How to Use Smart Locks to Automate and Protect Your Vacation Rental

Smart locks are electronic locking mechanisms that can be operated remotely, often using a smartphone app, Wi-Fi, or Bluetooth. Unlike traditional locks that require physical keys, smart locks offer features like keyless entry, the ability to create and share digital keys or access codes, and the option to monitor and control the lock remotely. 

Some smart locks also integrate with home automation systems, allowing for features like automatic locking/unlocking based on your proximity to the lock. They are becoming increasingly popular and recognized in vacation rentals to automate check-ins and check-outs and to help protect your vacation rental property. 

The Rise of Smart Lock Technology in Vacation Rentals

The vacation rental industry has witnessed a significant shift towards digital solutions, and smart locks are a prime example of this change. Originally seen as a tech luxury, smart locks have rapidly become a standard feature in many vacation rental tech stacks for several reasons, including more security features, more convenience for guests and owners, the ability to automate your vacation rental, and the ability to manage remotely. 

Major Benefits of Using Smart Locks

Smart locks are transforming the vacation rental industry by offering numerous advantages for both the guest experience and property management. The integration of smart locks into vacation rentals presents a mix of security, convenience, and efficiency, contributing to a better management experience for owners and a more satisfying stay for guests. 

Security Protection

Unlike traditional keys, which can be copied or lost, smart locks offer a higher level of security. They allow owners to create unique access codes for each guest, reducing the risk of unauthorized access.

Automation of Check-In and Check-Out Processes

Smart locks facilitate automated and self-service check-in and check-out processes. This automation means that guests can arrive and leave at their convenience, without the need for the host to be physically present. This feature is particularly beneficial for managing multiple properties or for hosts who cannot always be on-site. Automated processes not only save time for both hosts and guests but also add to the overall efficiency and smooth operation of the rental experience.

Seamless Guest Experience

Keyless entry often leads to a smoother, more modern check-in/check-out process. The added sense of security provided by smart locks can make guests feel more comfortable and secure during their visit. Keyless entry also means guests don’t have to worry about losing keys. They can simply use a code or their smartphone to access the rental. 

Easy Management of Access

For owners, the ability to remotely control and monitor the locks simplifies property management. They can easily issue or revoke access, change codes between guest stays, and track entry and exit times.

Integration with Property Management Systems

Many smart locks can be integrated with other property management technologies, streamlining various aspects of rental management, from booking to check-out.

Cost Savings

Over time, smart locks can be more cost-effective than traditional locks. They eliminate expenses related to key duplication, changing locks due to lost or unreturned keys, and managing physical key handovers. This can lead to significant savings, especially for owners with multiple rental properties.

Durability and Low Maintenance

Smart locks are generally more durable and require less maintenance compared to traditional locks. They are designed to withstand frequent use, which is common in vacation rentals with high guest turnover. This longevity reduces the need for frequent repairs or replacements. 

Increased Property Value

Adding modern, tech-enabled features like smart locks can make a property more appealing to potential renters and even increase its overall market value.

Customizable Access

Smart locks allow property owners to grant temporary access to service providers like cleaners and maintenance staff. This feature is particularly useful for managing property upkeep remotely. Owners can provide time-limited access codes, ensuring that services are performed efficiently without compromising the security of the property. 

Real-Time Monitoring and History Logs

Many smart locks provide access history logs, offering valuable insights into the usage patterns of the property. This feature can be useful for security purposes and for understanding the occupancy patterns of the rental. 

Types of Smart Locks

Smart locks come in various types, each with unique features to suit different needs:

Keypad Smart Locks: These locks use a numeric keypad for entry. Users enter a code to unlock the door, making it convenient for granting temporary access.

Brands like Yale, Schlage, and Kwikset offer models with keypads, allowing users to enter a code for access.

 

Bluetooth Smart Locks: Operated via Bluetooth, these locks interact with your smartphone to lock or unlock doors as you approach or leave.

August is known for its Bluetooth-enabled smart locks that interact with smartphones for easy access.

 

Wi-Fi Smart Locks: These locks connect to your home Wi-Fi network, allowing remote access and control from anywhere through a smartphone app.

Brands such as Schlage and August offer smart locks with Wi-Fi connectivity for remote access and control.

 

RFID Smart Locks: Utilizing Radio-Frequency Identification (RFID), these locks can be unlocked with a key fob or card.

Salto provides smart locks that can be unlocked using RFID technology, suitable for larger property management.

 

Smart Locks with Voice Control: Compatible with smart home assistants, these locks can be controlled through voice commands.

Brands like August and Schlage are compatible with home automation systems and can be controlled via voice commands.

Top Smart Lock Brands

Here’s a look at some of the types of smart locks available for vacation rentals, focusing on brands that integrate well with vacation rental management systems:

Yale Smart Locks

Known for their reliability and ease of use, Yale offers a range of smart locks that are perfect for vacation rentals. Their locks often feature keypad entry and can be integrated with various home automation systems.

Salto Smart Locks

Salto provides advanced smart locking solutions that are ideal for managing multiple properties. These locks are appreciated for their robust security features and flexible access control options.

August Smart Locks

August locks are popular for their sleek design and user-friendly interface. They allow for remote operation via a smartphone app and provide features like guest access scheduling.

Schlage Smart Locks

Schlage is another well-known brand in the smart lock industry. Their locks are valued for their durability and compatibility with various home automation platforms.

Igloohome Smart Locks

Igloohome smart locks stand out for their offline access functionality, which is a significant advantage in areas with unreliable internet service. They offer a range of keyless entry options.

Kwikset Smart Locks

Kwikset offers smart locks with a focus on ease of installation and use. They provide a variety of entry methods, including keypads and smartphone apps.

