Webinar Speakers

Francois Gouelo, Cofounder and CEO of Enso Connect

As a bright tech founder and expert, Francois has been at the forefront of the intersection of technology and hospitality. Enso Connect is a guest experience platform, leveraging AI and If-This-Than-That logic to connect, streamline and monetize guest experience. The platform is renowned for its AI-driven unified inbox, which integrates SMS, WhatsApp, emails, and Airbnb messaging. Another prominent feature is the highly customizable guest app, the Boarding Pass. These and other unique capabilities make Enso Connect the most configurable guest experience software for the short-term rental industry.

Enso Connect is celebrated for its AI-driven unified inbox, which seamlessly integrates multiple communication channels including SMS, WhatsApp, emails, and Airbnb messaging. This unified approach allows hospitality operators to manage guest interactions more efficiently and effectively, ensuring a smooth and cohesive communication experience.

Another standout feature of Enso Connect is its highly customizable guest app, known as the Boarding Pass. This app offers unparalleled flexibility, allowing property managers to tailor the guest experience to their specific needs and preferences. Whether it’s providing personalized recommendations or managing booking details, the Boarding Pass app enhances guest satisfaction and engagement.

These innovative features, combined with other unique capabilities, position Enso Connect as the most configurable guest experience software in the short-term rental industry. By leveraging the power of AI and advanced technology, Francois and his team are redefining how hospitality businesses connect with and serve their guests.

Larry Hoffer, Founder and CEO of The Rentalz Company

Larry has over 20 years of experience in the domestic vacation rental industry. The Rentalz Company is deploying a suite of technology solutions for vacation rental managers, including generative AI solutions for hospitality. The Rentalz Company launched an AI product for vacation rental managers, called Jini. Jini delivers guest engagement experiences and a content generation and optimization solution.

Jini represents a significant advancement in vacation rental technology, offering a powerful suite of tools for enhancing guest engagement and optimizing content. This generative AI solution is designed to elevate the guest experience by providing personalized interactions and automating content creation. Jini’s capabilities include crafting tailored messages and optimizing content for better engagement, ensuring that vacation rental managers can effectively connect with their guests and meet their unique needs.

With Larry’s extensive experience and The Rentalz Company’s cutting-edge technology, Jini stands out as a transformative tool in the hospitality sector, helping vacation rental managers streamline their operations and enhance their guest interactions.

Braeden Flaherty, Hospitality Program Manager, Aidaptive

As Predictive Hospitality expert, Braeden uses his experience as a product leader in some of the most successful hospitality technology companies. Aidaptive transforms vacation rental management direct booking businesses with OTA-grade machine learning (ML). They enable vacation rental managers to personalize every guest booking journey to drive repeat and direct bookings at scale. Aidaptive uses AI to deliver personalized experiences at scale for the hospitality and e-commerce Industries.

Aidaptive is a game-changer for direct booking businesses in the vacation rental industry, bringing OTA-grade ML capabilities to the forefront. By harnessing the power of AI, Aidaptive enables vacation rental managers to tailor every guest booking journey with unprecedented precision. This personalized approach not only enhances the guest experience but also drives repeat and direct bookings at scale, setting new standards for guest engagement and retention.

In addition to its impact on vacation rentals, Aidaptive’s AI-driven solutions extend to the broader hospitality and e-commerce industries. By delivering highly personalized experiences, Aidaptive helps businesses create meaningful connections with their customers, ultimately fostering loyalty and boosting revenue.

Braeden’s expertise, combined with Aidaptive’s innovative technology, is reshaping how vacation rental managers approach personalization and guest engagement in today’s competitive market.

Watch the webinar recording

TL;DR: Key Takeaways from the Webinar

Understanding Different Types of AI

We began with an overview of different types of artificial intelligence, to better understand its industry use. The three types of artificial intelligence are: Narrow AI, General AI, and Super AI.

Narrow AI

A specialized system is designed to address a single, well-defined problem and operates within a constrained scope, focusing exclusively on that specific issue. One notable example is IBM’s Deep Blue, the supercomputer developed specifically to play chess. Deep Blue’s expertise was confined to chess, and it was engineered with the sole purpose of mastering the game through advanced algorithms and processing power. Its success in defeating world champion Garry Kasparov in 1997 exemplifies the effectiveness of a specialized system in excelling within its narrowly defined domain.

Such specialized systems, while limited in their applications, demonstrate exceptional proficiency in their targeted areas. They leverage deep, focused capabilities to solve problems with high efficiency, but their scope does not extend beyond their designated function. This approach contrasts with more general-purpose systems that aim to tackle a wider range of tasks but may not achieve the same level of specialization.

General AI

This type of AI mimics human-like cognition, capable of performing a broad range of tasks. The most famous example is ChatGPT.

Super AI

Highly advanced, capable of surpassing human intelligence across a broad range of activities. This is, for now, just a fictional movie character, like the Terminator.

We focus on Narrow and General AI applications in hospitality.

Macro Trends in AI Adoption by the Hospitality Industry

The experts shared significant trends in AI adoption within hospitality that are transforming the industry. It is clear that more and more operators are implementing AI to increase productivity and boost revenue. Here are the main trends and stats we discussed:

• AI and machine learning are leading business strategies for 73% of hospitality decision-makers in 2024.
• There has been a notable shift from a focus on cybersecurity to AI.

• Adoption of AI in hospitality has been increasing yearly, with a significant percentage of operators now using AI in some capacity.

• AI’s influence on travel industry revenues is growing, with projections indicating a substantial impact by 2024.

Estimated Travel & Hospitality AI Market Growth – $1.2 billion by 2026 at CAGR 9.7%. Source: Travel & Hospitality AI Market Forecast 2025-2032 by IndustryArc

The AI Adoption Curve in the Hospitality industry graph highlights the progression of AI. It has moved from being a niche interest for innovators and early adopters to more widespread use.

Initially, AI in hospitality was embraced by technology enthusiasts and forward-thinking businesses. Generative AI, exemplified by tools like Grammarly and later ChatGPT, crossed the threshold into broader market acceptance. AI applications are growing rapidly, as seen in ChatGPT’s swift user increase. This signifies AI’s progression into the adoption curve’s early majority phase.

• • The adoption curve is becoming shorter and steeper, making new technologies available more quickly to smaller players in the industry.
  • Large vacation rental operators adopted AI early, integrating it into their standard operating procedures.
  • The industry sees a range of adoption levels, from tech-savvy operators to those unaware of AI’s existence.
  • AI applications have extended beyond basic tasks, impacting areas like revenue management, operations, and guest experiences.
  • While generative AI is advancing, other AI types like video generation are still emerging.

We can see that AI’s real-world applications in hospitality are diverse and expanding. This growth indicates a shift from early adopters to mainstream acceptance.

AI’s Contribution to Growth in Short-term Rentals

The experts mapped out how exactly artificial intelligence contributes to the growth and efficiency of short-term rental businesses today. There are the following applications.

Revenue management

• Dynamic pricing
• Upsell opportunities + personalization

Operations

• Predictive maintenance
• AI co-pilot (productivity)

Guest experience

• Guest communication: AI-powered chatbots, messaging automation, guidebooks
• Guest sentiment + reviews
• Automation + Personalization
• Guest verification (security)

Marketing

• E-commerce personalization on direct booking websites
• General Communication
• Brainstorming, content creation, writing

Formula to calculate the ROI of an AI concept

ROI=(Value Generated by AI Solution−Investment Cost)/Investment Cost

The value generated by an AI solution can be time saved, cost reduction, or new revenue.

The ROI for AI projects varies, based on organization’s experience. Leaders showed an average of a 4.3% ROI for their projects, compared to only 0.2% for beginning companies. Payback periods also varied, with leaders reporting a typical payback period of 1.2 years and beginners at 1.6 years.

Source: ESI ThoughtLab, “Driving ROI through AI“. 

Challenges in Implementing AI in Short-Term Rentals

There are plenty of challenges hospitality businesses are facing when implementing AI today.

The most common include:

Shortage of skilled talent (75%)

Algorithm/model failure (64%)

Lack of tech infrastructure to support AI (51%)

Source: The 2023 AI/ML Research report by Rackspace

The speakers highlighted the importance of a clear strategy and understanding where AI can make a significant impact. They also discussed factors to consider when choosing vendors and tools for AI implementation.

In summary, the session highlighted that the adoption of AI in short-term rental businesses is still in its early stages, with its full potential yet to be realized. Despite some impressive results, operators need to adopt a strategic approach to AI implementation. The first step is identifying the specific problems they aim to solve using AI. For example, in certain situations, such as with the much-anticipated AI chatbots, it might be more effective to proactively provide guests with all necessary information upfront, rather than relying on an AI chatbot to respond to guest inquiries.

Industry Experts 

Marcus Räder Founder & CEO @ Hostaway. 

Simon Lehmann, CEO & Co Founder @ AJL Atelier 

Andrew Kitchell, CEO & Founder @ Wheelhouse

Francois Gouelo, Co Founder & CEO @ Enso Connect

A Sober Perspective on Vacation Rental Trends: Simon Lehmann

Simon Lehmann expressed a cautious outlook for the vacation rental industry in 2024, highlighting concerns about global warming, the changing expectations of homeowners, a weakening market, and global political instability. However, he noted the advantage of the industry being global, meaning that challenges are shared worldwide. This creates a strong community of vacation rental professionals who can support each other and unite in advocacy efforts. He also pointed out that technological advancements have led to a fragmented hospitality tech landscape, which can be overwhelming for operators. While AI brings both fears and opportunities, it represents a significant area for future growth and innovation in the industry.

Here are Simon’s top 10 industry observations:

1. The vacation rental industry is global, but at the same time – hyper-local and very fragmented.

2. Industry challenges, such as guest and homeowner issues, technology adaptation, and others, are consistent across the globe.

3. Global warming has a negative impact on the industry. Travel patterns are shifting due to climate change.

“Southern Europe is losing, Northern Europe is winning, just because it’s too hot to travel.”

4. AI plays a significant role in changing the industry.

5. Homeowners have experienced unusually high revenue in recent years. It’s important to keep good relationships with them, as their earnings will decrease in the next one or two years.

6. Softening in the market. ADR, RevPAR and occupancy have come down. Drop of an average lengths of stay. Supply has surpassed demand.

“The average length of stay is now 4.5 days, shorter than the 5-day average in 2019. It has increased but has since decreased again.”

7. The recent surge in travel was largely financed through debt. We are now at a record high of $800 billion in U.S. credit card debt. This is a huge increase compared to $650 billion in early 2021.

8. Growing interest from investors in the vacation rental industry, including private equity firms that weren’t involved five years ago. The financial market is increasingly focused on this sector, though it needs to understand its fragmented nature.

9. Political unrest and geopolitical challenges. Two wars going on that have a huge impact on home prices and everything else.

“In 2024 40 countries will have elections. Meaning that 42% of the global GDP and 41% of the world’s population will be voting for new leaders.”

10. It’s an opportunity for professional property managers to attract owners, struggling with high interest rates, by taking over management challenges. It’s a chance for short-term rental professionals to demonstrate their skills in revenue management, efficiency and guest experience.

Strengths And Weaknesses of the Industry in 2024: Andrew Kitchell 

“80% of operators are nervous about 2024” 

Andrew shares the most important metrics for hospitality businesses to track: supply, demand and booking window.

Supply

After years of sustained growth, the supply has slowed down. Many properties, especially in areas like Joshua Tree, are returning to the housing market. Good operators in the short-term rental market are likely to succeed as newer competitors may struggle and exit the market.  

Demand

On the demand side, revenue per available room (RevPAR) has generally decreased by about 10 percent, which is a normal trend. Smaller properties, like 1 and 2-bedroom units, are doing better at maintaining their RevPAR compared to larger ones.

Booking window 

The booking window, or the time between booking and staying, is getting shorter almost everywhere. This could be due to more people returning to offices or a slowdown in post-COVID travel. Despite this, smaller properties are still maintaining their revenue, but bookings are happening closer to the stay date.

Vacation Rental Market Growth in 2023: Markus Rader 

1. Past year’s concerns about recession and inflation didn’t come true. Markus, in his predictions for 2023, disagreed with these fears and correctly forecasted that the year would see the highest level of global travel ever recorded.

“On Thanksgiving day, a record-breaking three million people in the U.S. took flights, marking the highest single-day air traffic ever.” 

2. The overall short-term rental market, similar to travel industry, has grown significantly. This is evident in the record-high revenues of major players like Airbnb, Booking.com, and Expedia. This indicates the overall health of the market.

3. Such growth of the market leads to more competition, but this is a temporary challenge. Over time, less successful operators will naturally phase out of the market.

4. Americans are increasingly traveling to Europe, resulting in less tourism in the U.S., while a higher exchange rate deters Europeans from visiting the U.S. This is the reason for market softening in the US, but we don’t see the same situation in Europe. 

Vacation Rental Supply Predictions for 2024 

Hostaway’s current state of the industry report identified competition as the primary challenge for vacation rental managers in 2023. This includes competition from hotel chains venturing into apart hotels and vacation rentals, such as Marriott and others.

Shift from individual/amateur to professional – Francois

The trend in property management is shifting from amateur to professional. While some casual renting, like Airbnb in Paris during the Olympics, will continue, there’s a growing trend of operators developing professional businesses with systematic processes and scaling strategies, focusing on revenue and brand building.  

Convergence of supply: hotels, corporate housing, STRs – Simon

In the vacation rental industry, professionals are likely to outperform individuals, especially in handling regulations, as observed in places like New York.

Only 20% of supply is professionally managed, so we still see a massive “long tail”. 

 While supply trends vary globally, there’s a noticeable convergence of hotel inventory, corporate housing, and short-term rentals (STRs). This includes more institutional investment in STRs and a shift in management approaches. For example, in the U.S., there’s growth in purpose-built properties, while in Europe, many hotels are converting into multifamily housing for flexible living. As 2024 brings challenges, we expect further integration of STRs, corporate housing, and hotels in the supply chain.  

Airbnb-friendly buildings in urban areas in multifamily settings – Andrew

These are buildings where residents can easily rent out their apartments on Airbnb. Airbnb has been focusing on increasing supply in urban areas, especially in apartment buildings. This strategy is part of a broader trend where hotels are now considering exposure to distributed single-family homes, a shift influenced by the success of these homes during COVID, especially as urban areas struggled. Hotels are increasingly interested in entering the short-term rental space, and Airbnb is leading this trend among Online Travel Agencies (OTAs). They’ve expanded into mid-length stays and might introduce new rental products. This convergence shows Airbnb’s proactive approach in creating supply that aligns with its platform.  

