When Airbnb and other OTAs first emerged, they were primarily used for short stays of one or two nights while visiting a new location. Over the years, however, the market for short-term rentals has evolved significantly. Many businesses in this sector have revolutionized the industry by offering upscale villas, unique accommodations, and diverse experiences through these platforms.

With the changing landscape of rental practices, it’s essential to consider the next phase of this evolution, which might be an increase in longer stays. In some regions, regulations have shifted, and property owners are now restricted from offering stays shorter than 28 days, effectively removing the “short” from short-term rentals. This shift has significant implications for both property owners and tenants.

For property owners facing pressure to adapt to longer-term rentals, it’s important to understand the new dynamics and requirements of this market. This may involve rethinking marketing strategies, adjusting pricing models, and preparing for different types of tenant expectations.

For tenants currently staying in shorter-term rentals, this change could impact their plans and the availability of their accommodations. They may need to seek alternative options if the property they are staying in transitions to a longer-term model.

Navigating these changes requires strategic planning and adaptability to ensure that both property owners and tenants can make informed decisions in this evolving market.

Converting to long stays

Enso Connect has been hosting regular twice weekly Clubhouse sessions on our Airbnb on Autopilot Club where we have the opportunity to discuss with other property managers, hosts, and guests alike about what areas they are currently struggling with. One of our guests had mentioned that some of their guests are wanting to stay longer than the 28 days, and were looking to go for months at a time. Now although this may seem like a godsend — having your place fully booked for a considerable number of months — it can actually prove to be a bigger headache than you think.

When you start extending the number of days stayed, depending on the number, the guest may end up receiving tenant rights. In which case, if you want them to leave, it becomes a much greater issue. One way around this is simply cancelling the booking every 28 days and having that same guest book again, and again. This way they are still able to rent with you, but won’t incur the uncomfortable aspects of tenant rights. Tenant rights, and the circumstances in which they become active, are dependent on where you live.

For guests, it is almost exactly like business as usual, minus them having to rebook every 28 days, which if they’re actually a good guest, they won’t mind.  If they are trying to become a tenant, then proposing a tenancy agreement may be your next step.

If you are having troubles with this issue, and are still unsure about what to do, feel free to reach out to us at contact@ensoconnect.com

It’s pretty evident that 2020 hasn’t been beneficial to the hospitality and short term rental industry. On one hand, expectations are high for hotels, resorts, and short term rentals like Airbnb and VRBO to offer memorable experiences and a satisfying stay, which is defined differently by various types of travellers. Amenities and a stellar reputation are things that can make or break someone’s stay, so hotels and STRs need to find ways to stay competitive and entice visitors. Given that the lodging industry is estimated to have an annual revenue of well over $500 billion, the stakes have never been greater.

Of course, all the good intentions and great ideas hold no sway, if the entire industry is put on hold due to a pandemic. It’s estimated that the travel and tourism industry lost roughly $238 billion USD this year, with countless jobs lost and more than a few closures of restaurants, hotels, and even an exodus of STR hosts. Thankfully, the industry was able to pivot and slowly reopen to regain some lost tourism. There’s a sense of cautious optimism in the air, but rebuilding the industry back up won’t be easy. But it is doable, and it requires the hospitality industry to give their customers things that they didn’t know they needed.

Turning to technology

Smart technology and keyless entry have been something that the hospitality industry was turning towards well before this year, but the adoption was challenging for some hotels and rentals. While some hotels in other parts of the world still use physical keys, the majority (if not all) international chains use keycards for room access. Guests, however, still need to physically check in at the hotel. Technology exists, however, to take away the human element completely, and rely on smart locks and mobile phones. For example, the Marriott Bonvoy app allows guests to book online, check in via their app, and use their phone as a mobile keycard to allow for room access, as well as to the amenities. This means that guests can get to their rooms quicker, without having to wait in the lobby line, and on top of that, this keyless entry solution means less person to person interaction.

On the short term rental side, hosts can turn to a Property Management Software (PMS), that can allow them to do the same – manage check ins, issue communications, automate cleanings, and allow for remote access, as well as control technologies such as thermostats, noise sensors and wifi. Using the tools available will allow for hosts at Airbnb, Vrbo (HomeAway), etc to focus more on customer service and offering a memorable experience, then on the day to day management of their rental property. Some PMS’ also offer a virtual concierge to answer common questions, and automated reminders for guests.

Outside of the ease of allowing access and speeding up the processes of booking and checking in, this automation also offers peace of mind to travellers. There is less physical contact, more distancing, and guests can feel safe that their hosts, big or small, are managing the property to best suit their needs.