TTLock Smart Locks

TTLock is known for its versatile smart lock solutions suitable for different types of properties, including vacation rentals. They offer remote management capabilities, which is a huge plus for property owners.

Nuki Smart Locks

Nuki smart locks are appreciated for their simple, retrofit design, which makes them easy to install on existing door hardware. They offer keyless access and easy guest management.

Brivo Smart Locks

Brivo specializes in access control systems and provides smart lock solutions that are scalable and ideal for larger property portfolios.

How To Use Smart Locks In Vacation Rentals

Using smart locks to automate and protect your vacation rental involves several key steps. By following these steps, you can effectively use smart locks to add an extra layer of security to your vacation rental while making the entire process more efficient and guest-friendly. 

Choose the Right Smart Lock: Choose reliable and secure smart locks from reputable brands that suit your property’s needs. Look for features like: 

• Remote access features. 
• Compatibility with your property management system. 
• Ease of use for both you and your guests. 
• Strong encryption protocols. 
• Sturdy physical construction to resist tampering. 

Install and Set Up: Once you’ve chosen your smart lock, install it on your property. Follow the manufacturer’s instructions to connect it to your Wi-Fi network and set it up using their app.

Integrate with a Property Management Platform: If you use a property management system, like Streamline or Track, it can integrate it with your smart lock system. This allows for seamless automation of tasks like guest check-ins and check-outs. 

Integrate with Security Systems: If possible, integrate smart locks with other security systems like cameras or alarm systems for comprehensive property protection.

Automate Access Code Generation: Configure your system to automatically generate a unique access code for each guest booking. These codes can be sent directly to guests, typically after they complete the booking and verification process. The codes should be time-sensitive and expire after the checkout date to prevent unauthorized access after a guest’s stay.

Remote Monitoring and Access Control: You can use the smart lock’s app to monitor access to your property. You can use the smart lock app to monitor access in real-time. This allows you to see who is entering or leaving your property. You can check entry and exit logs, and remotely control the lock if needed. 

Regular Updates and Maintenance: Keep the smart lock’s software updated and regularly check the hardware to ensure everything is working correctly.

Provide Guests with Instructions: Include clear instructions for your guests on how to use the smart lock. This can be part of your welcome guide or sent digitally before their arrival.

Respond Quickly to Alerts: Set up alerts for unusual activity and respond promptly to any security notifications from your smart lock system.

Enso Connect’s Role in Smart Lock Integration

Enso Connect offers features that improve the functionality and benefits of smart locks in the industry. Enso Connect’s system for smart locks seamlessly integrates with brands like Yale, Salto, August, Schlage, and more. This compatibility allows property owners to select the best smart lock that aligns with their specific needs, whether it’s for durability, ease of use, or advanced security features.

Automating Access with Unique Codes

Enso Connect’s platform revolutionizes the check-in process with the Boarding Pass feature. When a guest’s booking is confirmed and passes the verification stage, a unique smart lock code is automatically generated and incorporated into their boarding pass. This hassle-free process helps automate the door codes and protect your home by ensuring only verified guests can gain access. 

Maintenance and cleaning crews no longer need separate keys as you can generate specific codes for each property managing team. 

From a security standpoint, these unique codes are a big win. There’s no risk of keys being copied or lost, and each code can be set to expire as soon as a guest’s stay is over. Plus, this setup cuts down on time and effort for property owners, as they no longer need to meet guests in person to hand over keys. It’s a straightforward, secure solution that keeps things running smoothly for everyone involved.

Link Access Codes to Guest Verification

A key feature of Enso Connect’s integration is the linking of access code distribution with guest verification. This means access codes are only issued to guests who have completed Enso Connect’s verification process, adding an additional layer of security to the property.

The system screens guests ahead of time, helping to prevent potential issues like disruptive parties or damage. This includes collecting security deposits, verifying IDs, and detecting fraud, thereby safeguarding your business and personalizing guest stays

Remote Check-in with Smart Locks

Enso Connect facilitates an easier check-in process through smart lock integrations. Guests receive digital access codes, and property management systems are updated in real-time with check-in data. 

Customize the Guest Experience

The platform allows property owners to set conditions to customize interactions with guests. This feature, combined with smart lock integrations, means that access to the property is not just secure, but also tailored to meet the specific needs of each guest and property.

Managing Multiple Locks Remotely for Multi-Property Management

For owners with multiple vacation rentals, Enso Connect’s platform is particularly beneficial. The integration with various smart locks simplifies the management of several properties, streamlining operations and saving valuable time and resources.

With Enso Connect, you can manage multiple locks across different properties from one dashboard. Property managers can create and manage both temporary and permanent codes, monitor the status of each lock, and receive timely alerts about usage or potential issues. 

Device History Tracking for Security

Enso Connect provides a feature to track the usage history of each smart lock, with a notification coming to you in real-time. This data offers valuable insights into access patterns, helping property owners enhance security protocols and manage access more effectively.

Maintenance and Troubleshooting Tips For Smart Lock Technology

By following these maintenance and troubleshooting tips, you can ensure the smooth operation of your smart locks, making your vacation rental more secure and accessible for your guests. 

Regular Maintenance Best Practices

Best practices for keeping your vacation rental’s smart lock in its best condition.

• Battery Checks: Regularly check the battery levels in your smart lock. Most smart locks have indicators or send notifications when the battery is low. It’s good practice to replace batteries before they are completely drained.
• Software Updates: Keep the smart lock’s software updated. Manufacturers often release firmware updates that improve functionality and security.
• Physical Inspections: Periodically inspect the smart lock hardware for any physical damage or wear and tear. Ensure that the lock mechanism is functioning smoothly.

Troubleshooting Common Issues

Here are common issues that arise when using smart locks and how to troubleshoot them.

