If we were to describe the vacation rental market in one word, “ever-evolving” would probably be the best term to use. Year after year, lodging management companies are challenged to keep pace with changing market conditions, new guest expectations, and increasingly stringent cyber security protocols, all while trying to boost their digital capabilities. One of the best ways to stay ahead of the curve as a vacation rental property manager and capitalize on the opportunities this year has to offer is to stay on top of emerging industry trends. Here are several key areas you should watch to make the most of 2023.
Market Growth
Driven by the recent spike in travel demand and increasing popularity of short-term rental properties, the vacation rental market is poised to continue growing over the next several years. Even though the demand for short-term vacation rentals is expected to flatten slightly this year—being projected to increase by only 5% after a growth rate of more than 20% in 2021 and 2022— the rise of remote work will continue to generate a relatively constant demand for flexible, comfortable, convenient, and cost-effective accommodation.
When it comes to all these characteristics, no accommodation option can compare to vacation rental properties. This is the main reason why we can now observe a growing trend for travelers booking not only more frequent but also longer stays. Furthermore, people are finally feeling confident enough to plan trips and book stays much further in advance than before. This paints a very positive outlook for the entire vacation rental market in 2023 and beyond.
Pro Tip: Given the current traveler behavior shifts, the lodging management companies that will be tightly connected to the market and adjust their strategies and tactical decisions according to the latest data as well as to the upcoming industry trends are more likely to achieve their business goals, even in a slower market. For instance, establishing nightly rates based solely on historical pricing data may no longer be the best way to go about setting vacation rental rates. Instead, using an advanced dynamic pricing tool, which can actively analyze specific factors (e.g. time of booking, check-in date, length of stay, number of properties booked by a guest, etc.) in addition to your competitors’ rates will allow you to offer the best available rate to each guest while still making a profit.
Digital Solutions
With Millennial and Gen Z generations representing the largest group of consumers nowadays, it’s only natural for a lodging management company to invest in various digital solutions that could help it attract younger travelers. Besides allowing you to streamline your guests’ online booking journey and give them more “bang for their buck”, an advanced lodging management system will also make available a wide range of features and tools that you can use to automate repetitive tasks, simplify workflows, and manage different business operations from one easy-to-use dashboard.
Pro Tip: The increased use of technology has changed the way vacation rental properties are booked and managed. This essentially means that using a dynamic pricing tool and reviewing data sporadically may no longer be enough to win against the competition. To beat your competition and accomplish your long-term business goals, it’s advisable to invest in a comprehensive lodging management solution, which integrates seamlessly with the systems that you already use. In addition, listing your properties on different OTAs and metasearch engines, building a professional-looking website, and having a strong social media presence could also contribute to achieving success in this industry.
Personalization
The need for personalization continues to be a major trend across the entire hospitality industry. As surprising as it may seem, technology is one of the few things that could help you offer your guests the personalized experiences they expect, while also differentiating your business from the competition. For instance, by using different technologies, you can create your own digital guidebook and allow your guests to access it from their own devices, even before they arrive at the property. As well, you could use the information collected by your CRM system to offer repeat guests similar or better services and amenities than the ones that have persuaded them to leave a good review the last time they stayed at one of your properties.
Pro Tip: Needless to say, technology can significantly improve the overall guest experience. But it can also enable you to streamline and automate different back-office operations, which is essential to being more productive and freeing up time for what matters the most; namely, creating exceptional experiences for your guests, property owners, and employees.
The good news is that not all lodging management companies know how to use technology to excel at this. Thus, with the right vacation rental management system and tech support team on your side, you can beat your competition and show potential guests all the advantages of booking with you rather than your competitors. Since our lodging management system is ready to help you attract more guests and enhance their experience while maximizing your revenue and profit, why wait? Contact our experts today to find out how you can implement our software solution for business growth!