👋 Welcome to all of the new subscribers who have joined us over the last week.

In this weeks newsletter you will:

• Gain some great tips from two experienced property managers on how to grow repeat bookings

• See the health of the STR industry with the latest STR Index numbers

• Read what the Welsh Tourism Alliance is doing to refocus views on the impact of second homes

See you next Saturday at 5pm?

Phil

Founder, My Holiday Guide

IN THE NEWS

STR Index

Since reporting last month, the STR Index has fallen from 18 to 15. The current index score probably doesn’t surprise most and represents the general state of performance within the sector (see our summary from Lodgify in this newsletter).

So you may be wondering how you can improve the performance of your STR? Read on to find some great tips from some experienced property managers.

Abolition of FHL Tax Allowances

It has been a few weeks since I have covered this so here’s a quick update.

In short there currently isn’t much movement whilst the Government Financial Committee is formed who will scrutinise the bill. PASC has written a letter with a suggested amendment pushing to allow a full year for businesses to adapt to the changes. More to follow…

Welsh Tourism Alliance Offers Alternatives to Welsh Government's Second Home Tax

This article highlights a perspective of the Wales Tourism Alliance (WTA) on the existing and planned higher taxes and regulations being imposed by the Welsh Government.

To correctly address housing concerns, the WTA has recommended the following actions to the Welsh Government:

1. Obtain accurate data on second homes and furnished holiday lettings to distinguish between leisure properties and genuine businesses.

2. Conduct a comprehensive review of the Welsh property market to assess the types of properties available and determine if the current policies are increasing affordable housing.

3. Review the 182-day rule that determines whether a property qualifies for business rates or council tax, as it may be hindering the supply of affordable housing and harming economic activity.

4. Carry out a consultation and analysis on the economic impact of introducing Article 4 regulations in Gwynedd, which would give local authorities more control over planning decisions.

5. Focus on building new affordable properties, returning empty properties to use, and creating new employment opportunities in tourist areas instead of solely targeting the non-primary home market.

6. Revisit guidance to local authorities on setting council tax premiums and Article 4 regulations based on the analyses recommended above.

7. Include representatives from the local tourism industry in economic regeneration planning processes.

8. Review all taxes and costs associated with purchasing homes and second homes to understand their impact on the supply and demand for different types of housing in Wales.

The WTA believes that these recommendations will help address the concerns of local communities while also supporting the tourism sector, which is a significant contributor to the Welsh economy.

Holiday Lets Outpace Hotels in Cumbria's Tourism Shift

This article from TheBusinessDesk.com discusses the growth of holiday lets in Cumbria, and the decline of hotels in the region. Based upon data from the Office for National Statistics (ONS) and Property Management Software (PMS) RMS Cloud, the number of holiday let businesses in Cumbria rose by 53% between 2013 and 2023, while the number of hotel operators decreased by 6%. This trend is attributed to a shift in traveller priorities, with more people seeking experience-led accommodation and "staycation" holidays.

Focus on the Basics to Achieve Lasting Success

In this LinkedIn article, Chris Maughan, CEO of I-PRAC, argue that the short-term rental (STR) industry is overemphasising AI and neglecting fundamental principles like building trust and delivering exceptional hospitality. While acknowledging the potential of AI, Maughan highlights that 80% of operators struggle with basic operational aspects. He predicts that only 5% of operators will attain the operational excellence needed to fully utilise advanced AI tools within the next five years.

Maughan concludes that the STR industry needs clarity, leadership, and a renewed focus on hospitality over hype. Operators who prioritise guest experience and maintain a focus on the basics will achieve long-term success.

Read our listing performance and growth section for some more tips on how to combine AI and a personal touch to improve your bookings.

LISTING PERFORMANCE & GROWTH
Tips and strategies to enhance the visibility and attractiveness of your holiday let.

Lodgify | Industry Trends & Tips to Start the New Year Off Right

Lodgify recently held a webinar providing an overview of STR worldwide performance based upon assessing 2.6 million bookings between 2023 and 2024.

