On May 13, 2025, Airbnb launched one of its most significant updates to date. This wasn’t just a new feature or a redesigned UI, it was a strategic pivot toward becoming a lifestyle superapp.

Let’s break down what changed, why it matters, and how vacation rental managers can adapt.

The Big Shift: From Stays to Services & Experiences

With the launch of Airbnb Services and a revamped Airbnb Experiences, the platform is expanding beyond bookings. Guests can book workouts, spa treatments, cooking classes, or even personal training — whether they’re traveling or in their own home.

Through the new app experience and a sleeker listings tab, Airbnb is clearly aiming to own the entire trip, not just the nightly stay.

This move confirms what many of us in the space already believe: the guest experience is no longer an add-on — it’s the product.

It’s a strong validation for platforms like Enso Connect that have long focused on enhancing the guest journey. It also introduces new dynamics for short-term rental property managers and Airbnb hosts.

Why This Matters for Operators

For years, many hosts have shifted from “rent collectors” to experience providers. This trend is backed by data:

• 72% of travelers say they value experiences over physical products (Skift, 2024)

• Guests are 3.5x more likely to leave 5-star reviews when their stay includes personal touches or local recommendations (Airbnb)

At the same time, expectations are rising fast.

Clean beds and fast Wi-Fi are no longer enough. Travelers want foodie experiences, wildlife expeditions, wellness classes, and the most authentic things your destination has to offer.

Forward-thinking operators are investing in everything from AI-powered customer support and guest apps, to smart home automation and in-stay upsells.

With Airbnb now offering incredible services like beauty experiences, tour guides, and even fashion consultations, the pressure is on to deliver something even more unique, local, and personalized.

The Bigger Picture: Three Trends Operators Can’t Ignore

1. Hospitality is Becoming Experiential

Travelers are craving more than shelter — they want extraordinary experiences, from art workshops to immersive multi-sensory music sessions (yes, that’s part of the Airbnb Summer Release).

Platforms like Enso Connect help operators capture these moments by integrating local services directly into the guest flow. We’ve seen clients boost revenue per guest by up to 23%.

2. Travel Is Becoming Relational

Airbnb is adding social features like group trip planning, messaging, and photo sharing. This reflects a shift toward real connections, where guests remember the people and shared moments more than the accommodation itself.

Operators who personalize communication and offer curated itineraries, like a day-by-day schedule of your trip, will build lasting guest loyalty.

3. Guest Journeys Are Becoming Tech-Enabled

Airbnb’s new tools, new views, and AI integrations simplify how guests discover and book services. To stay competitive, hosts must streamline upsells, automate messaging, and personalize every touchpoint.

Enso Connect’s data shows that integrated services can boost upsell conversions by up to 35%. That’s not a nice-to-have — it’s a must in 2025.

What Can You Do Right Now?

Learn

Understand the strategy behind these major updates. It’s not just about competing — it’s about evolving alongside.

Adapt

Highlight your local expertise. Airbnb can’t outmatch your on-the-ground insights. Offer the best private chef, not just any.

Innovate

Use tools that give you visibility and control — from earnings dashboards to automated upsells and the ability to capture guest notes.

At Enso, we’re helping operators offer upsells, automate workflows, and deliver a branded, elevated guest experience across platforms.

Take DinBnB in Norway: they generated over €7,500 in upsell revenue last month alone using Enso to craft unforgettable stays.

Proceed with Caution

This evolution brings new opportunities — but also important questions:

• Liability
  If a service provider causes damage, who’s responsible?

• Oversight
  Will hosts be notified when providers enter their entire home or private room?

• Regulation
  Are these new offerings compliant with local laws?

• Revenue
  Airbnb is capturing the upsell — how much is left for the host?

Airbnb is doubling down on the guest experience, but also taking a larger cut. If you’ve built your upsell strategy, this could feel like a land grab.

Looking Ahead

This isn’t just a winter release or a UI tweak. It’s a strategic shift that changes how we think about short-term rentals.

Whether it’s Airbnb Originals, the Host Passport, or live sessions with Olympian Carol Solberg, the Airbnb app is becoming a discovery engine for the world’s most interesting people and amazing homes.

At Enso Connect, we’re building alongside, helping property managers maintain clarity, control, and connection.

We’ll continue integrating with platforms like Airbnb while giving operators the tools to own the guest experience and scale on their own terms.

The future of hospitality isn’t just about beds — it’s about moments. Let’s build those moments together.

We get it, choosing vacation rental software is hard. You’re looking for clarity on the differences between Duve VS Enso Connect, and want to explore the options before investing. That’s why we’ve crafted this comprehensive guide, where we will:

1. Dive into Duve and Enso Connect, unpacking their features, pricing, and what customers are saying.

2. Put Enso Connect and Duve head-to-head, comparing these industry leaders feature by feature.

3. Back our insights with case studies and customer testimonials.

Spoiler: Enso Connect gives vacation rental professionals more flexibility, customization and a slick user-friendly design for crafting remarkable guest interactions. Ready to unlock the secrets of a stellar guest experience, powered by technology? Let’s dive in and see why James Cornwell picked Enso Connect!

Product Overview and Key Features: Duve

Duve is a comprehensive guest management system designed for hotels and vacation rentals.

Here’s an overview of Duve’s key features:

Online Check-in

Allows guests to check in before arrival, saving time for both staff and guests.

Branded Guest App

Provides a customizable app that aligns with your brand, offering guests information about their stay, amenities, local attractions, and more.

AI-Powered Communication

Uses AI agents to streamline guest communication across multiple platforms (email, WhatsApp, SMS, Airbnb, etc.) from a single hub.

Personalized Upselling

Learns about guests through pre-arrival information and OTA data to offer tailored upsells, upgrades, and services.

Digital Keys

 Integrates with selected smart lock providers for easy and secure property access.

Analytics and Insights

Offers segmentation insights to help understand guest experiences and make data-driven decisions.

Multi-Language Support

Provides automated translations for up to 20 languages.

Customizable Permissions

Allows setting specific permissions for different users and branches.

Third-Party Integrations

Offers integrations with various Property Management Systems (PMS), payment service providers, and other hospitality services.

Upsell Marketplace

Includes hundreds of third-party services and allows for in-house upsells or partner vendors.

Duve aims to increase profitability, improve performance, and elevate the guest experience for properties of various sizes, from independent hotels to large enterprise groups.

What’s Unique About Enso Connect?

Two key characteristics differentiate Enso Connect from other solutions:

– Flexibility and granular control over functionality. This allows hospitality businesses to fine-tune processes according to their unique requirements.

– The connectivity approach. Like Zapier of hospitality, the platform is connecting software that hospitality operators love and use, like Autohost or Superhog. Thanks to its high quality integrations with those partners, the platform allows integrating the services into one smooth and streamlined guest journey, without a need for guests to jump between different links or the team to log into many applications.

Examples of Enso Connect’s configurability:

Here are a selection of mini demos, made by Francois Gouelo, cofounder and CEO of Enso Connect.

