In October 2019, Transparent released the North American Vacation Rental Survey, providing an authoritative picture of the state of the North American vacation rental climate. More than 300 property managers managing a combined 30K properties participated, shedding light on the structure and growth of the market, and technology and operating practices used by different PMs in the industry. This report has given us extensive insight on the growth of the US market.
The vacation rental industry has continued to grow exponentially in recent years. So, how large really is this market, and how can you keep up?
Property Manager Inventory Growth
As more guests steer away from the traditional hotel stay in favour of short-term rental properties, demand in the vacation rental space continues to increase year-on-year.
Property Manager Revenue Growth
How do you ride this wave?
The vacation rental growth trajectory is likely to continue for the foreseeable future, providing huge opportunities for property managers, and technology innovation has played a major role in this growth. One thing VR technology has given us for the first time is a window into the short-term rental industry and strategy; through data. It is important to understand your performance and your market and strategize accordingly, and comprehensive data plays a huge role.
Do you have an inventory development strategy?
Data on supply, rates and occupancy can provide insight into the best stock types and markets for vacation rental acquisition. You must delve deeper than just looking at where to buy your properties. What type of properties are booked most often? What type of properties achieve the highest return on their value?
We can even use data to analyse which specific locations or amenities are most desired. All of this can help in selecting the most profitable stock.
Do you have a revenue management strategy?
Revenue growth is still on the rise as property managers are becoming more informed and proactive with revenue management. Your strategy should be based on selling your property to the right person at the right time for the right price. Data can also help you to tread the tightrope of maximized rates and maximized occupancy by keeping you up to speed on market trends. Further, it can help paint a picture of the most effective distribution and marketing strategies throughout your inventory.
Without data, property managers are forced to base their decisions on estimates and indirect or limited information, which is both unsustainable and time-consuming. Utilizing a market intelligence platform such as Transparent provides ready and extensive market data for you to gauge your performance, track competitors, align rates, inform distribution and monitor demand and supply, allowing you to maximise revenue by aligning strategy with reality. It allows you to proactively make adjustments to optimise your strategy through fluctuating market conditions, before your competition.
If you want to learn more…