• Connectivity Problems: Smart locks rely on a stable internet connection.  If your smart lock is not connecting to the Wi-Fi network, first check your router and internet connection. Resetting the lock and reconnecting can often resolve this issue. If your rental is in an area with spotty Wi-Fi, consider upgrading your router or investing in a Wi-Fi extender. Some smart locks also offer offline options, like Bluetooth connectivity, as a backup.
• Unresponsive Lock: If the smart lock is unresponsive, try replacing the batteries. If it still doesn’t work, check the manufacturer’s app for any error messages or troubleshooting steps.
• Issues with Access Codes: If guests are having trouble with access codes, first ensure the codes are set up correctly in your system. Confirm that the codes haven’t expired or been changed accidentally.
• Guest Familiarity with Technology: Not all guests may be comfortable with high-tech solutions. Providing clear, simple instructions in your welcome guide can help. You might also keep a traditional key lock as a backup, at least initially, to accommodate all guests.

Helpful Tips for Smart Lock Management 

These are other helpful tips about using smart locks for your vacation rental. 

• Keep Manuals Handy: Retain the user manual and any installation guides. They often contain valuable information for troubleshooting.
• Contact Support: Don’t hesitate to contact the smart lock’s customer support for help with more complex issues.
• Backup Access Method: Always have a backup access method, such as a traditional key or a secondary smart lock, in case of a malfunction. 
• Security Concerns: While smart locks are generally secure, it’s important to use strong, unique passwords for your accounts. Additionally, use a smart lock that offers encryption for added security.

Unlocking the Potential of Vacation Rentals

Smart locks offer a transformative solution for vacation rental security and guest management. By using this advanced technology, property owners can improve their vacation rental property’s appeal and operational efficiency. 

Smart locks not only provide secure, keyless entry but also integrate seamlessly with vacation rental management systems, streamlining processes and elevating guest experiences. 

As we continue to innovate in the vacation rental industry, smart locks stand out as a smart tool for modern, efficient, and secure property management, making them an essential investment for forward-thinking vacation rental owners.

How Enso Connect Can Help

Embrace the future of property management with Enso Connect and smart lock technology. Transform your vacation rental into a haven of security and convenience. Whether you’re new to smart home technology or looking to upgrade your existing setup, Enso Connect provides the seamless integration and support you need.

Discover how our solutions can streamline your operations, enhance guest satisfaction, and safeguard your property. Don’t wait to take the next step in vacation rental innovation.

Book a Demo of Enso Connect Today

The graph’s quadrants are crowded with logos, each representing a solution, showing the complexity of the tech options available. The variety of Property Management Systems (PMS), Distribution Channels, Operational Tools, and Guest Experience Enhancers is innovative but also overwhelming. The challenge is: How do YOU choose the right combination of tools that fit together and propel YOUR business forward?

In this blog we will try to simplify the complex world of short-term rental technology. We’ll explore the nuances that make different services a better fit for one business rather than the others. The goal is to navigate this complex map, choosing tech that fits your business, leading to smooth and profitable operations. Join us as we decode the Short-Term Rental Technology Landscape, and add some clarity into building a hospitality tech stack.

We’ve listed the most popular options in each category, but we knowledge that there are more out there. We suggest doing your own research and also recommend Wheelhouse’s vacation rental tech review as additional source of information.

Key Short-Term Rental Tech Categories – Find What You Need

How to Build Your Tech Stack For Vacation Rental Managers

A robust tech stack is essential for vacation rental managers to become successful in their roles. There are different opinions on whether all-in-one tech solutions exist in the vacation rental industry. There is also a debate about existing all-in-one solutions solving the hospitality tech fragmentation issue. Most short-term rental managers and owners agree: as their business grows, so does the complexity of their needs and operations. 

What You Need To Know:

Foster Deep Relationships in Your Hospitality Business

In hospitality, fostering strong relationships with guests, owners, industry peers, and local communities is key to success. Good guest relations enhance loyalty and advocacy, while solid partnerships with property owners ensure trust and long-term collaboration. Networking with industry peers provides valuable insights and shared resources. Positive community engagement supports sustainable operations and enhances the brand’s reputation. Growth-oriented companies are prioritizing these relationships and leveraging technology to nurture them effectively at scale.

Cultivating Lasting Partnerships with Short-term Rental Property Owners

In the vacation rental management business, maintaining a cohesive system that delivers on property owners’ experience is crucial. Property managers need to ensure that their owners’ needs are properly addressed and met.

Frequently Asked Questions

Book A Demo With Enso Connect

Running a successful short-term rental property requires a blend of excellent service, efficient operations, and strategic use of technology. While a universal all-in-one software solution doesn’t exist, a well-curated tech stack, including tools like Enso Connect, can significantly enhance management efficiency, guest satisfaction, and profitability.

For vacation rental managers using systems like Streamline, Track, and Hostfully, Enso Connect can seamlessly augment your tech stack, providing a unified inbox, upselling opportunities, and automation tools.

Learning Outcomes for Vacation Rental Operators

• Understand the technology landscape and identify the specific issue they may have in their own business
• Create a framework for addressing and navigating the technology fragmentation in a practical way today to improve business operation.

Speakers

JOHN AN, CEO, TechTape – Moderator 

John’s company TechTape aims to streamline operations for vacation rental businesses by enhancing existing systems and integrating cost-effective, user-friendly solutions. John is also a short-term rental operator, and understands first-hand the complexities of disjointed hospitality tech. He’s also recognized as an expert in revenue management.

PIERRE-CAMILLE HAMANA, CEO, Hospitable.com

With over 80,000 connected listings on the platform, Hospitable never wanted to become a PMS. Automation is what the company is known for. The best service they offer is guest experience products that automate all communication with guests and facilitate direct bookings. The company is mostly focused on property owners.