– Crunching unexpected vacation rental scenarios with smart automations

– Working with two property management software providers

– Automating flexible property protection options

– Showing seasonal guidebooks automatically

and much more.

Duve VS Enso Connect: Feature Comparison

 

Duve and Enso Connect have similar features for enhancing guest experience and streamlining operations for hospitality professionals. Both automate communication throughout the guest journey, offer a unified inbox and a guest app, capture security deposits and facilitate upsells. Both platforms let hospitality professionals pre-register guests and simplify check-in. They also customize data collection before check-in, collect IDs, and use Stripe for transactions. Both software have a direct integration with Airbnb, however, Duve’s integration has limitations. Both products can automate requests for guest reviews based on guest sentiment.

Despite these similarities, a deeper dive into specific features shows significant differences between the tech solutions:

Unified inbox

Enso Connect’s AI-powered unified inbox is hard to beat, it just has everything you need to keep control of guest communication. However Duve’s inbox is one of the best unified inboxes on the market (after Enso Connect’s one).

Duve integration with Airbnb is limited, Esno has a better connection with OTAs.

AI capabilities

Enso Connect leverages AI for predictive responses and sentiment analysis, providing more personalized and context-aware communication. The platform also provides AI reports and summaries for data-driven and quick decision-making. Duve, while automated, does not emphasize AI to the same extent.

To stay relevant in the AI race, Duve recently acquired EasyWay, an AI-based messaging tool, promising advanced AI-driven guest experiences. However, Duve users haven’t yet seen significant AI advancements. This delay is understandable, as integrating a new company can be time-consuming and may not always create the expected synergies. Sometimes, such acquisitions can initially lead to inefficiencies and hurdles rather than immediate improvements.

Here is the promise of Duve’s recent EasyWay integration:

This strategic move has bolstered Duve’s artificial intelligence offerings in several key areas:

1. Integrates generative AI for improved guest experiences

2. Combines personalized guest messaging with AI agents

3. Adds AI-powered guest journey management

4. Increases operational efficiency through automation

5. Expands personalization capabilities at scale

Duve aims to balance automation and personalization in hospitality, enhancing guest satisfaction and streamlining operations.

If comparing the AI capabilities of Enso Connect and Duve today, here’s where the things are:

EnsoAI VS DuveAI – Key differences

1. AI sophistication

Enso Connect’s solution appears to be more advanced in terms of AI integration, using GPT-4o for generating contextually aware and personalized responses. Duve’s automation seems to rely more on pre-written templates and scheduled messages.

2. Personalization

Enso Connect’s AI analyzes past conversations and property-specific information to create more tailored responses, while Duve focuses on templated messages.

3. Language support

Enso Connect explicitly mentions support for over 50 languages, which is particularly beneficial for properties with international guests.

4. Sentiment analysis

Enso Connect incorporates sentiment analysis to adjust responses and potentially trigger automated actions, a feature not mentioned for Duve.

5. Upselling approach

While both platforms offer upselling capabilities, Enso Connect integrates this into its AI-driven system, potentially allowing for more dynamic and contextual upsell opportunities. Duve offers automated upsells as part of a premium package.

EnsoAI takes a more comprehensive approach by not only leveraging information within the Enso platform but also from external sources. This enables our AI to provide more informed responses that can be further customized before sending, personalizing customer interactions. Additionally, EnsoAI offers the ability to prompt responses, similar to ChatGPT functionality, enhancing the efficiency of customer support.

Enso Connect’s recent AI special report categorizes guest conversations, improving AI replies and providing insights into common guest requests.

Enso Connect’s AI-driven predictive responses appear to offer a more personalized, and context-aware approach to guest communication. In contrast, Duve’s system relies on a more traditional automated messaging approach.

Guest app

Enso Connect’s guest web app, the Boarding Pass, sets it apart from Duve. This app serves as a powerful sales tool for hospitality professionals. The Boarding Pass is a single link that navigates guests through the entire journey, from booking to checkout. With the Boarding Pass, all the essential information, needed for perfect guest stays is at their fingertips, anytime and anywhere. Guests can access information, verify details, handle agreements and fees, and explore digital guestbooks and area guides in real time.

With Enso Connect’s Boarding Pass V3, the guest portal has become a state-of-the-art engagement and e-commerce tool for hospitality operators. The web app combines intuitive design, advanced branding capabilities, and seamless integrations to offer an unmatched user experience.

Revenue-Generating Tools

Enso Connect’s mission is to improve vacation rental guest experience and drive measurable revenue growth for operators. That’s why we integrate revenue-generating features into every stage of the guest journey. Here are our main tools that illustrate this approach:

Custom Upsells and Affiliate Links

Operators can create upsell offers, like early check-in, late checkout, mid-stay cleaning and more. They can also integrate third-party local services, like dining, luggage storage, party planning, etc. into the guest app.

Enso Experiences (Automated Activity Bookings)

Feature that automatically curates and displays nearby tours/activities within the guest guest web app. Bookings are managed by partners, making this a true passive income stream.

Flexible Damage Protection (Damage Waivers)

Enso Connect provides a dual-option system: guests choose between a traditional security deposit or a non-refundable damage waiver. This flexibility reduces friction during booking while driving ancillary revenue. Users typically see an immediate 6% boost in ancillary income after implementing Enso’s damage waivers.

Third-party and smart lock integrations

When using multiple third-party tools alongside Duve, the lack of seamless integration creates manual overhead for customers. This issue was highlighted by a customer moving from Duve to Enso Connect. They had to perform manual work for every new booking due to the lack of automation between Duve and their other tools. Enso Connect solves this issue by offering white labelling and quality integrations and automation across various third-party hospitality tech tools.

UX and Interface

Duve doesn’t offer a mobile app, for users to be able to manage guest interactions on the go.

Integration Capabilities

Enso’s unique vision of connecting vs ripping and replacing software, allows it to be the Zapier of hospitality. These users can create seamless journeys, without a need to log into many apps or send many links to guests. For Duve, connecting three different types of software is not something that works smoothly.

Customer support and training

Enso Connect prioritizes providing attentive, human-centric support and has a swift onboarding process with at least two sessions with the team. Most of the customer feedback is praising onboarding and the support team members. Both Duve and Enso Connect charge an onboarding fee.

Pricing and Scalability

Enso Connect is a premium product with a plethora of features and capabilities, designed to streamline operations and drive revenue. The unmatched customization, allowing operators to become significantly efficient and revenue-generating tools make it a worthwhile investment for scaling businesses.

For those looking for a “budget” alternative and less customization, Duve is a viable option with its basic packages and no SMS charges.

The average ROI for Enso Connect customers is 4.7, highlighting its premium value despite higher costs. Watch a case study, where the users explain how Enso Connect covers the software costs and brings new revenue.

Both Duve and Enso Connect lower their rates when the number of listings increases. They employ tiered pricing, based on the size of the property manager, determined by the number of listings they manage. This approach ensures that pricing scales according to the needs and scope of the property management operations. It provides flexibility for growth and accommodates varying business sizes. Both platforms offer fair and scalable pricing that caters to the specific requirements of property managers. Whether you manage a handful of listings or operate on a larger scale, you’ll find an offer that fits you. Check the Enso Connect’s pricing here.