Here’s a quick summary of their findings:

• 1% decrease in booking window

• 3% decrease in average length of stay

• 2.7% decrease in average daily rates

• 6% increase in last minute bookings

• 1 to 3 day stays makes up 71% of total bookings

• Last minute bookings make up 34% of all bookings

These stats represent the general decline we are all seeing and are reflected in the STR Index performance.

Rather than focussing on the lower figures, there were some great tips and strategies two experienced property managers highlighted during the webinar that we have highlighted here.

On the call were Kerri Gibson from Chalets Hygge and Daniela Derin from Skol Apartments Marbella.

Pro-active Pricing Management

Both Kerri and Daniela actively manage their prices, with Kerri using PriceLabs and Daniela completing manual changes. Both highlight a positive increase in revenue due to actively managing prices; even up to a 10% increase.

Tactics To Increase Repeat Bookings

Both have significant repeat guests, with Daniela having up to 65% repeat bookings!

They highlighted a variety of tactics to increase repeat bookings. Here are a few of the most important recommendations:

• Strong Social Media Presence: Maintaining active and engaging social media accounts on platforms like Instagram, Facebook, and WhatsApp is crucial. By consistently sharing high-quality content showcasing local experiences, promoting special offers, and interacting with followers, owners can foster a sense of community and connection with past guests, making them more likely to return.

• Personalised Communication: Owners should focus on personalised guest communication, including welcome emails, pre-arrival information, and follow-up messages after departure. This consistent and friendly interaction builds rapport with guests, making them feel valued and increasing the likelihood of repeat bookings.

• Offer Incentives for Repeat Guests: Providing exclusive incentives like discount codes, early booking opportunities, or special perks for repeat guests encourages loyalty and entices them to choose the property again.

• Curate OTA Bios: Create OTA descriptions and information that allows guests to easily find your direct booking website or social media pages without breaking OTA rules. This directs traffic away from OTAs and encourages repeat bookings directly through the owner's preferred channels.

• Cultivate Excellent Guest Experiences: Ultimately, the foundation of repeat bookings lies in consistently delivering exceptional guest experiences. Addressing guest concerns promptly, providing amenities that go above and beyond, and creating a welcoming and memorable stay will motivate guests to return and recommend the property to others.

Enticing Pre-Stay Email Sequence

Kerri advocates for a comprehensive guest communication strategy that focuses on engagement and providing value beyond basic booking details. A key element of this strategy is the use of "vacation planning emails" sent to guests between booking confirmation and arrival. Here's a summary of her approach:

• Content Focus: These emails go beyond logistical information and instead provide guests with a curated selection of things to do and see in the area surrounding the rental property. This may include local attractions, restaurants, shopping recommendations, and unique experiences.

• Timing: Kerri strategically sends these emails after the booking is confirmed but well before the guest's arrival date, giving them ample time to consider the suggestions and potentially adjust their travel plans.

• Impact: By showcasing the abundance of activities and experiences available, these emails often lead guests to realise they haven't allotted enough time for their trip. As a result, guests frequently reach out to inquire about extending their stays before they even check in, leading to increased occupancy and revenue for Kerri's properties.

Kerri's approach demonstrates that proactive communication that enhances the guest experience can have a direct and positive impact on booking patterns and business success.

Here’s an example where Chalets Hygge is promoting a road trip to explore the local area:

Create Tailored Packages

By identifying your target guest demographics and personas, adapt your marketing to different segments. For instance:

• Remote workers, digital nomads and workcations - Highlight work spaces in properties and local co-working spaces. They may also have longer stays

• Multigenerational travel - Show properties that are next to each other to allow multiple family groups to easily see properties they can book

• Create specific webpages for each target guest - Design webpages that specifically meet each of these needs to drive more direct bookings

You can view a recording of the webinar here:

INTERIOR DESIGN
Interior design inspiration and decor tips.

PROPERTIES OF THE NEWSLETTER
We all love looking at and getting inspiration from other properties so here’s our top pick for this edition.

NO FOMO
Missed last weeks newsletter? Here’s one thing you might like.

STR Success in 2025 - Tips from Beyond Pricing

In last weeks newsletter we delved into Beyond Pricing’s 2024/5 report and highlighted a number of tips and strategies you can use to make 2025 a success.

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