No clear trends in the market – Markus

The market is currently facing uncertainty due to the lack of clear trends. In recent years, we saw people moving from cities to rural areas in 2020. And then a shift to vacationing in beach and mountain locations. Now, travel patterns are more varied, with both hotels and short-term rentals in cities and vacation spots being fully booked.

This creates both opportunities and risks. While hotels are entering the STR space and there’s a convergence of short and long-term rentals, the market direction isn’t clear. This situation poses challenges, especially for private equity groups looking to buy and rent out properties. We’ve seen large property managers have struggled to scale nationally. It’s important to stay informed to avoid pitfalls, even though some players with deep pockets might still take risks.  

Demand for unique distributed properties is growing – Andrew

“We’re entering a new era where people are traveling more and spending more time on the road. This trend towards unique distributed properties is growing. The long-term outlook for our industry is very positive. Despite concerns about potential recessions or global unrest in 2024, remember that a well-run business in this sector aligns with consumer demand and attracts investors. The vacation rental business is challenging, but there’s a significant opportunity for those who can manage properties well and offer attractive accommodations.”  

Shift in travel trends and consumer behavior – Francois

We see significant shifts in how people are traveling. Instead of traditional two-week vacations, travelers are opting for shorter but more frequent trips. This includes ‘bleisure’ trips, combining business and leisure, or simply taking advantage of extended weekends. Travel has become more accessible and convenient, with everything available online, from buying tickets to getting boarding passes on your phone.  

A recent survey discovered that 73% of travelers embrace mobile devices to make reservations and interact with a hotel. Here’s another interesting finding. The ability to digitally book and check in/out is among the key factors influencing travelers’ decisions when choosing between hotels.

“In 2023, 2.2 days per week are spent away from work” – Simon 

Short-Term Rental Owners Predictions for 2024 – Build Relationships!  

Simon quotes Jason Sprenkle, from Key Data, who said in May 2023:

“If you don’t have property owner relations, You need to build them now. Otherwise you lose the game.”

This best practices advice proved increasingly relevant throughout the year. Be transparent, use recent data points, make owners part of the game and build those relationships. The owners are “spoiled” with the revenue of the last few years. There’s going to be a massive churn. 

2024 will be a year of mergers and acquisitions (M&A) in the industry, with high churn and many distressed assets. Some business owners, feeling the strain, are considering selling, even at lower prices. This situation presents a big opportunity, especially for the younger, ambitious generation. They can seize this moment to acquire businesses and modernize them, replacing outdated manual processes with technology. The challenges of technology adoption are making some long-standing businesses weary, opening doors for new approaches and significant M&A activity. 

Markus reminded that consumers and homeowners are likely to review their expenses and cut costs. Many properties will change ownership in 2024. Currently, the real estate market is stagnant, but with mortgage rates decreasing, we anticipate a surge in property transactions. Ensure you’re strategically positioned to gain more properties than you lose. Building a strong community among your owners can help achieve this. 

Francois emphasizes the importance of creating a community with property owners. He highlights Tim Mortimer, CEO of BnB Made Easy, for organizing an in-person event to discuss owners’ feedback and future plans. 

Concerning Short-Term Rental Industry Regulations in 2024

Government is restricting short-term rentals in BC. The same is happening in Barcelona, in Portugal, in Scotland and in many other places. These artificial market conditions, implemented in places like London and Paris, haven’t solved housing inventory or affordable housing issues. But Short-term rental companies lack the same level of representation and lobbying influence as traditional hotels. This hinders their ability to effectively advocate for their interests in the public arena. 

There is a need for industry leaders, operators and owners to be engaged in advocacy to change the concerning regulation. Short-term rentals (STRs) contribute more to the local economic growth than hotels. STR guests tend to shop and dine locally, boosting GDP and creating jobs, in contrast to hotels where guests often spend most of their money within the hotel. This economic contribution of STRs should be a key part of the conversation around regulations. We are not good enough in communicating our value proposition to everyone involved in decision making and voting. 

Conclusion 

The panelists painted a picture of an industry on the cusp of a major transformation, propelled by the rising tide of AI and a paradigm shift towards professional management. They delved into the complexities of navigating market dynamics, evolving regulatory landscapes, and pioneering revenue strategies, particularly emphasizing the potential of upselling and enhancing guest experience. A recurring theme was the critical need for embracing technological advancements, fostering robust relationships with property owners, and staying abreast of regulatory developments. The discussion culminated in a cautiously optimistic outlook for the vacation rental industry in 2024, acknowledging the hurdles yet highlighting the opportunities that lie ahead in this dynamic sector.

Speakers

Francois Gouelo

CoFounder & CEO, Enso Connect

As the Co-Founder and CEO of Enso Connect, Francois has been at the forefront of integrating technology with hospitality. With his extensive expertise and visionary leadership, he has played a pivotal role in advancing innovations that enhance the guest experience and streamline hospitality operations.

In his role as moderator, Francois will facilitate the session, bringing his deep knowledge and experience to ensure a productive and engaging discussion. He is committed to addressing all questions from the audience, fostering a dynamic exchange of ideas, and providing valuable insights. His leadership in moderating the session underscores his dedication to bridging technology and hospitality, ensuring that all participants gain a comprehensive understanding of the topic at hand.

Benjamin Gross

Co-Founder and CEO of Minty Living

With a Master’s degree in Mathematical Finance, Benjamin brings a profound passion for tackling complex problems, which is evident from his background in quantitative trading and data science. His analytical skills and strategic mindset have been instrumental in his success.

In April 2020, Benjamin and his spouse founded Minty Living, a property management company that has experienced remarkable growth under his leadership. In just three years, the company has expanded its portfolio from 5 properties to an impressive 180 properties. This rapid growth is a testament to Benjamin’s innovative approach and his ability to leverage Atlanta, Georgia’s thriving film industry, which has fueled the demand for high-quality property management services.

Benjamin’s expertise in data-driven decision-making and his dedication to excellence have positioned Minty Living as a prominent player in the property management sector, showcasing his ability to turn complex challenges into opportunities for success.

About Minty Living

Minty Living has evolved into a distinguished professional vacation rental management company, with a strong focus on exceptional design and enhancing the guest experience. Recognizing the importance of technology in driving growth, the company has made significant investments in advanced tools and systems to streamline operations and elevate service quality.

These technological advancements have supported Minty Living’s impressive expansion and have been pivotal in maintaining high standards of property management. In recognition of their achievements and innovation, Minty Living was nominated for the prestigious Shortyz Award for Urban Property Manager of the Year in 2023. This nomination highlights the company’s commitment to excellence and its impact on the vacation rental industry, reflecting the successful integration of cutting-edge technology and a guest-centered approach.

Jacob Mueller

Co-Founder and CEO of Renjoy

Jacob is a seasoned real estate investor and professional with a rich background in real estate, marketing, and software, accumulating over a decade of experience in both residential and commercial properties. Based in the Pikes Peak region, he operates as a licensed broker and the owner of Renjoy, a firm dedicated to helping clients achieve their long-term investment goals.

Jacob’s extensive expertise extends beyond traditional real estate transactions; he is committed to transforming perceptions in the industry. By advocating for greater knowledge and accountability, he aims to bridge the wealth gap and foster growth within the investment community. His approach is rooted in providing insightful guidance and promoting responsible investment practices, reflecting his dedication to empowering clients and advancing the field of real estate investment.

About Renjoy

Jacob transitioned into the vacation rental business from a background in real estate investment, where he initially focused on flipping properties. Recognizing the emerging opportunities in short-term rentals, he teamed up with his co-founders to explore this dynamic market. Their collaboration led to the launch of Renjoy in late 2021, a company dedicated to capitalizing on the potential of vacation rentals.

Since its inception, Renjoy has grown to manage approximately 160 units. Jacob and his team emphasize leveraging technology to drive growth and streamline property management processes. Their focus on integrating advanced tools and systems ensures efficient maintenance and enhances the overall guest experience, positioning Renjoy as a forward-thinking player in the vacation rental industry.

“Efficiency is crucial in managing many different short-term rental properties. Since every property, guest, and owner is unique, it’s like running 160 separate small hotels.”

What makes a Hospitality company future-ready?

We’ve asked hospitality industry leaders to share their vision of preparing businesses for the future in the short-term rental space. Benjamin Gross and Jacob Mueller, have shred their insight based on years of experience in the STR market. They name five characteristics: clear business vision, fluid tech stack, diversified revenue streams, a tech-savvy team, proper data warehousing.

Get clear on what you’re building

Start with your end in mind. Building a small, profitable rental business requires a different strategy than expanding to manage thousands of units. Just as in tech development, where initial solutions often undergo revisions and improvements, your approach should evolve as your goals become clearer.

Begin by defining your ultimate objective, whether it’s establishing a highly profitable niche rental business or scaling to a large portfolio. This clarity will guide your decisions and help you tailor your strategies accordingly.

Optimize your operations towards this North Star by setting clear Objectives and Key Results (OKRs) for your roadmap. Develop a structured plan for the next 3, 6, and 12 months, focusing on incremental goals that align with your long-term vision. Regularly review and adjust your OKRs based on performance and feedback to stay on track and adapt to changing circumstances.

By maintaining a clear vision and strategically aligning your efforts, you can effectively build and scale your rental business, ensuring that each step contributes towards achieving your overarching goals.

Then you go through a pretty substantial technology due diligence process. At the end of the day, choosing the wrong technology can set you back months and months and months.

Benjamin Gross, Minty Living

Keep your tech stack  fluid – avoid rigid processes

Your technology needs will vary greatly based on your scale, so it’s crucial to plan for this variability from the start. In the rapidly evolving short-term rental industry, technology that works for a small operation may not suffice as your business scales.

As your company grows, be prepared to adapt and enhance your technology choices to match your expanding needs. Initially, you might start with basic tools and platforms, but as you increase your portfolio and operations become more complex, you’ll need more advanced solutions to manage reservations, streamline communication, and analyze data effectively.

Regularly assess your technology stack to ensure it aligns with your current scale and future growth plans. Investing in scalable and flexible solutions can prevent disruptions and facilitate a smoother transition as your business evolves. Staying ahead of technological advancements and being open to upgrading your systems will support long-term success and help you maintain a competitive edge in the dynamic short-term rental market.

Identify revenue streams to counter costs

Running a business involves managing variable costs that fluctuate with changing conditions, such as occupancy rates, seasonal demands, or maintenance needs. To ensure financial stability, it’s highly valuable to identify revenue streams that can move independently or even inversely to these fluctuations.

By diversifying your revenue sources, you can create a buffer against the volatility of your primary income. For instance, consider implementing additional services or amenities that generate income regardless of occupancy rates, such as offering premium cleaning services, partnering with local businesses for exclusive guest discounts, or leveraging dynamic pricing strategies.

Additionally, exploring alternative revenue streams like subscription models, long-term rentals, or seasonal packages can help balance out the impact of variable costs. By strategically aligning your revenue streams to counteract or complement cost fluctuations, you can enhance your business’s financial resilience and maintain a more predictable cash flow.

Create a future-ready team

Seek tech-savvy employees, not necessarily developers, but those who can independently handle tasks like onboarding and using tools like Slack. In a startup environment, without formal HR processes, these skills are essential. Team members often directly contribute to product development, so being adept with technology is crucial.

Look for team members who are process-oriented and empathetic, considering problems from others’ perspectives, whether clients, colleagues, or guests. They start with the problem and work backwards to find solutions, focusing on a systematic, project-based approach.

For human capital, use the same reverse engineering principle of where you want to be. For luxury services, look for those who can provide a hotel experience in your team. Guest experience must be handed to somebody who we know can take real ownership of these issues.

Book recommendation by the speakers: “Buy Back Your Time.”

Build a future-proof tech stack

Our speakers have kindly agreed to share and comment on their tech stacks that are their clear competitive edge. They dived into how they do market research, manage guest communication, collect data points, preparing the business for artificial intelligence. They shared online platforms they use for distribution and how they drive the business for more direct bookings. Each of the companies has a different business strategy and have built unique systems to achieve their goals. Learn more about building an optimized tech stack for your hospitality business.

Minty Living Tech Stack

Task management system

As an urban-focused vacation rental manager, managing tasks efficiently is key for Minty Living. We need high-quality performance and effective task management in a physical space. After trying various tools like Trello and Notion, we found ClickUp in late 2021. It proved to be a flexible and comprehensive task management tool that integrates well with our systems, enhancing our overall efficiency.

Event-driven sequences

In our data-driven world, we track a series of events for each task. For example, when Jenny reports a broken toilet, we follow the entire process: receiving her request, assigning it to a vendor, scheduling the repair, completing the task, and getting Jenny’s feedback. It’s not just about fixing the toilet; it’s about tracking and evaluating each step in the process.

We realized that no existing tool offered the event-driven architecture we needed, so we built it from scratch using AWS. This allowed us to separate our data into highly available parts, like our bespoke online booking system for extended stays, and other parts for later analysis. Our goal wasn’t to be a small-scale vacation rental manager but to create a platform capable of handling thousands of units. After thoroughly testing various systems, we’re confident and proud of the robust architecture we’ve developed.

Controlling VS Connecting the Data

Minty Living data connection

Today it’s not about who’s controlling that data, but about who’s connecting that data with all of the right systems. Because there is no all-in-one that does absolutely everything perfectly.

In vacation rental tech, there are two strategies. One is all-in-one, like Track, Streamline, and Guesty. The other focuses on specific tasks, such as lock control or communication. However, integrating these specialized functions can be tough. It often results in a complicated and confusing system for property owners and CEOs.

“This fragmentation causes “brain damage” for owners and CEOs that have to figure out how to hook this stuff up. If all you do is locks, how am I communicating that to the guest? That then has to be in our PMS and all of a sudden, you’re stuck with this spaghetti that you’ve got to figure out how to glue the ends together.” (Ben)

We at Minty Living were excited to partner with Enso Connect because they integrated key functions like locks, communication, user apps, and upsells into one app. This approach, which combines various functionalities, is what we believe will be the future trend in technology. Instead of using separate apps for each function, this method allows us to use fewer apps, making our system more efficient and less complicated.

Renjoy data connection

It’s like a network where different elements, like locks, are connected and serve various people, from guests to employees. These connections link to various tasks and communications. Imagine several small hubs, each handling different functions, but all linked to the central data. This data needs to be accessible and compatible with multiple tools that handle diverse types of information.

And this is actually why we use Guesty. What we love about it is that their API is so open. So open and super clean. It’s clean, it’s open, it’s easy for us to use. And a lot of people like to integrate with Guesty because it’s so easy. And so that gives us access to a lot of innovation. And for us, API functionality was paramount during the due diligence process.

Webhooks and Data Warehousing in Hospitality Systems

What are webhooks?

Webhooks work like this: imagine ordering a pizza and waiting for the doorbell to ring instead of calling to check if it’s arrived. Similarly, webhooks automatically send data from one system to another instantly when a specific event happens.

