Is This the Future of Home Exchange?

Image: PHOTO: Brightly-lit apartment. (photo courtesy of Thinkstock)

by Chelsea Davis
Last updated: 9:00 PM ET, Tue July 25, 2017

Ever wanted to travel without paying thousands of dollars for accommodations? (Always, right?)

Well lucky for all of us, co-founders Emmanuel Arnaud and Charles-Edouard Girard are turning this fantasy into a reality thanks to their innovative and ever-growing company, GuesttoGuest.

It's essentially a house-swapping service that allows travelers to exchange living accommodations for a period of time, rather than having one party pay the other to use their home while on vacation for example.

Having recently acquired the much older U.S.-based company, HomeExchange, GuesttoGuest now operates the largest for-free home swapping network with more than 400,000 total listings in 187 countries. The company has grown its listings six-fold since it began in 2011.

In the age of Uber and Airbnb, how will the GuestToGuest app and web-based home swapping revolutionize the sharing economy and shape the future of a collaborative, travel-hungry society? Travel Pulse sat down with Emmanuel Arnaud to talk about the future of home exchanges as a mainstream vacation alternative.

Travel Pulse: How did this all begin, and when did you realize you had a really great, lucrative idea?

Emmanuel Arnaud: It began while wanting to travel to Florence during the Christmas holidays. At that time, home exchange was becoming popular, but my family and I faced a difficulty: the Italian family was ready to welcome us, but they did not wish to go to Paris. This triggered the idea to resolve the main hurdle of home exchange: reciprocity.

I then decided to create in 2011, a point-based system, "GuestPoints", allowing to organize non-reciprocal exchanges. The GuesttoGuest model was born.

I started with one home in September 2011, and we now have 300,000 today.

In November 2015, my business partner Charles-Edouard Girard and I went to New York City as part of a group of entrepreneurs. The objective was to meet with American and French entrepreneurs who were successful in the U.S. That trip was an eye opener for us on the size of the U.S. market. This is when we first had the idea to acquire HomeExchange, which we did in February 2017.

TP: In the age of Uber and Airbnb, how are GuestToGuest's app and web-based home swapping changing the sharing economy game?

EA: First, we need a clear definition of the so-called sharing economy. Uber and Airbnb are successful on-demand services. But, they are in no way sharing services. Airbnb is part of the renting economy, and Uber [is] about the selling economy.

"The 'sharing economy' is a term frequently incorrectly applied to ideas where there is an efficient model of matching supply with demand, but zero sharing and collaboration involved," said Rachel Botsman in a recent Fast Company article.

Through home exchange, travelers can benefit from completely free accommodations around the world without any money changing hands. Home exchange does not have any of the drawbacks which have led to pushback against rental platforms including taxes, bans and other issues currently plaguing large cities and tourist areas. Home Exchange will develop as the real sharing alternative in accommodation.

[READMORE]READ MORE: The Perfect Vacation Rental for Every New Year's Resolution[/READMORE]

TP: Would you say that it's shaping the future of a collaborative society? How?

EA: Technology made possible interactions that would not have been remotely possible just a few years before. As a more interconnected society, we have learned to trust and share for mutual benefit. The practice of home exchange is by no means new, but it is one of the clear evolutionary paths of the new trends of the society as a whole and that is particularly true for travel.

Our success is based on the fact that, once you try it, you stick to it. Hospitality is one of the most shared values in the world. We offer a safe and user-friendly place to host and stay for free, with freedom and flexibility.

TP: If someone is planning a vacation, why should they use GuesttoGuest? Is it cheaper? What are the benefits?

EA: The benefits of home exchange are many: first, of course, you do not need to pay for accommodation. You are free to choose additional paying services, like insurance, but the roof under which you'll be staying will not cost you a dime. That alone means hundreds or thousands of dollars of savings on your vacation budget.

Also, you'll save on your restaurant budget as you can cook from home, and in many cases on your car rental budget, as you can borrow the other family's car. When traveling with kids, home exchange is really something quite special, as you will not need to burden your suitcase with strollers, toys, etc. Your children can simply use the toys in the home, as well as the changing table, highchair and even the baby phone.

Finally, as a host you will know that someone you trust is scaring burglars away, feeding your cat and watering your garden.

TP: Are there downsides? How do you ensure people don't trash other people's homes?

EA: There are no downsides to home exchange. The only thing required is a small leap of faith. And we help you make that leap by creating trust in a number of ways. First, every single user of GuestToGuest and HomeExchange are equally guests and hosts.

As a result, people behave as guests in their exchange home, exactly the way they expect their home to be treated as hosts. The truly collaborative experience creates a radically different dynamic between peers than what you can expect on rental platforms. The sense of community is pivotal and unique.

In addition to that, it is our mission, as trusted third parties, to make sure home exchange is safe. In addition to a number of safety process including secured messaging system, ID verification and vetting of listings, GuestToGuest offers on-demand insurance and deposit as additional services.

[READMORE]READ MORE: Airbnb Acquires Vacation Rental Service Luxury Retreats[/READMORE]

TP: Along with the acquisition of HomeExchange, you now operate the largest network for free home swapping with over 400,000 total listings in 187 countries. What are your plans going forward?

EA: HomeExchange was founded 25 years ago by a visionary, Ed Kushins when the sharing economy was not even a concept. Today it offers 65,000 home listings in 150 countries. HomeExchange is membership based, like a club. It appeals to a large demographic, including active retirees and second home owners, who look for a premium experience.

It now offers the flexibility of non-reciprocal exchanges, with the Balloon exchanges which allows members to use one "Balloon" to stay in any other members' homes without necessarily hosting them in return. A Balloon is earned by hosting another member, regardless of length of stay, type of accommodation or location.

The acquisition of HomeExchange marks a turning point in the travel industry as the two join together to create the world's undisputed leader of the home swapping market with more than 400,000 homes in the collective inventory. While there will be strong affinity between platforms, both brands will remain separate and continue to function within their own targeted spaces and membership base.

Going forward, we want to serve one million members in the next two years and keep on converting new people to this amazing way of traveling. On a more personal note, I'm relocating with my family to the U.S. to ensure our success in the world's first travel market.

TP: Do you believe that home exchange is the end-all in terms of the mainstream vacation alternatives?

EA: We will accelerate the development of HomeExchange, especially in North America, while enhancing its unique value proposition based on premium experience.

We will make GuesttoGuest even more accessible to a very large base of users internationally who see home exchange as an increasingly attractive vacation option. We establish a game-changing alternative to platforms such as Airbnb and HomeAway. Through home exchange, travelers can benefit from completely free accommodations around the world.

So yes, we are going to revolutionize the travel industry by making home exchange a mainstream vacation alternative.

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.