FRANCOIS GOUELO, CEO & CoFounder, Enso Connect

Francois offers a distinctive perspective on addressing fragmentation in hospitality technology. He champions the “connect VS rip and replace” strategy, empowering operators to select tools that align with their unique business requirements. These tools can then be effortlessly integrated into a custom tech stack, designed specifically for individual hospitality businesses. This vision is the foundation of Enso Connect.

LUCA ZAMBELLO, CEO, Jurny

Luca has a track record of expanding a short-term rental management business to 300 units across five cities. However, at some point technology became a challenge. He spent considerable time integrating various solutions to scale operations. This led him to create his own product, differing from industry norms – Jurny. Today, he is eager to chat with the STR community about tech fragmentation and potential solutions.

Background

The short-term rental market in the United States boasts a staggering value of $90B, and globally, it reaches an impressive $172B. This industry is not only thriving but is also characterized by its entrepreneurial spirit. This dynamism has given rise to a plethora of technology solutions, each aiming to address the unique challenges faced by operators. However, this surge in innovation has also led to a highly fragmented landscape. With over 500 property management software (PMS) options available worldwide, there’s a maze of products, many of which have overlapping features. The primary challenge is that these solutions often operate in silos, lacking seamless integration with one another.

Different approaches to the hospitality tech fragmentation problem

Jurny’s approach 

There are two main issues. Firstly, there’s an overload of solutions, many of which serve similar purposes but with slight variations. This is problematic. Secondly, when we began our journey as property managers and founded Jurny, we noticed that these solutions weren’t designed to integrate seamlessly. In reality, property managers don’t just need one tool like a pricing software, guest verification system, channel manager, or a PMS. They need all these tools to function cohesively, sharing and relaying information. But the industry hasn’t been set up this way.

We’ve seen various approaches to address this, but our strategy was unique. We reached out to partners with the purpose of selecting one partner per category. We believed that property managers first needed to decide on their tech stack and then integrate these solutions for optimal performance. Drawing from our decade-long experience in the industry, we chose partners and urged them, without being too forceful, to adapt their APIs for two-way communication. This allowed us to consolidate everything into a single dashboard. Essentially, a unified ecosystem did not exist, until now. And even now, it’s not universally available due to various software providers’ limitations.

Another issue is that many systems are outdated. When the industry was in its infancy, there weren’t many solutions. Many of the existing Property Management Systems (PMSs) are over a decade old. They were built for a different era, and the industry has since evolved, leading to the current fragmentation as a result.

Enso Connect’s approach 

A controversial perspective I hold is that the main issue with fragmentation is that we view it as a problem. Tech companies offer a range of services, from guest verification to upsells and guest applications. This expansion is driven by various tech players, leading to interconnected marketplaces. However, the challenge arises when businesses have to manage multiple logins, vendors, and understand the interdependencies of various tools, especially as they grow.

Many systems claim to be all-in-one solutions, which can be misleading. It’s essential to recognize that different departments use different tools. For instance, my tech team doesn’t use the same tools as my sales team. The challenge for property managers is centralizing information from these diverse departments.

Tech Tape’s approach 

Each management company’s operations are unique because there is no formal education on operating a short-term rental business. So, a tool that may be perfect for one operator can be terrible for another operator. The fragmentation is positive in that there are a lot of different options for each unique operator to select from. However, most are not integrated and do not talk to each other.  The core issue in the near-term horizon is that these tools don’t communicate seamlessly. As a result, either the work has to be completed manually, or the same data exists in multiple places, causing inefficiencies. From a property manager’s perspective, the goal is to ensure these tools can interact in a coherent workflow. The endgame is to avoid having the same data scattered across different platforms, which complicates operations. For the long-term perspective, our industry needs more infrastructure-type solutions that unifies core functionality so that we don’t continuously reinvent the wheel.

Hospitable’s approach 

Communication is crucial. To give some perspective, in our company, we have 127 software contacts for a team of 57. These numbers surprised me. Like many companies, we struggle with managing customer data. What’s unique about our industry is how OTAs have set up a system where the main customer data source integrates primarily with property management software. These softwares then connect with numerous third-party service providers.

A couple of years ago, we might have thought there was a leading solution. But there’s still no clear frontrunner. This results in repetitive work and constant reinvention for both operators and software providers. The industry lacks a system that encourages easy data sharing to maximize its value. This is unlike any other sector I’ve seen. Industries like healthcare or finance might have data restrictions, but vacation rental isn’t that heavily regulated. 

Airbnb Direct Integration: The Story   

From the very beginning the goal of Enso Connect was to digitize the guest experience. One of the first questions was about Airbnb partnership. Realizing the importance of this partnership to access reservation data, the co-founders tried to collaborate with Airbnb. However, their API, which is essential for accessing such data, was restricted.

The workaround was found on Reddit—a working API key. For two months, they accessed Airbnb’s data, thinking this was their breakthrough. But soon, Airbnb’s security team blocked it. Francois approached Airbnb’s Toronto office in person, hoping to resolve the issue. They asked the startup to return when they had more properties. That was a catch-22: how could they get more properties without Airbnb access?

The solution was to connect through Property Management Systems, the only platforms Airbnb recognized. To clarify, OTAs like Airbnb typically allow only one system to connect to their platform. This limitation means that even if you have innovative tools to enhance your business, integration is challenging. Thankfully, Airbnb has recently allowed integration with Enso Connect, along with other companies on this panel. However, there’s still much work needed to streamline data flow in the industry, from booking channels to third-party integrations.

Did PMS stop innovating?

