On the surface, the vacation property rental market may look similar to the past decade. However, below that surface, this growing industry is increasingly benefiting from advanced technology that is changing the game for property managers and renters alike. Look deeper, and you see technology impacting almost every part of the property management and customer experience process. From smart home technology to artificial intelligence, these opportunities allow for greater efficiencies and a better experience—from first touch all the way through the actual stay.
Better yet, even advanced technology like AI is becoming increasingly available to rental companies and managers of every size. From individual landlords to large management companies, these 10 technologies are changing the vacation rental home property industry as we know it.
1. Virtual Property Tours
1. Virtual Property ToursTraditionally, property rentals have relied on photos and short videos to show off the space and amenities. But increasingly, virtual tours have become a reality, providing a more immersive experience for potential renters and increasing engagement in the process.
Across the real estate industry, most customers now prefer virtual tours over these more traditional visuals. They can take a variety of shapes, from basic 360-degree views of the space to more advanced virtual reality experiences. No matter the specifics, they tend to touch on the renters’ basic needs to see themselves in the space before they commit, making it more likely for them to pull the trigger and rent the space.
2. The Internet of Things (IoT)
As the global IoT and smart home market continues to grow at rapid rates, its impact on the vacation rental market is becoming increasingly clear. Savvy landlords can transform their properties into smart homes, which unlocks a wide variety of opportunities for both renters and those renting to them.
For example, energy management can become more streamlined thanks to the opportunity to easily turn lights off or adjust heating in non-occupied times. Landlords can even control access for renters, enabling them to use select features (such as turning on the hot tub) before they arrive at the property. As IoT usage continues to increase, it will continue to make an impact on resource optimization and operational efficiencies.
3. Predictive Property Maintenance
In part thanks to the data gained by smart home devices, managers will also be able to more proactively maintain their properties and keep them in the best possible shape for renters. Smart appliances and lightbulbs, for example, can send warnings when maintenance may be needed, turning the age-old program of fixing things only when renters complain on its head and increasing the chances everything will work smoothly.
Especially when managing multiple properties, taking a more proactive approach to property management can become an immense benefit. It enables managers to schedule out any needed work more strategically, avoiding disruptions for their renters and building time and resource efficiencies in the process.
4. AI-Enabled Advanced Analytics
Analytics have the potential to make a massive impact on the vacation rental market, in more ways than one. When powered by machine learning and predictive algorithms, they only become more powerful in helping landlords optimize the way they promote and manage their properties. Some of the most common examples include:
- Predicting demand for individual properties and larger areas, and adjusting marketing and pricing strategies accordingly
- Understanding the most common amenities customers look for and questions they ask to optimize messaging
- Analyzing property maintenance patterns to better plan for any necessary work between guest visits
It’s not the flashy side of AI, but it can be just as beneficial. When applied the right way, these analytics can save significant time and optimize your operations as you look to manage one or multiple rental properties.
5. Remote Property Security
Smart home devices and software opportunities also combine to provide additional security measures that keep your business, property, and revenue protected in a variety of scenarios.
To start, smart security systems help you monitor your property between guests. Smart locks, meanwhile, allow you to provide unique access only to those who currently rent (or work on) the vacation rental, without the need to change physical passcodes or keys.
Beyond that, increased cybersecurity options have arisen thanks to blockchain technology that can better protect sensitive customer and payment data. Add it all together, and you get technology specifically optimized to help you protect your investment from all angles.
6. Advanced Pricing and Revenue Management
Manual pricing is, at its core, an imprecise science. Raising prices during tourism season makes sense, but it’s difficult to get granular. Thanks to dynamic pricing algorithms, property managers can automate the process, adjusting pricing on a minute-to-minute level based on variables that include real-time demand, competition, and more.
These same dynamic opportunities expand to broader revenue management, as well. Advanced budgeting software helps property managers and owners alike understand exactly how much they can invest in maintenance and improvements while still turning a profit. This optimization creates opportunities to find the perfect balance between customer satisfaction, property maintenance needs, and running a profitable vacation rental business.
7. Enhanced Mobile Experiences
7. Enhanced Mobile ExperiencesWith mobile devices having become ubiquitous, vacation rental businesses can leverage their power on every end of their operations. For potential tourists looking for their next vacation, intuitive mobile apps can make it easy to search for rental options, make the booking, manage the booking, unlock their property when they arrive and during their stay, and ask relevant questions—all in a single platform.
Meanwhile, property managers can leverage the power of mobile experiences, as well. A mobile-optimized system allows for more intuitive management of properties, regardless of location. This enhanced flexibility makes it easier to check in on individual properties and address potential issues, no matter where or when they might arrive. The increased efficiencies and productivity can be significant.
8. Voice-activated Property Management Tools
As the technology continues to advance and its use cases become more widespread, voice-activated technology is growing rapidly across industries. In the vacation home rental space, similar to and especially when integrated with mobile technology, voice-activated tools have the potential to make a massive impact.
Tenants can use their mobile devices to ask questions without having to type, even in scenarios like the drive to the property. Users with disabilities are able to engage and interact with content they otherwise couldn’t. Finally, property managers and maintenance personnel can interact with their own mobile platforms in hands-free use cases, increasing efficiencies in the process.
Despite rapid advances, voice-activated technology is still in its infancy. Its uses will only continue to increase in this space and others as new applications of the technology become available.
9. Virtual Concierges and Guidebooks
A long-time challenge of the short-term rental market is that it cannot approach the customer service of hotels. With the emergence of virtual concierges, that balance is beginning to shift, resulting in a superior guest experience that can result in more recommendations, positive reviews, return visits, and other positive business benefits.
In fact, some vacation rentals are beginning to combine smart devices in the property with voice-activated technology. The system, especially when connected to a chatbot, can act as a virtual guidebook, answering questions about local attractions and amenities alike.
At its best, this type of system brings customer experience that is otherwise limited to online interaction into the real-life rental property. The result: happier customers, who will be more than happy to share their experience and return to your property in the future.
10. AI-Enabled Digital Chatbots
Speaking of chatbots: far beyond virtual concierge systems, chatbots are changing how property management companies and property owners are able to communicate with potential and current renters. Integrated on a website, in a mobile app, or via text, they can answer common questions about the property and booking process in real-time and around the clock.
By taking care of these routine questions and conversations, chatbots enable managers to focus on more strategic tasks and complex problems. When a simple conversation gets complex, it can still turn into a one-to-one interaction with a real person.
Over time, machine learning algorithms are able to learn exactly what questions customers might ask, and how to best frame the responses. As the database expands, responses only become more relevant. Meanwhile, chat analytics provide valuable insights into the most common questions and concerns, allowing for adjustments in communications and promotional strategies.
Leveraging the Power of Vacation Rental Technology With AI-enabled Chatbots
As technology continues to evolve, it continues to reshape the vacation home property market. From management to customer experience, its impact can be found everywhere—enabling savvy rental property owners and managers to rethink and optimize the way they run their vacation rental business.
An AI-enabled chatbot can play a crucial role in that process. Their ability to optimize the user experience while at the same time improving operational efficiencies becomes a massive benefit, all while advanced analytics can provide insights that have the potential to improve the entire company. Learn how AtlasRTX can help your vacation rental business thrive by booking your demo today.
