Things have changed dramatically for the vacation industry and there is a year-year increase in the number of people booking vacation rental properties. According to this study, the vacation rental industry is expected to grow at a rate of 7.07% per year until 2021. Just like in any industry, the vacation rental industry is continuously changing.
Airbnb’s growth is at staggering rates with over 150 million itself is an indication that the vacation industry has grown into a massive industry. If you are a vacation rental business looking to continuously improve your property management to enhance the guest experience, it is important to know these 7 technological transformations in the vacation industry to thrive in the competitive industry.
The emergence of vacation rental booking platforms
A couple of decades ago, booking a rental property was hard. You either had to call up the providers directly to book rooms or contact through a reservation agent to make bookings. But today, modern technological advancements have made it possible for people to book vacation rentals in an easy and convenient manner. Vacation rentals platforms are a large community of vacation rental hosts that make it easy for property owners to create their listings and for travelers to book vacation rentals effortlessly. This growth of vacation rental platforms is expected to continue as the travel websites have started displaying vacation rentals in their search results. With this change, the vacation rental industry will have brand new business opportunities.
Traveler expectations are evolving
While this really is not a technological transformation, the evolution of traveler expectation has given rise to many significant technological advancements. Different generations crave different services when it comes to booking vacation homes. These days, millennials travelers prefer taking short and spontaneous trips and booking such trips is much easier and affordable with vacation rental platforms. Millennials constitute over half of vacation travels who expect a simple and instant booking process. If you are running a vacation rental business, ensure that your properties are listed in vacation rental platforms and offer instant booking. The demand for vacation rental websites among the new generation will grow as mobile technology continues to evolve.
The new generation is becoming increasingly comfortable with the online processes and modern technology that facilitates it. They look for memorable moments, unique travel experiences, and little extras to make their vacation memorable. Additionally, to ensure that their expectations are met, today’s travelers are indulging in more online research and reading and posting reviews to rate service providers. Today’s travelers also expect high-quality listings on vacation rental platforms like Airbnb. They like to see high quality, real pictures that make them feel like this is exactly the vacation rental they have been searching for. Young travelers are now comfortable with a simple check-in process and expect technology and connectivity through from booking to checkout.
The efficiency of processing bookings
Efficiency and speed of booking are significant for both travelers and vacation property owners as it allows them to scale their business as they expand their user base. With an increase in travelers seeking vacation rentals, it becomes important for property owners to track booking requests, reservations, guests to check-in, and process payments. Vacation rental platforms allow property owners to facilitate instant bookings, automate payment processing, and manage everything connected with booking and reservation with ease.
Data processing makes the difference
The right data can answer complex questions and makes the business process simple and efficient. If you want to know whether you are pricing your vacation rental correctly, or when it is time to increase your minimum stay requirements or to modify your check-in checkout times, data can tell you clearly. Vacation rental platforms give you a lot of information about booking, guest experiences, and a lot more so that you that tweak your offerings to deliver the best customer experience.
Subscription pricing gave way to transaction pricing
The days when property owners had to pay a subscription fee to list their properties are gone. The industry has come a long way from the subscription pricing pattern to the transaction pricing structure where property providers can create their listings on the vacation rental platforms for free. In the transaction pricing model, both hosts and guests have to pay a commission fee on every booking made.
Although vacation rental platforms take a share from booking profits, a lot of that money is used to attract more users and thereby drive more traffic to the platform. This pricing model also allows property owners to list their properties on multiple platforms as they don’t charge until booking is confirmed. In this way, property owners gain more exposure and have to pay at the time of completing a booking.
Efficient ways to avoid double bookings
Earlier when property owners received a booking request, they had to manually update their schedule and availability on each listing business website to avoid double bookings and last-minute cancellations. Today, vacation rental platforms centralize all bookings and allow property managers to manage their bookings from a single place. The rental platform also features robust API connections and synchronize calendars automatically eradicating even the smallest chance of double bookings.
Influence of Blockchain technology
Blockchain technology is positively influencing the vacation rental industry and offering immense opportunity for industry players. Vacation rentals on a Blockchain will allow guests to easily check the credibility of a host and the other way around as well. Even with all technological advancements, verification issues are still a problem as both users can create fraudulent accounts. But, with Blockchain technology, all user actions will be clearly recorded that helps in establishing trustworthiness.
Considering the fact that the Blockchain system is decentralized, the information within the system will be more transparent, trackable, and secure. Finally, Blockchain technology efficiently simplifies payment processing using cryptocurrencies. Being a global ledger, Blockchain technology also reduces the difficulties in billing and online transactions with credit cards. Additionally, Blockchain can also assist vacation rental platforms with managing loyalty programs allowing users to receive more profitable offers and deals.
Growth in the vacation rental industry has given rise to the myriads of technology solutions. Property owners around the world have started using vacation rental platforms and custom software to streamline their booking operations, marketing, guest communication, and other business processes. In short, both hosts and guests must adapt to technological advancements in the vacation rental industry to keep up with the competition and grow their business.