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🏠 STR Success in 2025 - Tips from Beyond Pricing
And what is greenwashing in the STR industry?
Phil Jackson
December 07, 2024
Welcome to this weeks newsletter. In this weeks newsletter you can takeaway:
💡 Tips for success in 2025 - Highlights and insights from Beyond Pricing
🌿 What is greenwashing in relation to the STR industry
📈 The opportunity to optimise your listing description
See you next Saturday at 5pm?
Phil
Founder, My Holiday Guide
IN THE NEWS
Understanding Greenwashing and Its Impact on Short-Term Rentals
The article "Recognising and avoiding greenwashing in STRs" from EnviroRental explores the increasing issue of greenwashing in the short-term rental (STR) industry. Greenwashing occurs when businesses, including STR hosts and managers, exaggerate or misrepresent their environmental efforts to appeal to eco-conscious travelers and investors. This practice can damage brand trust and may even lead to legal issues.
Highlighted Common Examples of Greenwashing in STRs:
Making vague claims about sustainable practices without providing specific details. For example, stating that a property is "built with sustainable practices" without clarifying what those practices are.
Using misleading labels such as "green stay" or "eco-friendly" without evidence or third-party certification. Simply having a garden or using energy-efficient light bulbs does not qualify a property as eco-friendly.
Overstating the impact of minor improvements. For instance, promoting the use of organic bed linens while ignoring a large carbon footprint due to other practices.
The article emphasises the importance of avoiding greenwashing and provides tips for STR owners and managers to genuinely demonstrate their commitment to sustainability.
The Key Recommendations For Hosts Are:
Make clear and measurable claims about sustainability efforts.
Support claims with verifiable data and consider seeking third-party certifications.
Be transparent about practices and goals, including timelines and areas for improvement.
Acknowledge imperfections and communicate ongoing efforts to enhance sustainability.
Airbnb have partnered with UNESCO in Bali to help hosts become skilled cultural ambassadors; allowing them to share (and charge for?) providing cultural experiences to guests.
In his new book, Dr. Luke Yates of The University of Manchester argues that platforms like Airbnb have contributed to a housing shortage. One of his key points is the need for additional regulation (STR registration scheme) which is something the industry trade bodies also agree with.
Italy recently banned self-check-in key boxes for short-term rentals like Airbnb, requiring in-person check-ins to improve public safety and address concerns about over tourism. This new rule, effective immediately, mandates that hosts verify guests' identities and report their details to authorities within 24 hours. The ban aims to prevent potentially dangerous individuals from accessing properties undetected, particularly in light of upcoming major events.
LISTING PERFORMANCE & GROWTH
Tips and strategies to enhance the visibility and attractiveness of your holiday let.
STR Success in 2025 - Tips from Beyond Pricing
Beyond Pricing have released their 2024 end of year report and 2025 outlook.
As a short-term rental host or property manager, here are the most important things you need to know from the report:
Competition in the hospitality industry is no longer confined to segmented categories. Short-term rental operators now compete with hotels, B&Bs, hostels, and other forms of accommodation. Guests prioritise accommodations that align with their destinations and individual preferences.
Check that your listing description is best placed to attract your target guests with our Listing Optimisation Assessment tool.
The hospitality industry is facing macroeconomic challenges, including shorter booking windows, reduced stay durations, and less frequent holidays. To adapt to these trends, hosts and property managers need to proactively understand and anticipate guest needs.
Guests crave authentic experiences that connect them to the places they visit. They want more than just a place to sleep; they desire a stay that matches their unique preferences.
Read our article on experience driven travel which offers tips and suggestions for increasing the experiences you offer
To thrive in 2025, holiday let hosts must adopt innovative technologies, like those using predictive data such as consumer search data. This will help anticipate and cater to evolving guest preferences. Investing in search data and integrating it with a dynamic pricing strategy (Search Powered Pricing) can increase revenue by over 3%.
Explore the range of dynamic pricing and listing optimisation tools available in the market
Guests increasingly value amenities. Demand for pools is increasing while interest in waterfront stays and hot tubs is declining. Pet-friendly stays and EV charging points are becoming more important. Consider adjusting pet policies, highlight the right amenities in marketing materials, and make sure your listings accurately reflect the value of your property.
Read our article on how to offer (paid for) EV charging to your guests
Late searches are becoming more common. However, data shows that significantly lowering rates during earlier lead times isn't always necessary. Modest price reductions earlier can help avoid drastic last-minute discounts. Maintain balanced Average Daily Rates (ADR) to drive bookings and appeal to price-conscious travellers.
Guests are willing to pay for quality amenities and better locations. Emphasise your unique amenities and location to maximise revenue.
There is often a gap between when guests search for accommodations and when they book. Guests may search for summer holidays during the winter but wait to book. This can lead to operational pressure and discounting risks. Track early search data to gauge demand and adjust pricing strategically to capture early interest and avoid unnecessary discounts.
Incorporate search data into existing tools like your Property Management System (PMS), Revenue Management System (RMS), or channel manager. This will help meet evolving guest expectations, stay agile, maximise revenue, and strategically plan for demand spikes.
Travellers are increasingly interested in sustainability and personalised experiences. Travellers are taking fewer holidays overall and prioritising restful holidays. Highlight what makes your property unique and offer value-packed experiences.
To increase the sustainability of your short-term rental search our interactive inventory list for eco-friendly options for items such as hand soaps and cleaning products
Safety, cleanliness, and proximity to attractions are top priorities for travellers. Highlight safety features, cleanliness, and your rental’s prime location in your marketing materials.
Utilise a digital welcome guide such as our very own My Holiday Guide to highlight great locations and your property facilities to guests
Millennials and Gen Z travellers are the largest force shaping travel. They demand authenticity, immersive experiences, and want listings to reflect the reality of the property.
Climate change is influencing travel plans. Travellers are adjusting travel dates to cooler seasons to avoid extreme heat and choosing destinations based on their environmental impact. Make your property comfortable year-round.
Artificial intelligence (AI) is reshaping travel. Travellers are increasingly open to using AI for trip planning. For hosts, AI can refine pricing strategies, enhance guest personalisation, and streamline daily operations. AI can also improve communication with homeowners by simplifying tasks like report creation and data analysis.
You may well already be using AI if you utilise a modern PMS or dynamic pricing system. In addition check out this article on how hosts can additionally use AI
Stay informed about AI-driven trends, such as AI-powered augmented reality, translation tools, and autonomous transport. Integrate these innovations into your business to meet rising guest expectations.
Use predictive strategies and data-driven insights to understand guest preferences before they book.
Adopt holistic revenue management practices that consider all aspects of the guest experience.
Which of these areas do you think you will focus on in the coming months? Hit reply and let me know.
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.
Craft Irresistible Listing Descriptions That Actually Work
In last weeks newsletter I introduced a new tool to help you optimise your listing description. 12 hosts have already received 12+ page PDF reports that includes an assessment of their existing description as-well as a new recommended description.
