How to Build Your Tech Stack For Vacation Rental Managers
Choosing the right technology can feel like solving a complex puzzle. Each piece promises to be the one that completes the picture. The modern vacation rental manager is facing an overwhelming array of choices, offering to streamline operations, enhance experience, or boost bookings. The graph below, created by AJL Atelier in January 2023, vividly illustrates the fragmentation of the short-term rental technology landscape.
November 15, 2023
What tools in a vacation rental tech stack do you need to successfully run a short-term rental property?
Well, successful vacation rental management includes:
Excellent customer service, for both guests and owners
Efficient operational processes
Clear communication
Effective marketing strategies
Dynamic pricing strategies
Regular property maintenance
Adherence to legal compliance
Accurate accounting and financial management, and more.
While it sounds like a lot, with skilled teams and the right digital tools it’s definitely achievable. But what technologies are even out there, and is there one system that can power them all?
Choosing the right technology can feel like solving a complex puzzle. Each piece promises to be the one that completes the picture. The modern vacation rental manager is facing an overwhelming array of choices, offering to streamline operations, enhance experience, or boost bookings. The graph below, created by AJL Atelier in January 2023, vividly illustrates the fragmentation of the short-term rental technology landscape.
The graph’s quadrants are crowded with logos, each representing a solution, showing the complexity of the tech options available. The variety of Property Management Systems (PMS), Distribution Channels, Operational Tools, and Guest Experience Enhancers is innovative but also overwhelming. The challenge is: How do YOU choose the right combination of tools that fit together and propel YOUR business forward?
In this blog we will try to simplify the complex world of short-term rental technology. We’ll explore the nuances that make different services a better fit for one business rather than the others. The goal is to navigate this complex map, choosing tech that fits your business, leading to smooth and profitable operations. Join us as we decode the Short-Term Rental Technology Landscape, and add some clarity into building a hospitality tech stack.
We’ve listed the most popular options in each category, but we knowledge that there are more out there. We suggest doing your own research and also recommend Wheelhouse’s vacation rental tech review as additional source of information.
How to Build Your Tech Stack For Vacation Rental Managers
A robust tech stack is essential for vacation rental managers to become successful in their roles. There are different opinions on whether all-in-one tech solutions exist in the vacation rental industry. There is also a debate about existing all-in-one solutions solving the hospitality tech fragmentation issue. Most short-term rental managers and owners agree: as their business grows, so does the complexity of their needs and operations.
FAQ:
What is a Vacation Rental Tech Stack?
A tech stack for vacation rental management is a set of technologies you use in your hospitality business to make your job easier and achieve your goals. These are digital tools and software used together to manage, market, and operate vacation rental properties.This stack can include:
Booking Engines and OTAs
Pricing Tools
Accounting Tools
Payment Platforms
Internal Communication and Project Management Tools
The aim is to efficiently organize operations, make guests happier, and maximize revenue through efficient management and targeted marketing efforts. Automating common tasks like booking, check-ins, and maintenance scheduling saves time and minimizes mistakes. Tech stacks collect valuable data for a better understanding of business performance and guest preferences, helping make informed decisions for properties and guests.
"A tech stack is the family of software, used to run every aspect of your short-term rental business effectively. And if we are looking at what property manager needs to do, it's everything from making sure that guests are welcome, getting them to the front door, to distribute the property across different market places, etc. So we are talking about the rage of products that you might employ to run or scale your business.
Just a decade ago almost everything in the industry was done manually. And now we live in a world, when travellers are looking for a place to stay on their mobile and want see 300 photos before they make a decision. And all of a sudden there is an opportunity in this fast moving complicated world to leverage technology for the better. So builders in the industry started asking: what problems are you looking to solve? And they developed solutions, leading to more effective vacation rental businesses. Consequently, major players like Vacasa and VTrips have emerged, with increasing numbers of operators turning to technology for efficiency and expansion."
Andrew Kitchell, CEO and Founder of Wheelhouse | Passionate About Helping Entrepreneurs & Builders
Why Do Vacation Rental Businesses Need Tailored Tech Stacks?
Finding one software that solves all your hospitality business needs is challenging. Every short-term rental business is unique, with it’s specific operations, market nuances and target audiences. Custom tech stacks can evolve with the business, ensuring scalability and adaptability. They ensure better integration with various tools and platforms already used by the business.Tailored technology solutions can better support targeted marketing strategies and efficient distribution across various booking platforms. They can be more cost-effective in the long run, as they are designed to meet specific needs without unnecessary features.