The introduction of webhooks fits well with how we manage vacation rentals. It’s about tracking events as they happen, saving that data, and then starting a new sequence of events based on that.

Example of Using Webhooks to Collect Data

Minty Living made sure to collect comprehensive data. If you’re aiming to manage a small, profitable vacation rental business, focus on simple tech solutions and good management to maximize profits. In contrast, Minty Living’s goal involves measuring performance across multiple locations. For example, they compare how long it takes to schedule tasks in different cities. Tzhis detailed tracking is essential for managing properties in various places.

The second challenge is getting apps to share their data effectively. Enso Connect uses webhooks, which is becoming more common, but not all apps offer this. Often, the data displayed in an app differs from what’s available through its API, leading to limited access to data. Creating a global view of your data is an incredibly valuable thing.

Centralizing Hospitality Business Data in Airtable

Renjoy use Airtable for everything, not just property data. It includes our CRM, project management, vendor details, room specifics, item replacements, and even our marketing campaigns. With all data centralized in Airtable, they can easily visualize different aspects like sales, properties, onboarding, finance, and housekeeping on one platform. This makes it highly useful for our entire company’s operations.

Renjoy have many interactions between their database and Guesty. They clearly mark these interactions in their database, so it’s easy to track how data about properties, guests, and guidebooks moves between their systems and tools.

For data warehousing, ideally, you’d use a SQL database for full control over your data. However, this can be costly as it requires skilled administrators. Renjoy couldn’t afford this, so they chose a data visualization tool that works well with Airtable instead.

Betting on AI

In the future, AI might change how we handle data. AI can organize unstructured, real-world data, like turning a room’s video into digital information. This means we won’t need to structure data manually. We’re considering keeping all our historical data in one place, making it easier for AI tools to access and use it, both internally and externally. Eventually, AI might even build and manage our databases for us.

Francois pointed out that organizing data helps improve accuracy. Simple categorization, like identifying data types or locations, enhances precision. This organization can lead to more effective AI assistants, reducing the need for complex dashboards and allowing for simpler queries through a chat box.

Changing Google search: from list of blue links to one answer in ChatGPT

There’s a change in how we search for information, like using ChatGPT for straightforward answers instead of Google, which often shows ads and videos. This shift affects how we view and control our data, making it easier to switch between different technologies effectively.

Guest Screening and Verification Tips: Minty Living

Minty Living has developed a thorough guest screening process, especially important in Atlanta due to high fraud rates and squatter laws. Using Enso Connect, they’ve created detailed screening flows. For instance, Airbnb guests must still provide a selfie and ID, as some Airbnb accounts have been compromised. This highlights the need for industry discussions on best practices. Their system tailors screening based on the booking channel, time between booking and check-in, stay duration, and property type, adjusting the risk assessment for different scenarios.

Risk-Based Approach for Guest Screening: Renjoy

Renjoy uses a risk-based approach for guest screening. They assess each booking’s risk using various factors and then follow up accordingly. This might include requesting ID and credit card photos, especially from non-Airbnb guests, and having them sign rental agreements. Learning from experiences, especially the challenging ones, helps improve their screening process. They focus more on preventing credit card fraud and chargebacks. Understanding the unique risks for each property is key, and they tailor their screening methods accordingly.

Best Practices for Guest Screening and Verification: Enso Connect

One effective tip is offering guests a choice between a damage waiver and a safety deposit, called ‘Flex.’ This can increase revenue and self-insure your property without extra fees. They can opt for a safety deposit, verified through their credit card. It’s better to hold the deposit rather than charge it to avoid Stripe fees. This flexible approach offers various options for property protection.

Webinar Speakers

Francois Gouelo

As the Co-founder and CEO of Enso Connect, Francois has been at the forefront of the intersection of technology and hospitality. With his extensive experience in integrating innovative tech solutions to enhance guest experiences, he brings a wealth of knowledge to the discussion. Francois will be moderating the session, ensuring that all questions from the audience are thoroughly addressed and providing valuable insights into how technology can transform the hospitality industry. His expertise will guide the conversation, offering practical advice and strategies for leveraging tech to create exceptional stays and streamline operations.

Emmanuel Lavoie

Emmanuel Lavoie, CEO of Jetstream Hospitality Solutions, brings two decades of expertise in management, entrepreneurship, and investing to his role. Under his leadership, Jetstream Hospitality Solutions has become a pioneer in short-term rental solutions, leveraging cutting-edge technology to elevate the hospitality experience. Emmanuel’s rich background in Engineering and Proptech, combined with his extensive industry knowledge, enables him to offer invaluable insights to hospitality professionals. His vision and expertise drive Jetstream’s mission to transform property management and enhance guest satisfaction globally.

Katrin Humal from Minut

Katrin, with a tech background since 2016, specializes in automating workflows and amplifying impact. She joined Minut’s product team in 2022, diving into the short-term rental (STR) industry to champion responsible travel. Originally from Estonia, Katrin now thrives in Sweden’s Malmö tech hub, where she balances her professional life with a passion for the outdoors and the art of baking cinnamon rolls. Her dedication to leveraging technology for sustainability and enhancing guest experiences makes her a key player in the STR sector.

What is Smart Guest Experience

In hospitality, “smart guest experience” refers to quickly understanding and giving guests what they need exactly when they need it. This also means leveraging digital tools and data-driven insights to meet guests’ expectations. More and more hospitality professionals use smart tech tools to ensure their guests have seamless and memorable stays.

Implementing smart guest experience strategies is essential for scaling hospitality businesses, making them more efficient, profitable and competitive.

​Smart Guest Experience Experts on the Webinar

We had three hospitality industry experts, sharing their insights on creating an exceptional customer experience in vacation rentals. Each of them introduced how their companies help vacation rental professionals create, configure and monetize their guest experience in a smart way.

Emmanuel Lavoie introduced Jetstream Hospitality Solutions as a full-service PMS (Property Management Systems) that started as a channel manager. They offer a range of services, including a bumilt-in call center, revenue management team, content and listing optimization, and payment processing. They provide all these services under their partners’ brand in a white-label format.

Katrin Humal introduced Minute as a co-hosting platform that helps care for homes, guests, and the community. They offer a sensor that monitors and alerts about noise, occupancy, cigarette smoke, motion, and temperature in rental properties. This helps prevent parties, enhance the guest experience, and protect properties. Privacy is paramount, and nothing is filmed or recorded.

Francois Gouelo introduced Enso Connect as a guest experience platform, helping vacation rental businesses digitize and monetize their guest experience. The platform provides AI unified messaging, smart automations, with conditions based on guest data collection, guest app, upsells and more. With IoT integrations, security partnerships, Enso-connected users can build custom guest journeys, tailored to their unique needs.

Key Growth Drivers for Vacation Rental Business

Emmanuel shared his vision for the key drivers of growth in vacation rentals and smart hotels. He emphasized that success in the industry hinges on a combination of exceptional hospitality, strategic marketing, streamlined operations, robust trust and security measures, insightful data utilization, and effective third-party partnerships. By integrating these elements, operators can create a compelling and trustworthy guest experience, drive bookings, and achieve sustainable growth in the competitive landscape.

Exceptional Hospitality

The core purpose of the short-term rental and hotel industry is to deliver exceptional hospitality and ensure guest delight. Reviews from major OTAs (Online Travel Agencies) offer valuable, real-time insights into how a business is performing. Consistently delivering outstanding hospitality and garnering excellent reviews is crucial for sustainable growth. If your business fails to meet these standards, it will struggle to attract and retain guests, hindering long-term success and expansion in a highly competitive market.

Operations

If you have from one to five units, you probably don’t need much technology to start with. As businesses scale, they need tools, technology, processes, and systems. This includes having great cleaners, keyless entry, noise and party monitoring like Minut, and structured data management. This needs to be topped with seamless and quick-responding guest communication.

For example, Jetstream mandates for all partners to have contactless access, as it removes the friction of not finding the keys under the doormat, etc. They are also big fans of noise and party monitoring technology. It helps not only to nip parties in the bud, but also backs up Airbnb damage or insurance claims. It’s important to have the data.

Marketing and Distribution

Emmanuel highlighted the critical importance of multi-channel distribution and the risks of relying solely on platforms like Airbnb. A robust Property Management System (PMS) and channel manager are essential for effective multi-channel distribution. While many hosts depend heavily on Airbnb for their bookings, at Jetstream, only 55% of our thousands of monthly bookings come from Airbnb. The remaining bookings are sourced from other platforms such as Vrbo, Booking.com, Home2Go, our own LeafTown.com, and various partner websites. This approach underscores the value of diversifying distribution channels to reach a broader audience and maximize booking potential.

Content, Pricing, Photos, Reviews (CPPR)

Emmanuel shared that in Jetstream they have the acronym CPPR: Content, Photos, Pricing, and Reviews. Following this approach is the best way to stand out from the competition.

• Content: Concise, engaging, and to the point.
• Photos: Only professional, well-edited images that stand out.
  In Airbnb’s early days, they struggled with reservations despite many listed properties. To boost bookings, they invested in sending professional photographers to capture high-quality images of the properties. If competitors have top-notch photos and you don’t, you’ll rank lower in guest preferences or attract budget-conscious travelers.
• Pricing: Use dynamic pricing software, like Wheelhouse, but it’s also essential to understand revenue management for promotions and discounts.
• Reviews: When the first three are done right, positive reviews follow.

Mastering these four elements ensures consistent success against competitors.

Trust and Security

Katrin from Minute highlighted the significance of trust and security. Hosts need to trust their guests, and vice versa. Minute’s monitoring system helps deter problematic bookings and ensures guests and neighbors have a peaceful experience. The system alerts hosts about potential issues, allowing them to address them promptly. This fosters a sense of security and trust within the community, promoting growth for the rental business.

Using tools like Minut in listing descriptions has led to fewer problematic bookings for hosts. Data from Minut devices shows that about 90% of noise incidents are resolved within 20 minutes, preventing them from escalating. This not only ensures neighborhood peace but also provides guests with peace of mind. They can enjoy without worrying about unintentionally causing disturbances. This proactive approach enhances the guest experience, turning potential negatives into positives. It also fosters trust within the community, ensuring they feel secure and are more accepting of short-term rentals in their vicinity, benefiting your business.

Centralizing Data

For any size vacation rental business using a PMS or a tool like Jetstream, you’ll need to hire reservation agents. You might also hire offshore VAs for additional time zone coverage. It’s crucial to have your data centralized and easily searchable, especially for property-specific questions outside the PMS. For example, what is the check-in process or where is the remote. This structured data is essential not just for your agents but also for current and future AI models.

Emmanuel discussed the need for a centralized database for efficient business operations. While Jetstream initially used Notion, they are working towards integrating more data capabilities within their own tool. This centralized data will be more accessible for an AI-powered chatbot and other third-party tools.

Different operators use various tools to centralize their knowledge base, ranging froam Google Docs to Notion, High Table, and ClickUp. The key is to build the database around the team’s needs while ensuring it’s centralized for future scalability.

Tools like EnsoAI can process various data, including PDFs. While many operators centralize data using platforms like Notion or their PMS, EnsoAI prefers to internalize this data, recognizing that each operator has a unique knowledge base system.

Crafting Exceptional Guest Experience Using Technology

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Transparency with Guests

​Katrin emphasized the importance of being transparent with guests about the technology being used. There’s a growing skepticism towards technology, especially AI, in society. It’s essential to demystify it by explaining its functions and limitations. By being transparent about the technology used, hosts can build trust with guests. Many guests, when informed about devices like sensors, understand their purpose and see them as enhancing their stay. This transparency not only boosts guest confidence but also showcases the host or property manager’s professionalism. Such professionalism can elevate the brand, leading to increased trust, future bookings, and brand recognition.

Automation and Standardization

Automating tasks and standardizing situations can help hosts focus on non-standard opportunities to enhance the guest experience. For instance, using sensors to monitor temperature ensures guests’ comfort and helps in cost-saving. Motion sensors can detect guest arrival, triggering welcome messages.

As businesses grow, they often grapple with data scattered across various silos, making it challenging for frontline staff to access information swiftly. By standardizing data sources and processes, businesses can achieve consistent high-quality outcomes, like five-star reviews. A key to successful standardization is driving processes with a primary KPI. Instead of creating complex systems that can break, focusing on a central performance metric ensures clarity and efficiency. This approach, combined with leveraging technology, ensures streamlined operations and consistent guest satisfaction.

Data-Driven Decisions

Using data from sensors and other sources enables hosts to customize and personalize the guest experience in meaningful ways. This data-driven approach allows for proactive adjustments and tailored recommendations that enhance the stay. By leveraging real-time information on guest preferences and behaviors, hosts can anticipate needs and address potential issues before they become problems. For instance, if a sensor detects a change in temperature or humidity, adjustments can be made to maintain comfort without the guest needing to intervene. This proactive management not only helps transform potential negative situations into positive experiences but also fosters a collaborative relationship with guests. By demonstrating attentiveness and responsiveness through data insights, hosts can create a more satisfying and memorable stay, leading to increased guest loyalty and positive reviews.

Balancing Automation and Human Touch

• The panelists agreed that while automation can handle many standard processes, there’s a need for personalized human interaction. Katherine mentioned the potential of using technology to identify opportunities for personal touches.
• Emanuel added that tools enhance the human touch, allowing businesses to focus on hospitality rather than mundane tasks. He also shared that going keyless hasn’t impacted the human touch aspect of their service.

Smart Guest Experience Accommodation Example

As a great example Emmanuel shared the transformation of High Street Townhouse, a project in Manchester involving the three companies. This 19-unit apart-hotel was previously managed by a traditional company that went under. The on-site manager, Allison, remained consistent through the transition. Before Jetstream’s intervention, Allison handled routine tasks like collecting credit cards and driver’s licenses from guests. Now, with Jetstream’s advanced technologies, including Minut and Enso’s keyless access, Allison focuses solely on enhancing guest experience. The result? A staggering 95% occupancy in September and rave reviews about Allison’s hospitality. This shift not only improves guest experience but also opens avenues for new ancillary revenue streams, like upsells. It’s worth noting that guests often allocate only about 25-30% of their budget to accommodation, leaving great opportunity for additional services.

Upselling and Enhancing Guest Experience

Upselling can be a valuable tool for enhancing the guest experience while also boosting revenue. Platforms like Enso Connect enable hosts to offer a range of upsells that cater to various guest needs and preferences. These include options like early check-in, late checkout, and mid-stay cleaning, which add convenience and comfort to a guest’s stay. Additionally, Enso Connect facilitates the promotion of local experiences, such as guided tours, dining options, and entertainment activities. By integrating these upsell opportunities, hosts can provide personalized recommendations that enrich the guest’s experience and create lasting memories. This approach not only enhances the overall stay but also strengthens the connection between the guest and the host, leading to higher satisfaction and potential repeat bookings.