Managing Reputations and Reviews

A hotel, Airbnb, or resort’s success can hinge on a single review. Guests are never shy about being vocal with their opinions with their place to stay, whether it’s through online reviews, comments or photos. Most of these live on social media; Instagram, Facebook, Yelp and TripAdvisor. Therefore, hotels and Airbnb’s need to be proactive in reaching out to build relationships with their guests. This is how you build trust with the travelling community.

Hotels, resorts and STRs need to be where their guests are. For example, one of the largest growing segments of travellers are Millennials. They’re adept at social media and share their experiences with their followers, via their social channels constantly. The hospitality industry needs to be in the same spaces they are to promote their upgraded rooms, technologies, and cleaning procedures, and follow hashtags and mentions to address comments and reviews to manage their reputation.

Something like this is easier with a booking platform like booking.com or Airbnb, and it’s also good for a hospitality partner to leave reviews about guests as well, if possible. Having a solid PMS system can help with ensuring that your reviews are timely, and that guests are reminded to leave one as well.

Short Term Rentals Have an Advantage

When the pandemic hit, it looked like Airbnb and other short term rentals were on the ropes. While the companies themselves were managing fine due to cash infusions and reserves, the individual hosts had no plan B; their properties were sitting vacant, and they had mortgages to pay. In key US markets, revenue was down more than 50% according to AirDNA, and even Airbnb, who has the monopoly on the US vacation rental market, had to lay off staff. But that only made them hungrier. You see, Airbnb isn’t just a STR company, but a tech company. They understood the environment, had copious amounts of data, and were nimble enough to see that they were uniquely positioned to come out of this on top.

They saw that cleanliness was going to be an obvious concern for travellers. While both hotels and STRs have been diligent about their sanitation protocols as of late, individual hosts on Airbnb and Vrbo have taken the additional step in their descriptions to share how they’re specifically addressing their guest’s need for a disinfected home. Airbnb as well, has implemented specific cleaning protocols that hosts need to adhere to, to get a specific certification on their profile. In fact, it’s fairly obvious that short-term rentals seem to have the advantage moving forward, as they offer less crowded indoor spaces, with less potential to interact with other unfamiliar guests. They’re also easier to outfit with smart home technology to streamline and accentuate their stay.

Also, the diversity of the rental market’s types and locations, also work in its favour to allow for more control over the environment that guests are in. In fact, after a dip in reservations, it seemed like cooped up travellers were ready to take the chance again. In late May, Airbnb’s bookings increased by over 20% from the previous May, for both driving-distance getaways and some further afield. They even offered the perfect place for front-line workers and support staff to have an isolated place to avoid potentially infecting their families.

Finally, there still is the issue of individual hosts and maintaining their income. While some markets have bounced back, and Airbnb hosts with less than 2 properties did get some relief from the company to recoup lost reservations, there’s still uncertainty. Many hosts have looked to transition their short term rentals into mid-to-long term rentals to offer hosts more stability, and guests more options for their stay. Others are offering deeper discounts to entice guests to travel to new markets and destinations.

Personalizing a Guest’s Experience

Travellers are a savvy bunch, and they want more from a vacation experience than just a place to rest their heads. They want perks, benefits, and a personalized experience. Hence, why hotel chains have rolled out and upgraded their membership and loyalty programs such as Marriott Bonvoy and Starwood Preferred Guest, Airbnb has implemented their Superguest program, and banks and credit card companies have travel reward partners. With all of these, travellers can collect points/miles, redeem for perks, get elite status, and have a profile in which their bookings, preferences, etc. can be stored and implemented. But with all of the data that these programs are asking from travellers, they should be giving back more.

Hotels, STR’s and hosts are sitting on information they can use to entice travellers back and offer them a unique and personalized experience. Whether it’s from their rewards profiles, or information gathered in their PMS and CMS systems, there’s a wealth of insights to be found and applied. This should be more than a blanket update to all members, but an individual note to a traveller that recognizes their preferences, and offers something more the next time they book – be it a credit for a free night, discounted tickets to a local event, or even in the case of an Airbnb host, maybe a meal on the house.

For example, let’s say, as a host in Austin, TX, you’ve learned that your guests have never been to the city, and have asked you, or other hosts questions prior to checking in, about the specific foods and restaurants they shouldn’t miss. Why not send them some food as a welcome, perhaps something from Torchy’s Tacos? It costs you a bit of money, but wins you, at the least, a rave review, and at the best, a lifelong returning guest. Or, from a travel rewards perspective, if a guest uses a travel rewards credit card at a particular store consistently, send them a discount to said store. Guests just want to know that their hospitality partners are looking out for them.

