The short-term rental industry is booming. From cozy cottages to stylish urban apartments, travelers are increasingly turning to online travel agencies (OTAs) like Airbnb and Booking for unique and unforgettable stays. But for hosts, successfully managing a short-term rental property goes beyond a charming ad.

In this complex landscape, technology plays a vital role. Well-chosen technology can streamline everything from guest communication and reservations to cleaning and maintenance. But with a wide range of solutions available, it can be overwhelming to know where to start.

This article will be your guide through the growing jungle of short-term rental technology. We will explore its terminology and the key technology categories that every Short-Term Rental (STR) operator should consider .

 

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Table of Contents

What is an STR?

Let’s start with the basics: what is an STR?

STR stands for Short-Term Rental, a furnished house or apartment that is rented for a short period of time, usually less than 30 days.

They are often considered an alternative to hotels and can be 25-50% less expensive. STRs may include entire dwellings, single rooms or additional living space, and some jurisdictions differentiate between single-family and multi-family dwellings.

Short-term rentals (STRs) are popular vacation or relocation options provided by private owners and investors on platforms called OTAs, such as Airbnb and Booking (and which you’ll learn more about below), and often feature amenities such as fully equipped kitchens, laundry facilities and some even allow pets.

PMS: Property Management Systems

A Property Management System (PMS) is a type of software that helps short-term rental owners and property managers manage their businesses.

PMS software automates tasks such as guest communication, scheduling and housekeeping staff, pricing adjustments, and can also help manage reservations, organize maintenance staff and handle payment processing.

PMS software is also known as “vacation rental software” or “property management software”.

To see in more detail all the advantages offered by a Property Management System we invite you to visit this article: What does the acronym PMS stand for?

Channel managers and revenue managers

A Channel Manager (CM) is a software tool that connects a property management system (PMS) to online platforms (OTAs), such as Booking.com or Airbnb, to automatically update rates, availability and bookings.

This allows property managers to update multiple online booking sites at once, which can help avoid double bookings and facilitate inventory management. Channel managers can also provide key performance reports that can help define marketing and sales strategies.

Some benefits of using a channel manager include:

  • Save time
  • Increase online bookings
  • Increase hotel or property revenues
  • Reduce the risk of having too many reservations at once (“overbookings”)
  • Improve brand recognition

Revenue Managers adjust rental prices based on factors such as seasonality, local events and market demand.

By utilizing Revenue Management techniques, property managers and STR owners can maximize occupancy rates by dynamically adjusting rental rates based on variables such as seasonality, local events and market demand.

Yes, that’s us!

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Want to know more about us, how we work and what we do to make your job easier by choosing us?

By choosing ListingOK, you not only get a service provider, but also a team of dedicated professionals who are as interested in your property’s potential as you are.

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PMS

In hospitality and RTS, PMS stands forProperty Management System.

A hotel PMS is software that helps hotels manage all aspects of their business operations, including guest experiences.

It automates many administrative tasks that the front desk staff would be responsible for, such as:

  • Reservations
  • Check-in and check-out procedures
  • Room assignment
  • Room rates
  • Billing
  • Cleaning activities

A hotel’s PMS can also store guest information, allow special requests and provide extenuating circumstances.

You can integrate payment processing into the booking and check-out process, and offer multiple payment options for guests.

Hotel PMSs are considered the heart of a rental and are essential for improving the guest experience and increasing efficiency.

Point Solutions

In the hospitality and short-stay rental industry, Point Solutions Point Solutions (are specialized tools or software programs that focus on solving a specific challenge within a particular business sector.

While point solutions are very effective in fulfilling that single purpose, companies may be forced to invest in multiple point solutions if they face multiple challenges. This can be costly and time consuming. This creates the need for more comprehensive solutions that meet all business needs at once.

Therefore, the challenge for the hospitality industry is to develop multifaceted solutions that incorporate several point solutions and provide an efficient way to solve multiple challenges without having to invest in numerous individual products.

