How Can Vacation Rental Data Improve My Property Performance?
The secret is out: managing vacation rentals — if done right — can be one of the most lucrative businesses in the world. But success doesn’t come without a savvy understanding of the market.
Whether you’re hosting a short-term rental, managing a hotel, considering investing in a real estate market, or converting a long-term to a short-term rental, data is crucial to make informed decisions based on the current, past, and predicted market trends, as well as competitor performance.
Below we’ve divided AllTheRooms’ clientele by demographic to show how vacation rental data can improve property performance for large hotel chains, independent hotels, vintage bed and breakfast owners, and short-term hosts with listings on Airbnb, TripAdvisor, Booking.com, and other industry-leading OTAs. With the help of sweeping data sets and insights from our analysts, engineers, and data scientists, property owners will be equipped with an arsenal of tools to help them optimize pricing and maximize revenues.
Branded and Independent Hotels
The vacation rental market boom of the last decade has heavily impacted hotel managers around the world and forced many to reconsider everything from daily rates to marketing and branding strategies.
From room service to bundled experiences and 24/7 support, hotels offer standardized lodging near popular locations such as airports, convention centers, and attractions. Hotels offer comfort and functionality at competitive rates, but they often lack the familiarity, experience, and personalization of a home or vacation rental.
In order to keep up with the changing dynamics of the market, hotel managers use vacation rental industry data to analyze ADRs for a particular area, study event analysis reports, evaluate market share analyses, and interpret heat maps for a better visual understanding of the market. With this information, both independent and chain hotels can make informed decisions on how to keep up with the sweeping vacation rental shake-up. Hotel owners can
Bed and Breakfasts
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, it is particularly prudent for B&B owners to use vacation rental data to improve property performance. B&Bs particularly benefit from AllTheRooms’ detailed property listing reports that offer analysis on a granular level. Find specific listings with similar amenities to get a gauge on how the market is performing and how to nudge out the competition.
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 similar properties.
Managers can track fluctuations in demand to create optimized pricing and marketing strategies. For example, if a report shows a surge in vacation rental bookings in February, property managers can capitalize on the increase by increasing ADRs. By interpreting the data, hosts can identify seasons and dates where there is potential to increase revenue, occupancy, and general guest satisfaction.
Single-Property Hosts and Large-Scale Vacation Rental Managers
Since its founding in 2008, Airbnb has enabled property owners around the world to rent rooms and entire places to travelers looking for an authentic, 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. The results have been impressive. In fact, Business Travel Ready Airbnb listings make an average of $10,000 more in top markets
From themed accommodation such as underwater suites to theme park-inspired apartments, a renovated firehouse, and kid-friendly rooms complete with bunk beds and board games, every rental aims to offer their guests 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.
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.
AllTheRooms’ data products like Geographic Competitive Analysis, Projected Bookings, Event Analysis, and Market Share Analysis all allow Airbnb hosts to capitalize on market trends and make the most out of their property. Do my competitors offer automated check-ins? What about a balcony? How much was their asking price during peak seasons? Diving into the fundamental metrics can be the difference between a sub-par guest experience and an exceptional one — and a revenue stream to match.
The Big Picture
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 filled with opportunistic hosts, the short-term rental market can be difficult to navigate and find success in without accurate and precise data. Armed with a vast breadth and depth of useful analytics, hotel managers, bed and breakfast owners, Airbnb hosts, and real estate investors can ensure their property is up to par and positioned for continued success in the short term rental market.