Turning Negative Experience Around

• Katrin emphasized the importance of being proactive. Using technology to spot potential issues early can help address them before they escalate. For instance, noise monitoring tools can alert hosts to potential disturbances before they become a problem for neighbors.
• The discussion also touched on the importance of analyzing guest sentiment to address concerns proactively. Tools that provide sentiment analysis can help hosts identify unhappy guests and take corrective action before negative reviews are left.

The Future of Technology in Hospitality

Discussing the future of new technology in the hospitality business, the current trends focus on using data to enhance the guest experience. With tools like Minit and Jetstream, the aim is to automate mundane tasks, allowing businesses to personalize guest experiences. While technology aids operations, the human touch remains essential. For instance, while revenue management tools provide data, it’s how businesses use this data that determines success. Centralizing information for specific teams is crucial, and tools like Notion help in this regard. However, each team might need its specialized tools for optimal workflow. The key is to ensure that the primary information a team member needs is centralized for efficiency.

Why Upselling in Vacation Rentals?

Upselling in vacation rentals means offering additional services at additional cost, such as airport transfers, guided tours, or premium amenities. These services can elevate the stay experience for guests and increase revenue for operators.

Let’s look into the numbers for short-term rental upsells. Typically, 30% of a traveler’s budget is allocated to accommodations, while the remaining 70% is spent on experiences. Integrating these experiences into their upselling strategy enables hospitality providers to tap into this piece of the budget pie.

While being a valuable strategy at all times, upselling is especially vital when traditional revenue sources are at risk.

The Benefits of Upselling in Short-term Rentals

The speakers agreed that short-term rental upselling not only boosts revenue but also elevates the guest experience and offers a competitive edge to operators. By strategically offering additional services or upgrades, hosts can create more personalized stays, catering to guests’ unique preferences and enhancing their overall satisfaction.

Upselling can range from simple add-ons like early check-ins, late check-outs, or premium welcome packages, to more curated experiences like local tours, private chefs, or spa services. These extras not only increase revenue but also make a property stand out in a crowded market. Guests appreciate the added convenience and customization, which can lead to higher reviews and repeat bookings.

Moreover, upselling allows operators to tap into untapped potential, especially during slower booking periods, maximizing the value of each guest’s stay. By anticipating guest needs and offering tailored options, operators can create memorable experiences while ensuring steady revenue streams. In a competitive industry, effective upselling becomes a key tool for differentiating one’s property and building stronger relationships with guests.

Increased Revenue

By offering additional services or amenities, you can increase the average transaction value of each booking, helping to maximize revenue even during periods of lower occupancy. These upsells might include premium features such as airport transfers, equipment rentals, guided tours, or even stocked fridges with local delicacies. Each of these extras not only adds value for your guests but also boosts your earnings per reservation.

This approach allows you to create more flexible pricing models, catering to different types of travelers and their preferences. For example, business travelers may value faster check-ins and workspace setups, while vacationing families may appreciate entertainment packages or child-friendly equipment. By thoughtfully curating these options, you can enhance the guest experience and give them more reasons to spend beyond the base rental fee.

Increasing the average transaction value through upselling also strengthens your competitive position in the market. It demonstrates your ability to provide a higher level of service, helping to build guest loyalty and encouraging repeat stays. Additionally, it helps mitigate the impact of fluctuating occupancy rates by ensuring that each booking contributes more significantly to your bottom line.

Enhanced Guest Experience

Providing additional services or amenities can significantly enhance the guest’s experience, leading to positive reviews and repeat bookings. When guests feel that their stay is personalized and exceeds expectations, they are more likely to leave glowing reviews, which in turn improves your property’s visibility and reputation on booking platforms. This word-of-mouth marketing is invaluable in attracting future guests and fostering trust.

Thoughtful extras such as arranging transportation, offering local experiences, or providing tailored amenities like welcome baskets or fitness equipment show that you are committed to making the stay special. These personalized touches not only elevate the guest experience but also demonstrate your attention to detail, creating a lasting impression that encourages guests to return.

Positive reviews are a key factor in boosting future bookings, as they reassure potential guests that your property offers a high level of service. Repeat bookings, on the other hand, indicate strong guest satisfaction and loyalty. By investing in additional services and amenities, you create an experience that guests will want to relive, strengthening your position in the competitive vacation rental market.

Competitive Advantage

Offering unique upsells can differentiate your property from competitors and make it more appealing to potential guests. In a crowded marketplace, standing out often comes down to the extra value you provide beyond the standard amenities. Whether it’s curated local experiences, premium services like a private chef or yoga instructor, or exclusive access to hidden gems in the area, these upsells offer a personalized touch that can make your property memorable.

Guests are increasingly seeking more than just a place to stay—they want experiences that align with their interests, lifestyles, and the purpose of their trip. By offering unique upsells tailored to these needs, you not only increase your revenue but also create an emotional connection with guests, making them more likely to choose your property over others. For example, you could offer a wine-tasting tour for couples, adventure packages for thrill-seekers, or family-friendly services like babysitting or children’s entertainment.

These distinctive offerings not only enhance the guest experience but also position your property as a destination in itself, rather than just another rental. This can help you command higher rates, attract more bookings, and encourage guests to share their experiences through positive reviews and social media, further boosting your property’s appeal.

Examples of vacation rental upsells from industry experts

Our speakers shared their insights and examples of vacation rental upsell options. Here’s a breakdown of the valuable suggestions each speaker provided:

Jen highlighted the potential of basic yet essential services:

• Offering late check-outs option for guests who wish to extend their stay a little longer.

• Providing first-party services such as mid stay cleaning and equipment rental.

Julia emphasized the importance of collaborating with local vendors:

• Partnering with local vendors, for example, a local picnic company offering custom picnics exclusive to the property.

• Organizing events like bachelor parties and girls’ trips.

• Having local vendors promote the property, which serves as a mutual benefit.

• Using these partnerships as a great source of content for marketing purposes.

François shared ideas on enhancing the guest experience:

• Prompting guests to purchase early check-in when they attempt to complete an online check-in ahead of their official check-in time.

• Offering pool heating for guests who wish to enjoy the pool in cooler temperatures.

• Offering fridge stocking and restocking for guests who appreciate grocery delivery services.

• Using affiliate links (e.g., Uber) to provide transportation, luggage storage or other services while generating additional revenue.

Madi focused on unique local experiences:

• Offering local vendor experiences, such as a mini pig experience.

• Providing the opportunity for a hot air balloon experience.

• Organizing a session with a mixologist at a local restaurant.

Vacation Rental Upselling Gap

Despite the clear benefits of upselling in hospitality, not many vacation rental operators are actually doing it. The survey of webinar attendees reveals that, despite their interest in upsells, 40% of operators have not yet implemented any upselling strategies. There is a significant gap in upselling strategies implementation. The majority of respondents are either not utilizing upselling at all, or are generating only a small portion of their revenue from it.

Vacation Rental Upselling Challenges

Although hotels have been practicing upselling for some time and are even escalating their efforts now, vacation rentals remain reluctant. This slower adoption of upselling strategies in short-term rentals, compared to hotels, has a reason. Short term rental properties are unique and often scattered across various locations, making operations more complex. Additionally, there is a widespread belief that true hospitality involves including everything in the initial cost. Some view upselling as an attempt to extract every last penny from guests.

We asked the vacation rental professionals about their biggest challenges with upsells. One third of the respondents are struggling to convince guests to opt for upsells. 30% need help to identify upsell opportunities. 19% wish they could streamline the upsell process and 19% don’t know how to start implementing upselling strategies.

This just confirms the pressing need for comprehensive education and guidance on effectively implementing upselling strategies in vacation rentals.

Identifying Opportunities for Upselling

To effectively implement upselling strategies, it is important to identify the opportunities that are most likely to resonate with your target audience. Our experts provided insightful suggestions on how to identify opportunities for upselling:

Julia recommended:

• Taking into account your location and the experiences available in the vicinity. Tailor your offerings to the unique attractions and activities in your area.

• Approaching sales and marketing as if you are building the property itself. This involves thinking strategically about the experiences and services that will enhance your property’s appeal.

• Treating the content created for your brand as a product that consumers would want to purchase. This involves creating high-quality content that is valuable and appealing to your target audience.

François advised:

• Consider whether the upsell will integrate seamlessly and at scale as part of your existing operations. This involves assessing the feasibility and scalability of each potential upsell.

• Focusing more on basic services and less on experience-driven offerings. This involves identifying the essential services that all guests may need or desire during their stay.

• Leverage historical booking data and information collected from your guests throughout the entire journey to identify trends and preferences.

Madi suggested:

• Determining your guest avatar, which involves identifying the types of guests you are targeting and tailoring your offerings to their specific needs and preferences.

• Identifying experiences that can be added without requiring significant additional time or effort on your part. This involves selecting offerings that are easy to implement and manage, while still providing value to your guests.

Using AI to supercharge your hospitality upselling strategy

Our conference speakers shared cutting-edge methods to develop a strong upselling strategy with the help of Generative AI. Incorporating large language models, like ChatGPT or GPT-4  into their guest experience platform or just using the chat, operators can:

Identify potential upsells based on your property data

Copying and pasting all your property information, including descriptions, locations and reviews into the Chat and asking it to suggest best upsells for the property.

Find the most sought-after local experiences in the area

Requesting the chat to create a list of the most searchable local attractions in a specific area. You will have to adjust and correct the prompt a couple of times until getting the desired list.

Craft upsell descriptions

Presenting the upsells in a manner that the guests will desire to experience the add-on. Quickly generating compelling copy to incorporate into your upselling tool.

How to successfully upsell to guests without being pushy or intrusive?

Once you have identified the opportunities for upselling, the next step is to implement these strategies effectively. Each speaker provided their insights:

Julia suggested:

• Enhancing the guest experience by offering higher-quality items that guests will find appealing.

• Being strategic about the placement of upsell offers.

• Employing just-in-time messaging about local events, etc.

Madison, advised:

• Leveraging experiences, as it is easier since guests often already inquire about them.

• Including recommendations in the confirmation email as a gentle nudge.

• Recognizing that guests often make last-minute decisions and may not purchase an experience or upsell until they are within their 72-hour window of consumption. Therefore, it is important to remind guests after they check in to review the upsells you have prepared.

François recommended:

• Integrating upselling into the guest journey and avoiding overwhelming guests with notifications.

• Providing tailored recommendations based on the type of guests (business, family, couples).

Additional suggestions that came up at the discussion:

Communicate Clearly

Ensure that the communication about the additional services or amenities is clear and concise. Use high-quality images and detailed descriptions to highlight the benefits of the upsell.

Offer Value

The additional services or amenities should provide genuine value to the guest. Avoid unnecessary upsells that do not enhance the guest’s experience or that may be perceived as opportunistic.

Leverage Technology

Use technology to facilitate the upselling process. For example, automated emails or messages can be sent to guests before their arrival, offering additional services or amenities that may enhance their stay. Having upsells available at one place on your guests’ phones, personalizing offerings and offering a one-click purchase experience can significantly increase your upsell conversion.

Monitoring and Adapting Your Strategy

It is important to continuously monitor the effectiveness of your upselling strategies and adapt them as necessary. Collect feedback from guests, analyze the uptake of additional services or amenities, and assess the impact on your overall revenue and guest satisfaction. By regularly reviewing and refining your approach, you can optimize your upselling strategy for success in these uncertain times.

The results of the conference poll revealed that the majority of respondents, 58%, are reviewing their upselling offerings to guests once or twice a year. Meanwhile, 32% of respondents admitted to never reviewing their offerings to guests, and a mere 11% are assessing their upsells on a monthly basis.

Lack of control over your upselling offerings may lead to missed opportunities and suboptimal results. Regular monitoring and adjustment of upselling strategies are essential to maximize their effectiveness and ensure they continue to meet the needs of guests.

How can vacation rental professionals offer upsells to guests ?

Offering upsells to guests can be done in various ways, each with its own advantages. Here are some methods property managers can use to offer upsells to their guests:

Email or Messaging

 Sending personalized emails or messages to guests before their arrival is an effective way to offer additional services or amenities. This can include information on airport transfers, equipment rentals, or unique local experiences. Be sure to include compelling descriptions and images to make the offerings as attractive as possible.

Guest App

A mobile app designed for your guests can be a convenient way for them to access and purchase upsell offerings during their stay. The app can include information on available services and amenities, as well as local experiences and attractions.

In-House Screen

Screens in the property, such as a smart TV or a tablet, can be used to display upsell offerings to guests during their stay. This can include information on available services and amenities, as well as recommendations for local experiences and attractions.

QR Codes

 Placing QR codes strategically around the property or in the welcome booklet can direct guests to a web page or app where they can view and purchase upsell offerings. This is a convenient way for guests to access the information at their own leisure.

Face-to-Face

Traditional face-to-face interaction can also be an effective way to offer upsells to guests. This can be done at check-in or during the guest’s stay by trained staff who can explain the benefits of the additional services or amenities.

Property Website

The property’s website is an ideal platform to showcase upsell offerings. Guests often visit the property’s website before their stay, making it a prime opportunity to present additional services, amenities, or experiences that may enhance their stay.

Remember, the key to successful upselling is to offer genuine value to your guests and to present the offerings in a way that enhances their experience. By utilizing a combination of these methods, hosts and managers can effectively offer upsells to their guests and maximize their revenue potential.

Conclusion

While the current climate presents numerous challenges for the vacation rental industry, strategic upselling presents an opportunity to optimize revenue streams and enhance the guest experience. By understanding your guests’ needs, offering genuine value, and leveraging technology, you can implement successful upselling strategies that will benefit both your business and your guests.

Webinar speakers

François Gouelo, cofounder and CEO of Enso Connect

Rebecca Cribbin, Owner and Founder of Holiday Rental Specialists

Jon Lawry, Founder and CEO of The Urban Butler

Yoav Tourel,  Managing Director APAC at Guesty

Rebecca Cribbin

Holiday Rental Specialists is an Australian property manager with 13 years of experience. Managing a portfolio of 1,200 short-term rental properties across the New South Wales region, they have successfully handled 62,000 bookings, hosting over half a million guests in holiday homes. Their impressive rental earnings have exceeded $100 million, of which $70 million has been paid out to property owners, demonstrating their commitment to delivering exceptional value for both guests and property owners.

In addition to property management, they have expanded their services by launching Holiday Rental Experts, a new venture aimed at helping short-term accommodation industry colleagues improve productivity and profitability. Through this new initiative, they offer specialized coaching, training, and access to virtual assistants to help streamline operations and boost efficiency. Their tailored support enables operators to manage their workloads more effectively, optimize their business practices, and rediscover the joy in their work, all while maximizing profitability and guest satisfaction.