Duve VS Enso Connect Pricing

Now that you’ve seen the different functionalities available in Duve, let’s dive into pricing.

Duve offers four pricing plans:

1. Basic: $6 (€5, £4.5) per room/bed per month, includes online check-in, guest app, and basic analytics.

2. Pro: $7.5 (€6.5, £5.5) per room/bed per month, adds communication suite with SMS and WhatsApp capabilities.

3. Premium: $10 (€9, £8) per room/bed per month, includes all Pro features plus upsells and eCommerce functionalities.

4. Enterprise: Custom pricing with advanced customizations and dedicated account management.

This is comparable with the Enso Connect pricing. Get instant pricing for Enso Connect here.

For upselling, Enso Connect charges 5%, while Duve takes 10% of what is coming through the system.

Enso Connect offers the first in the short-term rental technology ROI Guarantee Program.

Alternatives to Duve

Duve has been a reputable player in the market for 8 years, recognized for their innovative digital hospitality systems. Criticizing their potential reliability issues is inaccurate, as they are a strong industry contender adding significant value to their users.

However, with the advent of advanced AI systems like OpenAI’s ChatGPT, innovative vendors like Enso Connect are rapidly disrupting the space. While Duve maintains its competitive edge through acquisitions, they are also pivoting their focus from vacation rentals to the standardized hotel industry.

If you’re looking for alternatives to Duve, focused on the needs of short-term rental businesses, Enso Connect is a go-to solution.

Short-term rental managers, looking for a guest communication platform, often compare Enso Connect and Akia.

For GuestView Guide users, looking for an alternative to the service that was discontinued in fall 2024, we have a solution for you. Contact our team to see how we can take your guest experience to the next level.

In this article you’ll learn:

• Why Upsells Matter in Short-Term Rentals in 2025
• Methodology of the Vacation Rental Upsells Research
• Key Findings of the Research
• Adoption of Upsells in Vacation Rentals
• Main Barriers for Implementing Upsells in Vacation Rentals
• Vacation Rental Upsells Geography Breakdown
• Company Size Breakdown in Vacation Rental Upsells
• Top 10 Upsells Offered in Vacation Rentals
• Regional Upsell Revenue Hotspots
• Recommendations Based on the Findings
• Thoughts on Building a Robust Upselling Strategy in Your Hospitality Business

Methodology: Actionable Insights from Global Data

We analyzed 4,394 vacation rental businesses globally (Q1-Q4 2024) through direct booking site audits tracking upsell mentions.
Note: Early check-in, late checkout, and mid-stay cleaning services – operational upsells – were excluded to avoid skewing results.

Sample Breakdown:

• Regions: North America (67%), Europe (28%), Asia + Middle East (2%), Oceania (2%), Latin America (1%)
• Company Sizes: Small (1–9 listings) – 4%; Medium (10–29 listings) – 46%; Growth (30–99 listings) – 33%; Large (100-250) – 16%; Scale up (250+) – 3%

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Key Findings: Bridging the Gap Between Guest Preferences and Revenue Opportunities

After a detailed analysis of data from over 4,000 short-term rental operators, here’s what we discovered.

1. Low Adoption, High Potential

Only 17.6% of short-term rental properties offer upsells, despite strong demand for local experiences.

Are you part of the 17.6%? Calculate how much you could earn with automated upsells. 

2. Europe Leads with Experiential Upsells

• Europe dominates due to high density of vacation rental markets in Portugal, Spain & France. Additionally the add-on offers align with local culture and heritage.
• North America follows, with strong representation in Florida, California, and Hawaii. These regions cater to business travelers, families and multi-generational stays.
• Asia and Middle East target high-net-worth guests seeking memorable stays.

3. Growth-Stage Companies Win with Upsells

Growth-stage STR companies (30–99 listings) lead in upsells, while very small and enterprise-level firms lag behind. 

4.Transportation & Local Activities: The Most Offered Upsells

(What successful STRs are selling – and where you’re missing out)

Revenue Impact: Properties with upsells maintain higher RevPAR during downturns, driven by guest loyalty and repeat bookings.

Building Your Upselling Strategy

The short-term rental industry’s path to revenue growth lies in blending operational efficiency with guest-centric innovation. By integrating upselling strategies that align with guest preferences and local attractions, property managers can unlock new revenue streams. This is while crafting unforgettable overall guest experiences.

It is clear that upsells and add-ons is not something to be excluded from the vacation rental industry outlook. Property management companies and hospitality businesses that want to stand out with positive reviews and boost revenue should consider upsells. In order for you to make data-driven decisions, we’ve performed an in-depth analysis of trends of upsells adoption by STR operators.

We hope this will guide you in finding the right upsell options that work for you and your guests. Of course, you are the best experts in your market – no one knows your guests’ preferences and the best offerings in your area better than you. We also recommend conducting an internal analysis of your guest messaging to identify popular demand, revenue opportunities, and areas for improvement.

Why Profitability Matters for Vacation Rental Managers

Professional short-term rental managers who want to stand out and attract quality property owners must offer real value to customers. This means not only keeping properties well-maintained and safe but also ensuring their cash-on-cash return is maximized. Running a vacation rental business is challenging. Margins are tight, and property managers typically earn only 20% of rental revenue, primarily from the nightly rate. The best way to succeed is to constantly identify opportunities to increase owner returns and boost your business income. There are two ways to increase the profitability of vacation rental properties: cutting costs and increasing revenue. A third factor is optimizing occupancy, but ultimately, that also ties back to revenue growth. In this article, we will review both, focusing on driving annual revenue.

Let’s dive into the steps to calculate your vacation rental’s profitability.

Step 1: Calculate Your Total Costs

The first step is to understand all the costs associated with your vacation rental. These fall into three main categories:

1. Fixed Costs

These are expenses you pay regularly, regardless of how often your property is booked. Examples include:

• Mortgage or loan payments (in the case of managing properties for rental owners, an STR business won’t have this).
• Property insurance
• Property taxes
• Your team salaries

2. Variable Costs

These costs fluctuate based on how often your property is rented. Examples include:

• Cleaning fees (per booking)
• Maintenance and repairs
• Utilities (electricity, water, internet)

3. Hidden Costs

Some costs can be overlooked but can significantly impact your profitability. For example:

• Marketing and listing fees (e.g., OTA online travel agencies’ commissions, like Airbnb or VRBO)
• Property damages
• Unexpected repairs or replacements

Step 2: Determine Your Revenue Streams

Next, calculate how much money your short-term rental properties generate. Revenue isn’t just about nightly rates – it includes all income streams related to your property.