Point solutions offer a number of benefits that can be extremely beneficial to organizations:

  • Cost savings
    Point solutions are typically less expensive than more comprehensive enterprise solutions, making them an ideal solution for smaller companies with limited budgets. This cost savings allows companies to get the features they need without investing in expensive, large-scale software packages.
  • Tailored solutions
    Point solutions are designed to meet specific needs, which makes them more effective for a given purpose than an enterprise software package. For example, companies that only need email marketing capabilities can purchase a point solution for email marketing instead of investing in a complete customer relationship management (CRM) system.
  • Scalability
    Point solutions are typically easier to scale than their enterprise counterparts. Organizations can easily increase or decrease the number of users and roles as needed, without investing in costly upgrades that may no longer be necessary.
  • Easy implementation
    Because point solutions are designed with a specific purpose in mind, they are typically simpler and faster to implement than an enterprise solution. This makes them ideal for organizations that need to get up and running quickly with a specific set of functions.
  • Integration
    Point solutions can be easily integrated with existing enterprise systems, making them an ideal choice for organizations looking to complement their existing software packages. This helps minimize disruptions caused by new implementations and allows for a smoother transition.

Customer Relationship Management (CRM) Systems

Customer Relationship Management (CRM) systems help companies manage customer data, sales and communication, provide valuable information and integrate with social networks. 

These are the basic types of CRM systems:

  • Collaborative CRM
    Also known as strategic CRM, this approach focuses on fostering long-term customer relationships and aligning CRM strategies with overall business objectives. It bridges communication gaps between departments (sales, marketing, customer service) by facilitating data sharing, collaboration tools and workflow automation, with the goal of delivering a more unified and positive customer experience.
  • Analytical CRM
    Analytical CRMs use data and analytics to gain insight into HR processes and make informed decisions. For example, marketing can analyze past performance, customer demographics, and buyer characteristics to optimize marketing campaigns.
  • Operational CRM
    This type of CRM follows marketing and sales professionals to reach customers in real time. It can provide data collection tools for new customers and loyalty programs for repeat customers.
  • Local CRM and Cloud-based CRM
    CRM systems can also be local or Cloud-based.
    Local CRM systems store their infrastructure, hardware, operating system and data on the user’s premises.
    And cloud-based CRM systems offer mobility and access to a variety of applications by storing data on external servers that can only be accessed remotely by anyone with permission to do so.

 

 

Data Aggregators

Tourism data aggregators are services that combine data from multiple sources into a single database.

This information can be used to create data repositories that can help with decision making, marketing and business performance.

Data aggregators can help the travel and lodging industries with:

  • Pricing and promotion modeling
  • Business decision making
  • Predictive analytics
  • Marketing decision making
  • Business Intelligence
  • Market knowledge
  • Competitor research
  • Price tracking
  • Customer sentiment analysis

    Data aggregators can also help tourism and lodging companies:

  • Select images for your web sites
  • Analyze trends in property availability and transportation costs.
  • Identify popular destinations by season
  • Determine which demographic groups to target in travel ads.
  • Tracking of your employees on business trips

Digital marketing

Digital marketing in tourism is a cost-effective way to communicate with customers and visitors, and can help businesses grow.

This type of marketing can help companies to:

  • Interacting with the public
  • Reaching new markets
  • Improve messaging
  • Increase reserves
  • Improve brand visibility
  • Generate brand loyalty

Digital marketing in tourism uses a variety of strategies, including:

  • Social networks
  • Search Engine Optimization (SEO)
  • Propaganda mail
  • Content marketing
  • Mobile marketing

Digital marketing allows companies to target specific groups of travelers based on their interests, demographics and behaviors.

It also allows companies to track their successes, such as who interacts with their content, where they are from and how much time they spend online.

Some tips for digital marketing in tourism include:

  • Choose three to four platforms to focus on and keep them regularly updated.
  • Generate innovative content, such as questionnaires or surveys, to encourage follower participation.
  • Encourage customers to share photos during tours by creating a tour hashtag.
  • Employ the use of data to create personalized travel experiences.

SEO: Search Engine Optimization

Search Engine Optimization (SEO: Search Engine Optimization) in the STR industry is the process of improving a host’s website and ad rankings in search engines such as Google, Firefox, Edge, Yahoo and Bing.

The goal of SEO is to increase the online presence of a hotel or short-stay accommodation, drive website and ad traffic, and improve bookings.

SEO can help owners and managers:

  • Increase visibility: SEO can help you directly reach people looking for local accommodation.
  • Build trust: SEO can help build trust with search engines and potential guests by providing high quality content.
  • Generate brand awareness: SEO can help reach potential guests looking for local lodging by targeting relevant keywords.