John Lawry

The Urban Butler, located in Auckland, is a mid to high-end property management company specializing in short-term rentals. Currently, they oversee approximately 60 properties, operating as a tech-based and software-driven management firm. What sets The Urban Butler apart is their tech-forward approach, operating as a software-driven management firm. By leveraging advanced technology and automation tools, they streamline property management processes, ensuring seamless operations, enhanced guest experiences, and optimized property performance.

Their focus on using cutting-edge software solutions allows The Urban Butler to efficiently manage day-to-day tasks such as booking, guest communication, check-ins, and property maintenance. This tech-based strategy not only helps them maintain a high standard of service but also positions them as a modern, forward-thinking player in the competitive short-term rental market.

Yoav Tourel

Guesty is a global property management software company, has become a key player in the short-term rental and hospitality industry. With a suite of tools designed to streamline and automate property management, Guesty enables property managers to handle everything from bookings and guest communications to payments and operational tasks, all through a single platform.

Yoav serves as the Managing Director for the Asia Pacific division at Guesty. Under his leadership, the team has grown substantially, especially after a successful acquisition and merger with iRoom, a renowned property management solution based in Australia. This strategic move has bolstered Guesty’s presence in the region, allowing the company to provide even more tailored solutions for property managers.

The expansion of Guesty’s Australian team to around 30 dedicated professionals has enhanced their ability to serve clients with localized expertise while maintaining the global quality standards the company is known for. With this strengthened presence, Guesty continues to empower property managers across the Asia Pacific region, helping them scale their businesses and adapt to the ever-evolving demands of the hospitality sector.

The state of the short-term rental market in Australia and New Zealand in 2023

The end market for short-term rental properties typically falls within the range of 175k to 220k. There might be some variation depending on whether we include occasional short-term rentals and aparthotels in the mix. In the past three to five months, the market has shown signs of stabilizing as the initial surge of travel excitement, known as the “sugar rush” post-COVID, subsides. COVID had a significant impact on the vacation rental industry, drawing more people to explore this accommodation option and choose short-term rental properties as investments.

Throughout the pandemic, there was a notable increase in short-term rental properties in both New Zealand and Australia. And now, we see that: hotels are back, inflation and interest rates are increasing, etc. The market is now shifting back to pre-pandemic levels, with a decline of approximately 7% to 9% in property performance. Some properties are transitioning back from short-term to long-term rentals.

While rural vacation rentals have experienced a decrease in pricing and occupancy rate in recent months, urban properties are thriving due to the return of business travel and event activity. However, discussions surrounding regulations in different regions of Australia and New Zealand are creating uncertainty.

Globally, the vacation rental industry has seen a decrease in bookings this summer compared to the same period last year. Nevertheless, the current market is witnessing increased professionalization. More operators are treating vacation rentals as profitable businesses rather than just side hustles on platforms like Airbnb. These property management companies are focused on delivering profitability and higher rental income for property owners.

Main challenges vacation rentals face today [in Australia and New Zealand]

Apart from economic factors like hospitality labor shortage and rising costs, professional property managers must tackle the following challenges:

Consistency

For a short-term rental business, maintaining a consistent approach on both the owner and guest sides is crucial for overall success. This involves establishing a cohesive system that not only meets the needs and expectations of property owners but also ensures a seamless and positive experience for guests.

On the owner side, it’s essential to deliver a reliable and transparent service, addressing property owners’ needs with professionalism and efficiency. This includes regular updates, clear communication regarding bookings and maintenance, and prompt handling of any issues that arise. A consistent approach ensures that property owners feel valued and confident in the management of their assets, fostering long-term partnerships.

On the guest side, the focus is on providing a uniform experience across all properties within the business. Guests expect a seamless, high-quality experience, regardless of which property they stay in. Achieving this consistency requires effective communication, well-defined processes, and meticulous attention to detail in every aspect of the vacation rental operation. From the initial booking process to check-in, stay, and check-out, every touchpoint should be managed with care to ensure a smooth and enjoyable experience for guests. By aligning these elements, short-term rental businesses can build a strong reputation for reliability and excellence, leading to increased guest satisfaction and owner retention.

Trust

Amidst the growing number of smaller operators who treat rentals as side hustles rather than full-fledged businesses, building trust and maintaining high standards becomes increasingly essential. For the industry to gain credibility and attract serious investors, regulation plays a crucial role in supporting professionalization. Effective regulations can set benchmarks for quality, ensure fair practices, and provide a structured framework for managing properties, thereby enhancing the overall trustworthiness of the rental market.

On the other side of guest-host relations, knowing who is coming through your doors is equally important. With the rise of guest fraud, chargebacks, and property damage incidents, implementing robust guest verification systems is critical. These systems help in confirming the identity of guests, mitigating risks, and protecting property owners from potential issues. Effective guest verification processes involve checking identification, reviewing booking histories, and using secure payment methods to reduce the likelihood of fraudulent activities.

By combining strong trust-building measures with rigorous guest verification protocols, property managers can create a safer, more reliable rental environment. This approach not only helps in safeguarding properties but also enhances the overall guest experience, contributing to the professionalization and success of the short-term rental industry.

Owner satisfaction and retention

Unlike real estate agents, rental companies are here in a long game. We need to make sure that our property owners, the people who we actually work for, are our advocates and stay with us throughout the years. There is not enough technology to manage owners’ experience. We must manage the relationships from the initial meeting, through the years we want to keep them onboard and happy. Establishing trust and transparency with the owners is the goal of all hospitality professionals with this business model. The expectations of the owners are high, as well as their mortgages. They still expect the “post-Covid frenzy” returns, while the market is back to the 2019 performance.

Short-term rental accommodation owners want to be hands-off but also to have good visibility on their properties’ performance. It is a challenge to keep them engaged and understanding what actually is done to keep their investments profitable.

Yoav Tourel agreed that this is a big area for PMSs to invest in.

Building the right technology for growth in holiday rentals

Our guests discussed what holiday accommodation managers should include in their tech stack to be able to grow their business right.

Scoping and understanding the need of the property management company

When choosing technology for your vacation rental business, it’s essential to engage with your team members and champions. Sit down with the people who drive the processes and make things happen in the company. Gathering input from them is crucial as they can offer valuable insights and identify aspects we might have overlooked. This collaborative approach is the initial step, often referred to as scoping, to ensure we provide them with the right solutions and incorporate the necessary features to meet their needs.

PMS’s approach to vacation rental managers’ needs

Yoav Tourel shared property management platform approach to scoping and understanding the needs of hospitality professionals in technology:

• Automate as much as possible to make the property managers’ lives easier. Guesty’s strength is unified inbox and analytics.

• Being able to connect to third party tools that operators like and use, working on a best of breed approach. So having integrations with the best task management, the best cleaning app, the best guest experience provider data.

• Continuous training is vital to ensure users feel at ease with the tool, understanding its various applications and scenarios. Equally important is excellent support and it is often the softer aspect of any tech provider.

The Urban Butler’s Approach to Using Technology for Growth

Jon Lawry shared his best way to fuel rapid growth in a professional hospitality business, working with luxury properties.

PMS – Guesty

Jon observes the consolidation of all tech pieces in property management system (PMS). It’s similar to how we carried separate devices like cameras and walkmans, but now everything is  integrated into our cellphone. This convergence is becoming the norm in property management software.

Dynamic Pricing

Dynamic pricing is even much more a necessity in a New Zealand market, affected my many changes recently. Jon recommends using dynamic pricing technology and start with checking all three big names in the industry – Wheelhouse, Price Labs and Beyond.

Guest app – The Boarding Pass

Owners of high end properties often don’t want a contactless arrival for our guests and we do an in-person check-in for luxury homes.

On the urban side of our business, we’ve noticed that guests prefer as much independence as possible. They seek contactless experiences like remote check-in and easy access to property information with digital guidebooks. They desire the convenience of the property without any unnecessary hassle, making seamless communication and processes essential for their satisfaction.

This is why a contactless and easy entry for guests and easy communication via Boarding Pass that makes simple for everybody. However, we are moving into a more luxury market. We’ve just listed and are about to list a couple of properties that I want communication with the guests to be face to face. I need to show them how to use the equipment that is in the property.

We need to differentiate between guest communication and guest entry in our concierge service. We should consider each property and guest individually and allow them to choose their preferred method accordingly.

Regarding check-ins, we offer both digital and remote options to meet different expectations. Even 13 years ago, we used Keysafes. However, in one of the areas where we operate, all of our competitors, except for one, still require guests to go to the real estate office to pick up the keys.

Conclusion

One of the crucial aspects that hospitality technology needs to focus on is the concept of configuration. Every property owner, guest, property, and property management company is unique and requires a customized approach from technology solutions. The technology must adapt to the diverse needs of each business while also offering convenience to guests by providing choices. Even providing two less desirable options allows guests to feel empowered by making their own decision, removing hassle and enhancing their experience.

Check out the top vacation rental management companies in Australia!

Webinar speakers

Moderator: Francois Gouelo, Cofounder and CEO of Enso Connect

Guest speaker: Austen Bernhardt, Sales and Partnership Manager, Autohost

Risks of not using proper guest verification tools in vacation rentals

The absence or inadequate implementation of guest screening and verification in vacation rentals can expose operators to many risks. The most common and painful of the are identity theft and chargebacks. On the side of the property management team, there is also a risk of human error or discrimination, which can be harmful for the business.

A comprehensive risk profile for each guest, including valid identification and credit card information, is crucial for ensuring property security.

Technology-driven guest-screening solutions help prevent chargebacks by analyzing data, detecting inconsistencies, and mitigating potential discrimination risks.

Protecting your business against frauds and chargebacks

When mitigating fraud chargebacks, the absence of guest data often leads to a situation of conflicting claims without concrete evidence. Credit card companies and OTAs often side with the guest as the primary customer, leaving property managers at a disadvantage.

However, by presenting objective evidence property managers can establish a strong case. These can be guest’s digital fingerprint, signed rental agreements, matching credit card and ID information, etc.

This is precisely what Autohost and Enso Connect integration accomplishes by collecting, analyzing, and generating risk profiles. The primary focus is on preventing chargebacks with a high degree of accuracy, thereby avoiding financial losses and the need for post-stay disputes.

By de-risking the situation, property managers can ensure a steady flow of revenue without engaging in exhaustive battles to recover lost funds. In the event that a chargeback has occurred, Enso-connected users can retrieve a Chargeback Report. This report serves as a comprehensive summary of all the evidence pertaining to the transaction in question.

The ultimate guest verification flow

1. Rental agreement signature

Always have your guests sign your vacation rental agreement before you let them in your property.

Do you always need a rental agreement in vacation rentals?

The quick answer is yes. Even if your bookings come from Airbnb, which has it’s own documentation, you should have your guests sign an agreement. Because there’s always going to be certain aspects that the OTAs won’t even let you write on your contracts. This is your reservation, the guests stay at your properties, so you should have the full control.

In cases of disputes with Airbnb, having your own rental agreement that clearly states the guest’s commitment to refrain from damaging the property or engaging in prohibited activities becomes crucial. By presenting this evidence to Airbnb as the merchant of record, you can request the necessary financial compensation. This approach effectively strengthens your position, providing you with additional leverage and support in resolving the dispute.

2. ID verification

ID verification goes beyond merely collecting and storing identification documents. It involves verifying the authenticity of the ID by checking for any signs of tampering or manipulation, such as photoshopping. It includes ensuring that the information on the front matches the encoded data on the barcode at the back. With thorough scanning and validation, both the property management team and the guests can benefit from enhanced security and confidence.

3. Credit card validation

Implementing either a security deposit or a credit card verification process allows for the collection of three crucial data points.

What is guest digital fingerprint?

We gather the three essential data points and incorporate the guest’s device and browser information into the verification process. This allows us to acquire a wealth of data to construct guest digital fingerprint. These data points form the core elements necessary to build a comprehensive risk profile. The back-end operations extensively use this information, enabling thorough analysis and risk management.

Balancing the security with the guest experience at scale

What if a guest that doesn’t want to go through your verification process? This can impact the guest experience and your relationships with guests. Is it worth to take the risk and give up on verification process to win the reservation? What are some of the exceptions where you have to mitigate the risk for your business?

The approach to guest vetting’s impact on the guest experience can vary depending on the property management company’s preference. Some companies with a large number of properties may have strict procedures in place. They require guests to provide the necessary information, agreeing to the process. Failure to comply may result in termination of the stay. Other companies aim to streamline the workflow by reducing up to 90% of the manual guest checking process. However, there is still value in assessing bookings where a guest may be hesitant to provide certain information. In such cases, operators have the flexibility to reach out to guests, communicate with them directly, and evaluate the risks involved. They can choose to accept the risk and proceed with the booking. They can use resources available on the Autohost website to manually vet guests via phone or email.

Benefits of Enso Connect and Autohost integration for seamless guest verification

The Autohost and Enso partnership allows to automate guest verification, eliminating the need to manually verify each guest. The system identifies and flags potentially risky guests, allowing property managers to focus their attention on those cases. The payment aspect is also noteworthy, with different connection options available. Some users can process payments through Autohost, while others can handle them through their own system. Additional security measures like 3D Secure can be implemented alongside other data to enhance the overall risk profile. The partnership between Enso Connect and Autohost enables continuous improvements to the flow and process. It allows property managers to customize the guest experience based on risk profiles generated by AI tools. For instance, different flows can be applied based on factors such as booking lead time or guest credit checks. This flexibility aims to minimize guest friction while prioritizing the prevention of fraudulent bookings.

Our integration eliminates redundancies. For example, guests no longer need to manually enter their personal information such as first and last name, etc. Instead, this information is automatically populated, streamlining the flow and saving guests time and effort.

Driving revenue, bookings and owners with guest verification

When property managers talk about their priorities—revenue, bookings, and owners—they often overlook the importance of verification. However, implementing a robust guest screening process can positively impact all three aspects. By incorporating Autohost into their workflow, property managers can open up new revenue channels, eliminate missed opportunities, and gain the confidence to take risks without compromising security. Autohost’s low false positive rate ensures accurate screening, allowing property managers to tap into quality revenue sources. Additionally, the use of Autohost can be a strong selling point for property managers when pitching to new owners, as it demonstrates a commitment to security and risk prevention. The partnership between Enso Connect and Autohost offers a seamless integration, delivering time-saving solutions and building trust among property owners.