1. Rental Income

This is the primary source of revenue for most vacation rentals. To calculate it:

• Determine your average nightly rate
• Multiply by the number of nights booked per month

2. Additional Income

Don’t forget about extra revenue streams, such as:

• Cleaning fees
• Pet fees
• Damage waivers
• Operational upsells – early check-in, late checkout, charges for amenities, like pool heating, equipment rentals, BBQ grills, etc.
• Experiential upsells – experiences or services, like guided tours, concert tickets, cooking classes, etc.

Pro Tip: Offering additional services, upsells or amenities can significantly boost your revenue. There are some common myths about upsells. For example: early check-ins and late checkouts are too complicated and are not worth the time spent on organizing. In this article, we’re busting this and other misconceptions about upsells that lead to missed revenue opportunities.

Pro tip: You can elevate your guests’ stays with local experiences without lifting a finger. Learn more about the new passive income tool for vacation rental operators.

Step 3: Measure Occupancy Rate

Your occupancy rate – the percentage of time your property is booked – plays a huge role in your profitability. Here’s how to calculate it:

Occupancy Rate Formula:

Occupancy Rate=(Number of Nights BookedTotal Available Nights)×100

Occupancy Rate=(Total Available NightsNumber of Nights Booked)×100

For example, if your property is booked for 21 nights in a 30-day month, your occupancy rate is 70%.

Why Occupancy Matters

A high occupancy rate means more revenue, but it also means higher variable costs (e.g., cleaning and maintenance). Balancing occupancy with pricing is key to maximizing profitability.

Pro tip: there are dynamic pricing and revenue management tools that help optimize pricing according to rental demand and other key factors. For example, tools like Price Labs, Beyond ow Wheelhouse.

Pro tip: Successful vacation rental managers maximize occupancy by blending short-, mid-, and long-term rentals. See the example of High Street Townhouse, an aparthotel in Manchester, that achieved 90% occupancy. Others adjust pricing during the low season, increasing occupancy while offsetting lower nightly rates with upsell revenue. Set the example of Heimby, who’s reducing the costs of student housing and increasing owners’ returns by 40%.

Step 5: Leverage Tools to Simplify the Process

Calculating profitability doesn’t have to be a manual, time-consuming task. Here are some tools to make it easier:

1. Property Management Software (PMS)

Platforms like Guesty or Hostaway can automate cost tracking, revenue analysis, and occupancy rate calculations.

2. Revenue Management Tools

Tools like Beyond Pricing or PriceLabs can help you optimize your nightly rates based on market demand.

3. Rental Property Calculators 

If you prefer the DIY approach, there are spreadsheets to track your costs, revenue, and profitability.

Use this rental income calculator to estimate the potential of your properties with upsells, fees and damage waivers.

Step 6: Analyze and Improve Your Profitability

Once you’ve calculated your profitability, it’s time to take action. Here are some tips to improve your numbers:

1. Reduce Costs

• Negotiate better rates with cleaning services or suppliers
• Switch to energy-efficient appliances to lower utility bills
• Streamline and automate repetitive tasks and processes to save your team’s time and reduce labour extra costs with operational efficiency.
• Add a direct booking website channel to reduce OTA fees and dependency on Airbnb, VRBO, Booking.com and other rental platforms.

2. Increase Revenue

• Offer additional amenities or services (e.g., airport transfers or grocery delivery)
• Adjust your pricing strategy based on seasonal demand
• Market your property effectively to attract more bookings
• Encourage your happy guests to leave positive reviews  They can significantly impact your property’s reputation and booking rate.Pro tip: Automate your review requests with a custom workflow triggered by guest checkouts with positive sentiment.

3. Optimize Occupancy

• Use dynamic pricing tools to adjust rates based on demand
• Offer discounts for longer stays to reduce turnover
• Improve your listing’s appeal with high-quality photos, detailed descriptions and experiential offeringsLearn more about making your numbers add up in Vacation Rentals.

Real-Life Example: Calculating Profitability for a 2-Bedroom Vacation Rental

Let’s put it all together with a real-life example. Imagine you manage a 2-bedroom vacation rental in a popular tourist destination. Here’s how you might calculate its profitability:

1. Total Costs

• Fixed Costs: $1,500/month (labour, insurance, taxes)
• Variable Costs: $500/month (cleaning, maintenance, utilities)
• Hidden Costs: $200/month (guest damage, marketing)
• Total Monthly Costs: $2,200

2. Total Revenue

• Average nightly rate: $150
• Occupancy rate: 70% (21 nights booked per month)
• Monthly rental income: 150×21=150x21=3,150
• Additional income (cleaning fees, amenities): $200
• Total Monthly Revenue: $3,350

3. Profitability

• Monthly Profit: 3,350(Revenue)−3,350(Revenue)−2,200 (Costs) = $1,150
• Annual Profit: 1,150×12=1,150x12=13,800

This example shows how even a modestly priced rental can generate significant profit with proper management.

Learn about new ways to drive additional revenue in 2025.

Conclusion

Calculating your vacation rental’s profitability doesn’t have to be complicated. By tracking costs, maximizing revenue, and optimizing occupancy, you can create a profitable investment for your owners. Evaluating these key factors and implementing the revenue-generating strategies will help you maximize returns and ensure long-term success.

The Ugly: Regulations and Natural Disasters

STR Regulations have posed significant challenges in 2024. Permit requirements, occupancy bylaws, new short-term rental limits – STR operators have faced an uphill battle.

According to Brian Chesskiy, 80% of Airbnb’s top 200 markets by revenue already have some regulation.

France’s 2025 regulations will reduce tax breaks, cap rentals at 90 days per year, and enforce mandatory property registration with penalties for non-compliance.

Spain is launching a national registration system requiring property codes, local approvals, and increased oversight.

Australia is introducing similar measures with national registration and annual limits of 60–180 rental days.

We saw tightening regulations in North America. In Canada, British Columbia is restricting STRs to principal residences with business licenses and steep fines starting May 2024.

In the US, states like Florida, California, Colorado, and Massachusetts proposed new restrictions, while New York City effectively banned STRs entirely. Urban markets are particularly impacted, with inventory reductions and rising compliance costs.

Regulations are a source of frustration for many operators, showing that the industry is becoming more challenging. However, some see a silver lining. By limiting lower-quality rentals, regulations help create a more professional market. They also improve safety standards, which benefit both guests and the broader community.

Adding to these challenges, natural disasters such as hurricanes, wildfires, floods, and heatwaves wreaked havoc in vulnerable regions, disrupting operations and altering traveler behavior. Operators in urban areas like San Francisco and coastal towns faced unique challenges as local communities pushed for stricter local laws to mitigate the impact of short-term rentals.

Contingency planning, dynamic pricing tools, and building operational resilience will be crucial for STR operators navigating an unpredictable landscape.

Despite these hurdles, there was good news:

• AirDNA reported that occupancy rates stopped declining, and revenue per available rental (RevPAR) returned to positive growth after two years of decline.
• Slower supply growth, coupled with a 7% rebound in demand, restored balance to the market, enabling property management companies to regain pricing power with rising average daily rates (ADR).

