This blog post is an extract of an article from our partner, AltexSoft.
Benefits of adopting AI in the STR industry
The hospitality sector generally lags far behind other industries in terms of digitization and technology adoption. The short-term rental segment certainly moves faster and is more technologically friendly than the hotel segment, but there is still a long way to go. Artificial Intelligence (AI), one of the crucial catalysts for this innovation, has enormous potential to revolutionize multiple aspects of vacation and short-term rentals.
From dynamic pricing and revenue management to personalized guest experiences and optimization of property management, AI is laying the groundwork for smarter and more efficient vacation rentals.
There are already players and newcomers that plug into ChatGPT and promise to improve certain aspects of the guest or host journey. However, don’t be fooled. Some actors that merely perform marketing stunts, offering no tangible added value for hosts. Real leaps happen at companies that own their models, gain unique training data, and can therefore offer unique technology.
There are numerous benefits of integrating AI technology into the vacation rental industry, and they can be broadly categorized into three areas: efficiency, revenue optimization, and enhanced guest experience.
Ai Automation and Efficiency increase
AI-powered systems can automate various time-consuming and repetitive tasks, such as guest communication, and property management. This frees up property owners and managers to focus on more critical aspects of their business, such as marketing and guest relations.
An automation and efficiency enhancing solution we are excited about right now is Paraspot, an AI-powered solution for remote property inspection in the STR industry. It eliminates the need for a physical visit.
Ai based Revenue Optimization
As mentioned earlier, AI can significantly impact revenue management through advanced dynamic pricing algorithms. Property owners can maximize their revenues by setting optimal pricing based on real-time market data and ensuring their properties remain competitive.
A revenue optimimization solution we are excited about right now: AristanderAI — a Berlin-based deep-learning company specializing in pricing systems for the travel industry. Already trusted by several major European airlines, the company has shifted its focus to the STR industry, conducting 12-week pilots with property management companies of various sizes.
Ai Enhanced Guest Experience
AI can help provide a personalized and seamless guest experience, which is critical in the highly competitive vacation rental market. From instant support through conversational agents to tailored recommendations, AI can significantly improve guest satisfaction and encourage repeat bookings.
A guest experience solution we are excited about right now is LikeMagic, a digital journey solution that has been extraordinarily successful in the hotel space. Their Ai powered solution streamlines guest and staff communication in one platform and creates guest profiles automatically based on fragmented guest data.
You can find more use cases of AI in the short-term rental industry with real-life examples in the full-length article. https://www.altexsoft.com/blog/ai-in-short-term-rentals/
(no commitments, any questions welcome!)