Luca shared his view that many Property Management Systems (PMS) have fallen short of their responsibilities. Throughout my tenure as a property manager, he has switched between five different PMS. Most large-scale operators, managing anywhere from a few units to 400-500, have changed their PMS at least three times and are still unsatisfied with their current system.

Luca believes many PMS, especially the older, legacy ones, have ceased to innovate. They should be centralizing and managing data, demanding comprehensive information from their partners. This is their primary role.The successful PMS of the future will recognize and address this. Otherwise, solutions like Enso Connect will either have to connect directly with platforms like Airbnb, missing out on other opportunities, or collaborate with entities that truly understand this challenge.

What Slows Down Innovation in the Hospitality Industry?

Companies like Enso Connect often rely on Property Management Software (PMS) APIs to access essential data. For startups like Enso, their primary goal is to access this data to provide value to their customers. However, their main focus isn’t necessarily to feed data back to enhance the user experience of the original PMS. As a result, PMS users don’t get a comprehensive, centralized data source, which the PMS should ideally provide.

In recent years, many PMSs have struggled to innovate. They’re burdened by numerous existing integrations, making it challenging to adopt new technologies. For instance, while there are advancements in areas like smart locks and OpenAI’s ChatGPT implementation, many PMS lag in incorporating these. This delay often stems from their desire to maintain their current integrations and monetize new features, which can hinder collaboration and innovation.

The Universal API VS Distributed Solution  

While discussing tech issues might seem irrelevant to property managers, it directly impacts you. When choosing vendors and solutions, we’re constrained by the data we can sync from channels and OTAs. A rising trend is the emergence of API-first companies that aim to enhance tool interconnectivity. But a challenge remains: where is all this data centralized?

Most often, it’s in the PMS. Few resort to platforms like Google Drive, Notion, or Excel sheets as their primary data source. I encourage property managers to view their operations both as a tech and hospitality venture. The tech landscape might get more chaotic before it simplifies. Instead of waiting for a single entity to create a universal API, which could stifle innovation, a distributed solution seems more viable. This approach promotes diverse innovations rather than confining them to one standard.

4 Ways to Defragment the Hospitality Industry: Pros and Cons 

We see five main ways of how the hospitality industry starts to defragment. These ways are: consolidation via acquisition, integrations via marketplaces, white-labels and semi-custom builds. 

Consolidation via Acquisition

We are talking about larger companies acquiring smaller operators, consolidating the tech landscape. While the primary reason might be to integrate that technology internally, sometimes it’s to eliminate competition or acquire their customer base. This consolidation can lead to a unified platform, but it might also limit the available tech solutions for business operations.

Integrations via Marketplaces

Currently, our industry is buzzing with the trend of marketplaces. Various companies are collaborating to create these platforms where property managers can select from multiple software options, be it for pricing, accounting, communication, upsells, etc.. While this provides choice, a downside is that the Property Management System (PMS) is a gatekeeper. PMS controls which software gets listed, limiting the options available to users.

White label 

White labeling involves a company’s internal decision on partnerships and product alignment, echoing what Luca mentioned. To clarify, none of us here are focused on acquisitions but rather on different kinds of integration.

Semi-Custom Builds 

Another current approach, though not a long-term solution, involves semi-custom builds. This method links multiple tools that don’t naturally communicate, creating workflows that allow them to function together. This way, you can choose the tools you prefer without the PMS limiting your options.

Which way of defragmentation is the best? Expert views  

Luca admits he’s biased, as his company leans heavily towards white labeling. As a property manager himself, his goal was simplification. Achieving scalability often requires simplification first, which is ironically complex. His company, Jurny, provides a great example for this. They’ve streamlined the user experience, but the underlying processes are intricate. Ultimately, they prioritize the user experience. Luca believes that 80% of the market will eventually adopt this approach, though others might disagree.

Francois notes that companies are acquired for various reasons, from financial struggles to strategic decisions. He observes that many private equity moves in the vacation rental sector seem more profit-driven than focused on genuine innovation. 

When property managers evaluate tech solutions, Francois believes it’s crucial to understand their primary needs. Often, he sees operators adopting various tech solutions without considering how they fit into their business’s infrastructure. He points to the success of platforms like Hubspot and predicts a rise in Zapier-like functionalities in the vacation rental industry. Given the unique needs of each property management company, owner, and guest, he feels that one-size-fits-all solution often falls short.

Francois finds the idea of integrating advanced technology, white labeling, and offering a marketplace compelling. The industry is inherently fragmented, mirroring the diverse operations of property managers. Hence, the tech stack should be adaptable to cater to these unique hospitality requirements. Rather than endorsing a single approach, Francois feels a combination of strategies will define the industry’s future digital landscape.

Luca has spent countless hours researching the best providers, only to find that many in the industry avoid taking responsibility when issues arise. This lack of accountability frustrates him, as he feels the industry has shielded itself instead of addressing core problems. In his view, the main issue with marketplaces and many PMSs is the lack of ownership and responsibility.

Pierre-Camille pointed out the risks of over-consolidation, using Amazon’s dominance in the book market as an example. He noted the potential risks of the entire vacation industry relying on a single platform. He believes the vacation management software market shouldn’t be dominated by one major player, especially given the diverse needs of different market segments.

Drawing a parallel between Slack and Discord, he highlighted how similar products can cater to different user bases. He lamented the industry’s focus on acquiring listings rather than enhancing user experience.

Discussing integration challenges, Pierre-Camil highlighted the gross margin pressures of maintaining multiple integrations. He shared their venture into white labeling, aiming to provide property owners with a direct premium connection. Direct listings come with challenges, like chargebacks and guest issues. To address this, they bundled integrations, offering a package similar to a private OTA. This package handles various aspects like tax compliance and payment processing, at a lower cost for the user.