Ending the year off strong

The remainder of 2020 presents a unique opportunity for the hospitality industry, and particularly the short-term rental (STR) sector, to redefine its approach with a renewed focus on guest experience. As the travel landscape evolves in response to new health and safety concerns, there is a significant opportunity to shift toward a more guest-centric model. This shift involves not only understanding and adapting to the new travel climate but also demonstrating a steadfast commitment to providing a safe, clean, and sanitized environment for guests.

The demand for global travel remains strong, driven by an inherent desire for exploration and escape that persists despite current challenges. To capitalize on this, STR hosts must prioritize meticulous attention to detail in every aspect of their operations. By proactively addressing safety concerns, enhancing cleanliness protocols, and ensuring overall guest comfort, properties can position themselves as trusted and attractive options for travelers.

Effective communication and transparency about health and safety measures will be crucial in reassuring guests and building confidence in your property. Implementing rigorous cleaning protocols, offering flexible booking options, and providing clear, updated information about local regulations and safety practices can make a significant difference in guest perceptions and bookings.

In this critical period, the attention to detail will distinguish successful properties from those that fall short. It won’t take much to draw travelers back through your doors, but consistently meeting and exceeding expectations will be the key to a successful rebound.

Fortunately for hosts, Enso Connect is here to help with those crucial details. Our services are designed to support you in navigating these challenges and ensuring that your property stands out in a competitive market. From optimizing health and safety protocols to enhancing guest communication and experience, Enso Connect is dedicated to helping you achieve excellence in every aspect of your vacation rental management. Let us handle the intricacies so you can focus on providing exceptional experiences for your guests.

How we travel and where we stay has undergone a fundamental shift over the past decade, and even more so in the past year. The rise of platforms like Airbnb and other short-term rental services has dramatically altered the landscape of the hospitality industry. This shift, combined with changes in decision-making and purchasing power, as well as evolving expectations for travel experiences, has set a new standard for what hospitality should look like.

Travelers now seek unique, personalized experiences that go beyond traditional hotel offerings. They want accommodations that reflect their preferences, provide convenience, and offer a sense of home away from home. This shift has not only changed the way properties are marketed but also how they are managed and operated.

As we look to the future, it’s clear that the process of adapting to these changes is fluid. What travelers and renters desire today may evolve rapidly, influenced by emerging trends, technological advancements, and shifting cultural norms. To remain competitive and continue meeting these evolving demands, the hospitality industry must stay agile, embrace innovation, and anticipate future needs. The ability to adapt to these changes will be key in delivering exceptional experiences and maintaining relevance in an ever-changing market.

Transitioning Short Term Stays to Longer Term Stays

In April of this year, Airbnb announced that they were introducing new features aimed at longer-term stays, as they’ve identified this as a growing segment of their business. Coupled with the COVID-19 pandemic, short let stays are becoming less and less popular. In previous years, Airbnb was open to hosts offering longer durations, but it wasn’t a core feature of their business and was done on a case-by-case basis. In 2019, however, they found that one in every seven nights booked was for a longer term stay. So, they started to really look at their booking data.

Analyzing their reservation data from earlier this year, they found that just in the last 2 weeks of March 2020, they saw the number of guests booking longer-term stays in their own cities nearly double, while 80% of their hosts were open to accepting longer-term stays. As well, as many as half of the company’s active listings provided discounts for stays of one month or longer.

Hence, a needed pivot in strategy. Now over 1 million listings offer monthly stays, with key amenities such as full kitchens, laundry facilities, keyless entry, and WiFi. While it seems like the rest of the hospitality industry took a hit with the COVID-19 pandemic, and to a certain extent the disruption in travel did impact everyone, Airbnb found that essential workers and healthcare workers needed to find places to stay in their own cities, and contributed to the growth of long term rentals. As Airbnb started to popularize this, other booking sites such as VRBO followed.

But it’s more than just people finding places to self-quarantine. Airbnb is seeing more students, doctors and nurses in residency, as well as people in long-term work assignments, choosing to convert a short rental into a 6-9 month stay. Already this year, Airbnb has seen bookings for more than 600 consecutive days, with the longest being 700 days so far. These rentals offer the comforts of home, and a feeling of normalcy for dislocated travelers, as compared to the traditional trappings of a hotel or typical rental apartment. With one or two rental ‘perks’ such as an automated cleaning service and an invested host a quick text or email away.

Millennials are the Future and They Want Unique Experiences

As of 2019, Millennials have overtaken Baby Boomers in the US workforce, with the global workforce not too far behind. This is the group that will be in charge well until 2034, at which point they’ll concede the floor to Gen Z. When it comes down to which group travels more, Boomers vs. Millennials, the answer goes contrary to logic. Baby Boomers might be entering retirement and have more time and savings, but Millennials, despite the poor job markets and lack of savings, tend to travel more than any other generational group – averaging 35 days a year. So while neither group can be ignored, and the only way the hospitality and short term rental industry can thrive, is to evolve to cater to the next generations. So what does that mean?

