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%

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.

In today’s competitive market, maximizing revenue in short-term rental businesses is more crucial than ever. To stay ahead, hospitality professionals must continuously adapt and innovate to capitalize on every available booking opportunity.

One effective strategy for boosting income involves identifying and filling gap nights—those tricky single nights that fall between longer bookings. These gap nights can often be overlooked, but they present valuable opportunities for increasing occupancy and revenue. By strategically targeting and pricing these nights, rental operators can optimize their booking calendar and reduce unproductive gaps.

Implementing techniques such as dynamic pricing, last-minute deals, or special promotions can help attract bookings for these gap nights. Additionally, leveraging technology and booking platforms that offer advanced features for managing and filling these gaps can further enhance your ability to maximize revenue. By focusing on these often-overlooked opportunities, rental operators can significantly improve their occupancy rates and overall financial performance.

The Financial Impact of Gap Nights

How Gap Nights Affect Overall Revenue

The unbooked nights between two reservations, can significantly impact the revenue potential of short-term rentals. Here’s how these breaks in occupancy impact your business and why you should be monitoring and addressing this.

Lost Revenue Opportunities

Each unbooked night represents a direct loss of potential income. For instance, if a property typically earns $200 per night and experiences five gap nights in a month, the business loses $1,000 in revenue that month. This loss is not just a minor detail; it can add up significantly over time, impacting the overall profitability of the business.

To illustrate further, consider a property with a higher nightly rate or more frequent gap nights. The cumulative effect of these unbooked nights can lead to substantial revenue shortfalls, especially during peak seasons or when operating at high capacity. For properties with multiple units or those that experience frequent turnover, the impact of unbooked nights can compound, further emphasizing the need to address and manage these gaps proactively.

By recognizing the financial implications of unbooked nights, you can better understand the importance of implementing strategies to minimize these occurrences. Employing tools and techniques to fill gap nights can help safeguard against revenue losses and contribute to a more stable and profitable short-term rental operation.

Operational Costs

While the property remains vacant, fixed costs such as mortgage payments, utilities, and maintenance continue to accrue. This ongoing expense effectively increases the cost per booked night, as the revenue generated from the booked nights must cover these fixed costs.

For example, if you have a monthly mortgage payment of $1,500, utilities costing $200, and maintenance expenses of $100, these fixed costs total $1,800 each month. If you only book 10 nights out of the month, the cost per booked night rises to $180 ($1,800 divided by 10 nights), which can significantly impact your profitability.

The more gap nights you have, the higher the effective cost per booked night, which reduces your overall profit margins. Therefore, minimizing the number of unbooked nights not only helps in maximizing revenue but also in distributing these fixed costs more efficiently across the nights you do book, ultimately improving the profitability of your short-term rental business.

Pricing Strategy

Property managers or investors often reduce prices to fill gap nights, a common strategy aimed at maintaining high occupancy rates. While this approach can help fill vacancies and avoid having unbooked nights, it can also lower the average nightly rate and overall monthly revenue.

By discounting prices to attract bookings for gap nights, the revenue per night decreases, which can affect your monthly earnings. For instance, if you typically charge $200 per night but lower the rate to $150 to fill a gap night, your revenue per booking is reduced. If these discounted rates become frequent, they can significantly lower your average nightly rate.

Moreover, while reducing prices might help fill the calendar, it might not always cover the full operational costs. Fixed expenses such as mortgage payments, utilities, and maintenance continue to accrue regardless of the nightly rate. Consequently, if the discounted rate does not fully compensate for these costs, it can lead to diminished profitability. This underscores the importance of balancing pricing strategies with cost management to ensure that filling gap nights contributes positively to your overall financial performance.

Seasonal Fluctuations

During peak seasons, the impact of gap nights is more pronounced due to the higher demand and potential earnings per night. For example, if a property can command $300 per night during a peak season but experiences several unbooked nights, the revenue loss per gap night is significantly greater. This loss is compounded by the fact that each unbooked night represents a missed opportunity to capitalize on high demand and maximize earnings during these lucrative periods.

Conversely, during off-peak times, the financial impact of gap nights might appear lower due to reduced nightly rates. However, the effect of prolonged vacancies can accumulate substantial revenue losses over time. Even if each gap night during the off-peak season costs less in terms of missed revenue, the extended duration of these gaps can lead to significant overall revenue shortfalls. This accumulation of lost income can add up and impact your financial performance, emphasizing the need for effective strategies to minimize vacancies throughout the year.

Understanding the varying impacts of gap nights across different seasons allows property managers and investors to tailor their strategies accordingly, ensuring that both peak and off-peak periods are managed efficiently to optimize revenue and minimize losses.

Long-Term Impact

Frequent gap nights might indicate issues with pricing, property appeal, or marketing strategies, which could affect long-term occupancy rates and the property’s reputation in competitive rental markets.

Calculating the Opportunities of Gap Nights Revenue

Let’s review and example of gap nights opportunities to understand the financial implications

To calculate the opportunity of adding a gap night upsell in a hospitality business, we need to first determine the total number of nights available, the nights booked, and then estimate the number of potential gap nights that could be filled. Let’s walk through the calculations with the given data:

Data Overview:

• Number of listings: 10
• Average nightly rate: $200
• Occupancy rate: 75%
• Days in a year: 365 (for simplicity, we’ll assume non-leap year)

Step 1: Calculate Total Nights Available

Total nights available per year for all listings = Number of listings × Days in a yearTotal Nights Available=10×365=3,650 nightsTotal Nights Available=10×365=3,650nights

Step 2: Calculate Nights Booked Per Year

Nights booked per year = Total nights available × Occupancy rateNights Booked=3,650×0.75=2,737.5 nightsNights Booked=3,650×0.75=2,737.5nightsFor simplicity, let’s round this to 2,738 nights.

Step 3: Estimating Gap Nights

Gap nights are typically the single nights available between two bookings that are harder to fill. The exact calculation of gap nights would require detailed booking data to see exactly how bookings are distributed throughout the year. However, we can make a simplified assumption that 10% of the nights left (unbooked nights) could potentially be gap nights that could be targeted for upselling.

Unbooked nights per year = Total nights available – Nights bookedUnbooked Nights=3,650−2,738=912 nightsUnbooked Nights=3,650−2,738=912nights

Estimated gap nights = 10% of unbooked nightsEstimated Gap Nights=0.10×912=91.2 nightsEstimated Gap Nights=0.10×912=91.2nightsRounding this, we get approximately 91 gap nights.

Step 4: Potential Revenue from Gap Nights

Potential revenue from filling all gap nights = Number of gap nights × Nightly ratePotential Revenue=91×200=$18,200Potential Revenue=91×200=$18,200

Conclusion

By potentially filling these 91 gap nights, the vacation rental operator could potentially add an extra $18,200 to their annual revenue. Implementing a strategy to upsell these gap nights, perhaps by offering special deals or promotions, could help in capturing this additional revenue.

How to Avoid Gap Nights in Short-Term Rentals

Example of driving gap night revenue – High Street Townhouse

By strategically filling gap nights, short-term rental managers and investors can boost occupancy rates. A prime example of this successful approach is High Street Townhouse in Manchester, which consistently achieves an impressive occupancy rate of 90%. This demonstrates the effectiveness of targeting and filling these single-night vacancies in enhancing overall occupancy.

How To Increase Profitability for Your Vacation Rental In 2024

Guests might become more cautious with their spending, leading to changes in booking habits. There could be a shift towards more budget-conscious travel or shorter, more localized trips. Additionally, the real estate market right now affects property values and rental incomes.  

The goal of navigating these uncertain times successfully will be to embrace technology with open arms, optimize vacation rental operations, and understand the changing needs and behaviors of guests.

Current Vacation Rental Market Analysis and Trends

The vacation rental market has been evolving dynamically. There are several key 2024 trends and shifts in guest preferences and booking patterns. Understanding these market dynamics is necessary for property owners and managers to adapt their strategies and increase their rental income. 

Options for Remote Work Locations

As working from home becomes the norm, there’s a growing trend in visitors seeking vacation rentals in off-the-beaten-path or unique locations.  Think cozy cabins in the woods or beach houses far from crowded spots. 

Preference for Longer Stays

Also with more people working remotely, there’s a demand for rentals where guests can stay and work for weeks, or even months. Vacation rentals that can accommodate extended stays with amenities like Wi-Fi and comfortable workspaces are more popular.

Rise in Domestic and Drive-to Destinations

Given the lingering uncertainties around international travel, there’s a notable increase in domestic travel and destinations within driving distance. This trend emphasizes the importance of marketing to local and regional audiences.