Which Manual Tasks Can Be Automated With Technology in Short-Term Rentals?
When a property manager grows beyond 3-5 listings, there is a need for software that helps automating main task. The main tasks that can and should be automated for efficiency and better guest experience are:
Listings Distribution
Booking and Reservations
Guest Communication
Pricing Adjustments
Guest Screening
Check-In/Check-Out Processes
Access Management
Upselling
Maintenance and Housekeeping
Review Requests and Management and more.
Automation not only saves time but also reduces errors, enhances guest satisfaction, and ultimately, could lead to increased revenue. By automating routine operations, property operators free up the time to focus on more strategic aspects of their business.
What Technology Do I Need In My Hospitality Business Today?
“Every software decision you make, should be guided by whether it saves time, increases profit, or makes a greater impact”, says Andrew Kitchell, CEO of Wheelhouse and an experienced industry expert.
When property managers start with a couple of properties, they might not need complex systems at first place. However with growth and professionalization of the business comes the need to employ technology that will be a foundation for further expansion.
There are property management systems that cater to operators under 5 listings, like Guesty for Hosts. Those, growing beyond 10 will have different needs and will be researching other PMS options.Professional hospitality businesses aim to diversify distribution by advertising properties across various listing platforms, like Airbnb, VRBO, etc. To do this at scale you’ll need a channel manager.
Many PMS vendors have channel manager functionality included.There is a growing trend of driving direct bookings, and operators are investing in their own websites. Terry Whyte, aka Vacation Rental Software Guy advices property managers to get their website off property management platform.
Additionally, businesses focusing on profitability will benefit from using revenue management software for optimizing revenue and occupancy.
It is also worth to think through the hardware you are bringing in your tech stack from the very beginning. For example starting with smart locks that can easily integrate with other systems is important. Otherwise this can limit your growth and cause issues in the future.
How does Enso Connect make managing vacation rentals easier?
Enso Connect streamlines the vacation rental management process by offering an all-in-one guest experience platform that integrates with property management software and major OTA, Airbnb. It features a unified inbox for all guest communications, automated check-ins and check-outs through smart lock connectivity and personalized guest journeys.
How does EnsoAI’s messaging automation work to improve guest communication?
Enso Connect’s AI messaging utilizes machine learning to provide timely and personalized communication with guests. It can automate responses to common inquiries, confirm bookings, and provide guests with essential information like check-in instructions or local recommendations. Custom automation allows property managers to set up specific triggers for messages, ensuring guests receive the right information at the right time.
How does Enso Connect handle guest verification and security?
Enso Connect handles guest verification and security by offering a white-labelled guest verification process that can be customized according to the property manager’s requirements. This process ensures that guests are who they say they are, adding a layer of security to the booking process. Additionally, the platform supports the management of security deposits and damage waivers to protect property owners from potential losses due to guest actions.
How does Enso Connect elevate the guest experience?
Enso Connect enhances the guest experience by providing a range of features designed to make their stay more convenient and personalized. Guests can benefit from contactless access, AI-driven messaging for instant support, digital guidebooks with property and local area information, and the ability to easily purchase upsells and additional services through the platform. These features contribute to a seamless, comfortable, and memorable stay for guests.
What can Enso Connect automate for rental property managers?
With Enso Connect, you can expect automation in various aspects of managing your rental property. This includes automated guest communications, contactless check-ins and check-outs via smart locks, scheduling of maintenance and cleaning through digital coordination, and the ability to offer and manage upsells and additional services. These automated processes help to save time, reduce errors, and improve guest satisfaction.
Proof: Case Study of the Power of the Right Tech Stack
Grew the business from 5 to 180 in 3 years
Minty Living combined extended stay and traditional Airbnb models in Atlanta, growing from 5 to 180 units in three years. They build a great connection to film and production industry in Atlanta.
Growth: Remarkable 3500% growth, adding 3-5 units monthly.
Customer Satisfaction: Achieved a 77% Net Promoter Score and a 4.5-star rating on Google from 200 reviews.
Performance Metrics: Reported a 20% increase in Revenue per Available Room (Rep PAR), with an 80% occupancy rate.
Direct Bookings: Secured 70% direct bookings, mainly from the film and production industry in Atlanta.
Industry Recognition: Awarded “Best Urban Operator” at The Shortyz Awards 2023.
Minty Living’s unique model and focused growth strategy led to significant success in urban hospitality, demonstrating the power of innovative approaches in a competitive market.