However, fierce competition remains a key issue. Since 2020, the supply of active Airbnb rental listings in the U.S. has surged by 62%, largely driven by new investors (Hostfully). The influx of low-quality listings and aggressive price-cutting strategies has intensified the need for operators to stand out while maintaining profitability.

Shorter booking windows added complexity, requiring rental property managers to frequently adjust pricing strategies. According to KeyData, 83% of property managers reported changing prices at least once a week, further emphasizing the importance of dynamic pricing tools in addressing demand fluctuations.

The Good: Resilience and New Revenue Opportunities

If 2024 taught us anything, it’s that STR operators can grow in tough markets. Even in declining markets like Atlanta, property managers found ways to grow by leveraging dynamic pricing and driving incremental revenue through upsells, add-ons and fees.

• Our data shows that upsells generated up to $147 per listing per month in extra revenue
• Over the past year, the volume of Upsells for the Enso Connect users has grown by +500%.
• Early check-ins, late check-outs and damage waivers were the biggest revenue drivers.

RevLabs workshop, HomeToGo Survey and Skift Megatrends revealed new trends driving revenue in 2025:

Emerging trends also shaped new opportunities for short-term rental owners:

• Experiential travel. Guests increasingly sought unique accommodations and memorable guest experiences, sparking trends like set-jetting (visiting destinations from popular movies) and event-driven travel (e.g., concerts, festivals, and global sporting events). Unique, hands-on experiences drive decisions for 21% of travelers.
• People are also looking to travel with pets, and pet fees are becoming more common.
• Wellness and mental health-focused accommodations gained traction, reflecting travelers’ growing preference for long-term health benefits and extended periods of relaxation.

• Travelers are eager for their money to go further – 36% of respondents prioritize price.

• Business Insider shares another hospitality industry trend. As travelers spend less on cheap Airbnbs, high-end vacation rentals are booming.

STR operators with competitive pricing and unique experiences in their listings are set to capture more demand in 2025. They can recapture revenue with experiential upsells and convenience add-ons, enhancing both profitability and guest satisfaction.

Guest satisfaction remained a priority, with STR operators focusing on delivering positive reviews through improved cleaning fees, house rules, and personalized services. Platforms like Airbnb and other short-term rental platforms emphasized the importance of online reviews and local partnerships to boost visibility and attract ideal guests.

The Bet on AI

AI continues to divide opinions in the vacation rental industry. Some see its immense potential, while others question the practical use cases, ROI, and speed of delivering real value to operators.

Since early 2023, the industry has followed a typical AI adoption journey, reflecting the phases of Gartner’s Hype Cycle. Initially, there was a surge of excitement and high expectations around AI’s potential, as operators were eager to explore its capabilities. As challenges and limitations surfaced, enthusiasm dipped into skepticism and disappointment. Now, the industry is transitioning to a more balanced perspective, understanding the practical applications of AI and beginning to see real, tangible value through thoughtful implementation. This shift marks the move toward sustained growth and confidence in AI as a transformative tool.

Guesty’s survey revealed that 52% of vacation rental property managers are already using AI, with key applications including dynamic pricing, guest communication (33%), and content creation (23%).

Simon Lehmann predicts that in 2025, vendors who successfully provide tangible AI solutions will lead the market. Meanwhile, Ela Mezhiborsky from Autohost highlights the growing threat of AI-driven fraud, emphasizing the need for tech solutions to combat it.

In 2024, AI advanced more than in the past years combined. This will undoubtedly impact its applications in the short-term rental industry. We are working towards and anticipating more solid case studies from hospitality professionals leveraging this technology. The future of AI in our industry depends on solving real challenges and delivering measurable results.

Final Thoughts

2024 was a year of resilience and transformation for the STR industry. While regulatory pressures, natural disasters, and rising costs posed significant challenges, operators demonstrated creativity and adaptability, laying the groundwork for future success.

As we enter 2025, the focus will shift to profitability, personalization, and leveraging technology to unlock new revenue streams. With demand projected to outpace supply and the global STR market expected to reach $256.3 billion by 2030 (11.2% annual growth rate, Guesty), the opportunities are vast.

By staying attuned to market trends, embracing innovation, and prioritizing guest satisfaction, STR professionals can turn challenges into opportunities and make 2025 a year where the Good outshines the Bad and the Ugly.

Stay tuned for more valuable insights and tools to help you thrive in the coming year, capturing more rental income while creating unforgettable guest experiences for short-term rental guests.

Areas of Vacation Rental Management That Benefit from Automation

1. Answering Guest Requests and Questions

Automated messaging systems improve communication with guests by providing timely responses to inquiries, confirmations of bookings, verification, checkins or ada-ons. This impacts your sales/bookings and guest satisfaction.

• 90% of customers consider an “immediate” response crucial for customer service questions (Hubspot). Same survey defined “immediate” response time as 10 minutes.
• You’re seven times more likely to get a booking if you follow up on an inquiry within one hour (Guesty).

2. Streamlining Guest Screening and Security

Rapid responses allow property managers to quickly address any red flags or concerns identified during the screening process. This ensures a more thorough verification, reduces the likelihood of booking cancellations and facilitates the collection of necessary quest data.

3. Simplifying Contactless Check-In/Check-Out

Contactless check-in is often the most stressful part of the guest journey in vacation rentals. Unlike hotels, short-term rentals lack a registration desk or on-site staff. First-time guests often worry about accessing the property smoothly, especially during nighttime, when confidence decreases further.

Quick, clear communication eases guest anxiety, reduces uncertainty, and sets a positive tone for their experience.

For checkouts, automated reminders help prevent late departures and the issues they can cause, ensuring a smoother process.

4. Facilitating Upsells and Fees

Proactive and timely communication is essential for maximizing upsell opportunities and revenue in short-term rentals. It encourages guests to purchase additional services or upgrades by leveraging their pre-arrival excitement and decision-making window.

By responding promptly to inquiries, hosts can tap into guests’ willingness to enhance their stay. Strategic timing, such as offering upsells a week before check-in, further boosts this opportunity.

Quick responses also build trust and show attentiveness, making guests more open to upsell offers and increasing conversion rates.

Top 15 Automation Setups Most Used in Vacation Rentals

We’ve compiled the 15 most popular condition-based automated workflows used by short-term rental professionals in daily operations. Use these templates and customize them to fit your needs, streamlining your processes effortlessly.

Automessages

Automate messages, based on the following conditions.

1. Booking Channel

You can use conditions to only send one type of communication based on booking channel. For example: If Booking Channel is Airbnb, send Airbnb message. Some property managers like to send multiple type of communication so they would not add booking channel conditions here.

2. Data Collected in the Guest App

This is a condition you can use based off fields you collected from your guests in the information form.

For example, send future marketing emails only to guests who have provided consent. Or personalize automated messages based on the reason for travel.

3. Booking Payment Status

Send a message specifically to guests who are not fully paid.
This condition is PMS-specific. Check with Enso Connect before applying this condition.