Here are some tips for performing SEO on a hotel or short-term rental website:

  • Compress images and video files
  • Use headings and format text to facilitate reading
  • Check for broken links
  • Give each page a clear purpose
  • Focus on high quality content
  • Choosing keywords wisely
  • Completing a Google My Business listing
  • Create links by having other web sites link to the site

OTA: Online Travel Agency

OTA stands forOnline Travel Agency orOnline Travel Agent.

It is a web-based marketplace that allows tourists to research and book travel accommodations and services directly with travel providers.

OTAs act as intermediaries between travel inventory providers, such as rentals, airlines, hotels and tour operators, and connect suppliers across the travel industry to help travelers plan their trips. Travelers can often access package deals with accommodations and airfare on OTA sites.

Some examples of popular online travel agencies are Booking.com and Airbnb.com.

Synonyms for OTA include Alternative Distribution System(ADS) and Internet Distribution System(IDS).

Meta Search

In the lodging industry, a meta searchengine(Meta Search Engine) is a tool that collects information from multiple sources, such as online travel agencies (OTAs), and displays it in a ranked list. This allows potential guests to compare options and make an informed decision.

Listing sites

Listing sites, also known as online business directories, are a vital tool for hosting companies to increase their visibility and reach potential customers.

Listings are public profiles that contain important business information such as name, address, phone number, website and hours of operation. They can help customers find a business online and in real life.

On online travel agency (OTA) websites, such as Airbnb.com and Booking.com, listings are essentially ads for short-term rentals posted by hosts. These rentals can range from private rooms in an owner’s apartment to entire homes, cabins or even unique spaces such as boats or treehouses.

 

Property Acquisition

Acquisition of a property is the process of obtaining ownership or control of a hotel or temporary rental accommodation.

This includes the transfer of real estate, businesses, assets and financial liabilities. The purchaser of an STR or hotel also automatically takes over any existing leases.

Hotel real estate investment trusts(REITs) are another form of acquiring hotel properties. They focus on developing, acquiring, managing or financing the construction of hotels, lodges and other hotel properties.

Managing hotel and lodging acquisitions requires an in-depth knowledge of the hotel industry and its business acumen. This involves understanding employee contracts, union agreements and employee benefits, which can have a significant impact on operating costs and flexibility.

A hotel’ s Purchase and Sales Agreement(PSA) includes a due diligence period in which the buyer reviews documents such as financial data, property surveys and environmental studies. The PSA also contains closing documents such as a general warranty deed, bill of sale and assignment documents.

Access control automation

In the hotel and tourism property rental industry, access control automation is a system that uses electronic locks and key readers to automatically open and close room doors, and record and store guest information digitally.

This system allows staff to grant access to rooms or properties and track access, while ensuring the safety of guests.

Access control automation can help:

  • Streamline processes
  • Minimize costs
  • Providing a modern guest experience
  • Saving energy
  • Providing guests with more independence
  • Automate check-in
  • Reduce the workload at the reception desk
  • Preventing unauthorized persons from entering certain areas
  • In the case of hotels, see when rooms are ready for cleaning

Property automation

Property automation is the use of technology to automate hotel or RTS operations, such as information management, equipment control and task completion.

Automation can help managers and owners become more efficient, save time and money, and improve the guest experience.

Some examples of automation in the field of hosting include:

  • Reservations and check-ins
  • Marketing: Automation can implement marketing strategies, such as sending cell phone notifications to guests about availability and promotions.
  • Guest registration: Automation can scan and register guest IDs, which can reduce the time required to complete the process.
  • Additional sales and retargeting: Automation can help identify opportunities to offer more services or improve spaces based on guest preferences and behavior.

Thus, automation can benefit both owners and managers as well as guests:

  • Increasing efficiency
  • Reduce errors
  • Eliminate frustration
  • Increase revenues
  • Cut costs
  • Increasing productivity

Automation is not intended to replace human employees but to increase their performance.

Ancillary services for guests

Ancillary guest services are additional services offered by short-term rental and hotel owners and managers to enhance a guest’s stay and generate additional revenue.

Ancillary services may include:

  • Food and beverages: Room service, restaurants and bars.
  • Accommodation: Spa and wellness services.
  • Transportation: Airport transfers and shuttle services.
  • Event management: Conference room packages.
  • Entertainment: Children’s play kits, babysitting service and guided tours.

Ancillary services can help meet guests’ needs and preferences and create memorable experiences that make the accommodation stand out. For example, hotels can offer pre-booking options for tours, airport transfers or spa appointments to make guests feel valued.