Health and Safety Concerns

Post-pandemic, travellers continue to prioritize health and safety. Properties with enhanced cleaning protocols and contactless technology are more appealing to health-conscious guests.

Demand for Personalized Experiences

Travelers are seeking experiences tailored to their interests and preferences, including local experiences, personalized recommendations, and customized services.

Technology Integration

The integration of technology for seamless booking, contactless check-ins/check-outs, and stay experiences is more useful than ever. Technology can be used for mobile check-ins, smart home features, and unified communication channels. 

Flexible Cancellation Policies

In a still unpredictable travel environment, flexibility is a significant factor. Properties offering flexible cancellation and booking policies are preferred by cautious tourists.

Smart Pricing Strategies

Dynamic pricing based on real-time market data is becoming a standard practice for maximizing rental revenue. Using data to set your rental prices means modifying your rates based on demand, seasons, and any local events. 

Staying on top of these trends means you can tailor your rental to what guests are really looking for, helping boost profitability. Now onto how. 

How to Increase Vacation Rental Revenue

For many homeowners, the vacation rental business is a significant source of income. Economic conditions can severely impact financial goals. However, focusing on data-driven rental strategies and innovative marketing can help you remain competitive. Here are some tips on how to grow your rental revenue and provide a better lifestyle or more funds for other investments and savings. 

Use Dynamic Pricing Software

Dynamic pricing software like PriceLabs is a tool in the vacation rental industry for optimizing revenue. It enables property owners to make smart, data-driven pricing decisions and adapt to market changes. This involves adjusting your rates to align with the market demand. For instance, you can increase prices during high-demand seasons or local festivals and reduce them during off-peak periods. 

Automated Adjustments

One of the major benefits of pricing software is automation. It continuously monitors market conditions and automatically adjusts your prices without the need for constant manual oversight.

Customization and Control

While these tools automate pricing, they also offer customization options. You can set minimum and maximum rates, blackout dates, or special pricing for specific times.

Dynamic Pricing Tools 

Start by selecting a dynamic pricing tool that suits your property’s needs. Look for features like market data analysis, integration with your booking platform, and customization options. Set it up and integrate it with your existing property management system or booking platform. 

This approach helps boost the profitability of your vacation rental by capitalizing on peak demand times. 

Upsell with Enso Connect

Fun fact: on average, Enso Connect users sell 4.8x more in upsells than what the software costs. 

Using Enso Connect for upselling is a smart strategy to increase your vacation rental revenue. You can offer additional services like early check-ins for $50 or exclusive amenities for an added fee. 

Identify Upselling Opportunities

First, identify what extra services or amenities you can offer your guests. This could be anything from early check-ins or late check-outs to special experiences like a private chef, bike rentals, or guided tours. Think about what would appeal to your target guests.

Set Up Your Offers in Enso Connect

Once you know what you want to offer, set up these options in Enso Connect. The platform allows you to present these extras to your guests seamlessly and attractively, integrated into their booking experience.

Price Your Extras Appropriately

Price these additional services or amenities at a rate that’s attractive to guests but also profitable for you. Remember, the goal is to offer value, so your guests feel they’re getting something special.

Personalize Your Offers

Tailor your upselling based on the guest’s profile and preferences. If a family has booked your rental, you might offer them a local family-friendly tour or baby equipment rentals. Personalization increases the likelihood of guests opting for these extras.

By thoughtfully integrating upselling into your guest’s journey using Enso Connect, you can boost your vacation rental’s revenue and offer additional value for guests. 

Implement Affiliate Commissions

Using Enso Connect to earn affiliate commissions through partnerships with sites like Viator, Uber, and others is an effective strategy to increase your rental revenue in 2024. 

Establish Affiliate Partnerships

Enso Connect offers partnerships with a range of services. For logistics and convenience, there’s Alfred for luggage services and BabyQuip for baby gear rentals. Enso Connect also partners with various food and beverage delivery services, including Cornershop by Uber, Deliveroo, Instacart, Just Eat, Minibar, Tomato Mexico, Uber Eats, and more. For transportation, they collaborate with companies like BlaBlaCar, Cabify, Freenow, Gett, Lime, Lyft, and more.

Begin by setting up affiliate accounts with relevant companies. These partnerships will typically provide you with unique affiliate links or codes. 

Create Attractive Offers

Develop compelling offers for your guests using these services. For example, you could create a guide of recommended local experiences available through Viator. Or highlight the convenience of renting baby equipment from BabyQuip directly at your property instead of lugging it on their travels.

Personalize Recommendations

Use the data you have about your guests to personalize these recommendations. If a family is staying at your property, suggest family-friendly tours from Viator. If you’re hosting a business traveller, mention the ease of using Uber or renting a car through Turo through Enso’s platform.  Personalized suggestions tend to have higher conversion rates.

Promote Through Guest Communication

Use Enso Connect’s communication tools to inform your guests about these services. This could be through automated emails, messages within the booking process, or a welcome packet that includes your affiliate offers.

Learn more on how to maximize vacation rental profits with affiliate marketing.

How to Reduce Expenses for Your Vacation Rental

Knowing how to manage expenses is just as important as generating rental revenue. Smart strategies can cut costs, enhancing your overall profitability. 

Win More Chargebacks

Often, vacation rental owners lose money due to chargebacks. Enso Connect offers a one-click chargeback report, arming you with essential information to contest these chargebacks effectively. This report includes details like guests’ ID (front and back), their selfie, address, contact information, and even the device used for the reservation. 

By leveraging this feature, you can turn the tables on what are typically guest-won disputes. If you get 10 chargebacks a year, you’re probably losing them all. Start using Enso Connect and start winning some of those cases.

Reduce Costs with AI-Messaging

Labor costs, especially for 24/7 guest communication, can quickly add up. Enso Connect’s AI messaging system is a game-changer in this arena as it automates guest communication. This reduces the need for continuous staffing thus cutting down on labor expenses. 

Beyond saving on labor costs, Enso Connect’s AI messaging improves the guest journey. Its efficient communication means guests receive quick responses to their inquiries, leading to increased satisfaction. This service improvement can result in more positive reviews and a higher rate of repeat bookings. Both of which are key to driving revenue and reducing marketing costs. 

Smart Home Management

Enso Connect’s smart home device integrations enable complete control over your properties. This means you can remotely manage various aspects of the property. You can optimize operations, reduce labor and energy costs, and overall improve the guest journey. 

Automation and smart device integration can lead to reductions in labor, especially in areas like check-ins and security monitoring. Energy costs can also be reduced as smart devices like thermostats and lighting systems can be controlled to optimize energy use. The automation and scheduling features of smart home devices ensure that energy-consuming appliances are used more efficiently and only when necessary. This promotes sustainability and leads to lower utility bills. 

Tips to Land More Homeowner Contracts in 2024

These strategies can help acquire new homeowner contracts to boost your vacation rental business. 

Expand Your Property Management Portfolio

The quickest route to increased revenue in the vacation rental industry is through expanding your portfolio by onboarding more properties. This approach scales up your business, allowing you to generate more income from multiple sources. Focus on demonstrating to potential clients how your management services can enhance the value and earning potential of their properties. Highlight your track record of success and the benefits you bring, such as higher occupancy rates and improved guest reviews.

Implement Efficient Systems and Software

In 2024, using technology is a necessity for efficient property management. Use systems and software that streamline operations and focus on guest safety. For instance, tools like Autohost and Enso Connect work together to reassure homeowners about the safety and reliability of the guests staying at their properties. These systems handle guest screening and verification, making sure that only low-risk, trustworthy individuals book their stay. By showcasing your use of these advanced tools, you can position your service as a modern, secure, and efficient option for homeowner contracts. 

Create a Better Guest Journey with Boarding Pass

A differentiator in the services you offer can be the emphasis on guest experience. Use the Boarding Pass feature from Enso Connect to create a better stay for guests. 

This app feature provides guests with all the necessary information and access controls for their stay in a beautifully designed, user-friendly format. By offering this level of detail and care, you demonstrate to homeowners your commitment to managing their property efficiently and exceptional guest care. This can be a persuasive factor for homeowners when choosing a property manager, as it directly impacts guest satisfaction and repeat bookings. 

By combining these tips with your existing strategies, you can present a comprehensive and appealing management package to homeowners. This approach can foster long-term partnerships with property owners and help get more contracts to improve rental revenue. 