Millennials are looking for experiences and to get the most from their trip. They want to spend their money on things that are convenient, comfortable and exciting. They aren’t focused on what they’re getting from the vacation, but how it makes them feel and the value it will add to their lives. They want mom and pop restaurants over national chains, they want to get off the beaten track and do something that’s never been done before, and they don’t want to get bogged down in the minutiae of travel. They also want social proof that their experience has merit.

This is a social generation. Everything is documented and done on their phones and through social media. This is how they plan events, communicate and build relationships. They also share their opinions and recommendations on social media. So if a hospitality business wants to be a part of the travel plans, they need to be where they are. Catering to millennial travellers means you’re an active part of the conversation. You’re monitoring your star ratings, you have up to date reviews, and are reviewing guests and addressing any negative comments that come your way. But it’s also important to be present and social during the reservation.

Millennials want that next level of hospitality. They have questions, and they’d like answers. They want a seamless experience of booking, room/property access, activity recommendations, and smart technology to take away any guesswork in how to control the temperature, use the entertainment system, or access the WiFi. They want an automated rental that takes care of everything. That is an experience worth paying for and talking about.

Old Threats and New Inspirations

Airbnb has over 6 million rooms, apartments and homes in over 81,000 cities across the globe. On average, 2 million people are in an Airbnb each night. This doesn’t include other OTA’s and booking sites. But it hasn’t been an easy road for any short term rental agency. Many markets all over the world have cracked down with rules and restrictions, forcing short term rental agencies, as well as hotels, to get creative.

For example, Paris is one of Airbnb’s largest markets with over 65,000+ listings in town. In 2018, the city cracked down on the rentals; telling hosts that they have to register with the city government and can only list their homes for 120 nights per year. In Japan, nearly 80% of the country’s Airbnb’s were pulled off the site that same year, due to home sharing laws and fire safety standards for hospitality.

But the company didn’t take this lying down. Instead, they partnered with the real estate industry, offered a revenue share and launched the Airbnb Friendly Building Program in the US, while also building a fleet of NYC apartment-style luxury hotel suites exclusively for Airbnb guests in 2019. In France, Airbnb partnered with real estate company Century 21 to offer renters Airbnb-friendly leases. What this accomplished was changing the paradigm of what the short term rental industry is. Now, rooms, apartments and even some full homes are specifically built to be monetized as short term rentals in the Airbnb mold. Moving into 2021, this evolution is only set to grow globally. As well, to combat some of the biggest challenges and pain points that property managers, homeowners and cities face with short term and vacation rentals, Airbnb and other companies have implemented “party prevention” policies and technologies to ensure that those that book via their portal are upstanding, quiet, and are well-reviewed. Some markets have instituted age limits – no one under 25 can book an Airbnb in Toronto, for example. In other markets, they have offered discounts for hosts to purchase noise sensors that gauge, but not record, sounds. Moving into next year and beyond, these sites will only find themselves becoming more responsible about who’s using their inventory.

Hotels Making a Strategy Pivot

Understandably, this has the hotel and hospitality industry in an uproar. Traditionally, hotels weren’t able to play in the same space of having an online marketplace, cheap rates and unique venues. On top of that, hotels are subject to regulations and fees that Airbnb wasn’t paying, and stealing away up to 42% of their guests, according to a Morgan Stanley report. As Airbnb keeps on pivoting to meet challenges head-on, the hotel industry has been panicking.

This has pushed hoteliers and property managers towards better practices, such as finding unique and creative properties that are different from the traditional hotel experience. Something like the Marriott Moxy concept that’s more of an uber chic, boutique hostel, and is driven by the Marriot Bonvoy app for booking, checking in, and unlocking your room. Marriott also launched their Homes & Villas program midway through 2019, offering over 2,000 premium and luxury homes globally. Other hotel chains are looking to follow. Those that don’t want to enter the rental market, have dedicated themselves to updating and renovating their existing spaces, to appeal to new markets and travellers. Investing in keyless entry and mobile technology, as well as upgrading entertainment options, the future of hotels and hospitality is looking to rebound among travellers.

Moving into the end of 2020 and beyond, home-sharing isn’t going to go anywhere, and neither is the hospitality industry. Especially not after 2020’s impact on global travel. While there’ll be an influx in travel once the world is opened fully, it bears repeating that travellers are savvy, technologically driven, and want the best possible experience that their host can offer. Now, more than ever, it’s time to step up.