Some other ways hotels can generate ancillary revenues include:

  • Create a gift store that sells tourism products
  • Focusing on quality rather than quantity

Technology-based franchising

ATech-Enabled Franchise is a franchise that uses technology to optimize operations and build customer loyalty.

Technology can help hotel and STR franchisees to:

  • Ordering, payment and loyalty rewards
  • Digital check-in and check-out
  • Manage reservations and room availability
  • Manage customer requests and data
  • Manage cleaning tasks

Technology can also help owners support their franchisees remotely, which can ensure brand consistency and operational excellence.

Digital marketing can also help attract customers to new locations, create personalized experiences and build brand loyalty.

Some examples of technology-based RTS area services include:

  • Digital applications and QR codes
  • Mobile input keys
  • Contactless check-in and check-out
  • Management software
  • Video management systems
  • Computer-based construction services
  • Sensors
  • Customer identification by AI
  • Intelligent parking
  • Self-service kiosks

The vacation rental industry is increasingly reliant on technology, driven by online, mobile, cloud, IoT (Internet of Things),edge computing, virtual and augmented reality (AR/VR) and low-code applications.

 

Access control hardware

Hospitality access control hardware can include electronic locks, key readers and presence sensors.

These devices can automatically open doors when a key is swiped and can track room access and guest security. When a guest leaves a room, the system can detect when the door is closed and change the room status in the management software.

Access control systems can be activated by physical devices, such as cards, remote controls or wristbands, or by recognition of biometric features, such as faces, fingerprints or irises.

In modern hotels and rentals, universal readers are an essential part of access control systems, as they can accept a variety of identification media, including RFID access cards and mobile credentials.

Access control systems can offer many advantages, among them:

  • Convenience: Guests only need to carry a smart card to access the door of the accommodation and, in the case of hotels, the elevator and rooms.
  • Reduced labor costs: Access control systems can reduce labor costs.
  • Security: Access control systems can ensure a high level of security for people and property. 

RFID access cards

RFID stands for Radio Frequency Identification and is a contactless technology that allows guests to enter a property or a hotel room by swiping a card against the lock.

RFID cards are a new technology in the vacation rental industry and are considered the new standard in security.

They use radio waves to communicate with the system, so guests do not need to touch the card or swipe it. When the card is near the door, the electronic reader inside the lock uses a radio signal to power the card and send the chip’s serial number to the reader for identification. The reader usually beeps and the lock light turns green to indicate that the card has been read.

RFID access cards are compatible with a variety of locking systems and are very useful, but be aware that they can be costly to set up, easily lost or forgotten by guests in rooms.

Guide

A guide is a resource that provides information to guests about an STR company.

It may include information about the company’s services, policies and best practices.

It can also answer common guest questions and help companies stand out from the competition.

Below are some examples of lodging guides:

  • Digital guides: They can answer guests’ questions and highlight the company’s amenities.
  • Hotel Industry Handbook: Includes compliance information, policies and best practices for hotel companies.
  • Hotel Concept Manual: A guide for hotels, food and beverage, retail and office space.
  • Hotel and Tourism Industry Manual: Covers fundamental aspects of the hotel and tourism industry.

Service optimization

Service optimization in hospitality is the process of using technology to improve operations and personalize guest experiences. This can help increase guest satisfaction and operational efficiency.

The following are some key aspects of service optimization in hospitality and RTS:

  • Streamline processes: This could involve automating tasks, improving communication between sectors and using data to identify areas for improvement.
  • Improve the guest experience: The goal is to provide a seamless and personalized experience for guests, meeting their needs and exceeding their expectations.
  • Optimizing resource allocation: Service optimization helps ensure that staff and resources are allocated effectively to meet guest demands and maintain service quality.
  • Cost reduction: By optimizing processes and improving efficiency, service optimization can help reduce overall operating costs.

Examples of service optimization tools and techniques include:

  • Guest relationship management (CRM) systems: These systems allow you to track guest preferences and personalize communication.
  • Cleaning management software: This software can automate task scheduling and optimize cleaning activities.
  • Self-service “kiosks”: These “kiosks” allow guests to check-in, check-out and access other services independently.
  • Guest feedback surveys: Owners and managers can use feedback to identify areas for improvement in service delivery.

Overall, service optimization in hospitality and RTS is about using data and technology to create a win-win situation for both guests and owners and managers: a more efficient operation for the business and a more enjoyable and personalized experience for the guest.