Strategic Marketing to Increase Vacation Rental Profits 

Property managers can increase the visibility of vacation rentals, attract more guests, and justify higher rates with effective vacation rental marketing. Here’s how you can elevate your marketing strategies. 

Use Social Media Effectively

• Engage with potential guests through platforms like Instagram, Facebook, and Pinterest. Post quality photos of your property, share guest reviews, and highlight local attractions.
• Use storytelling to showcase the experience of staying at your property, not just the features.

Invest in Professional Photography

• Invest in professional photography to capture the beauty and ambiance of your rental. 
• Use these photos across your website, social media, and listing platforms.

Optimize Your Online Presence

• List your property on your website and relevant OTA rental platforms for search engine optimization. 
• Use keywords that potential guests are likely to search for and keep your listings up-to-date with current information and rates.

Content Marketing

• Create engaging content like blogs, guides, and videos about your location, things to do, local events, and tips for visitors. This content can position you as a local expert and draw more attention to your rental.
• Share this content on your website and social media channels.

Encourage and Share Guest Reviews

• Encourage guests to leave reviews on platforms like Airbnb, Google, and your social media pages.
• Respond to all reviews professionally. Show positive reviews in your marketing materials to promote credibility. 

Remember, consistency and authenticity in your marketing efforts are key to building trust and loyalty among guests. In return, this can maximize 2024’s vacation rental earnings.

Increase Short Term Rental Profits

As we face the uncertainties of 2024, businesses of all types will need to strategize to optimize earnings. In a market influenced by shifting consumer preferences and economic volatility, staying informed and proactive is necessary. Implement software with dynamic pricing, add upselling and affiliate partnerships to provide additional income and value, and grow your homeowner property portfolio. Each of these strategies contributes to elevating the profitability of vacation rental businesses in these uncertain times. Vacation rental owners and managers can not only weather the storm but also emerge more resilient and profitable. 

Curious about your monthly ROI using our software? Use our ROI calculator and see an estimated monthly return for your rental and how it can grow vacation rental business profits.

How Enso Connect Can Help

We encourage you to start applying these strategies today for 2024. Review your pricing model, explore upselling opportunities, and consider affiliate partnerships to begin seeing a marked difference in your rental’s profitability. The road to more revenue starts with one single step. 

Book a demo of Enso Connect and take the next step to increase your vacation rental profits.

As the post-pandemic travel surge transitions to market stabilization, several factors are impacting the profitability of vacation rental businesses in 2023. Local tourism decline, higher rental properties supply, and rising costs have led to lower profits than were expected. Notably, even the peak summer season didn’t meet the expectations for a significant number of operators with lower occupancy rates. This is why vacation rental property managers and hoteliers are seeking innovative ways to boost revenue now more than ever.

While traditional methods have their merits, there’s an emerging strategy that’s proving to be both effective and seamless: affiliate marketing. From global platforms like Viator to niche services like BabyQuip, affiliate programs offer opportunities for enhanced experience and extra income. Whether you’re running a vacation rental business or hotel, this blog will delve into how you can leverage affiliate marketing. Learn how to maximize your vacation rental revenue, ensuring both happy guests and a healthier bottom line.

So if you are seeking new income avenues without adding an operational hassle, you’re in the right place. Dive into this vacation rental affiliate marketing guide tailored just for you!

Consider integrating these amenity affiliate links into your website or guest communication channels. By offering additional services and experiences, you can enhance your guests’ stay and earn a commission for each booking or purchase made through your referral links.

Enso Pro Tip

You don’t need a travel blog or significant website traffic to benefit from affiliate marketing. Your Boarding Pass is the ideal spot to showcase your affiliate links. By integrating them, you will enhance your guests’ experience and boost your earnings. Incorporate your unique links for transportation, luggage storage, tours, and equipment rentals in the ‘Customize Your Stay’ section of the Boarding Pass or within your local guidebooks. Start earning “free money” on affiliate programs without the need to be a travel blogger.

Consider incorporating your unique affiliate links for various services and amenities in the ‘Customize Your Stay’ section of the Boarding Pass or within your local guidebooks. This can include links for transportation options, luggage storage, guided tours, and equipment rentals. By providing these useful resources to your guests, you’re not only enhancing their experience but also creating opportunities to earn commissions through affiliate programs.

Affiliate marketing through the Boarding Pass allows you to generate additional income without needing a large online following or extensive marketing efforts. Simply include well-placed links to relevant services and watch as your earnings grow. It’s a straightforward way to monetize your rental’s additional services and offer added value to your guests.

What is affiliate marketing?

Why Vacation Rental Affiliate Marketing is a Must for Hospitality Professionals?

How can this be relevant for property owners, managers, real estate investors, Airbnb hosts or any hospitality industry players? Unlike bloggers who build audiences for earnings, hospitality operators already have a travel-focused base: their guests. Affiliate marketing is an opportunity to monetize this audience and complement their rental income with hassle-free add-ons.

So accommodation providers, vacation rental property managers and hoteliers: offering services through affiliate links to guests is a win-win. Travelers often require products or services during their stay in vacation homes. By providing a centralized location with a handpicked list of local options, you’re elevating their experience — the essence of true hospitality. Plus, you receive compensation for your efforts. It’s a perfect blend of service and reward.

Enso Tip

Collaborating with local businesses tops the elevated guest experience and revenue benefits with uplifting the local community. This might require more legwork, but will pay off in future with authentic sustainable practices, community connections and guest loyalty.

Top 5 Affiliate Marketing Programs to Kickstart Your Earnings

If we convinced you to dive into the world of affiliate marketing, you are probably wondering where to start. With countless programs out there, choosing the right one can be daunting. To help you navigate this landscape, we’ve curated a list of the top 5 travel affiliate programs. They have proven track records of reliability, high commissions, and strong support for their affiliates. These platforms offer great products and services to promote and provide the tools to ensure your affiliate journey is successful. Depending on your location and guest avatar, these programs may help boost your earnings and elevate your affiliate marketing game.

AirportTransfer 

Revshare 7%

Description

Flawless, timely, convenient, and friendly airport transfers journey every time, all the time, and anywhere.

What’s in it for you?

By joining the AirportTransfer.com Affiliate Program, partners can introduce travelers to top-notch private airport transfer services worldwide, ensuring a hassle-free experience for passengers. And earn 7% commission. A cookie period of 30 days – Even if a customer who comes through you leaves AirportTransfer.com and makes a reservation from another channel within 1 month, you still earn your commission.

Affiliate Program Details

Viator

Revshare 8%

Description

Viator is a leading online platform that specializes in offering tours, activities, and experiences to travelers around the world. As a subsidiary of TripAdvisor, Viator provides travelers with access to a vast selection of unique experiences, from city tours and day trips to off-the-beaten-path adventures. The platform allows users to read reviews, compare prices, and book their desired experiences in advance, ensuring a seamless travel experience. With its user-friendly interface and a wide range of offerings, Viator has become a go-to resource for travelers seeking to enrich their trips with memorable activities and excursions.

What’s in it for you?

Viator’s Affiliate Program offers a lucrative opportunity for individuals passionate about travel. By joining, affiliates can promote over 300,000 experiences across 2,500 destinations. Affiliates earn an 8% commission on any experience booked within a 30-day window after a user clicks their link. Payments are flexible, with options for monthly bank transfers (with a $50 minimum threshold) or weekly payouts via PayPal with no minimum. The program is designed for ease, with tools like the Viator Selector to help affiliates find and promote top-converting experiences. Whether you’re a content creator, travel service provider, or simply an enthusiast, the program provides a chance to monetize your passion for travel.

Affiliate Program Details

Instacart

Revshare 3%

Description

Instacart is an American online grocery delivery service where users can order from local stores, and have items picked and delivered by Instacart shoppers. It offers a convenient alternative to in-store shopping, especially for busy individuals or during times when physical shopping is less ideal.

What’s in it for you?

By utilizing Instacart’s tools, creators can make their content, whether it’s recipes or product recommendations, shoppable. This means that with just a few taps, audiences can add ingredients or recommended products directly to their Instacart cart and have them swiftly delivered. Participants in this pilot program, who must be at least eighteen and legal U.S. residents, are offered a 3% commission on qualifying purchases made through their shoppable links or recipe webpages. The program supports various content formats and provides easy-to-use tools for creating shoppable content, enhancing the user experience for both creators and their audience.

Affiliate Program Details

Stasher

Revshare 10%

Description

Stasher is a worldwide luggage storage service, partnering with local businesses to offer travelers secure locations to store their bags in over 890 cities. It’s an ideal solution for tourists between check-outs and check-ins, allowing them to explore destinations without the burden of their luggage.

