The importance of knowing your customers
An owner’s attention to the guest experience at their home is vital to the success of managing a short-term rental (STR) these days.
No longer is it adequate to simply provide a roof over someone’s head. Stiff competition and increasingly more demanding vacationers require hosts to do whatever they can to assure the happiness of their guests.
Meeting the needs and expectations of guests results in great guest reviews, more repeat guests, and the ability to get top dollar for your home. It also avoids contention, negative reviews, and even complaints.
Times change, and so do vacationers
For a long time, vacationers have expected two basic standards from short-term rentals: cleanliness and proper functionality. However, in recent years, particularly after the pandemic, these expectations have shifted. Driven by concerns over Covid-19, travelers now have a heightened awareness of cleanliness. Additionally, as rental prices have increased substantially compared to just a few years ago, guests are now seeking even higher standards in the properties they choose.
But more recently, and particularly since the start of the pandemic, general attitudes and expectations have evolved. Propelled by fears of Covid, vacationers have a heightened sensitivity to cleanliness. They are also paying considerably more for rentals than they did even a few years ago, and their expectations of the vacation home have risen significantly as a result.
What we learned from our Vacationer Survey
Curious to know the make-up of the current vacationer market, we asked over 2,000 survey takers about their vacationing habits.
Nearly 70% of respondents visit the Cape or Islands at least once a year. It’s a way of life, part of the fabric of their lives, a tradition that they likely started when they were children.
In addition, the pandemic converted many vacationers who had previously stayed only in hotels or inns. In fact, 12% of those surveyed had never rented a STR anywhere prior to the pandemic. Being new to the industry, they were used to a hotel or resort-type experience (cleanliness, lack of clutter, a guide to the area, almost concierge-type service, etc.)
Facilitating the booking process
In the survey, vacationers made it very clear that it was important for them to be able to communicate directly with the owner prior to booking. By phone, email, text, they feel safer and more comfortable having direct access to you.
But they don’t want to waste a lot of time and energy with the booking process. They expect:
- Up-to-date calendars
- Transparent pricing (no hidden fees!)
- The ability to pay electronically
Enter your pricing and availability for next year in the fall
Despite the trend towards a significant increase in early bookings for the following seasons, owners often tell us in the fall that they are not ready to enter pricing and availability for the following summer. Updating your calendar early helps you stay ahead of the competition and gives potential guests a chance to book early, locking in reservations for the next season. Many travelers prefer to plan their summer vacations well in advance, and by having your calendar open, you increase the likelihood of securing early bookings and maximizing occupancy rates.
Responding to inquiries promptly
Your response time plays a critical role in securing bookings. Vacationers often consider multiple properties, and, whether they're ready to book or just browsing, you have their attention. If you don't respond quickly, you risk frustrating potential guests and losing their trust, which can ultimately lead to missed opportunities.
This was born out in our vacationer survey in which virtually all respondents indicated that prompt responses to their inquiries are either Very Important (86%) or Somewhat Important (13%).
Many owners complain that sometimes when they respond to inquiries, they hear nothing back from the vacationer. Unfortunately, that happens. But your best option is to respond promptly and then look to see if they provided a phone number to call/text.
The dilemma of how to handle repeat guests
A number of owners hesitate to open their calendars because they are waiting for commitments from past guests. But how long should you give them to book? While you certainly don't want to lose a repeat guest, you may miss out on new ones by waiting until December or January.
So, you have to consider this: How much is a repeat guest worth to you? You don't have to treat all guests the same - someone who has stayed with you for 2+ years is more likely to return than someone who rented your home this past summer.
The importance of good communication
When asked to rate the host services they appreciate in a rental, vacationers responded that contact from the homeowner prior to arrival (72%), receiving a Welcome Book/Info (71%), general communications (86%), and clear check-out instructions (92%) were all very important to them.
Vacationers want to know you are accessible to them. They want to know where things are and how they work in your home, and they want you to be clear about what’s expected of them.
What part of a listing most impacts vacationers' choice of rentals?
Vacationers were asked to prioritize various aspects of a listing based on how much each factor influences their decision to inquire about a rental.
- The first item, Good & accurate pictures, was rated the MOST important (91%). Only 8% said Somewhat important, and less than 1% said Not important.
- Good pictures and informative Property Descriptions both had highly weighted responses.
- While only 45% said having plenty of guest reviews was Very important, as many as 52% said Somewhat important, and only 3% said Not important.
- Ability to pay online: 39% Very important, 41% Somewhat important, and only 21% Not important.
Vacationers demand transparent pricing
A common question from vacationers when inquiring about a home is, “What is the full cost including fees?”
No one likes to feel like they’re getting taken advantage of. Costs, even if optional or refundable, should be stated up front on your listing.
Also, lengthy check-out procedures on top of extra fees can be very frustrating for your guests.
Take trash to the dump?! Not exactly the vacation experience one would hope for. (Another rental outside the Cape made headlines by requiring the lawn to be mowed by the guest!)
Ability to pay electronically
Most vacationers surveyed said that the ability to pay an owner electronically is either very or somewhat important to them.
Online payments for booking are efficient and convenient for both vacationers and owners. Within a few minutes, guests can secure their rental, and homeowners gain bookings without having to wait for a check.
Most of your competition does allow for online payments:
The most popular amenities and the number of homes that offer them
Below are the top 12 most popular amenities found in Searches on our site. The column on the right lists the percentages of homes on our site that offer each amenity.
As you can see, pet-friendly homes are in demand, but only 24% of rentals allow them. Also, the vast majority of owners provide AC, washer/dryer, Wifi, an outdoor shower, a deck/porch/patio, cable TV/streaming, and a dishwasher – so if you don’t, you are clearly in the minority.
In our Vacationer Survey, over 60% of vacationers indicated they would not rent without some kind of AC, 34% said they would like it, and only 5% said they don’t need it.
The value of first impressions
After cleanliness, a lack of basic supplies and kitchen essentials are among the most bothersome to vacationers. Although they don’t make or break a guest’s stay, it can be frustrating to guests to have to either purchase some items or do without them.
We saw a guest review giving a listing 3 stars, saying, “It would have been 5 but for the lack of supplies.”
As for a well-stocked kitchen, people cook in your home more than you might think, and attention to detail will go a long way with them. They don’t appreciate poor quality knives, for example, or hand-me-down utensils and mismatched plates and glasses.
Tips to improve your guests’ experience
Perhaps you can identify adjustments you can make to your management practices such as:
- Live in your rental, experience it as a renter would or solicit honest feedback from a family/friend who stays. Do all the lightbulbs work? Are the overhead light globes clean? If the power went out, would you know where to find a flashlight? Are the knives sharp? Are there ample hangers?
- Paying attention to detail will show guests you care for your home and their stay.
- Review your communication plans and find ways to make it easier for yourself. Use templates and a reliable booking management system.
Keys to successful rental management
Being aware of what vacationers care about enables you to market your home to those tastes and attract as many vacationers as possible. Offer a thorough and up-to-date listing, including transparency in your pricing and what’s included, and create a smooth and efficient booking process. And finally, provide a well-maintained and provisioned home, great communication, and thoughtful attention to detail to award your guests a top-notch experience while they’re in your home.