Communicating the screening process with guests

Effective communication with guests regarding verification is crucial and varies across different channels. For example, Airbnb guests may be hesitant to share information outside the platform. It is crucial to communicate in advance, explaining the purpose and security measures before the guests book. Collecting IDs via a secure portal is recommended. Clear messaging in initial emails or texts is essential, emphasizing the mandatory verification step – add it to your OTA listings. Mandatory guest screening is preferable over optional to ensure compliance. Consider country-specific requirements.

Data privacy: protecting vacation rental guest data

AutoHost specializes in the field of cybersecurity, ensuring that the process of collecting IDs is highly secure. With a strong background in privacy and technology, Autohost brings a cybersecurity standard to the hospitality industry. Unlike other software solutions, AutoHost prioritizes the protection of user data and securely collects the necessary information.

How to handle disputes and vacation rental chargebacks

What to do in a scenario where a chargeback has occurred despite following the internal process and collecting relevant information? In such cases, both Enso Connect and Autohost offer a chargeback report to assist in disputing these chargebacks. The basic process includes three to four steps. We document the agreement, gather IDs and check-in instructions, and with key data obtained through the Boarding Pass. This data includes information like IP address, latitude and longitude, location, the type of phone used and smart locks info. This comprehensive report is readily accessible with a single click on the Enso Connect platform.

Implementing guest screening and verification process in a hospitality business

Autohost and Enso Connect offer various options for ID collection, including front and back scans as well as a selfie. The selfie scan ensures a biometric match between the ID photo and the guest’s selfie. A common question that arises is whether guests can upload a picture instead of taking a live one. In such cases, Autohost’s advanced verification process considers additional factors, such as the context and consistency of the profile information, to identify potential fraudulent attempts. By analyzing collected data and patterns, Autohost continuously improves its AI-powered system to enhance guest screening and prevent fraudulent bookings. Additionally, property managers who use Autohost can benefit from sharing best practices and insights within the network, leading to more effective and informed decision-making.

Calculating the ROI of guest verification tools

When it comes to implementing guest screening and considering budget, finding a cost-effective solution is important. Autohost allows a choice between a per-reservation cost or a flat unit rate that covers all reservations. The Autohost and Enso Connect integration allows tailoring the service to specific needs and priorities of each operator. This way, Enso-connected users can set conditions to use Autohost service only for bookings with a higher risk and manually check the Airbnb ones.

When evaluating the return on investment (ROI), take into account the value brought by a guest verification tool. While the cost per reservation may seem arbitrary, it’s crucial to consider the savings and time it can generate in the long run. By preventing chargebacks and avoiding risky bookings, you can save significant amounts of money and resources. For example, a single chargeback can cost hundreds of dollars, which could have been prevented with proper guest screening.

You can confidently explore different booking channels, including direct bookings, without fear of fraud. Remove trust issues by verifying guests regardless of the booking channel or lead booking time. This empowers you to build and expand your direct booking channel, reducing fees paid to online travel agencies (OTAs) and consolidating your revenue streams.

Transitioning towards verification: tips for taking initial steps

For those who are not yet ready to fully implement an automated solution for guest verification, there are some steps you can take to change your perspective and enhance your screening process. While the majority of guests are genuine and well-intentioned, there is a small percentage that may pose risks or cause problems.

One effective approach is to look for consistency throughout a guest’s profile and the information they provide. A genuine guest will typically exhibit coherence in their online presence, including their profile details and the story they share with you. On the other hand, fraudsters often try to obfuscate or confuse property owners and managers with misleading information.

A real-life example from Red Cottages highlights the significance of this approach. They had a guest who appeared legitimate on Airbnb but, upon arrival, their Airbnb profile suddenly changed to a random Russian name. Fortunately, no damage occurred, but such drastic alterations in data points can indicate serious criminal activities, including sex trafficking or other illicit operations.

It’s crucial to recognize that implementing guest verification is not just about protecting your property; it’s also about safeguarding your community’s reputation. Vacation rentals can be vulnerable to various criminal activities due to the lack of stringent processes and accountability. Borrowing lessons from the hotel industry, where identification and payment verification are common practices, we can adapt and tailor these measures to the unique needs of vacation rental management companies.

Autohost offers the flexibility needed to accommodate different management approaches, ensuring compliance while protecting the industry’s growth and reputation. As stakeholders in this rapidly evolving and expanding sector, we all bear the responsibility of safeguarding the industry and addressing the concerns that lead to imposing regulations. By instilling confidence and preventing illicit activities, we can foster a thriving vacation rental community.

Webinar speakers

• Thibault Masson, Rental Scale-Up

• Francois Gouelo, Confounder and CEO of Enso Connect

• Evan Dolgow, Head of Predictive Hospitality, Aidaptive

Watch the webinar recap

Machine learning and artificial intelligence: what is the difference?

We hear about AI everywhere, but what does that really mean for the hospitality industry? In reality, “AI” is a broad term that often gets used interchangeably with chatbots or other technologies perceived as artificial intelligence. However, what people are actually referring to are more specific technologies such as machine learning and natural language processing (NLP) models.

Machine learning involves algorithms that improve their performance over time by learning from data. This technology can enhance various aspects of hospitality operations, from predictive analytics to personalized guest experiences. Natural language processing, on the other hand, enables machines to understand and generate human language in a way that is both contextually relevant and useful.

In the context of hospitality, these technologies can be applied to optimize booking systems, enhance customer service through intelligent chatbots, and analyze guest feedback to tailor services more effectively. Understanding the distinction between these technologies and their specific applications helps hospitality professionals make informed decisions about integrating AI into their operations, ultimately leading to more efficient and personalized guest experiences.

What is machine learning?

Machine learning (ML) is a powerful tool that enables the gathering and processing of vast amounts of data to extract meaningful insights. In many businesses, data often remains fragmented and underutilized, leading to missed opportunities and inefficiencies. By integrating ML models into your operations, you can consolidate all of this data into a unified platform, allowing the machine learning engine to gain a comprehensive understanding of your core business.

Once the ML engine grasps the essence of your business, it can identify key patterns and primary customer segments. This deep understanding enables it to make informed decisions that drive your business forward. For example, it can optimize pricing strategies, personalize marketing efforts, or improve customer service by predicting guest needs.

Moreover, machine learning models continuously learn and adapt from their decisions. When the engine makes a correct decision, it reinforces and refines that approach, increasing its effectiveness over time. Conversely, if it makes an incorrect decision, the engine adjusts its algorithms to avoid repeating the mistake. This iterative process of learning from both successes and failures ensures that the machine learning engine becomes increasingly accurate and valuable, helping you make data-driven decisions that enhance your business operations and customer satisfaction.

What is artificial intelligence?

Machine learning also powers advanced artificial intelligence tools, such as generative pre-trained transformers (GPT), which are a cornerstone of natural language processing (NLP) technology. Unlike AI systems that rely on visual content, NLP tools focus on understanding and generating human language. They learn from textual input and feedback, refining their capabilities through continuous interaction.

For instance, when you ask ChatGPT a question and provide feedback like “wrong answer,” the system uses this input to adjust and improve its future responses. This feedback loop is essential for enhancing the accuracy and relevance of the AI’s output. As these tools process more data and receive diverse feedback, they become increasingly adept at understanding context, generating coherent text, and addressing user needs more effectively.

The principle of continuous feedback and improvement is central to AI development. The more data and feedback an AI system receives, the more it evolves and refines its abilities. This iterative learning process enables AI tools to enhance their performance over time, becoming more precise, insightful, and responsive to user requirements. As a result, businesses can leverage these advanced AI capabilities to offer more personalized and effective interactions, driving better outcomes and higher satisfaction.

Why hospitality professionals should care about AI?

Whether it’s natural language processing, image processing or algorithms, predicting pricing, there’re different verticals within AI, used in hospitality.

The key differentiator for your business lies in how you harness these AI capabilities. This is the vital factor that takes a business from growth to rapid expansion and scale.

At its core, this boils down to the capacity of your current team to process data, which is typically limited compared to what an algorithm can accomplish.

As a result, you can uncover valuable insights about your guests, their behavior, and the patterns within your business. This applies to any aspect involving data, tightly integrated with the different systems you use, such as your property management software, dynamic pricing tools, website builders, guest experience platforms, and more. Each of these tools provides distinct data points that can be effectively used for personalizing communication and driving more revenue. These data sets can be applied throughtout the entire guest journey: before, during and after the stay.

What is predictive hospitality?

The hospitality industry is shifting towards predictive measures, moving beyond basic automation. While many operators have successfully automated workflows and guest messaging, these automated messages often go unread or fail to engage guests effectively. As a result, the focus is now on leveraging predictive capabilities to enhance the guest experience.

The essence of predictive hospitality lies in staying ahead of the game by anticipating guests’ needs before they even realize them. This approach involves analyzing data and recognizing patterns to forecast what guests might want or require during their stay. For example, predictive tools can identify trends in guest preferences, such as preferred room temperatures or common requests, and proactively offer personalized recommendations or services.

By embracing predictive measures, hospitality professionals can deliver a more intuitive and tailored experience. This proactive approach not only improves guest satisfaction but also drives operational efficiency by addressing potential issues before they arise. In essence, predictive hospitality transforms the guest experience from reactive to proactive, ensuring that guests feel valued and understood throughout their stay.

Predictive hospitality driving hotel and vacation rental convergence

This concept of predictive hospitality is blurring the boundaries between traditional hotel and short-term rental experiences, creating a more unified and intuitive approach to guest service. It emphasizes proactively meeting guest needs and expectations in a seamless manner, allowing vacation rental managers to engage with their guests on a level comparable to hotels.

By adopting a predictive approach, vacation rental managers can understand their guests’ preferences and behaviors just as hotels do. This knowledge enables them to personalize various aspects of the guest experience, from customizing their websites and streamlining the booking process to tailoring in-stay experiences and upsell opportunities.

Short-term rental operators can leverage this information to offer valuable, personalized recommendations based on guests’ interests and preferences. They can also engage guests with targeted post-stay marketing campaigns that encourage repeat visits. For example, a manager might suggest local attractions or dining options that align with a guest’s previous preferences, enhancing their overall experience.

By being informed and proactive about guests’ needs, vacation rental managers can differentiate themselves from traditional hotels, gaining a competitive edge in the hospitality market. This approach not only enhances guest satisfaction but also fosters loyalty and encourages repeat business, positioning short-term rentals as a compelling alternative to traditional hotel stays.

Personalizing guest experience with AI

Hospitality branding struggles to effectively analyze and understand a diverse range of personas. Marketers often get overwhelmed with guest data, constantly grappling with identifying guest demographics, spending patterns, and creating spreadsheets.

The concept of artificial intelligence arises from the need to address this challenge at scaling businesses. The goal is to personalize every guest’s experience based on their individual preferences, rather than treating them as part of a generalized group. Instead of burdening your team with creating “personas” manually, AI products like Enso Connect and Adaptive can build them automatically. The focus should be on deploying these AI-powered tools rather than attempting to do the manual work. AI and machine learning will efficiently handle this process at scale, allowing you to streamline personalization efforts.

Using AI at the pre-booking stage of the guest journey

Exploring the pre-stay stage of the guest journey, we talk about the OTA appearance and direct booking website experience. Guests often discover vacation rentals through online travel agencies and then Google for the property’s direct booking website. This behavior, known as the billboard effect, is growing in popularity. Similar trends are observed in e-commerce. This happens because guests know that they can save up to 20% by booking directly.

This is why vacation rental professionals need to learn from e-commerce platforms like Amazon and Instagram. They highlight two types of customers: existing customers and anonymous web visitors. While existing customers provide more data for better understanding their preferences, they represent a small fraction of the overall business. The challenge is in converting anonymous web visitors into paying customers.

To address this, personalization on websites becomes crucial. Currently, most vacation rental websites offer generic and random experience that are not tailored to each guest. By implementing e-commerce best practices, you can to serve personalized content to each guest. For instance, featuring specific properties or rentals based on their preferences or customizing the homepage hero image. Just as OTAs (online travel agencies) and social media platforms do, websites should provide tailored experiences.

When an artificial intelligence-powered website personalizes content based on user preferences, it enhances the user’s experience. For example, a family of five in Beverly Hills may be shown large properties with pools and gym facilities, while an elderly couple from the Midwest may be presented with smaller properties suited to their needs. As users engage with the website, their interactions provide insights that help personalize their experience further, similar to how Amazon and Instagram recommend tailored content.

The goal is to ensure every touchpoint is personalized, as it is super important and shouldn’t be wasted. Personalized property recommendations, content descriptions, and more contribute to cutting through the noise and capturing the user’s attention.

How to personalize a hospitality website

Personalization plays a crucial role in increasing guest engagement and click-through rates. Nowadays, people prefer clicking rather than reading lengthy blocks of text. Websites with excessive text descriptions can be off-putting, as modern platforms like Instagram and Amazon have trained users to research and explore by clicking.

By incorporating a featured property section and providing personalized recommendations, guests are enticed to click and conduct further research. They can explore different options, view photos, and continue scrolling to discover more tailored recommendations. This creates a personalized booking loop, where guests consistently click on options that align with their preferences. As they engage and click, operators gain valuable insights about their guests’ preferences and desires.

Understanding that it typically takes several visits for a guest to make a booking decision, the aim is to streamline the process and reduce cognitive overload. When guests return to the website, they should easily find the desired dates and times, without being overwhelmed by a large number of property choices. By presenting the best properties upfront and catering to their specific needs, the goal is to minimize friction and increase guest enthusiasm, leading to higher conversion rates and faster bookings.

Collect guest data to personalize the stay

Vacation rental operators often don’t know much about who walks through their doors. Despite attempts to gather information through surveys or links, guest engagement can be minimal. In many cases, guests simply seek check-in instructions and all the want is to quickly get into the rental unit.

Unlike in hotels, vacation rental guests tend to ask more questions due to a mix of excitement and anxiety. They want to ensure that their expectations are met upon arrival and that the property is as advertised. These touch points offer valuable opportunities to gather relevant information and personalize the guest experience throughout their stay. By leveraging these touch points effectively, operators can better understand their guests’ preferences and provide a tailored experience.

You can personalize your guest experience by gathering relevant data during the verification process. This includes information such as travel reason, guest age, origin, and any necessary agreements or safety deposits. However, collecting this data is not enough if it remains unused in a spreadsheet. The data collected should be leveraged to personalize communication, content, and recommendations for each guest.

For example, if a guest is a business traveler, it’s relevant to offer add-ons related to work amenities. Property managers can upsell additional work space, monitors, or faster Wi-Fi. Personalization based on guest preferences becomes crucial, but asking every guest individually is not feasible for scaling a business. Therefore, pre-stay personalization relies on data collection to enable customized experiences during the guest’s stay.

Predictive actions allow hospitality professionals to be more proactive, serve guests better and make more money. For example, Enso Connect analyzes guest sentiment information and prompting highly satisfied guests to leave reviews and ensuring dissatisfied guests are assisted accordingly.