What’s In it for you?

By referring guests or clients to Stasher’s luggage storage services, partners can earn a 10% commission on every booking made through their referral link. Stasher boasts a vast network, with thousands of storage locations in over 890 cities worldwide. The program is straightforward to join, and once approved, affiliates receive a referral link, custom discount code, and access to a dashboard to monitor performance. The initiative not only offers a financial incentive but also provides a valuable service to clients, ensuring their travel experience is more convenient and enjoyable.

Affiliate Program Details

Baby Quip

Revshare 10%

Description

BabyQuip is a service that offers baby gear rentals for traveling families. It provides a range of essential baby equipment, such as cribs, strollers, car seats, and toys, which families can rent while on vacation or trips. This ensures that families have access to the necessary items for their children without the hassle of transporting bulky equipment, making their travel experience more convenient and enjoyable.

What’s In It for You?

The BabyQuip Affiliate Program allows individuals to earn by promoting BabyQuip’s baby gear rentals. By sharing custom links, affiliates can earn a 10% commission on rental revenue booked through their specific BabyQuip link. The program provides an affiliate dashboard for easy tracking of link clicks, bookings, and earnings. Payments are processed via PayPal three days after each completed reservation. This initiative not only provides a financial benefit but also supports traveling families by offering essential baby gear for their journeys.

Affiliate Program Details

Enso Tip

Explore the comprehensive list of vendor partners on the Enso Connect platform.

Want more details? Reach out to us!

If you don’t see your preferred affiliate partner, feel free to submit your suggestions to be added to Enso Connect. We’re always expanding our vendor list to better serve you and delight your guests.

How Much Can You Earn With Affiliate Marketing?

Your potential earnings from affiliate marketing can vary based on the number of guests, their engagement, and the relevance of the recommendations to your guests’ needs. This is why it is important to understand who comes through your doors.

Consider this scenario with Viator: Imagine a family of four staying at your property decides to book a Niagara Falls Tour at $200 per person using your Boarding Pass link. This translates to a $64 commission for you. Plus, you’ll have delighted guests returning with unforgettable memories of one of the world’s most spectacular waterfalls. If ten such bookings occur in a month, that’s an effortless addition of $640 to your revenue.

Add links for all the vendors we listed here and find yours. Do your math!

Tips for Monetizing the Slow Season

From creative marketing techniques to diversifying your offerings, these practical insights will empower you to turn the slow vacation season into a lucrative opportunity for your vacation rental business.

1.      Develop and Foster Local Partnerships

Developing and fostering local partnerships is a valuable strategy for vacation rental managers to capitalize on the slow season. During this period, reaching out to local businesses and attractions can open up new revenue streams and enhance the guest experience is a good idea and an easy way to make extra money during the slower times and really move the needle when the busy season comes around again.

By forming collaborative relationships with nearby restaurants, tour operators, spas, or event venues, vacation rental managers can offer exclusive discounts, packages, or experiences to their guests.

• Restaurant Partnership: Collaborate with a local restaurant to offer an exclusive dining experience for your guests. Create a package that includes a discounted meal at the partner restaurant or even a special menu tailored to your guests’ preferences. This partnership can be mutually beneficial, as it brings more customers to the restaurant while providing a unique dining option for your vacation rental guests.
• Adventure Tour Partnership: Forge a partnership with a local adventure tour operator, such as a kayak rental company or a hiking guide service. Offer your guests discounted rates on tours or expeditions, showcasing the natural beauty and thrilling experiences available in the area. This collaboration not only provides exciting activities for your guests but also generates referrals for the tour operator.
• Local Event Venue Collaboration: Establish a partnership with a local event venue, such as a conference center or wedding venue, to cater to guests attending events in the area during the slow season. Offer discounted rates or exclusive services for event attendees, including convenient accommodation options at your vacation rentals. This collaboration can lead to a consistent stream of bookings and help you tap into the event market during off-peak periods.

2.      Tap Into the Wedding Scene

Managers seeking to tap into the wedding scene and secure off-season bookings for multiple units can employ strategic approaches to attract engaged couples and their wedding guests. First and foremost, it’s crucial to establish relationships with local wedding venues, event planners, and vendors. This strategy is not only a great network marketing play, but it will also improve your brand awareness in the local community.

Collaborate with these industry professionals to offer exclusive wedding packages that include accommodations for the wedding party and guests. Highlight the convenience of having multiple units in close proximity, making it an ideal choice for group bookings.

• Room Block Options: Create a landing page which highlights the unique features of the units, showcase stunning wedding-related imagery, and provide detailed information about the proximity to popular wedding venues in the area. The page can also offer special room block pricing for the wedding party, encouraging them to secure accommodations early and ensuring a seamless and convenient experience for the entire group. By providing a streamlined booking process and tailored information for wedding guests, managers can position themselves as the go-to choice for wedding accommodations.
• Provide Overflow Accommodation: Vacation rental managers can proactively reach out to hotels or operators in the area known for hosting weddings. By establishing partnerships and letting them know about the availability of additional inventory, managers can position themselves as a valuable resource for accommodating extra-large wedding parties or overflow guests.

3.      Partner with Travel Agencies

Partnering with travel agencies can be a fruitful strategy for vacation rental managers, especially when targeting clientele who prefer quieter periods and seek value-driven vacation options. Travel agencies have access to a wide range of customers who appreciate the allure of off-peak seasons and are constantly seeking affordable deals.

By collaborating with travel agencies, managers can tap into this customer base, offering them attractive packages, exclusive discounts, or unique experiences that highlight the advantages of vacationing during quieter times of the year. This partnership not only helps increase bookings during slow seasons but also expands the visibility and reach of vacation rental properties, reaching potential guests who may not have considered this accommodation option before.

• Create an Affiliate Program: To leverage the partnership with travel agencies, vacation rental managers can create an affiliate commission program. This program can offer travel agencies a percentage of the reservation total as a commission, typically ranging from 4% to 8%. By incentivizing travel agencies with a commission structure, managers encourage them to promote their vacation rentals to their clientele.  Affiliate marketing is one of the most powerful ways to double down on your marketing efforts.
• Integrate with Expedia: Ensuring listings on online travel agencies (OTAs) like Expedia is another effective way for managers to attract bookings from travel agencies. Expedia, as a leading OTA, has a vast network of travel agencies as part of its distribution channels. By ensuring that vacation rental properties are listed on platforms like Expedia, managers gain access to the extensive reach of travel agencies without having to pay commissions out of their own pocket.

4.      Create a List of Upsells during the slow period

Creating a list of upsells is a valuable strategy for vacation rental managers to maximize revenue and for monetizing the slow season during their guests’ stay. Services like Enso Connect offer the ability to customize upsells, allowing managers to provide additional conveniences and experiences that enhance the guest’s overall stay.

• Early Check-In: Offer guests the option to check in earlier than the standard check-in time, allowing them to start their vacation without delay.
• Late Check-Out: Provide guests with the opportunity to extend their check-out time, giving them extra flexibility and allowing for a more relaxed departure.
• Pet Fees: Offer pet-friendly accommodations and charge a fee for guests bringing their furry companions, ensuring a clean and comfortable environment for all guests.
• Damage Waivers: Provide guests with the option to purchase a damage waiver that protects them from potential accidental damage costs during their stay.
• Fully Stocked Fridge: Offer the convenience of a fully stocked fridge upon check-in, where guests can find a selection of groceries, beverages, or snacks based on their preferences. This special offer is a relly valuable add-on for a lot of guests and will dramatically improve the customer experience.
• Mid-Stay Cleaning: Allow guests to add a mid-stay cleaning service, providing a refreshed and tidy environment during longer stays.
• Welcome Packages: Offer curated welcome packages or amenity baskets tailored to guests’ interests or special occasions, such as wine and cheese baskets, spa kits, or celebration packages.

5.      Attract Corporate Rentals

Corporate rentals present an exciting opportunity for vacation rental managers to diversify their revenue streams and tap into a lucrative market segment.

With the rise of remote work and the need for temporary corporate housing, there is a growing demand for accommodations that cater to business travelers. It is a good time to focus on corporate rentals during the off season since they’re typically not looking to book during the busy time of year.

By targeting corporate clients, vacation rental managers can secure long-term bookings and establish steady income streams, particularly during traditionally slower periods.

