We’re going to be looking for where we see that really getting traction and trying to allocate capital there more aggressively. So there’s a lot more for us to do. We’re pretty keenly focused on execution and efficiency. And we think that, that is also going to point us in the right in on better customer experiences for the long term.
Operator: And our next question comes from the line of Bernie McTernan with Needham & Company. Bernie, go ahead.
Unidentified Analyst : This is Stefanos Chris calling in for Bernie. Thanks for taking my questions. I’m just curious on the type of visibility you have at this point for the quarter, especially with last minute holiday trips being booked as what do you typically see in Q4?
Rob Greyber: Yes. So Q4, I mean, as we get into the quarter, it’s still a little bit early. I think the only thing I would notice what I talked about earlier, there’s just kind of some evolving booking patterns, specifically into the length of stay is coming down just slightly. So it’s not a huge impact to revenue, but I think that does just talk to kind of the evolving booking patterns. So that’s one of the things we’re keeping a close eye on. No other specific guide to call out at this point.
Unidentified Analyst: Got it. Thank you
Operator: And our next question comes from the line of Lee Horowitz with Deutsche Bank. Lee, go ahead.
Unidentified Analyst : This is Jeff on for Lee. Thanks for taking the questions. So when you’re thinking about supply growth, where do you think you can move the needle more? Is it more to efficient to go to market to drive new homeowners to the platform? Or is it spending time and investment dollars aimed at lowering increased churn that you’ve seen recently? And then you talked about the trade-off between pricing and occupancy. And given the declines in pricing that we’ve seen so far this year, would you expect the pricing declines to moderate into next year? Or would more continue at current levels?
Rob Greyber: Yes. Why don’t I go ahead and start and then I’ll ask Bruce to jump in as well? So I think when it comes to home growth, there are a couple of things. So I think, first, as we’ve shared before, we pulled back on the portfolio program. I think that there’s a real value in having a robust organic growth motion of the business, that lets us build the relationship with the owner directly rather than through something that we inherit. And so we want to build that out, there’s going to be opportunities for us to deploy capital through a portfolio approach in the future, but that’s really been a focus. And again, as we’ve said, we’ve been pleased with the progress we’ve seen so far through the year. I think we were pleased with the progress we’ve seen in Q3, but we want to see that continue to bed in and become a very reliable, repeatable source of results for us as we move into 2024.
Which brings me to the other leg when it comes to home growth, which is around retaining our homeowner relationships. We think that there’s a backdrop of things that we can control. There’s backgrounds that are happening in the market. And we’re very focused on mobilizing and executing across the company on that basis. When it comes to how pricing is going to evolve in 2024. Again, we haven’t made a lot of comments about 2024. We do see some trends continuing in terms of what’s going to happen with consumer demand in our markets, the markets that we serve, which again are maybe not as broadly representative of some of the larger agency platforms that you see, which generally are in more urban markets versus ours and also in more international markets, ex U.S., ex Canada.
So it’s hard to kind of speak to how pricing will evolve. There’s a lot that we’re looking at. We’re looking at the macro dynamics. We’re looking at different alternatives in the travel categories. So I really don’t know that there’s a lot for us to say there yet. But — the markets that we’ve seen have already seen some of the pricing declines that you’ve seen as a result of kind of changing consumer demand. And we’re going to watch and see how those evolve as we head into next year.
Bruce Schuman: Yes. Well, I think you said that well. I mean, our revenue management team is really always looking at this carefully. They’re analyzing kind of that trade-off between occupancy and price. And we’ve made a very kind of conscious decision to really drive the occupancy. And we — I think our revenue management team has driven some really nice results for our homeowners, but we’re going to be just carefully evaluating that as we head into ’24. And Rob said it well, not a lot we can didn’t guide on that yet.
Operator: [Operator Instructions] And our next question comes from Justin Patterson at KeyBanc.
Justin Patterson: Thank you very much. And good afternoon. I wanted to revisit Jed’s question from earlier. You’ve done the hard part. You have to higher EBITDA year-over-year on a lower revenue base. As we think about just the business scaling up from here, how should we think about incremental margins versus what we used to look at this business in the past? Thank you.
Rob Greyber: Yes. Again, I’ll start on this one, and I’ll ask Bruce to make a comment as well. I appreciate the question, Justin. I think we don’t think of ourselves as being done, but we are pleased with the progress we’ve seen the team make so far this year. There’s a lot more for us to do. I think that we believe that there is an opportunity like we’ve seen play on so many other businesses and categories where you deliver better customer experiences by delivering more efficient experiences. And think about an Amazon delivery experience. Think about the experiences that so many of these platforms can deliver as they integrate and then iterate and improve over time. We think that, that path to being more efficient paves the way along the way toward really differentiated customer experiences, and that’s what we’re building.
How that translates into short-term and long-term financial results. Look, we’re pleased with what we’re seeing so far. But there is a lot more for us to do along those lines. We’re not kind of yet may comment to what we see evolving and how that will balance out in 2024. But we think that, that same discipline on the financial side is actually what will translate into really differentiated prices for guests for our owners and the ability for us to continue to improve those things over time.
Bruce Schuman: Yes. I think a proof point I would highlight is in Q3, I mean, we drove a double-digit decline in our local market operations costs. We supported the same number of nights, the same number roughly at homes on our platform, and we didn’t do that by sacrificing guest demand — guest customer satisfaction scores. So that just kind of tells you what’s possible when you really focus on this. We’re going to continue to trend, we’re going to continue injecting technology in our local market ops get better and better, and that’s what we’re going to be focused on for ’24.
Operator: And with that, I will now turn the call back over to CEO, Rob Greyber, for closing remarks. Rob, the floor is yours.
Rob Greyber: Thanks very much. I want to say, again, thank you for everyone for joining for the questions today. I want to thank our homeowners for their partnership with Vacasa. And I want to thank everyone who works at Vacasa for working so hard every day to bring vacations home for homeowners and our guests. Thanks, everyone. I look forward to speaking with you and updating you on the full year and our outlook ’24 in the coming months.
Operator: And ladies and gentlemen, that does conclude today’s call. Thank you all for joining, and you may now disconnect. Have a great day, everyone.
