Bookings down for your short-term rental? You’re not the only host or investor having that issue. Here’s a look at what’s going on in the vacation rental industry lately — and some actionable things you can do about it.
An empty vacation rental is not a money-making vacation rental. While there are a number of reasons an STR doesn’t get booked—whether it’s a listing that’s not optimized or a poor pricing strategy—the primary challenge right now is an industry-wide one that maybe (just maybe) you’ve been hearing about:
Too much supply.
HOW DID WE GET TO AN OVER-SUPPLY OF SHORT-TERM RENTALS?
Both demand for short-term rentals and supply notably skyrocketed during the pandemic years. More professionals were working remotely and could work from anywhere, leading them to seek out long-term stays in non-urban destinations. Regular short-term stays were on the rise, too, as families and “pods” sought to hunker down together away from home.
But now, in 2023, we’re well into a period where supply is far outpacing demand; supply was up 23% YOY as of last fall. That’s because seemingly everyone—from your neighbor down the street to the proliferating corporate hospitality entities—decided they wanted to capitalize on a then-bearish STR market. Interest rates were low, allowing many to invest in a piece of the action.
DON’T GET PASSED OVER: HOW TO GET YOUR LISTING NOTICED
The good news in all this is that even as demand cools slightly from the pandemic-era surge, it’s still very much there, especially if you’ve invested in (or plan to invest in) a market that isn’t saturated or where supply is constrained. It’s anticipated that occupancy will still reach higher than pre-pandemic levels in 2023.
So how can you stand out from the pack and nab the bookings that are very much there for the taking? If you’ve done the work to ensure your listing isn't buried and you’ve optimized your pricing, and you’re still finding that your place is getting passed over by potential guests, it’s time to look more closely at your actual property and ask yourself a few questions:
Is the design, decor and furnishing cohesive and inviting?
Do I offer the necessary amenities and extras that set my place apart from the other listings?
Does my photography look and feel professional?
Does the place look clean and open?
Am I offering a professionalized guest experience that rivals that of the corporate-owned STRs?
The takeaway is that you should control what you can control. While you can’t limit supply, you can ensure that your space shows up well for guests, both online and in person,
When we’re booking a vacation rental (and we stay in a lot of them), there are some very specific things we look for. If any of the below apply to your place, you can bet we’re not booking it. And other prospective guests are also looking the other way.
Your design aesthetic is “hodge-podge” or is outdated.
No, piling a bunch of Goodwill, yard sale, or Craigslist finds into your space is not a good look, and it’s not going to attract guests. However, it’s still amazing to us how many prospective hosts think cheap-and-fast is the way to go. Prospective guests want more than something to sit on and a place to set their drink. They want to stay somewhere that has a thoughtful, cohesive design. That doesn’t mean you have to spend a ton of money on interior design. It just means you need to make an effort, and maybe even invest a bit in some expert decorating and furnishing help.
You don’t have white bedding.
The most important thing to me when I’m looking to book a short-term rental is a startlingly pristine bed. White bedding gives off clean vibes, and in fact, it must be cleaned after every single guest. You know this and guests know this. But if your bedding isn’t white, it just doesn’t look clean—even if it is. Nobody wants to stay in a bed covered in a quilt or duvet that they suspect doesn’t get washed in the hottest possible water after every stay. If you like color, you can pile on the colorful throw pillows and even a (washable) throw blanket. But by all means, stick to white sheets, white pillowcases for sleeping pillows, and white duvets.
You don’t have enough comfortable beds.
Beds and heads: You’ve heard it before. The more people who can sleep in your rental, the more you can charge. But guests don’t just need a spot to rest their weary selves; they want a blissful night’s sleep. While it’s true that sofa beds, futons, cots and air mattresses add beds, they don’t allow for restful sleep (for most people older than 10, anyway). Setting up dedicated, comfortable sleep spaces for every single guest can go a long way in getting you bookings.
Your kitchen doesn't whet the appetite.
Many guests like being able to cook while staying in a short-term rental, whether for convenience, dietary needs, or to save money. This is especially true if you have long-term guests, guests with kids, or an awesome farmers market down the street. But if your kitchen is light on the right tools and amenities required to whip up something delicious—and you don’t let them know this in photos or your description—then people may not give your property a second look.
It looks like you don’t like kids.
Guests traveling with kiddos are never traveling light, and one of the first things they look for is whether or not you accommodate the littlest guests. Offering certain amenities can lighten the burden on the parents to bring all the things. Consider what types of family-focused amenities you can add to your space to make it more appealing. You might add a pack-and-play (pop-up crib), sippy cups and other kid-friendly dishes, some (sanitized) toys and games, or a kid-friendly snack that greets them upon arrival.
You don’t accommodate pets.
We know that not accommodating pets feels like the safe way to go. You don’t have to worry about Fido chewing on your coffee table or—even worse—unsavory scents in the carpet from pet accidents. But excluding pets from staying at your property means you’re excluding a huge percentage of prospective guests, as well. And if you’re worried about destruction, that’s what your security deposit is for. Worried about the extra cleaning? Charge a bit more to cover it. Most pet owners get it and won’t balk, but will instead hit “book.”
Your photos look unprofessional.
It’s true that mobile phone cameras are better and better, but having the technology in-hand doesn’t magically make you a good photographer. There are many resources online that can teach you how to take bright, well-composed interior photos with your phone. There are also photographers that specialize in capturing all the details of your place that will be attractive to prospective guests.
You’ve made a good attempt at photos, but the content in the photos is lacking.
If you have outdated furnishings and decor, guests can see right through those photo filters and know you’re not focused on guest experience. A filter on a photo is like lipstick on a pig when it comes to vacation rental photography. Don’t use good photography to mask outdated decor. If the actual experience of staying in your place doesn’t match a guest’s expectations, your reviews and future bookings will suffer.
You don’t have a dedicated workspace.
Remote work is here to stay, and more and more people have the go-ahead from their employers to work from anywhere in the world. This means vacation rentals are no longer strictly for vacation, and those who are staying in your place need a quiet, uncluttered spot to get their day jobs done before they go out and explore.
You don’t have the right amenities to accommodate longer stays.
The uptick in remote work doesn’t just mean that more guests will be working while staying at your place, they will also be booking longer stays—but only if you can show you have the amenities and comfort items (think: fully stocked kitchen and laundry room, plenty of towels and blankets, extras like speakers and games) that will inspire them to make your place their home-away-from-home.