• Prioritize Business Amenities: To attract corporate clients, it is essential to provide business-friendly amenities. Ensure that your vacation rentals offer lightning-fast and reliable Wi-Fi, as well as a designated workspace or desk area. Highlight these features in your marketing materials, emphasizing the convenience and productivity they offer for remote work and business-related tasks.
• Create a Dedicated Landing Page: Develop a dedicated landing page on your website specifically tailored to corporate rentals. This page should provide detailed information about the corporate rental options available, showcasing the amenities and features that make them suitable for business travelers. Include key details such as proximity to conference venues, co-working spaces, corporate offices, and transportation hubs.

6.      Offer a Buy 3 Get 4 Package

Hotels have successfully extended off-season bookings by offering enticing package deals such as “buy 3, get 4 nights.” This strategy for monetizing the slow season not only boosts occupancy rates during slower periods but also provides guests with exceptional value for their stay.

By offering an extra night at no additional cost, hotels create a win-win situation where guests feel they are receiving a great deal while the hotel maximizes revenue potential. This approach incentivizes guests to book longer stays and helps hotels generate additional income during traditionally quieter times.

• Automated Message via Enso Connect: Utilize the automation features of Enso Connect to set up an automated message that triggers when an inquiry comes through for a stay of fewer than three nights. The message can be personalized and tailored to the specific inquiry, offering the guest the opportunity to upgrade to the “buy 3, get 4 nights” package. Highlight the value and savings they would receive by extending their stay, effectively doubling the length of their vacation.
• Promote the Package on your Website: Create a dedicated section on your website that highlights the “buy 3, get 4 nights” package for the off-season. Provide detailed information about the package, emphasizing the value it offers to guests. Display the savings they can enjoy by extending their stay and make it easy for potential guests to book the package directly through your website.
• Email Marketing: If you have a large enough email list you can start to send this special offer out to your email followers. It is also a good idea to share it on your instagram account, and create a series of blog posts about the new offer.

6.      Follow Up with Past Guests

Following up with past guests to offer them a discount for rebooking during the slow season is a perfect way to generate repeat business and fill occupancy gaps. By reaching out to previous guests, vacation rental managers can leverage the positive experience they had and entice them to return for another stay.

Offering a personalized discount showcases appreciation for their past patronage and encourages them to take advantage of the slower season rates. This approach not only helps maintain a loyal customer base but also ensures a steady flow of bookings during periods of lower demand.

• Enso Connect Automation: Utilize the powerful automation features of Enso Connect to set up triggers based on specific criteria. For example, create an automation that sends an automated “If This, Then That” message to all past guests who were marked as “highly satisfied” and had reservations totaling over $1,000. This automation ensures that you are targeting guests who had a positive experience and have demonstrated a willingness to spend on their previous stay.
• Reaching Out to Guests with Poor Experience: Although it requires careful implementation, reaching out to guests who had a poor experience in the past can be an opportunity to turn their perception around and generate repeat business. Identify guests who had negative feedback or left unfavorable reviews, and offer them a compelling deal or discount to “make things right.” This gesture demonstrates your commitment to guest satisfaction and provides an opportunity to address any concerns or issues they may have had.

7.    Receive Affiliate Commissions for Your Referrals

Receiving affiliate commissions for referrals is an incredibly valuable aspect for vacation rental managers. By establishing partnerships with businesses or platforms that offer affiliate programs, managers can generate an additional revenue stream by referring guests to these trusted partners.

When guests book through the manager’s referral, the manager earns a commission. This mutually beneficial arrangement helps managers with monetizing the slow season through networking and leveraging their influence to drive bookings.

For instance, within Enso Connect’s Affiliate Referral feature, managers can set up a link with Enterprise Rent-A-Car and receive a commission of 2.5% on all car rentals made through the provided link. Similarly, by setting up a link with Viator, a popular activity booking platform, managers can earn up to an 8% commission on all activities booked through that specific link.

By incorporating these affiliate partnerships into the Boarding Pass feature, managers can not only provide valuable recommendations to their guests but also generate additional income through the commissions earned from guest bookings made via the affiliated services.

8.    Offer Additional Services to your Homeowners

Selling existing homeowners on additional off-season services can be another strategic way of monetizing the slow season. Vacation rental managers can maximize revenue while providing added value to their property owners.

By highlighting the benefits of off-season services, managers can demonstrate how these offerings can enhance the homeowners’ investment and generate income during traditionally slower periods.

Present a comprehensive proposal outlining services such as property maintenance, landscaping, winterization, or even home improvement projects.

• Deep Cleaning Services: Offer a specialized deep cleaning service that goes beyond the standard cleaning routine. This service involves a meticulous top-down cleaning approach, including pulling out furniture, scrubbing hard-to-reach areas, and thoroughly cleaning every nook and cranny of the property.
• Re-Design and Interior Design Packages: For homeowners whose properties may lack in decor or need a refresh, offer a range of re-design and interior design packages. These packages can include options such as a $500 decor update with new furnishings and accessories or a more comprehensive $5,000 complete re-design plan, involving professional consultation and a full revamp of the property’s interior. While things like interior design packages are not normally a service you offer, it is always wise to look for additional side hustles during the slow period to help the rest of the year.
• Exterior Maintenance Services: Provide services such as power washing, landscaping, or gutter cleanings during the off-season. By offering these maintenance services, managers can help homeowners maintain the property’s curb appeal and ensure it is well-maintained throughout the year.

How To Monetize During the Winter Season

As the winter season sets in, vacation rental managers face unique opportunities to monetize their properties and maximize revenue. In this article, we will explore a collection of valuable tips and strategies to help managers thrive during the winter season.

From marketing winter-specific activities and experiences to targeting niche markets and offering enticing seasonal promotions, these expert insights will guide vacation rental managers in leveraging the winter months to generate income and create unforgettable guest experiences.

• Offer a Winter Promotion: Create enticing seasonal promotions to attract guests during the winter months. Consider offering discounted rates for extended stays, last-minute bookings, or mid-week stays. Bundle value-added services like lift tickets, spa treatments, or gourmet dining experiences to create attractive packages that provide guests with exceptional value for their winter vacation.
• Enhance Winter Amenities: Upgrade your vacation rentals with winter amenities that cater to guests’ needs during the colder months. Ensure your properties have cozy fireplaces, hot tubs, or sauna facilities to provide warmth and relaxation.
• Create a Winter Retreat Atmosphere: Emphasize the cozy and welcoming aspects of your vacation rentals. Highlight features like warm and inviting interiors, comfortable bedding, and entertainment options such as board games or movie collections.

How To Monetize During the Summer Season

To monetize during the summer season, vacation rental managers can focus on several key strategies.

First, capitalize on the peak demand by setting competitive rates and offering attractive packages that include popular summer activities and amenities.

Secondly, tap into the summer vacation market by targeting families, beachgoers, and outdoor enthusiasts through targeted marketing campaigns.

• Offer Summer Packages: Create enticing summer packages that appeal to vacationers during the peak season. Include value-added services or experiences such as beach gear rentals, access to water sports activities, or complimentary passes to local attractions. A lot of guests book their summer vacations in advance so you can often get upfront deposits months in advance.
• Cater to Families and Group Bookings: Get new customers by targeting families and groups looking for summer getaways by offering accommodations with ample space and family-friendly amenities. Highlight features like spacious living areas, outdoor play areas, BBQ grills, and swimming pools.
• Collaborate with Local Partners: Forge partnerships with local businesses to expand revenue opportunities during the summer season. Establish affiliations with tour operators, water sports companies, restaurants, and entertainment venues. Offer exclusive discounts or package deals for your guests, and in return, receive referral commissions from these partners.

How Enso Connect Helps You Monetizing the Slow Season?

With Enso Connect you can maximize your vacation rental revenue during both slow and peak seasons. Our guest experience platform is your all-in-one solution to streamline, personalize and monetize your guest journey.

• Promote your personalized upsells and affiliate offers within our Boarding Pass guest app at every stage of the journey.
• Create seasonal guidebooks with recommendations, offerings and promotions, adjusted to the season
• Generate more revenue per guest, unlocking revenue throughout your guest journey, based on the concept of touchpoint, schedule and medium.

Don’t miss out on monetizing the slow season and streamlining your operations.

Sign up for Enso Connect today and unlock the full potential of your vacation rental business!

Running a vacation rental business is no easy feat. Between the upfront costs, the monthly expenses, and the hosting fees, you need every penny you can get. Luckily there are many ways to increase your vacation rental revenue AND decrease your workload simultaneously! Sound too good to be true? It’s not, and we’ll explain how.

