How Can Vacation Rental Data Improve My Property Performance?
Whether hosting a short-term rental, considering investing in the market or converting a long-term to a short-term rental, vacation rental data is crucial to make informed decisions based on the current, past, and predicted market trends, as well as competitor performance.
For example, if a listing is charging less than its competitors for the same quality of room in the same location, money is being left on the table. That said, it is not necessarily important to charge a premium, so it’s essential to find the optimal pricing strategy to maximize revenue.
Regardless of the property type, AllTheRooms Analytics helps owners and managers determine the market value of their property compared to the other vacation rentals in the area. Our team of data scientists, engineers and analysts focus on identifying the trends taking place in the market and displayed in our reports.
Hotels and Bed & Breakfasts
Vacation and short-term rental data is not typically included in an analysis of the hotel market. Often part of a chain, hotels are perhaps the most recognizable option for accommodation when traveling or visiting a new destination. From room service to bundled experiences and 24/7 support, hotels offer standardized lodging near popular locations such as airports, convention centers, and attractions. Ranked from one to five stars, hotels offer comfort and functionality at competitive rates and standardized ratings and can be differentiated from vacation rentals. Despite these factors, hotels often lack the familiarity, experience, and personalization of a home or vacation rental, which are certainly worth including when discussing potential competition and pricing benchmarks of the entire accommodations market.
Elsewhere, Bed and Breakfasts (B&Bs) are typically small-scale, locally-run rooming options available while visiting suburban or rural areas. Usually averaging four to six rooms, B&Bs tend to be suited to an older demographic or travelers who prefer a rustic getaway. Due to their antiquated reputation and similarity to a vacation rental or home-stay, it is particularly prudent to include the alternative lodging class in a comparative analysis.
Vacation rental data is particularly beneficial to hotels and B&B owners since Airbnb and other online rental platforms have begun to attract market share for travel accommodation. By tracking key performance indicators (KPIs) such as ADR, RevPAR, and occupancy, revenue managers can assess their performance to that of their entire local market–not just like properties. This does not mean you would compare a 7 bedroom villa to a budget hotel room that sleeps 2, but after filtering for like amenities and audiences, there is plenty of overlap between the various inventory in terms of the typical customer profile. You can also track fluctuations in demand to create pricing and marketing strategies, not to mention, generally understand the market better.
If a report shows a surge in vacation rental bookings in February, property managers should capitalize on the increase – whether that be offering a discount on rooms or providing an additional special amenities package specifically for that month. By interpreting the data, one can identify seasons and dates where there is potential to increase revenue, occupancy, and general guest satisfaction.
Since being founded in 2008, Airbnb has enabled property owners around the world to rent rooms and entire places to travelers looking for a local experience in a local home. While the number of regulations regarding short-term rental homes has increased in recent years, Airbnb has still been able to compete in the market by offering guests the opportunity to find the perfect housing for their vacation and hosts to generate additional income.
From themed accommodation such as underwater suites, theme park-inspired apartments or a renovated firehouse, to kid-friendly rooms complete with bunk beds and board games, every rental aims to offer their guest(s) a special experience. At times closer to local attractions than commercial housing, Airbnb can offer personalized rentals that can end up being more affordable than a hotel.
When renting out a room as an extra source of income, while themed listings may not be a priority in the marketing plan, a clean, comfortable, and functional stay is of the utmost importance to ensure high ratings. Offering clean linen, snacks, and toiletries may be the difference between a sub-par guest experience and an exceptional one. Higher ratings often translate into a higher occupancy rate and thus increased income.
Vacation rental data aids Airbnb hosts by highlighting periods where ADR and RevPAR tend to peak and consequently predicting the total revenue earned. In order to generate consistent income, properties must be able to meet the market demand and ensure they are consistently performing well against competition – a difficult task among what has become a highly segmented and dynamic market.
The Big Picture
Data comes in a variety of forms and can be dense. To understand the short-term vacation rental market on a deeper level it helps to understand the basic key performance indicators of the vacation rental and hospitality industry. With such a saturated industry the short-term rental market can be difficult to navigate and obtain success in, without accurate and precise data. Armed with analytics, property owners, managers, and Airbnb hosts can capitalize on the vacation rental market to ensure their property is up to par and positioned for continual success.
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