Thriving in Today's Dynamic Short-Term Rental Market

Illustration of a person gesturing to a house listed on a digital market

The vacation rental market is rapidly evolving, fueled by changing traveler preferences, technological advancements, and intense competition. For professional vacation rental property managers thriving in this dynamic environment requires agility, strategic planning, and the right set of tools. 

Here are some tips on how professional property managers can excel in today's market:

1. Leverage technology for efficiency and scalability

Technology is the backbone of an efficient holiday rental management company. To manage a large portfolio of properties effectively, you need comprehensive property management software (PMS) that offers:

  • Centralized reservation systems with extensive channel manager options: You need a system that consolidates bookings from the top platforms like Airbnb, Vrbo, Booking.com and Google into one central calendar to make marketing short-term rentals seamless and avoid double bookings.

    • Pro Tip: Confirm distribution fees before committing to a new software because percentage-based fees add up quickly. Escapia uniquely offers fee-free distribution to 30+ direct booking sites and the option to connect to extra channels through a built-in channel management solution for one low flat rate.
    • Pro Tip: You may be asking: how do I get my Vrbo listing to the top? And it’s important to understand that not all channel manager software options are the same. Escapia’s unique relationship with Vrbo enables Escapia users to perform better on Vrbo than hosts that use other connectivity platforms. In fact, property managers who have switched from another software to Escapia have seen an increase of an average of 23% in booking value on Vrbo.*
  • Integrated dynamic pricing: Integration with dynamic pricing vacation rental tools to adjust your rates based on market demand, seasonality, and local events ensures your properties are competitively priced.

    • Pro Tip: Make smarter pricing decisions by leveraging market data from Vrbo without additional costs—available right in Escapia. Escapia also offers direct integrations with premier pricing partners for more advanced features.
  • Self-service tools for owners: Prioritize tools that keep your owner customers up to date with less operational effort.

    • Pro Tip: Check out Escapia’s owner portal. It’s the most comprehensive vacation rental owner portal available and provided without additional cost. It’s easy to understand, private dashboards provide homeowners with real-time performance reports, booking calendars, and financial statements.

2. Focus on the guest experience

In a market where guests have endless choices, the key differentiator is often the experiences you provide and your guest reviews. Sure, welcome baskets and high-quality amenities are always appreciated, but we all know cleanliness and timely communication are key to earning more 5-star reviews. Your PMS should offer the latest technology for:

  • Maintenance and housekeeping coordination: Prioritize a software system with functionality to schedule and track maintenance and vacation rental housekeeping tasks, ensuring properties are always guest ready.

    • Pro Tip: Mobile friendly is a must for working with your teams in the field. Coming soon! Escapia’s new mobile tools will make it easier for your housekeeping and maintenance staff to get notifications when they have a new task, and to update you on the progress of those tasks as they go, all from a mobile phone or tablet.
  • Proactive and professional communications: Tools that automate guest communication, from booking confirmations to check-out instructions, enhance the guest experience and reduce manual tasks.

    • Pro Tip: Ensure your vacation rental management software has modern tools to automate your guest communications. Scheduling, templates, and merge tags in Escapia’s centralized Communications Hub ensure communication is prompt and helps you anticipate your guests’ every need. Escapia even offers text messaging and call forwarding to make your team more accessible with less effort!

3. Use data analytics for strategic decisions

Running a profitable vacation rental business is no easy feat, but it’s important to strive for a 10-15% profit margin for a productive business. Data analytics can provide invaluable insights into your business operations and market trends to inform your short-term rental strategy. Two key areas your PMS should help you make more strategic business decisions are:

  • Tracking performance metrics: Monitor key performance indicators (KPIs) such as occupancy rates, average daily rates (ADR), and revenue per available rental (RevPAR) to gauge the health of your business.
  • Understanding market trends: Analyze market data to identify trends, such as peak travel seasons or emerging traveler preferences, to adjust your vacation rental business plan accordingly.

    • Pro Tip: Managing vacation rental software and your performance metrics doesn’t have to be daunting. It’s easy to implement processes that incorporate daily, weekly, monthly, and annual reviews of business and booking trends. Escapia offers customizable reporting tools to help you setup the reports that work best for your business and Escapia’s Performance Dashboard screen provides business insights in one easy view.

4. Invest in Professional Development to support your team

The vacation rental industry is constantly changing, and staying ahead requires ongoing learning and professional development.

  • Get involved: If you’re not already, encourage your team to participate in industry conferences, webinars, and training sessions to stay updated on the latest trends, technologies, and best practices. Escapia is proud supporter of Vacation Rental Management Association (VRMA) and Australia and New Zealand Short-Term Rental Association (ASTRA), which offer several events throughout the year. Expedia Group and Vrbo also host several partner events for vacation rental managers. Check out Escapia’s events page often to see what industry and learning events we’ll be at next.

    • Pro Tip: In addition to industry events, your software should provide resources, education, and support to help support your team’s professional development. Escapia not only provides highly rated support with extended hours and locally based teams, but we also provide industry-leading educational resources with one-on-one trainings and online educational content. Escapia University offers a catalog of self-paced trainings available anytime, anywhere to help users confidently navigate the system and optimize business practices. 

In conclusion

Thriving as a professional vacation rental property manager in today’s market demands technology that helps support your guest-centric strategies, data-driven decisions, and continuous learning. By embracing these principles and investing in the right tools, you can not only navigate the complexities of the current market but also set the stage for long-term success and growth.