A profitable vacation rental business is well-managed, has a high occupancy rate, and is reasonably priced for its area and amenities. But beyond those basics is that intangible element that every vacationer wants: an experience.

We’ll break it down and show you the 14-part formula for increasing your vacation rental revenue and providing an experience your guests won’t forget.

Tips To Increase Your Vacation Rental Revenue

Providing an unforgettable experience helps ensure your vacation property is booked solid and raking in profits for years to come. It’s good for your bottom line, and it’s good for your guests, so how do you do it?

1.      The Price Should Be Right

The first step is to increase your vacation rental revenue is through the pricing. If your prices are too low, you’re leaving money on the table. If your prices are too high for what you’re offering, guests will feel ripped off, and it will show up in negative ratings and fewer bookings

The easiest way to ensure your pricing is fair and in line with the market is to utilize AI software that compares your listing to others in the area while also considering the seasonal demand. A beach property, for example, goes for a higher price in the summertime, whereas a ski lodge can charge more during the winter. This feature is available with most Property Management Systems (PMS), so pay attention before deciding on a software for you.

Dynamic pricing software has revolutionized the vacation rental industry, offering property owners and managers a competitive edge in optimizing rental rates. Three prominent players in this field are Beyond Pricing, Wheelhouse, and Price Labs. These innovative platforms utilize advanced algorithms and data analytics to dynamically adjust rental prices based on market demand, seasonality, local events, and other relevant factors.  With these dynamic pricing software solutions, vacation rental professionals can effectively navigate the ever-changing market dynamics and achieve optimal occupancy rates and profitability.

2.      Automate Everything You Can

Does vacation rental automation sound like a dream come true? Well, it really is. With the help of some handy AI tools, you can use technology to streamline the vacation rental process from start to finish. This encompasses everything from online booking and payment processing to automatic cleaning and maintenance.

By utilizing a guest experience software that integrates with your PMS, guest verification, and maintenance schedules, you can stop worrying about the day-to-day and instead focus on growing your business. Here are just a few things you can start automating today!

Booking

Think the booking process is automated by design? Think again. Sure, you may not be accepting reservations over the phone, but that doesn’t mean that increasing your inquiry to booking conversion isn’t still a lot of work.

Eliminate the menial task of answering inquiries manually by implementing AI tools that collect sentiment and context to answer frequently asked questions. Reduce response time for your customers, provide timely and helpful communication, and show guests that booking your property comes with peace of mind.

You can utilize AI software to take your guests from the search stage all the way through to checking out and leaving a review. Provide top-notch communication and responsiveness to general inquiries without lifting a finger. That frees up more time to focus on more urgent and specific guest questions.

Smart Locks

Every guest wants an effortless check-in and check-out process. Automating this system with smart locks ensures your property is secure, safe for your guests, and easy to use.

Smart locks can be programmed with unique and temporary access codes. Automatically generate a different code for each guest that is only functional for the duration of their stay. Generate unique codes for your maintenance and cleaning crews too.

No more worrying about who has the key or manually changing the entrance code between each guest. Set up automatic messaging streams to welcome guests and inform them of their code for a seamless and hands-off check-in experience.

3.      Create Upsell Opportunities to Increase Revenue

As a vacation rental owner, you always want to be looking for the best way to increase your revenue and profit. It goes without saying, you can’t do this by price gouging your guests. They won’t like it. An alternative way of increasing your revenue per guest without sacrificing the guest experience is by offering upsells.

Guests usually spend 25% of their vacation budget on accommodation and 75% on experiences. We’ve already mentioned how experience is what sets a vacation rental property apart. So why don’t you capitalize on that 75% by creating upsell experiences your guests will love?

Upsell Ideas

• Airport shuttle
• Uber or Lyft
• Rental car
• Grocery delivery
• Baby and pet supplies
• Location-specific equipment (paddleboards and kayaks for a waterfront property)

Sound like a lot of work? The good news is: it doesn’t have to be! Implementing a guest experience management platform, like Enso Connect, means you can create these upsells and have them marketed to your guests on autopilot. With the help of AI integration, your guests will be shown the upsells that are most relevant to them and their stay.

For more tips, tricks, and ideas for vacation rental upsells, check out our in-depth article on the topic!

4.      Provide An Outstanding Guest Experience

An outstanding guest experience is the bread and butter of a successful vacation rental business. If your vacation rental is not consistently creating an awesome experience for your guests, you will notice a stagnation or decline in your revenue over time. So cash in on that good karma by putting the needs of your guests first and watch as they market you for free. You can’t cut any corners if you want a stellar rating, so don’t overlook the details and add a personal touch whenever you can!

Here are the 4 must-have ingredients for providing a fantastic guest experience:

Sparkling Clean

It doesn’t matter if your property has the best location on the planet; no one wants to pay to sleep in a pigsty. Make sure your rental property is clean and well-maintained so that your guests are comfortable throughout their stay.

Stellar Communication

Has your guest asked you a question or need help with checking in? Answer them asap. Nothing is more frustrating than an unresponsive host. Be available to answer any questions or address any concerns your guests may have. Provide a physical or digital welcome packet with information about the property and the surrounding area. You can merge all these elements together by opting to use a guest experience management platform like Enso Connect.

Enso Connect revolutionizes guest communication in the hospitality industry by improving response times, streamlining the communication process, and integrating AI tools. With Enso Connect, guests receive timely and satisfactory responses, while communication teams benefit from centralized management and AI-powered messages for routine inquiries. This comprehensive solution enhances the guest experience, boosts satisfaction, and improves operational efficiency.

Top-Notch Amenities

Take the time to get to know your audience. Why are they traveling? What is it about your property that appeals? Providing the basic amenities like linens, towels, and kitchen essentials are expected of any vacation rental property. Go above and beyond by providing a dedicated workspace for the traveling professional or offering children’s books and toys for vacationing families.

These personal touches show that you’ve really considered your guest and their needs. It can go a long way toward providing a fantastic experience and an equally fantastic review.

Focusing on guest experience is the easiest step you can take that will pay dividends for your vacation rental property business. By following these simple tips, you can be sure to provide your guests with an outstanding vacation and demand the best nightly rates during both the peak season and winter season.

5.      Enhance Your Listing

Create a compelling and accurate description with high-quality photos to attract potential guests. Your vacation rental’s listing is the first impression potential guests will have, so it’s crucial to make it captivating and accurate.

• Craft a compelling description that highlights the unique features, amenities, and experiences your property offers.
• Take high quality photos (even if that means hiring a professional photographer) that showcase the best aspects of your rental home, ensuring they are well-lit and showcase different angles and all the rooms.

By investing time and effort into creating an enticing listing, you’ll attract more guests and increase the chances of booking success for your vacation rental through Enso Connect’s software solutions.

6.      Upgrade the Decor

The ambiance and visual appeal of your vacation rental play a significant role in attracting guests and setting your property apart from the competition. Consider investing in upgrading the decor to create a welcoming and comfortable atmosphere.

• Choose stylish and durable furnishings that not only look great but also withstand the wear and tear of frequent use.
• Pay attention to details such as artwork, lighting fixtures, and decorative accents that enhance the overall aesthetics.

By upgrading the decor of your vacation rental, you’ll create a memorable experience for your guests, increasing the chances of positive reviews, repeat bookings, and recommendations to others.

6.      List on Multiple Platforms

If you’re trying to increase your vacation rental revenue, one of the best strategies is by listing your property on multiple online travel agencies, including popular platforms like Airbnb, Booking.com, VRBO, and Google Travel, brings several benefits to your business. The primary advantage lies in the basic principle of supply and demand. By exposing your property to a broader audience across different platforms, you can generate higher demand for your listings. This increased demand allows you to charge higher rates for your rental because the supply of available nights remains fixed at a maximum of 365.

Listing on multiple online travel agencies also provides you with more flexibility and control. You can adjust pricing, availability, and other listing details based on each platform’s features and market dynamics. It allows you to experiment with different strategies, such as offering exclusive promotions or discounts on specific platforms to attract more bookings.

7.    Offer Flexible Check-in/ Check-out Times

One way to enhance the guest experience and increase revenue for your vacation rental is by offering flexible check-in and check-out options. Enso Connect’s software solutions can assist in automating and managing these processes efficiently. By accommodating early check-ins or late check-outs whenever possible, you provide added convenience for your guests and create a positive impression. This flexibility can be especially appealing to travelers with varying schedules or those arriving from different time zones.

8.  Partner with Local Activity Providers

Partnering with local activity providers and negotiating a referral commission for each guest you recommend is a smart strategy to enhance the guest experience and generate additional revenue for your vacation rental.

