Adapting to the 2023 Surge in Short-Term Rentals: Standing Out in a Saturated STR Market
In a recent Vacation Rental Management Association (VRMA) webinar, AirDNA economists shared that the 2023 short-term rental market witnessed a significant resurgence, closely aligning with pre-COVID trends, particularly due to unexpected increases this past Fall. The period from February to July was marked by the addition of approximately 340,000 new listings, followed by another 300,000 by year's end. This influx underscores the necessity for investors and managers to adopt more focused and strategic marketing efforts to maintain high occupancy rates.
I’m Brooke Larson, the Founder of Host’s Haven Marketing – tailor-made solutions, specifically crafted to meet the unique challenges and dynamics of the short-term rental industry. I offer a unique blend of expertise with over 10 years in brand, strategy, and digital marketing, along with hands-on experience in the short-term rental sector as a successful property manager. My dual expertise allows me to understand and leverage the specific opportunities and strategies essential for generating revenue, boosting occupancy rates, and building a scalable and prosperous business for my clients.
Research: The Backbone of a Strong Marketing Strategy
Embarking on your marketing journey begins with a critical step: research. This is the very foundation of your success, essential for acquiring a comprehensive understanding of your market, target audiences, and primary competitors in your area. This depth of knowledge is the underpinning of all your subsequent marketing efforts. From the start, there are three key types of short-term rental market research you should focus on:
· Market Data Research
· Direct Competitor Research
· Target Audience Research
I recommend starting your research with short-term rental analytics tools such as AirDNA, Airbtics, or Rabbu. These platforms enable you to refine your search to your specific market, offering insights into the number of listings, average occupancy rates, nightly costs, and overall revenue in your area. This data provides a solid baseline for what to expect throughout the year.
Next, shift your focus to direct competitors in your area that match your property in terms of maximum occupancy, number of bedrooms, and category (economy, luxury, unique stay). Utilize the same analytics platforms or conduct searches on primary booking platforms like Airbnb, Vrbo, or Booking.com, focusing on listings that appear on the first 1-4 pages. When evaluating competitors, pay close attention to their availability, amenities, listing descriptions, and reviews. Identify those with high occupancy rates, noting what makes them stand out and what guests mention in their reviews.
The final piece of research revolves around your target audience. Understand the reasons people visit your area. Are they predominantly families, couples, solo travelers, business travelers, or nature enthusiasts, etc.? The best way to gather this information is by exploring local travel pages and reading reviews of competitor listings to discern the nature of their visits. Reviews from previous guests are a treasure trove of insights, helping you understand your market better and enabling you to tailor your listing with strategic messaging and amenities to attract the right travelers.
As you delve into the complexities of short-term rental market research, remember that Host's Haven is here to streamline this process for you. We offer a comprehensive Market Insight Accelerator Package, specifically designed to assist investors in gaining a full understanding of their market and competitors. This package is an invaluable resource for those looking to make informed decisions and strategically position their properties.
As you develop a firm understanding of your market and competition in the area, developing strategic messaging and a listing that speaks to your target customer is key. This is a crucial step in distinguishing your property and gaining an edge over competitors in the market. Don't miss out on these insights - subscribe below to stay ahead of marketing insights, tips, and best practices in the ever-evolving world of short-term rentals.
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