Vacation rental industry trends to watch out for
Currently, the vacation rental industry is on the rise and there is no indication of slowing down. Vacation rental revenue worldwide has reached $57.669 billion USD in 2019, according to Statista. The competition is very tough and the landscape of the industry is constantly changing.
Vacation rental owners and property managers are looking at different ways to increase bookings through online platforms and direct bookings. In order to stay in the game, property owners have to think outside the box to make their property stand out and offer some unique advantages for the guests.
The Rising Urge for Vacation Rental Marketing
Ensuring your property meets high standards is not enough anymore at present reality. What is equally important is to put it in front of the eyes of the prospective guests. In order to reach this goal, hosts have to adopt various marketing techniques. Having the property listed on Airbnb or Vrbo is just a bare minimum.
Many hosts achieve great results with email marketing and creating an account for the property on social media. Following up with guests via post-departure emails will not only stimulate guests to leave you better reviews but also make a good impression.
It goes without saying that Vacation rental owners should keep listings up to date at all times: availability calendars, accurate rates, high-quality property photos, and detailed descriptions. Make sure your property looks just as the pictures you have added to your listing. The guest arriving at the place that looks far from the one that he booked is not a good start.
Top-notch Service Expectations
Seen the abundance of short term rentals available on the market, guest expectations are increasing as well. They are expecting not only high-quality property and amenities but also the top-notch service. Paying attention to the details and guest experience is a proven way to get more bookings.
Hosts need to make sure that communication is efficient and the requests are addressed in a timely manner, provide them with all the instructions they might need. Most of the times the guests really appreciate the suggestions for best local places to visit which would allow them to have a customized, local experience.
Another thing that can definitely improve the guest experience (and future review) by ensuring all the essentials are in place. Some bathroom necessities, dish soap and sponges, tea and coffee, and a couple of bottles of water will be nice to have. Imagine arriving at the destination for the first time, after a long road and having no idea where the closest grocery store is, and not even finding a bottle of water in the place. That’s a disappointing experience.
What really gets the hosts some extra points is the willingness to do a bit of extra. Like catering to some specific needs of their guests, be it a family with small children or an elderly couple. TDG’s Hospitality Survey states that 57% of respondents say they provide a welcome basket or gift for their guests.
Millennials and Gen Z Impact on Vacation Rental Business
Millennials and Gen Z are bringing changes to the vacation rental industry. Millennials are mostly using online platforms and their mobile devices to book the rentals. Also, they are more likely to choose short term rentals over the hotel stays. On average, a millennial spends $2,915 on travel each year, and they try to get away at least four times a year, according to Vroomres.
Despite the fact that millennials are the main clients of the short term rental market, they are being closely followed by Gen Z. Representatives of Gen Z prefer to discover the world as solo travelers or with their friends. They also tend to give preference to spend time in the cities rather than in the suburbs or rural destinations.
Both Millennials and Gen Z travelers are looking for sustainable experiences in their destinations. Which has to be taken into consideration by the hosts in order to cater to this group of guests. Some hosts are cautious about hosting this category of guest, in this case, they can cut the risks by using the Airbnb security deposit.
Third-party Tools for Vacation Rental Industry
With the fast development of the vacation rental industry the load of work that hosts have to deal with increases immensely. The technology comes to rescue and offers plenty of third-party tools for vacation rental business owners and managers.
Among the tools which can make the life of vacation rental owners easier are smart home systems and dynamic pricing. Also, channel managers and vacation rental management software like iGMS make the routine tasks of every owner a breeze with automated messaging and guest reviews, easy team management, convenient calendar synchronization, and more.
The vacation rental industry is changing fast and in order to keep up with the emerging industry trends, the vacation rental business owners and managers have to adjust to the demands of the market. Putting more efforts into marketing the property, catering to the needs of new clientele, using the latest technology available all that is essential to reach, and preserve, success as a vacation rental owner.
Article by Inna Shevchenko, Director of Marketing at iGMS. Inna has 10 years of experience in marketing and content writing specifically. Currently, she is the Director of Marketing at iGMS, a short-term rental management software company.