes: either taking over their leases altogether or offering a commission-based model that enables the company to keep a percentage of the rental profit. Right now, WanderJaunt is taking advantage of the prime location and real estate prices in Scottsdale and Phoenix. The overall aim, though, is to become a Westin-style “lodge chain” powered by AirBnB. With the sort of venture capital this company has been offered, competitors such as Vacayo, Guesty, and many others may soon have a run for their money.
“San Francisco and New York are what I like to call anomaly markets. If a product or a service works well there, it’s not guaranteed to be completely successful in the U.S., because salaries are different and VCs all know about the startups, and that’s not how the real world works,” founder Michael Chen told Phoenix Business Journal.
Property owners who want to work with WanderJaunt can either negotiate an agreeable fee to give up their leases entirely or, as previously mentioned, they can opt for a commission-based model where the company retains a portion of the money made from rentals. In either case, WanderJaunt takes care of all of the home furnishings and customer service. If all goes according to plan, this means that short-term renters will be able to expect the same level of customer service and quality furnishings from every WanderJaunt property. This form of differentiation is a highly unique model for brand activation in the short-term rentals market.
— Rental Beast (@RentalBeast) August 8, 2017
In fact, brand activation is an entirely new concept as far as marketing goes. According to BaseCreate, one of the primary tools of differentiation in the brand activation process is to “look for weaknesses and gaps in the market where you can introduce differentiated, more compelling, messages and ways to experience the brand.” In the case of WonderJaunt, focusing on stable and affordable Phoenix and Scottsdale processes is a key feature to their brand activation strategy.
AirBnB and related short-term rental services have revolutionized travel for millions while providing a potential new income stream for property owners. WanderJaunt aims to offer its services to provide high quality, “vetted” properties with a standardized experience across the board.
— Valley Partnership (@ValleyPartners) August 2, 2017
In other words, if you stay at a property in Scottsdale one month and in Phoenix the next, the level of service you receive should be equal. This will reduce the fear that consumers feel when booking a new short-term rental. After all, they won’t have to continuously deal with new management companies or owners, and they can rely on the bed and other furnishings to have a consistent level of quality and comfort.
WanderJaunt will be compatible with Airbnb, VRBO, and TripAdvisor, as well as other similar platforms. The current round of venture capital funding is coming via SV Angel, The House Fund, and Global Founders Capital, with the lead seed provided by Khosla Ventures.