4. Booking Tags

• You can set up reminder messages for guests who haven’t completed their verification steps yet. These targeted reminders ensure only those who need to complete the process receive notifications, avoiding unnecessary messages to others.
• Similarly, you can create conditions to target guests who have completed their verification. This lets you send thank-you messages or specific information only to those who have finished all requirements.

5. Booking Lead Time

• Use this condition for last-minute bookings
• All messages are sent based on triggers, so guests booking on the same day may miss earlier messages. Using booking lead time ensures these last-minute bookings receive the same messages tailored to their timing.

6. Early Check-in/Late Checkout Upsell

Automate upsell requests, approvals, and denials, saving your team valuable time. For example, you only need to approve or deny an early check-in request, and your guest will automatically receive a message. The same process can be applied to check-out requests.

7. 3DS Verification

Some guest banks require 3DS verification for fees or upsells. This means the guest must click their Boarding Pass link again to confirm the payment.

Use this trigger to notify them payment was received but a final step still needs to be completed. You can advise them to click back into their guest portal to complete this payment.

Popular Fees and Upsells Automations

8. Listing Tags

To charge different fees for different listing prices, set up 3 fees based on listing tags.

• If listing tag contain ‘high’
• if listing tag contains ‘medium’
• if listing tag contains ‘low’

9. Booking Channel

Use this condition if you prefer collecting fees only from certain booking channels based on past experiences with those guests.

10. Check-in and Checkout Date

Use this condition to set up seasonal upsells. Choose check-in or checkout date conditions to target specific periods if your prices vary based on the time of year.

Most Used Verification Automations

11. Booking Channel Specific

These automations are most commonly used for Airbnb vs non-Airbnb conditional workflows. Can be used for all booking channels to specify what is required in each process.

12. Booking created on the date

Use this condition for migrating into Enso Connect.
You can set basic verification for bookings made before your go-live date in Enso. All new bookings can go through a more complex verification process to avoid manually skipping steps already completed elsewhere.

13. Listing Tags

Use this to keep listings in the same listing group but apply different settings based on specific house rules and agreements.

14. Number of Nights in a Booking

Separate verification based on long-term vs short-term rentals within the same group or across all listings.

15. Total People Booked

Cater your guest information collection details to the number of guests booked. This is ideal if you are looking to know the names of those joining the guests who booked.

Final Thoughts

The templates and conditions presented in the list demonstrate how property managers can leverage “If This Then That” logic. They can create sophisticated, personalized workflows that address key areas like guest communication, verification, upselling, and security.

By implementing these automated solutions, property managers can:

• Respond to guest inquiries within critical booking windows
• Streamline verification processes based on specific booking parameters
• Create personalized guest experiences through targeted communication
• Maximize revenue opportunities through strategic upselling

These templates serve as a foundation that you can customize to match your property management style and guest expectations. As you implement these automations, continuously monitor their effectiveness and adjust them based on guest feedback and operational needs.

It’s a Vacation, After All! Protecting Properties Without Hassling Guests + Driving Revenue. Is That Possible?

With vacation rentals being a strong alternative to hotels, guests now expect a contactless, hassle-free experience with quick service and nice amenities. And just like in hotels, vacation rental guests aren’t fans of security deposits. On the other hand, operators need to protect their properties from damage, fraud, and chargebacks more than ever before. This is why the concept of self-insurance or damage waivers is such a hot topic in the industry today. Let’s explore the ins and outs of damage waivers. The benefits, the concerns, and the potential this tool has, when done right, to improve guest experience and drive revenue.

What are Damage Waivers in Vacation Rental Industry?

A damage waiver is a non-refundable fee guests pay to cover potential minor damages during their stay. This fee allows to accumulate funds, which will compensate the rental property owners for any reported accidental damage. Guests who buy a damage waiver still must follow house rules and have to report accidental damage to avoid liability.

The Difference Between Security or Damage Deposits and Damage Waivers

Benefits of Damage Waivers in the Short-Term Rental Business

1. Simplified Risk Management

Damage waivers provide an upfront layer of financial protection in case of guest damage. This offers peace of mind while reducing reliance on complex claims processes. They reduce the administrative burden on rental managers and rental owners. Unlike security deposits, which require processing, refunds, and sometimes handling disputes, damage waivers simplify operations and free up time.

2. Guest Experience: How Damage Waivers Alleviate Guest Anxiety

Lowered Financial Stress

Guests often worry about high upfront security deposits, which can tie up their cash flow during the vacation. With a damage waiver, the anxiety over potential damages and lost deposits is minimized, making their overall stay more relaxed. Our data indicates that 83% of guests prefer properties with a damage waiver over a traditional security deposit for this reason.

Clear Communication Reduces Friction

Studies show that transparency about fees leads to better guest satisfaction scores. The key is to communicate the waiver in an honest, positive way that highlights how it’s designed to provide “worry-free” stays.

Examples from Industry Leaders

Leading property management companies have implemented damage waivers. Each of them found a unique way to communicate the program with guests, streamline the process and drive revenue with this tool.

Here are their examples.

• GoodNight Premium Stays

• Goldnest Property Management

• Marbella Lane 

 3. The Revenue Boost from Damage Waivers

Let’s start with the short-term rental market numbers. Recent case studies suggest that adopting damage waivers can have a significant impact on your bottom line. Here’s how.

 Higher Conversion Rates

Our data shows that listings that switched from security deposits to damage waivers experienced a 6-10% increase in bookings. Guests are often hesitant about upfront costs, and a large security deposit can make your property less attractive compared to competitors with no deposit.

Revenue Growth Through Incremental Fees

Many property management companies have seen their revenue increase by 5-10% per booking simply by adding a modest damage waiver fee. For instance, if you charge a $50 damage waiver fee on a property booked 150 times a year, that’s an additional $7,500 in annual revenue—without significantly increasing your workload.

Watch the case study showing how GoodNight Premium Stays earned $250k in additional revenue in 6 months with upsells and fees. 60% of this revenue came from damage waivers.

Reduction in Administrative Burden

Traditional security deposits require property managers to handle disputes and refunds, which can be time-consuming and damage your guest relationships. Property managers report a reduction in administrative workload after switching to damage waivers. By reducing these headaches, you can focus more on improving the guest experience and other core aspects of your business.

Common Drawbacks from Damage Waiver Protection Plan

Unlike security deposits, which require the guest to pay upfront and await reimbursement, damage waivers are simple for both parties. However, many property managers hesitate to implement them, fearing it might deter bookings, inconvenience guests, or seem like “nickel-and-diming” guests.

There are a few misconceptions that often make property managers hesitant to switch to damage waivers. Let’s debunk some common myths.

1. “Guests will hate extra fees”

People are tired of so many different fees – no one wants any additional cost. The truth is, that most guests dislike uncertainty and large deposits more than they dislike a small waiver fee.

 When presented as a “hassle-free” guarantee against accidents, most guests appreciate this option.

2. “Damage waivers won’t cover enough”

While damage waivers are intended for smaller incidents (typically up to $1,500), they are sufficient for the majority of accidents. For example – wine spilled on the carpet, a broken lamp, or scratches on the furniture. For larger issues, traditional homeowners insurance coverage still plays a critical role.