The guest journey encompasses pre-stay data collection, personalized experiences during the stay through guidebooks, upsells, and messaging, and post-stay marketing efforts. Platforms like MailChimp or CRM systems enable the implementation of targeted campaigns beyond basic newsletters.

Practical use cases of GPT-4 for short-term rentals and hotels

GPT-4 is an AI language model by OpenAi, one of the latest developments and most popular AI tools available to everyone.  Here’s a couple of specific examples of using this powerful tool by short-term rental managers.

1. Quick multilingual content generation

Hospitality professionals can create guidebooks on any topics in minutes and translate them to 150+ languages in minutes with GPT-4. Having it integrated directly in their tech stack streamlines the operations even more. So they don’t have to switch tabs and log in every time they need to use the tool.

Same functionality can be used for creating multilingual personalized upsells, crafting marketing emails, text messages, etc.

2. Instant messaging based on guest data

By analyzing and understanding guest data, GPT-4 can generate personalized and contextually appropriate responses in real-time. The idea is to keep the control in hands of hospitality operators by suggesting the answers for their approval before sending the replies to guests.

3. Internal knowledge base management and team training

Think about generative AI model with your own training data. This can be used to train your team, ensuring consistent communication, especially when it’s remote or outsourced. Maintaining a unified tone of voice and messaging is crucial. Right now a service like Chatbase.co can facilitate this process by allowing to input specific information from various sources. It can source information from your Google Drive, spreadsheets, Airtable, project management systems, guest experience platforms, and more. The algorithm can then learn from and adapt to this information.

Then operators can easily generate standard prompts. For instance, we use it with Enso Connect to train new staff members. Instead of personally answering each question they have about our pricing model or how our system works, we can simply direct them to the system to ask those questions.

Who can use AI in vacation rentals?

If you have 10 or 20 properties, it may not be worth investing your time in using AI, even if it were feasible. Instead, it would be more beneficial to concentrate on expanding your property portfolio or investing in other areas.

You don’t really need AI solutions unless you have 100 properties or more. That’s when AI truly shines, as it can handle large volumes of data that would overwhelm the human brain.

It’s important to realize that AI alone won’t solve all your problems. The best way to make it work for you and your business is education and leveraging tools like Enso Connect, integrating tools like ChatGPT.

Will AI replace humans in vacation rentals?

The truth is, by incorporating AI into their operations, individuals can significantly enhance their efficiency. Instead of handling one task at a time manually, operators can let AI do the heavy lifting.

Individuals can now effectively manage multiple tasks simultaneously, enabling them to achieve a 10-fold increase in productivity. The concept revolves around finding ways to boost revenue without the necessity of expanding the workforce proportionally. Deploying AI solutions effectively is the key to achieving this goal.

“EnsoAI is not a chatbot that will magically solve all your problems and eliminate your guest service team. Instead, it empowers your guest service team by providing them with the necessary tools. It ensures a consistent brand message and enables access to accurate information from various systems, eliminating the need to navigate multiple platforms.”

– Francois Gouelo

How to detect AI Vaporware?

Vaporware refers to software that lacks tangible substance or fails to materialize as promised. It is typically associated with companies that make grandiose claims and fail to deliver on their product or release it in a timely manner.

1. Examine the team’s credentials on platforms like LinkedIn. If the team members have recently emerged without a substantial track record, it is likely that their product lacks genuine artificial intelligence.

2. Evaluating the team’s background and past accomplishments provides valuable insights into whether they are building something legitimate or simply leveraging the AI branding.

Ethical concerns of using AI in short-term rentals

Deep fakes, bad actors and privacy issues are the biggest concern of using AI in short-term rentals.

It’s important to understand the risks and be mindful of the information shared with AI systems. Personalization and effective communication through AI have become industry expectations, and embracing AI can help businesses stay ahead. Compliance with privacy standards, such as GDPR, is crucial when handling global guest data.

Marbella Lane’s webinar speakers

Willy Chang, Co-owner and Co-SEO of Marbella Lane Vacation Rentals

An industry thought leader with years of experience in vacation rental business in respect to data, revenue management, platform scalability, and acquisitions in the hospitality sector.

Francois Gouelo, Confounder and CEO, Enso Connect

As a co-creator of an AI-driven platform for hospitality professionals that has rapidly expanded to serve over 20,000 homes in 53+ countries, Francois Gouelo is a valuable speaker for insights on scaling and digitizing the guest experience. He is widely recognized as a tech leader in the short-term rental community for his innovation, entrepreneurship, and significant contributions to the industry.

Koryn Okey, VP of Client Experience, Breezeway

As the hospitality tech expert, Koryn Okey is dedicated to creating long-lasting relationships with her clients and driving awareness to the vacation rental industry. Prior to joining Breezeway, Koryn spent 7 years at FlipKey and TripAdvisor as part of the team that brought Guest Reviews to the industry. While Koryn calls Boston home, she can often be found attending vacation rental conferences around the world, visiting clients in-market, or lounging on the beaches of St. John.

Richie Khandelwal, Co-founder, PriceLabs

PriceLabs is the leading revenue management platform for owners and property managers that actively prices over 200K units in over 100 countries daily. Richie is looking after GTM and Operations in the company. Before PriceLabs, Richie was the VP of Business Operations and Finance at MindTickle, a consultant with Bain & Company, and an engineer with Royal Dutch Shell. Richie has an engineering degree from IIT Madras and an MBA from Kellogg School of Management.

Marbella Lane’s webinar recording:

All four experts shared their insights and best practices on how to leverage technology to enhance the guest experience and ultimately increase revenue and grow hospitality businesses. If you missed the live chat, watch the recording below:

[Watch the recording]

We’ve learned about Marbella Lane’s comprehensive solution for a successful deployment of investor capital in hospitality and real estate. Willy Chang also explained how the company uses technology to optimize returns for short-term rental investors. We covered key technology solutions that aid the company’s data-driven approach to achieving high rates and its implementation.

About Marbella Lane Hospitality Business

Marbella Lane has developed a diverse portfolio of short-stay properties in just a few years. From glamping sites to vacation homes and other short-term rentals, each space is maintained to the highest standard. These properties are widespread in various locations, such as city centers, beaches, deserts. You can find Marbella Lane’s rentals in Hawaii, Colorado, Seattle, San Francisco, Los Angeles, etc.

What’s unique about this hospitality business is that despite the highly regulated environment requiring permits, they’ve achieved consistently high bookings. Some of Marbella Lane’s bookings are generating up to $200k to $300k in gross booking revenue. The company’s goal is to safeguard homeowners’ occupancy rates and revenue while delivering a high ROI.

About Enso Connect

Enso Connect is a dynamic guest experience platform for vacation rentals and boutique hotels that seamlessly plugs into your property management software and helps personalize and monetize interactions all along the customer journey.

From upsells, guidebooks, smart lock-connected contactless check-in, white-labeled guest verification, AI-driven multi-channel messaging, and more, Enso Connect navigates guests through an effortless digital journey.

With “If this then that” capabilities, Enso Connect is the Zapier of hospitality. We connect all the tools you already love and use, allowing you to better manage the operational complexity of a scaling hospitality business, while increasing profit per guest.

About Breezeway

Breezeway is a company that prioritizes property care and enhances the guest services. Since its launch in 2016, Breezeway has been dedicated to improving operational efficiency for property managers. They have developed a comprehensive operational solution that provides better visibility and insight into the work being done in the field. In 2019, Breezeway introduced a messaging product that enables two-way guest communication via text throughout the guest lifecycle. Additionally, Breezeway’s safety product, overseen by Justin Ford, is designed to meet all the needs of property managers. Recently, Breezeway launched a guide product, which is expected to enhance their range of services. Overall, Breezeway’s focus is on ensuring that properties are well-maintained and set up for success when guests arrive.

About PriceLabs

PriceLabs is an all-in-one dynamic pricing and revenue management platform that automates rate adjustments based on supply, demand, and operational controls. The platform has three parts: dynamic pricing, market dashboards, and portfolio analytics.

Market dashboards provide detailed real time data of hyperlocal markets to uncover insights for optimizing pricing and acquisition strategies.

Portfolio analytics provides an overview of your portfolio’s performance, whether you have one property or one hundred. You can quickly assess your booking patterns, KPIs, revenue, and progress towards monthly or quarterly goals. This allows for better-informed decision-making and effective revenue management.

PriceLabs works with both individual hosts and property managers, providing tools based on the user’s portfolio. Their products have helped customers see an average increase of 10 to 40% in revenue. The platform currently serves 30,000 customers and 250,000 properties daily.

Tech ecosystem in a successful property management business

Willy Chang:

The success of a scaling hospitality management business heavily relies on technology. It does the heavy lifting for the team by automating and streamlining processes.

Enso Connect is a prime example of how technology positively influences the hospitality business’s success by enhancing the guest experience. It is providing a seamless mobile check-in process and outstanding guest management, ultimately leading to increased guest satisfaction and stronger loyalty.

When it comes to homeowners, using technology creates transparency by allowing them to view statements, portfolios, and real-time bookings. This is essential and requires hyper tailored high-tech solutions. Marbella Lane has designed in-house applications, providing homeowners with access to their luxury home portfolios.

Marbella Lane is focusing on delivering exceptional experiences to both homeowners and guests, while effectively managing properties.

The company’s strategy is connecting existing best-in-class apps with in-house solutions to fill the gaps in the tech ecosystem puzzle. Marbella Lane’s operations team, led by the CTO, is making sure that all the pieces are aligned.

How Enso Connect is unlocking scale for hospitality businesses

Enso Connect’s approach involves combining different tools together, like the Zapier of hospitality apps. Connecting property management systems, guest verification, cleaning and operations tools and more, all in one place to enhance guest experience. This, in turn, can lead to better reviews, more returning guests, more direct bookings and more properties under management.

The product is divided into three main segments: condition-based automations, a web-based guest super app aka Boarding Pass and upsells.

Smart automations, tailored to the needs of every unique vacation rental business, provide significant efficiency gains.

Boarding Pass is a branded Apple wallet-compatible web application that guides guests through each step of their stay. It’s one of the coolest guest apps on the market.

Upsells generate additional revenue by offering early check-ins, extended stays, and other custom services such as personal chef offerings and more. Enso Connect unlocks hospitality scalability by increasing staff productivity, driving more returning guests and direct bookings and adding new revenue streams.

Property management scaling challenges and responses in the current economic climate

Question:

What are the typical obstacles to scale in your industry and how do property managers operate or must respond to those changes in the industry, especially in the current economic conditions?

Willy Chang:

As companies scale, they progress through different stages, similar to a human’s development from childhood to adulthood. The tools that were once useful, such as open-source free tools, are no longer relevant, and enterprise-level applications become necessary.

Marbella Lane believes that using Enso Connect, PriceLabs, and Breezeway in their tech stack can help them reach $50-100 million in booking revenue.

There are several biggest challenges and growing pains that these tools help us overcome. Breezeway, for example, is a necessary application for on-ground operations.

How Breezeway Helps Scaling Marbella Lane’s Operations

Marbella Lane Vacation Rentals operates in multiple markets, which means managing a variety of homes that can be different in climate, needs, and features. Despite having luxury properties, each home may require unique attention and care. Thus, scaling operations and providing guidance to field staff becomes challenging.

Breezeway sets clear guidelines for cleaning and tailor the approach to each property’s specific requirements. This ensures that property managers can be confident in the work being executed, and the team performing the work has a clear understanding of what’s expected of them. Bridging the gap between what the property owner wants and what the cleaner thinks needs to be done is crucial to delivering a guest experience that meets expectations.

As a software partner, we aim to create configurable solutions that standardize operations while still accommodating different property owners and management companies. This approach, allows us to provide the best possible customer service and user experience to our clients and their guests.

What is required to scale today?

Willy Chang:

In order to achieve scaling, it’s crucial to increase revenue while maintaining fixed or lower costs. This requires a well-connected technology that can coordinate both online and offline operations seamlessly, while providing homeowners with a great management experience and guests with the best possible experience.

We recognize the need in new technology to drive costs down, increase team efficiency, eliminate human error to move the business towards scaling. We support property managers who are often overwhelmed with on-site day-to-day operations and lack the time to manage their businesses effectively.

With the PriceLabs API, we offer a solution that allows property managers to connect to our system while retaining their branded website. Our Property Management System, Guesty, works behind the scenes to manage online operations through synchronization. This way, property managers can scale their business while keeping their own website.

Breaking barriers to scaling hospitality businesses with PriceLabs

Every vacation rental unit is unique in terms of location, the type of guests it attracts, and the supply and demand dynamics. Pricing these properties on a day-to-day basis can be a time-consuming task. Time is a crucial asset for scaling professionals, and having more time means more opportunities to pursue growth. This is where PriceLabs comes in to help save time and improve revenue.

Scaling involves increasing the top line without incurring higher costs. Even if you have one vacation rental, effectively pricing it every day can help grow the top line. PriceLabs helps managers and owners achieve this by providing well-priced rooms every day. By doing so, they not only improve revenues for each unit but also save time at the portfolio level, making it easier to grow a 50-unit portfolio into a 60 or 100-unit portfolio.

With PriceLabs, Marbella Lane can price their vacation rentals without going into too much detail. With thousands of houses to manage, it would be too much work to spend time on individual pricing. PriceLabs provides a dashboard that offers a 360-degree view without dwelling on the details. However, if the details are needed, they are available. This allows Marbella Lane to save time and focus on growing their business. Additionally, PriceLabs provides pacing analysis that compares performance between the current year and the previous year, helping managers identify gaps and opportunities for improvement.

“How can technology assist hospitality professionals in scaling? By optimizing the use of your resources and allowing your team to focus on tasks that require human interaction while leveraging technology to handle redundant work.

It’s crucial to prioritize people-focused, one-on-one interactions, and utilizing technology to eliminate redundancy can support this effort. This allows people to focus on work that requires their skills, which technology cannot replace in many instances.”

– Koryn Okey, Breezeway

What are the pillars of tech-enabled hospitality?

Guest experience, operations, pricing, and obviously your property management system, Guesty.

Willy Chang:

The property management software serves as the central hub for all marketplaces, integrations, and connectivity. This is one of the core pillars of our operation.

Another crucial pillar is big data and machine learning, as it enables us to react, predict, and estimate accurately. It is even incorporating macroeconomic data into pricing strategies in the future. While we have been relying on mechanical pricing methods, intuition and a macro-sense can be integrated into algorithms. This allows to anticipate events like a recession and adjust prices accordingly.

Additionally, I anticipate that artificial intelligence will become the next big thing in the future, especially in messaging. Rather than having staff handle messaging, AI can take on this major role and help drive our business forward. This has been one of the largest hospitality technology trends in the recent years.

