US: Short-term rental property management platform Hostfully has released its eight annual hospitality report, providing actionable data for hosts and property managers of all portfolio sizes.
The report comprises over 30 charts and tables, plus more than 20 contributions and insights from industry experts. The data is based on responses from 347 vacation rental operators of various sizes.
Reports from previous years have been downloaded by more than 1,500 industry professionals and operators, according to Hostfully.
Among the key takeaways of the report are:
Market
- Source of bookings: The main channels for bookings are Airbnb, direct bookings, and Vrbo. Google emerged as a notable source, making up five per cent of bookings – indicating its growing importance among property managers using Google Travel integrations, but also that Google may be perceived with a complex fragmentation.
- Niche listing sites and OTAs: Operators continue to diversify, with nearly 29 alternative listing sources contributing four per cent of total bookings, supported by channel managers and property management software.
- Marketing: Direct booking strategies lean heavily on organic methods, with SEO [63 per cent] and social media [52 per cent] driving traffic. Paid ads remain the least favoured method across portfolio sizes.
- Competition: While competition remains, 39 per cent of respondents report “a lot more competition” – a slight decrease from previous years.
- Revenue: Mid- to large-sized companies [25-99 properties] experienced the most significant revenue gains. However, the proportion of respondents reporting substantial revenue growth has steadily declined since 2021.
Growth
- Expansion: Adding new properties remains the primary growth strategy, followed by increased marketing efforts. Smaller operators [two to four listings] report the most significant slowdown in portfolio growth.
- Goals: The majority [85 per cent] of operators aim to increase occupancy rates, with upsells becoming less of a priority compared to past years.
Obstacles
- Technology challenges: Technology remains the top challenge, with 45 per cent of operators citing it as an area of difficulty. Within the category, guest communication [20 per cent] and automation [20 per cent] were the most common pain points.
- Additional obstacles: There is a widespread list of top challenges, including calendar management, marketing, accounting, and cleaning and turnover management.
- Improvements: Automation and guest communication tools have seen improvements, particularly among operators managing more than ten listings.
Hospitality
- Five-star reviews: Cleanliness is the top driver of five-star reviews, cited by all respondents managing larger portfolios. Smaller operators place high importance on unique local recommendations and welcome packages to enhance guest experiences.
- Check-ins: Smart locks [52 per cent use unique access codes] are the most common method, especially among larger operators who prioritise automation and security, making electronic locks fairly standard in the industry.
- Information sharing: Digital guidebooks are the most popular tool for sharing local recommendations, with 57 per cent of operators going fully digital, foregoing hard copies.
- Upsells: The most popular upsell remains early check-in / late check-out options, followed by mid-stay cleanings. Operators with 25-plus properties offer more upsells on average.
AI
- Current use: This year, 43 per cent of operators used AI within their vacation rental software, while 73 per cent used external AI tools such as ChatGPT.
- AI and revenue: Property managers who use AI tools built into their PMS are more likely to see a revenue gain than non-users, and less likely to see a drastic revenue drop compared to 2023. However, correlation does not necessarily mean causation.
- Impact: AI is expected to most significantly impact guest communications [48 per cent], followed by marketing [28 per cent].
To download and view the Hostfully hospitality report for 2024, click here.