Pierre-Camil emphasized the importance of a unified guest experience and operational efficiency. He questioned if an all-in-one solution, despite its appeal, might divert software providers from key goals. 

API connectors and more: summary  

• Luca and Francois have different views but are aiming to solve the same problem in property management.
• Property managers face various challenges daily, from revenue to operations.
• There’s no one-size-fits-all software for property managers. Instead, the issue is that many solutions don’t integrate well with each other.
• Luca emphasizes the need for someone to take responsibility and ensure sustainable solutions.
• The speaker mentions an API connector called “Seam” used by various companies to integrate smart devices.
• The future seems to be leaning towards more API-based solutions, as seen with companies in Y Combinator.
• Francois believes that collaboration is key to solving fragmentation in the industry. This means working together instead of competing.
• AI is highlighted as a significant technological advancement. Centralized systems are essential for effective AI implementation.
• A challenge in the industry is the lack of standardization, especially with APIs. Different terminologies and standards make integration difficult.
• Francois believes that while white labeling can add value, the real value lies in the data a company collects.
• Luca advises property managers to be cautious when choosing software. They should identify their key problems and choose solutions that address those specific issues.

The conversation revolves around the challenges and opportunities in property management, especially concerning technology and software solutions. The emphasis is on collaboration, integration, and the value of 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.

Three ways to approach the fragmentation in hospitality tech

There are three distinct approaches to building a cohesive hospitality tech ecosystem: M&As, developing an all-in-one solution, or connecting disparate tools through APIs (marketplaces or white labels).

Mergers and acquisitions

Large organizations are increasingly turning to acquisitions of smaller companies as a strategic method to expand into new markets and enhance their technology offerings. This approach not only helps them broaden their geographical reach but also allows them to integrate new technologies and services into their existing portfolios.

For instance, Guesty’s recent acquisitions of the Australian tech vendor HiRUM and the Spanish property management platform Kigo have enabled them to tap into new customer bases in these regions. By incorporating these companies into their operations, Guesty has expanded its market presence and enriched its suite of services to better cater to diverse regional needs.

Similarly, Streamline’s acquisition of LMPM has been a strategic move to modernize the technology stack available to their existing clients. This integration allows Streamline to enhance their service offerings with advanced features and capabilities, providing their customers with a more robust and up-to-date property management solution.

These acquisitions illustrate how large organizations leverage the strengths of smaller companies to drive growth, improve service offerings, and stay competitive in the evolving hospitality tech landscape.

All-in-one solutions

Due to a complex new technology landscape, many hospitality businesses opt to adopt a single vendor strategy and implement an all-in-one system. According to the real time Short-Term Rental Technology Landscape by AJL Atelier & PeakSpan, there are 150+ companies in the PMS category. The major players of property management new solutions have an all-in-one offering. These actionable insights show that it is a very competitive environment.

Technology providers are now focusing on expanding their value proposition and increasing their share of revenue. We can see that across various software systems, including operations software, revenue management systems, channel managers, and traditional PMS. Looking to property managers with all-in-one offer, these vendors are integrating channels and developing add-on features.

Additionally, one-stop shops offer connected marketplaces that integrate with many other systems, ranging from tens to hundreds of connections.

For example, Mews PMS has 750+ apps and integrations for managing operations, revenue, and guest experience in its marketplace. The company believes that using various vertical-specific tools increase operator efficiency due to their hyper-focused nature.

The Zapier of Hospitality

Enso Connect has set its sights on becoming the ultimate connector in the hospitality industry. Embracing this ambitious vision, Enso Connect is excited to announce the release of hundreds of new connections designed to enhance both hospitality operations and guest experiences. This transformative development has earned Enso Connect the nickname “Zapier of Hospitality.”

Much like Zapier revolutionizes workflow automation for businesses by seamlessly integrating various apps and services, Enso Connect is applying the same principle to the world of short-term rentals and hotels. By providing effortless integration between a multitude of tools and systems, Enso Connect enables operators to streamline their operations, optimize efficiency, and elevate the guest experience.

With Enso Connect, hospitality professionals can now connect disparate systems with ease, creating a unified and smooth operational environment. This seamless integration not only enhances operational efficiency but also allows for a more personalized and enjoyable experience for guests. As the “Zapier of Hospitality,” Enso Connect is paving the way for a new era of connectivity and innovation in the industry.

Hospitality operations essentials

Typically, hospitality professionals use about eight to ten different software products to effectively manage their business. In addition to the PMS as a center of any hospitality tech stack, property managers use these third-party platforms and apps:

• Guest verification solutions
• Smart locks and other smart home systems
• Digital guidebooks (aka guest books and area guides)
• Contract signature tools
• Payment system
• Custom fees and upsell tools
• Customer relationship management (CRM systems)
• SMS messaging and survey tools
• Marketing automation and email technology
• Property care (housekeeping, maintenance management)
• Noise monitoring systems
• Revenue management & dynamic pricing
• Guest Apps

Today each of these categories includes multiple sustainable solutions, with a couple of best-in-class options. Operators can choose the best options for their business or maximize the built-in functionality in their central systems.

But they can also balance both approaches with Enso Connect.

Enso Connect’s unique solution is to integrate and white label those tools within customized workflows. This goes beyond simply transmitting data to the tool and allowing it to function independently. Instead, the tool is integrated into your system, enabling you to set it up, onboard, and pay for it all through one platform.

Here’s how it works. Enso Connect plugs these best-in-class technology partners into users’ guest journeys. Property managers follow the steps in Enso Connect’s Guest Journey Editor, choosing the best tools on every stage with one click.