Francois Gouelo:

When you begin to outsource your teams, there can be issues with information not being properly shared. This can create tension among internal teams. Therefore, it is important to use new technologies to effectively organize and provide information for your team.

For example, indexing Notion, Google Drive, and other sources of information for employee onboarding, so they could ask ChatGPT questions. This would pull all the relevant information and provide an answer. This can greatly improve the efficiency of the employee onboarding process. There are many opportunities to utilize language models in similar ways.

Richie Khandelwal:

While pricing heavily relies on machine learning, it also has a strong foundation in statistical basics. Like ChatGPT, pricing models can produce excellent or poor outcomes, and it’s crucial to understand why. We strive to make our pricing models explainable because black box modelling can be problematic.

 We want to be able to adjust and tweak the models based on a clear understanding of why they’re producing certain results. In PriceLabs, we break down the model outputs to understand how they’re generated, not just what they are. This focus on machine learning and explainability ensures that we can provide transparent and accurate pricing recommendations.

Willy Chang:

To promote transparency, we also need to communicate with homeowners. PriceLabs has a technical dashboard and a simplified dashboard to cater to different levels of detail that homeowners require. We recognize that homeowners may not need to know all the technical details, so we have created an intuitive system.

Transparency is still important, especially when explaining why occupancy is low at a certain time. And how we are working to fill the calendar by prioritizing average pricing, capturing key dates, or increasing market share during recession. It is crucial to communicate these factors to homeowners rather than waiting until the last minute.

“ All four of us are in scaling companies. Willy, as a property management company and Koryn, Francois, I in software companies. But at the core of it are the resources at the end of the day that human brain power is limited of how much you can get. And so how you can most optimally use it is what is important.  Do you want to use it in a lot of mundane tasks?”

– Richie Khandelwal, PriceLabs

Webinar speakers 

Francois Gouelo, Cofounder and CEO of Enso Connect 

Enso Connect is a guest experience platform for hospitality professionals. Our goal is to streamline the guest experience by integrating various tools and services, ultimately reducing fragmentation in the industry.

Terry Whyte, Owner, Anna Maria Island Beach Rentals | The Vacation Rental Software Guy

Terry has been in the short-term rental business for nearly three decades, long before the advent of popular platforms like VRBO or Airbnb. He began with a single property and steadily expanded his portfolio to 50 properties over the years.

John An, Founder & CEO at TechTape | Founder & President at Ohana Stay

John founded Ohana Stay, a property management company in Honolulu, and changed property management systems 15 times, searching for solutions. From his own experience and working with other operators, John developed workarounds to create customized tech solutions for short-term rentals. His company, Tech Tape, is a play on words of duct tape. They find ways to make various tools work together for operators, whether integrated or not.

Watch the webinar recording

Why fragmentation in hospitality technology deserves attention, now more than ever?

As the hospitality industry continues to attract new tech companies, operators are overwhelmed with options to choose from. On the flip side, with increased mergers and acquisitions in the market, consolidation seems to be the way forward. With this changing technology landscape, it’s important to consider how to select the right tech stack for your business. So, what’s next? How can operators navigate this complex ecosystem to make informed decisions about their technology choices?

The current state of hospitality technology: expert analysis  

Terry Whyte:

Do we have fragmentation? Yes. Is it a problem? Yes, but it’s a very good problem to have. I don’t think anybody foreseen in 2020 post Memorial Day weekend, that we as an [STR] industry would be competing directly head on with the hotel industry.

And then COVID accelerated our climb to the top, to compete by at least five years. And the only reason we were able to do that is because we had so much great tech in our industry at that time. Tech is fully responsible for us being accelerated five years ahead and then being able to take advantage of it. So do we have a problem? But we have a very good problem. So we’re in a really good situation.

John An:

I have to agree with Terry. Fragmentation is a challenge, but it also provides opportunities and a diversity of potential solutions for unique hospitality businesses. There’s no such thing as an STR hospitality school. Therefore each of us has constructed our businesses based on our own understanding of how to build one. And so there’s no perfect fit. Various tools provide flexibility to find what suits us and grow our business, unlike Microsoft’s fixed way of working. At TechTape our role is to defragment the industry rather than consolidate it.

Explore the impact of fragmentation in hospitality technology with our latest insights. Discover how fashion suits are revolutionizing the industry, integrating cutting-edge tech to enhance guest experiences. Stay ahead in the competitive hospitality market by understanding the role of seamless technology in delivering exceptional service.

Francois Gouelo:

Hospitality professionals employ channel managers, property management systems, CRMs, guest experience platforms, KYC firms, smart locks, housekeeping and much more. As the list grows, innovation and connecting all pieces are essential for scaling your business through the growing pains.

Making a hospitality tech choice: best-in-breed VS all-in-one 

We asked the panelists about their approach to selecting technology. Are they seeking solutions for particular issues they encounter, or do they consolidate various problems in search of a one-stop-shop solution? How do they manage the intricacies involved in using technology to solve their problems?

Terry Whyte:

Several years ago, I chose my PMS with one goal in mind: to accomplish as much as possible without having to leave the platform. On a daily basis, I hardly ever leave my PMS, as I perform all my tasks within it. This includes tasks such as quoting, utilizing my unified inbox, managing my finances, and using a CRM. The only exception is when I need to adjust pricing, as I use Price Labs for that. However, I can confidently state that on a daily basis, I do not leave my PMS for any other reason. This is because I purposely designed my operations this way.

We’re never going to eliminate fragmentation, but we will make sense of it. Tech tools are going to work together in a cohesive way. And the big winners are going to be property management software. 

According to Terry Whyte, the three major players in the PMS industry are Track, Streamline (which acquired Lightmaker), and Guesty. With Guesty bridging the gap between European and North American operators. Among others the expert mentioned Jetstream, Jurny, Hostfully and Direct. 

Outside of the PMS category, the three biggest technologies are Breezeway, Enso Connect and Dack. And they’re going to lead the sector. 

Terry recalled his accurate prediction in 2018 about Expedia discontinuing V12 PMS, which was widely regarded as one of the top PMS on the market. As a result, nearly all of V12’s clients transitioned to a single PMS. The reason is that every property manager with more than 40 listings will migrate to the strongest technology every single time. Terry believes that Enso Connect, Dack, and Breezeway will have a similar impact and usher in a new era of hospitality technology.

John An:

There are multiple universes within the short-term rental industry.  There are traditional VRMA members, multi-generational property management companies that previously used V12 and moved on to other solutions. Additionally, there is a vast audience of new players entering the short-term rental market. While the largest PMS providers are dominating the industry, they often do not cater to smaller businesses. As a result, new winners will emerge in the “long tail” because there is also the fragmentation of operators.

Francois Gouelo:

Each business in the vacation rental segment is unique, as are the owners and the guests. As a result, it is unlikely that any single solution will be able to cater to everyone. Vendors that are able to focus on solving the problems of a particular audience will become winners in different verticals.

Terry Whyte:

Big PMS companies don’t want to work with Property Managers managing less than 40 properties. But the problem is that people with 20 or less properties make up about 80% of all the operators. However, their definition of a tech stack is Airbnb, maybe Vrbo and spreadsheets. And for that reason the short-term rental industry is not ready for consolidation yet. Hence the big PMSs are in trouble and that’s where we are going to see a big change. 

As they begin to handle connections with online travel agencies internally, they might end up displacing some of their partners. At the same time they are fighting to own other aspects of short-term rental tech, such as guest experience, cleaning, pricing, and loyalty. As a result, companies either develop the necessary tools and systems in-house or acquire them. Many property management systems (PMSs) seem to prefer the former option of building these tools themselves.

Marketplace VS white label approach to solve fragmentation in hospitality technology

We asked the speakers about their opinion about the next wave of hospitality tech. What is the best solution for the fragmentation of the industry: M&As, marketplace integrations or white label approach. 

Terry Whyte:

I’m sorry, but I strongly believe that creating a marketplace in our industry is not a viable option. It’s simply not feasible to take the most crucial component of a tech stack, which is the Property Management System (PMS), and turn it into a reservation software that integrates with 30-35 different software programs, each with their own separate logins and dashboards. It’s not a practical solution. For the most part, consolidation is going to kill the innovation and the diversity that we have in the industry. 

I believe that white labeling is likely to be the ultimate solution. The reason for this is that even though companies like Gesty or Track have resources, they cannot possibly dedicate enough to dynamic pricing like Wheelhouse or PriceLabs, or provide the same level of resources for guest experience as Enso Connect and Dack, or for maintenance like Breezeway does. It’s just not feasible for them to do it all. Therefore, specialized expertise is needed, and this expertise can be provided by third-party services. And all of this needs to be brought together. 

John An:

In comparing marketplace, white label, and acquisitions, I believe that the practice of acquiring companies is having a negative impact on innovation. It is primarily driven by financial gain, as institutions with the most money are able to purchase companies and discontinue their technology. Clients are often forced to adapt to the new system, even if switching to a different one would make more sense.

Francois Gouelo:

In my opinion, utilizing the marketplace approach is a promising path to foster more innovation, but it heavily relies on seamless integration. Unfortunately, many companies and partners in our industry tend to compromise on integration to consolidate data on their platform and establish dominance. At Enso Connect, we ensure consistent two-way data synchronization, regardless of who controls the data. Data is data, and it’s essential to have it available across different platforms, such as in your PMS, guest platform, or cleaning tool, to streamline processes. While the white label approach might address the issue of multiple logins, I believe that the marketplace model is the key to promoting data sharing and addressing fragmentation. The core problem is not necessarily having multiple logins, but rather the lack of communication and integration among different systems.

Predicting solutions for fragmentation in hospitality technology

According to Terry Whyte, plug and play will always remain relevant in the hospitality industry. Most of the industry’s innovation has originated from sources outside the PMS. The focus is now shifting towards enhancing the guest experience, which entails improving guest communication, upsells, verification, remote lock connectivity, and more. 

I would not underestimate the no-code movement that’s happening right now. That is what’s really enabling a lot of operators to really custom fit the fragmented technology into a way that works for their business. 

Hospitality tech predictions: 

1. Stronger PMS
2. Stronger guest experience platforms
3. Professionalization 
4. Access to data and information in consumable way 
5. Personalize guest experience with technology

The data fragmentation challenge

Third party services rely on PMS to obtain information regarding various systems in the business such as guest experience, operations, etc. It’s no secret that third-party services often have to rely on booking data silos, which can be a major challenge.

Since they are at the far end of the information chain, it is crucial for the PMS to provide the necessary information to operate smoothly. The management of data flow within a hospitality business can be a challenge, it’s like a chess game involving multiple players. Some property management systems may take fees from both service providers and property managers to access this critical information. Others just lack certain functionalities, webhooks, or other tools that restrict the capabilities of third-party services.

Similar to property managers facing operational fragmentation, tech companies face fragmentation regarding data. The centralization of data in a hospitality business is a challenging mission that requires coordination and synchronization among multiple stakeholders.

How white label approach in tech fosters innovation 

Francois Gouelo expressed his view on how the white label format drives innovation. He gave an example of integrating with a major lock company in the industry, enabling both PMS’s guest experience platform and other companies to incorporate numerous smart locks within a few days. The growth that ensued emphasized the significance of prioritizing integration with other partners, implementing two-way synchronization, and adopting a white label format.

This includes utilizing tools like Autohost, Superhog, Partee and others to centralize operations effectively while still utilizing the best-in-class systems.

Guest experience tech – the next hot thing in the industry

Property Management Systems (PMS) play a vital role in the hospitality industry’s technology landscape. When integrated with guest experience tools, it creates a robust platform. The winners will be those who can leverage the full functionality of a unified platform. However, the guest experience tech sector is also highly competitive and rapidly growing. There will be fierce competition, and innovative and sophisticated technology will emerge.

10 core components of hospitality tech stack  

According to Terry Whyte, as complicated as technology is in our industry, we can break it down into the 10 core components of a tech stack.

They are: the PMS, the website, booking engine, distribution, operations, revenue management, CRM, guest communications, guest experience, home automation, digital marketing. The best way to simplify it right now is get the best PMS you can afford, get the best website that you can afford, and you have to see the guest experience, the guest communications platforms, you have to align yourself with them. They’re the future of our industry.

John An added that another exciting vertical is “the integrators”. The companies that are integrating, they’re not providing any other service other than integrating the different technologies. 

Q&A

Justifying the cost of fragmentation in hospitality technology

Question:

Incorporating various tools comes with a cost, which can quickly add up. Starting with the PMS at $40 per listing per month, adding a guest experience platform for $10, and including more tools, could lead to spending $100 monthly per listing. How do you justify the cost of technology?

Expert answer:

John An 

The justification for using these tools is that if a human were doing the work, it would likely cost more and yield poor results. I balance the costs of each tool and consider how much time I would spend using spreadsheets without a PMS. Some PMSs have a $10,000 onboarding fee, making it cost-prohibitive for smaller operators. However, spending $100 a month can replace a human salary and justify the cost.

Terry Whyte

At some point our industry will have to talk about the costs of the hospitality tech stack. Sometimes overlapping systems are increasing the costs without adding value. 

Francois Gouelo: 

Ultimately, each system must justify its return on investment. The Enso Connect focus has shifted from saving time to making more money, as seen through upsells and increased revenue of the users. 

Can AI help solve the fragmentation in hospitality technology? 

Question:

Hospitality professionals have concerns about using AI. Will the release of ChatGPT change the hospitality tech landscape, helping solve the fragmentation? 

Answer:

Francois Gouelo is convinced that this technology has the potential to be a game-changer in hospitality. For instance, talking about the hefty onboarding fees, why would you need a human to help you with that? A system should be able to onboard itself. This is where ChatGPT and similar systems come into play. They could provide valuable insights into the data within your PMS, helping you get onboarded faster and even acting as a personal assistant to take on manual and tedious tasks, and potentially eliminating frictions along the guest journey. We will be discussing this further in April and May.

Fragmentation in hospitality technology worldwide 

The hospitality technology industry is geographically fragmented, with significant differences between European and North American property managers. These differences could be due to language barriers or operational complexities, such as sending IDs to local authorities. In Spain, it goes to the Guarda Nacional, but in Italy, it has to be sent to every single department, whereas in the US, it is not required.

Although this fragmentation can make it challenging to manage a global business, having the right tools to deal with the different geographical issues can also help solve problems. I’m interested to see how the industry progresses towards consolidating not only from a tech perspective but also a geographical perspective.

Many European companies have been in the short-term rental industry for a more extended period than others, and most of them have their proprietary internal tech stack that has worked for them. However, the technology they use is old and not taking advantage of newer advancements. Another trend is that European big players are expanding into the US, and vice versa, US technology big players are entering the European market.