3. “What if Guests Abuse the Damage Waiver?”

A common concern is that guests might misuse a $50 damage waiver fee as an excuse to throw parties. This could lead to property damage and leave managers at a disadvantage.

A closer look at the unit economics of damage waivers versus refundable security deposits shows this fear is unfounded.

4. What If Guests Cause Major Damage?

The damage waiver covers minor damages up to set coverage limits, about $500, which easily covers the majority of issues. For anything exceeding $500, the guest’s card can still be charged based on rental agreements and terms. This is effectively ensuring that extreme scenarios are accounted for.

The damage waiver isn’t the sole line of defence – it’s the first layer of protection, aimed to:

    1.    Reduce guest friction by avoiding high deposits.

    2.    Generate additional revenue by charging a reasonable fee that isn’t refundable.

    3.    Still leave room for larger claims when significant damages occur

Curious how much you could earn with damage waivers? Use our Revenue Potential Calculator to see how much revenue you could potentially generate with damage waivers!

1. Logistics or “The No Time” Myth

Reality Check

• Automation Makes it Simple

Modern automation tools handle the entire process – from offering and confirming to scheduling cleaning crews. Yes, you can’t automate the cleaning, but you can make it faster and more seamless.

• Flexibility is Key

Think flexible, not extreme. A 1 PM early check-in or noon checkout can be just as appealing to guests as more extended windows. You maintain control of your schedule while monetizing those extra hours that naturally exist between bookings.

• Practical Implementation Tips

When you receive an early check-in or late checkout request, here’s your simple checklist:

Q: Do you need to accept the early check-in right away?

A: No, you can wait until you have better visibility of your schedule.

Q: Can you accept closer to the check-in date?

A: Yes, this gives you time to coordinate with your cleaning team and ensure everything is ready.

Q: Can you take a credit card imprint to automatically charge it when accepted?

A: Absolutely – this secures the booking while giving you flexibility in timing.

Q: How will you communicate availability to the guest?

A: Set up automated notifications through your property management system.

2. Guest Communication or The “Fewer Touchpoints is Better” Myth

Reality Check

Strategic upsells actually reduce guest messages by anticipating and automatically fulfilling common requests. Plus, guests appreciate having options at their fingertips.

• Proactive vs. Reactive Approach

By setting up your upsell offerings in advance, you transform multiple back-and-forth conversations into simple one-click approvals

Being proactive means your system does the selling for you, turning guest requests into automatic revenue opportunities

• Partnerships and Affiliate Programs

Connect with local tour operators and experience providers who handle the communication with the guests.

You simply advertise their services and earn a commission – no need to manage bookings or coordinate details. This creates passive income while service providers handle the guest interaction

• Practical Implementation Tips

Here’s how to minimize work while maximizing revenue:

Q: Are you being proactive or reactive?

A: Being proactive by setting up automated offers means less work later. Don’t wait for guests to ask – have options ready and visible from the start.

Q: Are you asking the guest if they want something?

A: Instead of initiating conversations, let your system showcase available options automatically at key booking moments. This transforms manual outreach into passive opportunities.

Q: Are you presenting them with a menu of offers they can choose from?

A: Create a digital “service menu” that guests can browse and book on their own time. This eliminates the need for back-and-forth communication while capturing revenue opportunities.

3. Guest Experience Impact or The “Luxury Properties Don’t Upsell” Myth

Reality Check

 High-end hotels consistently offer premium add-ons. When presented properly, upsells enhance the luxury experience by offering personalization. Think private chef services, luxury airport transfers, or exclusive local experiences.

• Value-Added Services, Not Nickel-and-Diming

The recent Beyond’s survey showed that 80% of guests surveyed aren’t just looking for the cheapest rate—they’re willing to pay for quality amenities and a better location. Proactively offering relevant services actually improves guest satisfaction. It’s about anticipating and fulfilling guest needs, not charging for basic amenities. When you provide services guests are already seeking, you enhance their stay while driving revenue.

• Luxury is About Options

True luxury isn’t just about free toiletries – it’s about access to exceptional experiences. Whether it’s a helicopter tour or a private chef, premium guests expect premium options. The key is matching the service level to your property segment and guest expectations.

• Practical Implementation Tips

Here’s how to enhance guest experience through strategic upsells:

Q: Are you providing amenities that can be tailored to each individual or their experience?

A: Consider your guest profiles – business travelers might value early check-in and workspace amenities, while leisure travelers might prefer local experiences and late checkout. Customize your offerings accordingly.

Q: How are you leveraging upsells to enhance guest experience?

A: Think beyond basic amenities. Offer memorable experiences that align with your property’s positioning – from premium airport transfers for luxury properties to local wine tastings for boutique stays. The goal is to enhance, not exploit.

4. Payments and Accounting or The “Accounting Nightmare” Myth

Reality Check

Service-based upsells like concierge offerings typically generate revenue that’s 100% yours – no owner split required. For operational upsells like early check-in or late checkout, you can decide whether to share this revenue, considering it’s your team handling the extra work.

• Understanding Revenue Classification

Upsells are your direct revenue stream, separate from property management trust funds. These are value-added services you provide as a business owner. Think of it as your concierge service division, not part of the traditional property management scope.

• Business Line Differentiation

Upsell services represent an additional revenue stream, distinct from rental income. This is about expanding your business model beyond basic property management. You’re operating as a service provider, creating new value for your guests and your business.

• Practical Implementation Tips

Here’s how to properly structure upsells in your hospitality business:

Q: Is this trust accounting or a service you offer?

A: This is your service offering, not trust accounting. You’re providing and managing these services directly – from early check-ins to local experiences. These are business revenues, not held funds.

Q: A separate business line or a product offering in your business?

A: Consider this a product extension of your existing business. Just as hotels offer room service and concierge services, you’re expanding your revenue streams through guest services. This is about growing your business model, not complicating your trust accounting.

5. Uncertain ROI or The “Not Worth It” Myth

Reality Check

• Understanding Return on Investment

The revenue potential from upsells significantly outweighs the setup effort. With automation and intuitive user experience, designed on the best practices of e-commerce, the ongoing management effort is minimal. Each property in your portfolio becomes an additional revenue generator.

Our data shows properties averaging $200 additional revenue per booking through strategic upsells. With automation handling the heavy lifting, it’s pure profit.

But don’t take our word for it – just look at GoodNight Premium Stays in Phoenix. Within their first 6 months of implementing automated upsells through Enso Connect, they generated $250,000 in pure profit. Learn how they did it.

• Practical Implementation Tips: Data-Driven Decision

Location, listing count, and available additional services directly impact potential earnings. Calculate your properties’ revenue potential with our ROI calculator.

Final Thoughts

Take the Next Step

While market research indicates year-over-year growth in the vacation rental space, external pressures are squeezing profitability for many hospitality operators. These challenges are local regulations, rising bank lending rates, and cost-of-service inflation. AirDNA reports that the average revenue for an Airbnb property in the U.S. is about $33,000 per year. Top-performing properties can earn significantly more. However, many once very profitable properties are now at risk due to these threats to their bottom line.