In the tourism industry, it is common for vacation rental owners to establish partnerships with activity providers, such as:

• Zipline Operators,
• White Water Rafting or Kayaking Companies,
• Tour Companies,
• Bike Rentals,
• Jet Skiing or Boat Rentals,
• Wine or Brewery Tours,
• Spa and Wellness Centers,
• Golf Courses

By recommending these local experiences to your guests, you not only enhance their stay but also earn a commission on bookings made through your referral. Typically, referral commissions range between 10% to 20% in the industry. This mutually beneficial collaboration allows you to offer your guests a wide range of exciting activities while adding an extra revenue stream to your vacation rental business. Don’t hesitate to reach out to local activity providers and discuss partnership opportunities that can benefit both parties.

9.  Retarget Your Top Paying Guests

Retargeting top paying guests is a valuable strategy to maximize revenue for your vacation rental business. Enso Connect’s software solutions offer an automated approach to reach out to past guests who have booked high-dollar reservations. For instance, if your typical guest spends $1,000 on their reservation, you can set up an automation that follows up with guests who have spent over $2,000 and were highly satisfied with their stay.

This targeted approach ensures you prioritize valuable guests who have demonstrated a willingness to spend more, increasing the likelihood of securing future bookings with higher revenue potential. Enso Connect’s automation capabilities streamline the process, saving you time and effort while effectively nurturing your relationship with top paying guests.

10.  Encourage Direct Bookings

Direct bookings present an excellent opportunity to rebook past guests and attract new ones, benefiting both you and the guest. When structured effectively, this approach can be a win-win scenario. By offering direct bookings, you can provide guests with a more personalized experience and save them the additional costs associated with OTA (Online Travel Agency) fees, which typically range between 15% to 20%.

Offering a small discount as an incentive can further entice guests to book directly with you. By bypassing the OTA, you gain more control over the booking process and can establish a direct line of communication with guests, allowing for better customer service and the opportunity to build long-term relationships.

Most modern property management systems offer a free booking engine that can help facilitate direct bookings, streamline the reservation process, and ensure a seamless experience for both you and your guests.

11.  Implement a Stricter Cancellation Policy

Utilizing a well-structured cancellation policy can significantly impact revenue and improve profitability for your vacation rental. If your property consistently attracts bookings and maintains a high occupancy rate, it may be beneficial to consider implementing stricter cancellation policies. By doing so, you can reduce the likelihood of last-minute cancellations and minimize revenue loss.

When cancellations do occur, a strict policy allows you to retain a significant portion of the reservation value and provides an opportunity to rebook those dates and mitigate potential financial setbacks.

12.  Sign-up for Affiliate Programs

Signing up for online affiliate programs is a smart strategy to enhance the guest experience while driving additional revenue for your vacation rental.

Here are some examples of reputable platforms you can partner with:

• Viator, you can offer your guests a wide range of curated tours and activities, while earning an 8% commission on any bookings they make within 30 days.
• Babyquip, you can provide your guests with convenient access to high-quality baby equipment rentals and earn a 10% commission on each rental made.
• Enterprise, you can partner with a rental car company and earn a 2.5% commission with a 180-day booking period.

These affiliate programs create a win-win situation, where you enhance the guest experience by offering valuable services while boosting your revenue through commission earnings. Leveraging Enso Connect’s software can streamline the affiliate program management process, making it easier to track and optimize your affiliate partnerships for maximum profitability.

13.  Brand Your Vacation Rental

Branding your vacation rental can have significant advantages, transforming it from a mere 1 bed 1 bath condo into a distinct property with its own identity. By developing a brand around your vacation rental, you immediately enhance the guest experience, encourage repeat bookings, stand out from competitors, and increase the perceived value of your property. A well-crafted brand allows you to create a memorable and cohesive narrative that resonates with guests.

Investing in branding efforts, such as professional photography, an engaging website, and thoughtful guest communication, elevates the overall perception of your property and encourages guests to choose your vacation rental over others. Remember, branding goes beyond the physical aspects of your property and encompasses the emotions, experiences, and value that guests associate with their stay.

By using Enso Connect you can further improve the branding of your vacation rental by instantly creating a branded guest app that links to social media, your direct booking site, and displays your logo.

13.  Consider Adding a Hot Tub

Adding a hot tub to a vacation rental can indeed be a revenue-boosting amenity, particularly in certain markets like ski resorts. While it may not generate significant returns in coastal units, in ski resort destinations, a hot tub is often a sought-after feature that can command higher rental rates and attract more bookings. The appeal of relaxing in a warm, soothing hot tub after a day of skiing can greatly enhance the guest experience and justify a premium price for your property.

14.  Become Pet-Friendly

Properties that allow pets and are labeled as “pet-friendly” indeed have the potential to earn more revenue in the vacation rental market. This is due to the fact that one of the primary reasons people choose short-term rentals over hotels is the opportunity to bring their beloved pets along.

Boost your vacation rental revenue with unique offerings like pet clothes! Attract pet-loving guests by providing fashionable pet apparel as part of your amenities. Create memorable stays with stylish and comfortable outfits for their furry friends, ensuring both owners and pets enjoy a luxurious experience. Stand out from competitors and maximize your earnings by catering to the growing market of pet-friendly travelers.

Unlike most hotels that have strict no-pet policies, allowing pets expands your target market and appeals to a wide range of travelers, from budget-conscious to luxury seekers. The demand for pet-friendly accommodations is significant, and catering to this niche market can lead to higher booking rates and increased revenue.

How Enso Connect Can Help

Streamline the management of your vacation rental and create a seamless experience for your guests. Enso Connect can help by personalizing and simplifying guest interactions at all stages of the customer journey. Take advantage of dozens of integrations to manage check-in, cleaning schedules, and communication while creating upsells to maximize your profits and enhance your guest’s experience. Learn more about rentals or book a demo today!

The hospitality industry has transformed in recent years, shifting a focus from only providing spaces, to prioritizing guest experience. Modern travelers expect to not only have a comfortable place to stay, but also to create memories during their stay. Delivering on these expectations is critical for hospitality operators, as it directly impacts business performance in revenue, growth and more. 

As the demand for exceptional guest experiences rises, it has become a central topic within the hospitality sector, encompassing both vacation rentals and hotels. The growing presence of technology companies in this space underscores the importance of this trend, as they offer innovative solutions to enhance guest interactions and streamline operations.

To delve deeper into the topic of boosting hospitality revenue through exceptional guest experiences, we are hosting a hands-on webinar featuring industry experts. This session will provide valuable insights and practical strategies for elevating guest satisfaction and leveraging it to drive business success. Join us to explore how you can transform your hospitality offerings and capitalize on the evolving expectations of today’s travelers.

In case you missed this or would like to revisit the conversation, here is the recap of the webinar. 

Webinar recap  

Airbnb reported a notable 16% increase in inventory and supply in Q4, highlighting a market that is more competitive than ever. This surge in listings means that hosts must go beyond traditional strategies to stand out and attract guests. To remain successful, hosts will need to implement innovative approaches to delight guests and boost revenue.

We recently had the opportunity to hear from Manoli Gonzalez, Head of Guest Services at Angel Host, a leading tech-enabled hospitality operator. Manoli shared valuable insights into how Angel Host leverages exceptional guest experience to drive revenue growth for their clients. By integrating advanced technology with a focus on personalized guest interactions, Angel Host helps property managers enhance their service offerings, optimize pricing strategies, and improve overall guest satisfaction. Manoli’s expertise underscores the importance of creating memorable experiences as a key driver of profitability in today’s competitive short-term rental market.

Behind the scenes of a hospitality brand’s customer service operations

During the round of introductions, we delved into Manoli Gonzalez’s extensive experience and her pivotal role at Angel Host. Manoli provided an insightful overview of the company’s distinctive approach to enhancing guest experience and how she fulfills this mission on a daily basis.

To give us a clearer picture of her responsibilities, we asked Manoli to walk us through a typical day in her role as the manager of 700 properties and thousands of guests. She detailed how she structures and prioritizes her tasks to ensure the smooth operation of such a large portfolio. Manoli emphasized the importance of meticulous verification processes, prompt responses to guest messages, and efficiently handling special requests. Her strategic approach ensures that each aspect of guest interaction is managed effectively, from initial inquiries to post-stay follow-ups. This comprehensive management style not only maintains high standards of service but also contributes to the overall success and satisfaction of both guests and property owners.

