A Chat with Industry Pioneer Doug Macnaught

At VRMA National in Orlando, Alex conducted an in-depth conversation with Doug Macnaught, a software pioneer in the vacation rental industry. The discussion covered significant shifts in the sector over five years and predictions for the future.

PMs, Technology & Tools

Macnaught observed that major OTA platforms have recently embraced technology differently than in the past. He noted that large players initially built products for hotels rather than vacation rental properties. However, by engaging property managers, these platforms recognized the true operational complexity exists in professional management rather than individual host arrangements.

He characterized Expedia’s approach post-HomeAway acquisition as attempting to force vacation rentals into a hotel framework, which he deemed problematic. Conversely, he suggested Airbnb may be shifting toward accommodating property managers since they require inventory from professionally managed properties.

Barriers to Scale: The “Local Problem”

When asked why the industry remains fragmented, Macnaught explained that vacation rental travel occurs primarily within the United States, creating 50 distinct regulatory and market conditions rather than a unified national market. He emphasized that successful consolidation requires understanding local relationships and operational nuances.

He stated: “Nobody succeeded in having a product they can deploy in each market because you still have to clean it, fix the toilet and look after the guest and it’s all about the relationship.”

Square Pegs and Round Holes

Macnaught argued that Expedia and Airbnb face structural challenges. Expedia attempts converting vacation rentals into hotel-style operations, while Airbnb’s merchant-of-record model conflicts with property manager needs.

He noted that property managers handle responsibilities Airbnb provides for individual hosts, since professional operators require different trust mechanisms. He suggested potential evolution through “accredited superhost” status that permits managers greater operational flexibility while maintaining platform integrity.

Guest Relationship Recovery

Regarding direct customer relationships, Macnaught outlined a strategic approach: platforms typically control guest contact information, but property managers can capture details through Wi-Fi access requirements, local apps, and post-stay engagement.

He explained: “If you’ve got 5 people staying, I want it from all of them. Then it’s your job to do a good job of making sure they want to come back to your destination with post-stay follow-up.”

Operations Returns to Center Stage

Macnaught traced a significant shift: early property management systems focused 80% on operations and 20% marketing. The online revolution inverted priorities toward acquisition and marketing, causing operations functionality to languish in modern platforms.

He predicted renewed emphasis on operational technology managing housekeeping, maintenance, and real-time field management, which he considered essential for true industry transformation and scalability.

Technology Hub Concept

Concluding the interview, Macnaught endorsed the PMS as the central data hub, with best-in-class systems allowing integration of specialized solutions — channel managers, housekeeping platforms, and home automation — without forcing property managers to rebuild infrastructure during expansion.

Looking for tools to put these ideas into practice? Explore Properly’s solutions:

Properly for property managers — streamline operations across your entire portfolio
Real-Time Inspection — lets you verify property condition remotely after every turnover