Here is a step-by-step review of what Enso-connected users can, using the platform:

Booking confirmation

Send confirmation details and the guest app link through multiple channels, including SMS, email, and WhatsApp. Automate this process to ensure that every guest receives timely and personalized communication. Tailor your messaging to align with specific modern guest personas and use cases, enhancing the relevance and engagement of your communications.

Guests can benefit from receiving tailored messages that reflect their preferences and needs, which helps to create a more personalized experience from the moment they book. Whether you prefer crafting custom messages or utilizing pre-designed templates, you can ensure that your communication is both effective and efficient.

This approach not only streamlines the guest onboarding process but also reinforces your commitment to providing a seamless and accommodating experience, contributing to overall guest satisfaction and loyalty.

Guest verification

Customize the screening and verification process to fit each guest and booking case. Operators have the flexibility to choose trusted verification providers like Superhog or Autohost, ensuring robust protection against fraud and liability. For bookings made through platforms like Airbnb, which may already have verification measures in place, operators can also opt to manually collect and verify the guest’s ID for an added layer of security when additional protection isn’t automatically required.

This tailored approach allows operators to adapt the level of security based on the risk profile of each booking, ensuring that the verification process is both efficient and effective. By integrating verification options that suit your operation’s needs, you can protect your property, prevent potential issues, and create a smooth and trustworthy experience for your guests from the outset.

Rental agreements

Create and manage rental agreements in over 200 languages, ensuring accessibility for guests from diverse backgrounds. To streamline the process, integrate an electronic signature solution such as DocuSign, ensuring that all agreements are legally valid and securely stored. Operators can also implement conditional triggers to automatically send these agreements under specific circumstances, such as a last-minute booking or a particular listing that requires additional legal documentation.

This flexibility allows operators to tailor the agreement process based on individual booking scenarios, improving both efficiency and compliance. By making rental agreements accessible, personalized, and legally binding, you can protect your property while enhancing the guest experience with clear and transparent communication.

Security deposits or damage waivers

Charge a security deposit or offer guests a choice between a refundable deposit or a smaller non-refundable damage waiver. Many guests’ personal preference is to pay a damage waiver, allowing the operator to use this money to cover

Fees and upsells

You know why your guests are here, you know who they are. Leverage this data to increase your margins.

House rules and guidebooks

It’s not just about money, but also about creating a personal connection with your guests. Provide information to elevate their stay and give them a reason to come back.

Contactless check-in

Set up everything for a quick and easy check-in. Deliver a seamless digital check-in experience, with or without smart locks.

Checkout

Streamline the checkout process for both your guests and your cleaning team. Provide clear instructions and add efficiencies to the process.

Post stay

Why remind every guest to leave a review? Handpick your champions to give you the glowing 5-star reviews you deserve!

Guest experience essentials

The way your hospitality service makes your guests feel pre-, during, and after the stay is the meaning behind the guest experience. It starts from the moment they book their stay and continues even after they leave the place. It’s all about providing convenience, meeting their expectations, being responsive, making them feel at home, and giving them a local experience they’ll never forget.

What technology is essential for hospitality professionals to ensure their guests have a delightful stay and return for future visits?

In the realm of short stay hospitality, we identify three core elements of guest experience:

A smooth, effortless, and quick processes

This includes streamlined verification, contactless check-in, one-click purchases, available transportation and other convenience services.

Meeting guest expectations

This can be achieved through effective communication, responsiveness, and providing all information necessary for a great stay ahead of time.

Creating lasting memories

Operators can curate available local experiences for their guests. This can be done through providing neighborhood guides, offering tours, excursions, and opportunities to dine and shop locally.

Enso Connect is enabling hospitality professionals to enhance their user experience with the help of its numerous integrations.

Enso-connected operators can provide their guests with a seamless vacation experience, all accessible in one place. With just a single tap, guests can arrange everything from transportation to food delivery and even car rental services from Turo, allowing them to explore nearby locations hassle-free.

Enso Connect links property managers to a wide range of experience partners, connected through the “Zapier of Hospitality,” to assist their guests in tackling various logistics such as transportation, luggage, food, and more.

By incorporating affiliate links to service providers like Uber, Turo, Viator, BabyQuip or local partners, property managers can create additional revenue streams. The ultimate goal is to prioritize the guest satisfaction and provide them with everything they need for a truly memorable vacation.

For example, guests can use Boarding Pass to order Uber with pre-populated addresses, reserve local restaurants, schedule tours and more. They can use the guest app to order anything that operators connect and set up in their Boarding Pass. Enso Connect allows operators to set up links and connections with more than 200 experience partners. See the full list here.

Centralizing your billing

Enso Connect’s better approach offers the convenience of centralizing invoicing for various tools, eliminating the need to manage multiple vendors and bills. The system uses a white-label integration method that centralizes billing in one or two locations, streamlining the process for users.

A great example for this is Enso Connect’s white-labeled solutions for verification partners, Autohost, Superhog and Partee, offering a seamless experience for clients. The innovative connected approach is aimed at making the lives of hospitality professionals easier and more efficient.

Solving the hassle of choice

Enso Connect is solving the hassle of finding and choosing the right tools, as well as onboarding them. If property managers want to connect any of Enso’ verification partners, upsells, guidebooks, smart locks, they can quickly and easily do so.

It takes just one click to add a partner on the platform. If a vendor is not working out, it can be swiftly turned off and replaced with a new one. This feature allows operators to A/B test their tools or have certain properties on one vendor while others use a different one, without heavy commitments.

Users have the flexibility to use specific vendors for specific properties or with specific conditions. This allows them to potentially pay less by still using the best in class vendors of the industry.

From now on, Enso-connected hoteliers and vacation rental managers can offer guests a fully digital check-in, right at their fingertips. The new Apple Pay feature enhances the process for hotel and short-term rental guest onboarding with the convenience and credibility of the Apple brand.