The role of Head of Guest Services at Angel Host

Manoli oversees the customer service team at Angel Host, ensuring that guests receive exceptional care from the initial inquiry through to their departure day. Her team is responsible for managing every aspect of the guest experience, including handling reservations, addressing needs and concerns, and overseeing post-stay elements such as guest reviews and claims. This comprehensive approach ensures that guests receive consistent support and a seamless experience throughout their stay.

Angel Host’s success is largely attributed to their unique “secret sauce,” which combines a skilled team of professionals with advanced technology to convert inquiries into bookings. Their system is built on three critical elements that contribute to highly effective listings: optimized rates, professional photography, and compelling copywriting. By focusing on these elements, Angel Host ensures that properties not only stand out in travel site search results but also attract and engage potential guests. This strategic approach enhances the visibility and appeal of listings, ultimately driving higher conversion rates and maximizing revenue for property managers.

How a customer services department works

Manoli informed us that she does not personally work 24 hours a day, but her team does. Angel Host has a group of customer service agents in three different time zones. This means that regardless of your location and timing, someone from the team will respond to you within 10 minutes.

Each agent has a cluster in the inbox assigned to them. The tech allows us to filter properties by location or property manager. Each agent becomes a specialist in their own cluster of properties, having a more personal contact with the customers.

Guest verification is an important part of the job. Thanks to the automations in place the process is streamlined, and the team verifies all the documents before approval. They also double check that the information is sent accurately, correctly, and at the right time.

Task prioritization is happening through automated internal reminders to the team. For example, employees get reminders to tag completed tasks, to check the pool heating or guests’ transportation requests, among others. The reminders and internal messages are triggered by specific set conditions to ensure that nothing is overlooked.

Audience poll results

The importance of using tech for a high-performing hospitality business

We asked our speakers for their perspectives on how technology improves the overall guest experience and increases revenue in hospitality.

Manoli shared that Angel Host works with a wide variety of property managers and owners. From a retiree, wanting to greet guests in person to a huge Californian villas manager that needs help day-to-day. Angel Host leverages technology, such as Guesty, Enso and other software to remove the mundane tasks and focus on growth.

Alexandra is regularly seeing new tech in this category. She says that there is no limit to how technology can boost guest satisfaction and revenue.

There’s such a huge breadth of providers in this category. We saw everything from providing specialized equipment, keyless access to more unique things like tracking guest flights, providing transportation, etc. Many focus on professionalization of the market, providing such tools as digital guidebooks, concierge services, etc. This gives us a sense of how “guest obsessed” property managers could be. And of course these opportunities are being monetized.

The tech is really that piece, allowing the operationalization of these different opportunities at scale. It is replacing a lot of manual work that becomes no longer possible when hospitality operators grow their portfolio.

Francois added that as the short-term rental industry moves towards professionalization, operators experience rapid growth. When the number of properties goes beyond 10, using technology is absolutely necessary. Otherwise you will be adding more humans to deal with things that can be automated.

Top data points for balancing automation and personalization

When asked what information and guest preferences are important to the Angel Host team, Manoli provided her top three:

Language

To effectively communicate with guests, it is essential to offer interactions in their preferred language. This includes not only essential communications such as guidebooks and agreements but also all forms of messaging and notifications. Providing information and support in the guest’s native language enhances their experience by ensuring clarity and reducing misunderstandings.

The purpose of the trip

Whether guests are coming for a holiday, a family reunion, or a group vacation with friends, understanding their specific needs and expectations is crucial for delivering a personalized experience. Each type of visit has unique requirements and preferences, so tailoring your services to match these expectations can significantly enhance guest satisfaction.

For a holiday getaway, guests might be looking for relaxation and local attractions. Offering amenities such as local tour recommendations, relaxation packages, and personalized welcome gifts can make their stay more enjoyable.

For a family reunion, families often need larger accommodations, child-friendly amenities, and activities suitable for all ages. Providing options like family-sized rooms, high chairs, cribs, and organizing family-oriented activities can help create a memorable and stress-free experience.

For a group vacation with friends, guests might seek communal spaces, entertainment options, and group activities. Ensure that your property offers ample social areas, options for group dining or cooking, and suggestions for local group activities to cater to their social and recreational needs.

By anticipating these needs and offering relevant services, you can create a customized experience that exceeds expectations and encourages positive feedback and repeat visits. Understanding what each type of guest group desires allows you to provide a more engaging and satisfying stay, ultimately enhancing their overall experience.

Number and age of the guests

Sometimes property owners are not very comfortable with a group of young people that come for a spring break. It’s part of Angel Hosts’ responsibility to filter this information and get on the same page with the owners.

Audience poll results

Pains of adopting technology in a hospitality business

We discussed some of the biggest challenges Angel Host faces when it comes to integrating technology into operations. We asked to share some best practices for training staff on new technology and ensuring seamless implementation.

Manoli commented that the Guesty and Enso Connect integration is a great way to elevate Angel Host’s operations and business. Guesty provides the company with all the support with booking process and online travel agencies (OTA) connections. While Enso has this “clickable thing” that people want on their mobile phones, a mobile app called the Boarding Pass.

The biggest challenge in new initiatives and new ways to do things in companies is resistance to change. The resistance can come both from the team and the owners. It can be solved by showing how the new tools work and how they simplify their work and lives.

With the abundance of software available, clients have grown accustomed to using specific types of locks, verification tools and other features. To maintain our high standards we must cater to these demands by streamlining our processes and ensuring that our automation functions seamlessly across all channels. Way back in time we used printed check-in lists and other documents to keep everything under control. Technology now gives us the opportunity to simplify these tasks.

Special offers from our partners:

Free Airbnb listing audit by Angel Host

How much can professional property managers earn with vacation rental upselling? Let’s calculate!

Let’s talk numbers of vacation rental upselling

To grasp the potential of upsells as a significant revenue generator, it is crucial to examine the numbers closely and understand the financial dynamics at play.

While it might seem straightforward to compare the cost of a mid-stay cleaning to the overall booking value and consider it as an additional expense, the math is more nuanced. The true impact of upselling and additional services needs a deeper analysis of profit margins and revenue sharing.

Typically, a professional property manager earns a percentage of the booking value, which covers their service fees and operational costs. On average, depending on the level of service provided to property owners and the competitiveness of the market, a property manager’s gross margin compared to what the guest pays is around 25%. This means that for every dollar spent by the guest, approximately 25 cents contributes to the property manager’s gross profit.

By incorporating upsells, such as premium services, enhanced amenities, or special experiences, property managers can significantly increase their revenue without proportionally increasing costs. These upsells not only enhance the guest experience but also improve the profitability of each booking. For instance, offering mid-stay cleanings, early check-ins, or exclusive local tours as optional add-ons can lead to additional revenue that contributes directly to the property manager’s bottom line.

Understanding these financial dynamics highlights the importance of strategically implementing upselling opportunities and optimizing service offerings. By effectively leveraging upsells, property managers can maximize their revenue potential while providing added value to guests, leading to a win-win scenario for both parties.

Let’s look at the economics of a 2000$ booking:

The ancillary revenue is 100% yours

Accommodation typically accounts for only 30% of a traveler’s overall budget, leaving a substantial 70% of their spending potential to be tapped into. This remaining portion represents an incredible opportunity for property managers to boost their revenue.

Given the hyper-local nature of the property management business, you are uniquely positioned to partner with top local providers and services. Your intimate knowledge of the area allows you to identify and recommend the best dining, entertainment, and activity options to your guests. Since guests are more likely to trust the recommendations of their hosts, these referrals can lead to increased spending at local businesses.

By establishing referral agreements or partnerships with leading local providers, you can generate additional income through commissions or referral fees. For example, collaborating with popular restaurants, tour operators, or adventure companies can create mutually beneficial relationships where you earn a share of the revenue generated from your guests’ bookings. This ancillary revenue stream is entirely yours to capture, significantly enhancing your gross margins.

Moreover, offering curated recommendations and exclusive deals can enhance the guest experience, making their stay more memorable and enjoyable. This added value not only boosts guest satisfaction but also increases the likelihood of repeat bookings and positive reviews. By capitalizing on this 70% of the travel budget, you can effectively transform your property into a hub for local experiences, driving revenue and strengthening your position in the market.

The easy way to increase your vacation rental revenue

To achieve the same by growing your portfolio, you need to hire, train and onboard more staff. You will also need to review your internal procedures to ensure they can support this additional volume of work.

This is 10 times more demanding than striking deals with local services providers. They also want to sell their services during the best months of the year.