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Dave Collier, Chief Revenue Officer, OTA Insights, HSMAI Revenue Optimization Advisory Board Member
I recently presented data on how short-term rentals (STR) fit into the market to the HSMAI Revenue Optimization Advisory Board. We discussed how the role of STRs has changed post pandemic.
Data
More of the STR inventory is becoming professionalized, so the experience for consumers is closer to that of a hotel. Some hotel brands are also dabbling in the space. Below are some of the key points I shared.
Professionally managed STR properties are now 71% of hosts.
In some locations the inventory of STRs is at or above the inventory of hotels.
The professional operators have seen a larger share of the revenue growth for STRs.
As STRs are professionalized, more advanced technology such as property management systems are adopted.
Key Takeaways from our Discussion:
- Many times, the markets are different between those seeking hotels and those seeking STRs. This can be generational preferences but is mostly situational. Business and short-term travelers generally prefer hotels, while longer term and larger groups often prefer STRs.
- STR cleaning and other hidden fees are making hotels more competitive. Legislation that requires hotels to have transparent pricing doesn’t apply to STRs, making the STRs more of a risk for consumers.
- Many consumers appreciate the standards in cleaning, service, fire, and other safety measures that hotels offer over the largely unregulated STR space.