With Apple Pay, guests can now complete their check-in process quickly and securely using their mobile devices. This feature eliminates the need for physical paperwork and reduces wait times, making the arrival experience more efficient and pleasant. Additionally, the familiar and secure nature of Apple Pay can instill greater confidence in guests, knowing that their payment and personal information are handled with the highest standards of security.

For property managers and hoteliers, this means less administrative hassle and fewer manual tasks, allowing for a smoother and more automated check-in process. The integration of Apple Pay not only modernizes the guest experience but also aligns your property with cutting-edge technology trends, enhancing overall guest satisfaction and potentially increasing bookings from tech-savvy travelers.

By adopting these digital innovations, you can position your property as a forward-thinking option that values convenience and security, setting yourself apart in a competitive market.

Apple products and hospitality

Apple is already powering the entire customer journey for airlines, facilitating the process from booking to boarding.

People, shopping for flights on a mobile device, can purchase tickets with Apple Pay. The boarding pass appears in their Apple Wallet after they check in. There’s no need to type in credit card details or print a pass. Payment and check-in are seamless and take just a few taps.

Why not provide travelers with the same effortless process in accommodations? It’s time for hotels and vacation rentals to learn from online retailers and take digital guest experience to the next level. Digitalizing the booking process, payments, guest onboarding, check-in and communication is the only way to succeed at scale.

In iOS 16 update Apple announced that it will allow storing digital room keys in Apple Wallet. While getting into a property, just tapping your phone on a door sounds amazing, it is available to very few hospitality operators. This doesn’t mean that are other technologies facilitating remote access.

The Apple Pay and digital wallet provides hotel guests and vacation rental visitors with seamless experience and trust. iPhone customers enjoy the convenience and availability of their check-in card in their mobile devices. They don’t need to download mobile applications, scroll through their emails or messages and search for internet connection at check-in.

Streamlined guest experience

As a replacement for pulling out a booking confirmation or scrolling through emails to find critical info before and on-arrival, the Apple Wallet feature makes digital guest experience event more smooth and friction-free.

This means that guests will no longer have to rummage around for their reservations, or even carry one on their person while traveling. The smartphone is becoming a replacement for the physical wallet, and property managers can capitalize on that to enhance the guest experience even more.

Enso Connect’s Apple Wallet feature

The new feature allows people to download their check-in Wallet card directly from their booking confirmation.

The guests will see a summary of their reservation directly in their mobile devices. It will be easily found in their Apple Wallet and available offline.

The double-sided wallet card will have the following details.

Side 1:

• Name of the property
• Branding elements: logo and background graphic
• Check-in and checkout times
• Property Address

Side 2:

• Link to the Guest Portal (the Boarding Pass)
• Wifi credentials

How it works for guests

Your guests get easier access to their vacation rental and hotel stays through their iPhone model or Apple watch.

1. Guests can download their check-in Wallet card directly from their booking confirmation.
2. The check-in Wallet card is double-sided. It includes your branding and key details of the stay.
3. The other side of the card links to your guest portal [Boarding Pass] and Wifi passwords.

No more scrolling through emails at check-in. Everything in one place. At their fingertips and Offline.

How it works for hospitality operators

Rental owners and property managers who provide seamless guest journeys at their vacation rentals, including those listed on platforms like Airbnb and Vrbo, often see impressive results. By prioritizing a smooth and enjoyable experience from booking to departure, these hosts are rewarded with higher guest satisfaction rates and improved reviews. This positive feedback, in turn, enhances their property’s reputation and visibility, leading to increased conversion rates and a growing number of bookings.

Guests who encounter a hassle-free check-in process, well-maintained properties, and responsive communication are more likely to leave glowing reviews and recommend the rental to others. This boost in reputation can drive more traffic to your listing, attract new guests, and encourage repeat stays. Additionally, high satisfaction rates often translate into higher occupancy levels, as satisfied guests are more inclined to choose your property over others.

Investing in creating a seamless guest experience not only helps in maintaining high standards of service but also contributes to long-term success and profitability. By focusing on delivering exceptional journeys and addressing guest needs proactively, rental owners and property managers can enhance their business outcomes and build a loyal customer base.

Three main benefits of the new Apple Wallet feature for hospitality professionals:

– No more last minute calls for urgent check-in help

Guests have all key information about their stay in their phone, organized together with the travel documents, boarding qr code, credit and debit cards, vaccination card, etc. They don’t message you at night trying to find the getaway house, entry codes or parking for a rental car. Everything is in the digital wallet, available offline any time they need it.

-A great guest experience

Many of today’s guests expect seamless, quick and easy contactless experience when they travel. It’s a great way to connect with your mobile-first customers and win their loyalty, 5-star reviews and repeat business.

-YOUR brand in every traveler’s Apple Wallet 

Establish your company as a modern, tech-enabled hospitality brand offering the must-haves needed to meet guests’ e-commerce preferences. Apple Pay, one-click checkouts, offline availability, etc. Maintain professional look and feel and put your brand in travelers’ digital wallets, while enhancing their digital check-in experience.

The end-to-end digital check-in process

Digital hotels or short-term rental accommodations rely on bypassing the front desk and facilitating contactless interactions. By digitizing the entire journey, from booking, through identity verification, to communication and upsells, operators streamline the guest experience. They also provide guests with a confidence guarantee,

This will allow hoteliers and property managers to meet the growing guest expectations and catch up with digital retail. Meaning outperforming OTAs, standing out from competition and increasing revenues.

To create a complete end-to-end digital accommodation, there is a need to “connect the dots” of available technology solutions. Enso Connect’s features and best-in-class partner integrations on all stages of the guest journey do exactly this. We build the guest experience ecosystem for modern hospitality brands.