In the competitive world of short-term rentals, it’s safe to say that many rental property managers are feeling the pinch. So, how can your property become a top performer? The key lies in effective upselling strategies.

Hesitant about upsells in your STR business? You’re not alone. Many property managers had doubts before seeing the results. Let’s bust the top 5 myths holding you back from this extra revenue stream.

Want to see how we calculated these numbers? Dive into our in-depth analysis of vacation rental upsell economics.

What to Upsell?

Often, vacation rental professionals who start implementing upsells struggle to identify the most relevant upsell offers for their guests.

Let’s dive into the two most common types of upsells: operational and experiential stay enhancements.

Experiential Upsells

In contrast, experiential upsells are more nuanced. These involve offering unique experiences – think guided local tours, cooking classes, or special dining experiences.

What hospitality industry pros say about the impact of vacation rental upsells

Read the full case study for quick rental startup growth.

Read the full case study about $250,000 in upsell revenue generated during the first 6 months. 

Read the full case study on turning the upsell skepticism into 1,000 Euros in a month. 

Take the Next Step

How many holiday homes are there in Florida? Finding the competitive edge.

In Florida, there are 221,600 vacation homes spread across several cities, highlighting the state’s popularity as a vacation destination.

As of May 2024, there are over 40,500 Airbnb listings in Miami, Florida alone, making it the city with the highest number of Airbnbs in the state. Other Florida cities also have significant numbers of Airbnb listings, such as Tampa with 16,020 listings, and Orlando with 11,025.

With so many options, and a high competition from hotels, you are on the lookout for ways to stand out in the market. The good news is that the right upselling strategy provides a competitive edge, regardless of business size.

What are Short-Term Rental Upsells?

A short-term rental upsell is a powerful tool which refers to the practice of offering guests additional products, services, or upgrades to enhance their stay, while increasing the revenue. This strategy is commonly used in the short-term rental industry and can be either operational, or involve tours, activities, and experiences.  The key to successful upselling is understanding the guests’ needs and preferences and offering relevant and valuable additions that enhance their experience. Effective guest communication plays a crucial role in identifying these needs and suggesting suitable upsells.This approach not only boosts revenue but can also make a big difference in customer satisfaction and loyalty.

Upsells in Hotels VS Vacation Rentals: What’s the Difference

Upsells in hotels typically involve concierge services and traditional amenities, whereas in the short-term rental properties industry, this process is digitized to streamline operations. In contrast, vacation rental upsells are more personalized, catering to individual guest needs like grocery delivery, private chefs, and local tours. Vacation rentals offer operators flexibility to innovate, tailoring unique experiences to their property and target market. This personalized approach is integral to the business model of vacation rentals, allowing them to provide an exceptional guest experience. With the growing popularity of short-term vacation rentals, more travelers are choosing them for accommodation. These guests now expect hotel-like services during their stays. Therefore, offering add-on amenities and other enhancements is crucial for hospitality professionals managing vacation rentals.

Why offer upsells in vacation rentals?

Offering upsells in vacation rentals brings multiple advantages. By enhancing the guest’s stay through added convenience and luxury, you can significantly increase guest satisfaction and tailor to your target audience’s specific needs. This not only boosts your revenue but also helps in building a strong and recognizable brand. Upsell opportunities are a great way to encourage repeat business, as guests are more likely to return to a place where they felt valued and pampered. Moreover, satisfied guests are more inclined to leave positive reviews, further enhancing your property’s reputation and attracting new visitors. Understanding market trends, guest expectations, and employing effective revenue management strategies are essential for maximizing these benefits, ensuring that upsell offerings occur at the best time to meet guest demand. Ultimately, vacation rentals play a similar role to hotels in the hospitality industry, adapting to modern expectations and providing a better guest experience throughout the entire journey with exceptional, personalized experiences.

How much revenue per listing can I add with upsells in Florida?

A well-executed upselling strategy, tailored to your guests needs and the capacity of your business, can substantially boost revenue. So how can you get the potential revenue increase from upsells in your vacation rental business in Florida?

Factors like your property type, capacity, average stay length, and booking channels can impact your potential revenue uplift. We can make a quick estimate, with a basic formula:

Take the value of an experience or service upsell and calculate your cut. Different affiliate programs offer different rev share to partners. For example, Viator offers 8% revenue share. In this case we’ll use this number, but you can insert the percentage of any affiliate partner you choose to work with. Take 8% out of an experience that costs USD $100. And just like that – you earn USD $8 every time one of your guests orders this experience through your link! In the business world it is usually referred to as “free money”.

This is the revenue a property manager typically retains without sharing with the owners—your choice. In the STR industry, where margins are thin, these numbers can significantly impact your bottom line.

Below you can see the real experiential packages in Florida you can offer your guests to make a hassle-free profit.

Learn more about the economic of vacation rental upselling.

Conducting analysis based on your data, continuously testing and optimizing the upsell process are recommended to maximize the revenue uplift. The best way to do this is to have a guest experience dashboard, where you and your team can track the performance.

When should you try to upsell services in your vacation rental?

To effectively upsell services in your vacation rental, timing is crucial. Key opportunities include during the booking confirmation, when guests are excited about their stay, and upon check-in, when they might be interested in enhancements like upgraded amenities. Additionally, mid-stay touchpoints are ideal for offering experiences or services that can improve their current stay. Tailoring your upsell strategies to these moments ensures relevance and increases the likelihood of conversion, thereby maximizing revenue without overwhelming guests. Read more about when to upsell services in your short-term rental.

Tours, Activities, Experiences as Vacation Rental Upsells in Florida

Experiential upsells involve offering guests unique tours, activities, and experiences to enrich their stay. These can include guided city tours, adventure activities, cultural experiences, or wellness sessions. By providing these curated experiences, you can create memorable moments for guests while generating additional revenue.

Top Experiential Offerings in Florida You Can Profit From

We’ve made the research of the most revenue generating experiential packages vacation rental operators in Florida offer to their guests. You might find more ideas and partners to be a part of your upselling strategy. We will be happy to hear about it and add them to our list.

Tours, Activities, Experiences to Upsell in Top Tourist Accommodations in Florida

Tampa, Florida

1.5-hour Dolphin Sightseeing Cruise from Tampa

ZooTampa at Lowry Park Admission Ticket

Sarasota, Florida

Clear Kayak LED Night Glass Bottom Tour – Sarasota

90-Minute Parasailing Adventure Above Anna Maria Island, FL

Orlando, Florida

SEA LIFE Orlando Aquarium

Rock Springs 2-Hour Glass Bottom Guided Kayak Eco Tour

Miami, Florida

Best of Miami: Private SeaRay SDX Boat Charter with a Captain

Fort Lauderdale, Florida

Fort Lauderdale Food & Drink Tour

Jungle Queen Riverboat 90-Minute Narrated Sightseeing Cruise