KYC: Know your customer

Know Your Customer or Know Your Client (KYC) is an operations system that combines a hotel’s core hotel management system (HMS) with more than 25 external applications.

The system centralizes a hotel’s operations, including guest communications, housekeeping, engineering, concierge and security. Hotel KYC uses artificial intelligence and big data to help hotels manage their guests.

It is used to verify a guest’s identity and is a necessary process in the hospitality industry to ensure safe guest onboarding practices. Methods for verifying a guest’s identity include ID document upload, facial recognition and electronic ID verification.

For example, the Blockpass mobile app allows users to instantly prove their identity while keeping their data secure. Users can use the app to verify passports, driver’s licenses or other documentation that hospitality services may require.

Guest verification

Guest Verification in the vacation ownership industry is a process used by companies to assess the risk of a guest booking a property. It is a standard practice in the hotel industry that helps ensure the safety of both guests and hosts.

Guest verification can help prevent risks such as:

  • Property damage
  • Parties
  • Noise violations
  • Fraud
  • Criminal activity

It can also help build trust between guests and hosts by giving both parties peace of mind that they are dealing with legitimate people.

Guest verification may involve requesting identification documents, such as passports or driver’s licenses, and comparing them with the reservation details.

Another method is to ask guests to upload their ID and then take a selfie or a selfie video to prove they are the same person. Then, an algorithm or a human expert will evaluate if it is a match.

Automated Identity Verification Technology, also known as Document Readers, can help staff verify guests’ identity documents and determine whether or not they are genuine.

However, guest verification can add complexity and friction to the check-in process, as it can lead to longer wait times, guest dissatisfaction and, ultimately, lower revenue.

Hotel insurance policies

Hotel insurance is a type of insurance policy that protects companies in the hotel industry from risks and liabilities.

It is designed to address the unique challenges faced by hotels, restaurants and other similar businesses.

Hotel insurance policies can help cover costs in the event of an accident, loss or damage. They can also cover legal costs if a customer or employee is injured or becomes ill on company property.

Some common risks in the hospitality industry include: foodborne illness, accidents, property damage and customer dissatisfaction.

Some common coverages included in hotel insurance policies are:

  • Loss of revenue from cancelled events
  • Medical expenses for guests
  • Uninsured losses
  • Alcoholic beverage liability
  • Legal liability of hosts

Payments

There are different systems and procedures used by hotel companies and STR administrators to accept payments from guests.

These systems may include software that enables secure online payments or third-party gateways that facilitate payments made by credit card, debit card, mobile payment, bank transfer or apps.

Contactless payments are increasingly used because they are hygienic, efficient and improve the customer experience. They allow customers to make payments without physical contact using smartphones, cards or other devices.

Hotels and STR administrators must implement secure payment technology policies and procedures to protect business and customer data. Integrated payment solutions can help protect sensitive information through encryption, tokenization, authentication and compliance methods. Payment gateways can also help manage refunds in case of fraudulent charges.

Some payment methods that hosts can accept include: credit card, debit card, QR code, UPI, post-payment, bank transfer and applications such as PayPal, Apple Pay and Google Pay.

Accounting

Accounting is a specialized discipline that involves tracking and managing the revenues, expenses, assets and liabilities of businesses in the hospitality and RTS industry, such as hotels, short-stay rental accommodations, restaurants and resorts.

Includes:

  • Handling of daily transactions, such as lodging reservations, restaurant bills and spa services.
  • Recording of large volumes of cash transactions.
  • Track guest spending.
  • Calculation of rental income and occupancy rates.
  • Preparation of invoices for services rendered.
  • Compliance with Generally Accepted Accounting Principles(GAAP).

Accounting is important because it helps businesses in the industry address unique challenges, such as labor costs, employee turnover, and managing supplier and guest relations. It also helps companies plan budgets, save money for expansion, estimate profits and maintain growth direction.

All of this allows cash flow to be managed and monitored, which can help optimize revenues and identify areas for improvement, while enabling informed decisions based on real data.

That‘s all!

If you’re reading this, you already have a snapshot of everything there is to know about the terminologies of the short-term rental technology landscape.

We know it all sounds and looks very complicated, but, as we said before, we can help you with some of the burden. By working with us, you don’t have to worry about managing the income from your property, as we take care of everything for you.

Our strategies consistently generate revenue increases in excess of 20% for our clients. Interested?

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