Short-term Rental News Digest – September 2023

The past month, a number of the leading names in the industry revealed exciting features. And, by the sound of things, more exciting updates are planned for the rest of 2023 too. 

It’s clear: experience matters. Not only the guest experience, but also accommodation providers’ experience. After all, if hosts and property managers have the tools to streamline operations, their guests will also benefit. 

At iGMS, we’re especially excited about the features that two of the top dynamic pricing tools have released. Our software is integrated with both PriceLabs and Beyond. If you’re not using a pricing tool yet, these two tools now offer even more functionality. 

Aside from PriceLabs and Beyond, two of the leading vacation rental platforms – Airbnb and Vrbo – have also been busy. Continue reading to find out what’s been happening behind the scenes at these four key companies.  

PriceLabs Releases Hyper Local Pulse Algorithm

PriceLabs, one of the leading dynamic pricing tools, has revealed a new release that’s set to be its most significant upgrade to date. Anurag Verma, the proptech company’s president and co-founder, highlights that the new release will streamline operations, deliver unmatched pricing accuracy, and share performance metrics. 

Central to this release is its hyper local pulse (HLP) algorithm. It leverages hyper local competitive sets to improve pricing while at the same time reducing the need to adjust pricing manually. 

Some of the other features include:

• Over 40 performance metrics for in-depth analysis
• Smart presets to simplify customization
• A desktop app
• Detailed account logs for improved team management

Beyond Adds a Payment Processor

Beyond, another leading dynamic pricing tool, has revealed an intuitive, payment processor. Dubbed Tally, it’s created specifically for vacation rentals. 

This new addition to its already powerful software was fuelled by property managers’ need for a reliable payment processing solution. Property managers will be able to manage payouts, transactions, and disputes conveniently via its dashboard. For added convenience, they’ll also be able to automate billing schedules. 

In addition to accepting all major credit and debit cards, it will also support ACH, Google Pay, and Apple Pay. 

Vrbo Launches New Policies to Improve Guest Protection

Moving forward, Vrbo will fine US hosts who cancel bookings. The total cost of the booking and when the booking gets canceled will determine the amount. These new cancellation penalties will kick in October and will be in addition to existing penalties like limited search visibility. 

The reason behind this move is to discourage hosts from canceling and to give travelers more reassurance. That said, if a host needs to cancel because of a natural disaster or unforeseen property damage, they can still cancel penalty-free.

The platform will also revise its Premier Host eligibility criteria. From next year, Premier Hosts will have to meet the following requirements:

• An average rating of at least 4.4 (previously this was 4.3)
• A host-initiated cancelation rate of no more than 1% (previously this was 5%)
• A booking acceptance rate of at least 95% (previously this was 90%)

Airbnb’s New Global Campaign to Challenge Hotel Competition

Airbnb started the new month with a new global campaign directed at one of its biggest competitors — the hotel industry. The campaign is titled “Get an Airbnb” and consists of animated short films that highlight the pros Airbnbs have over hotel stays. 

The platform partnered with BUCK, a global, creative company, to create this series of videos that emphasize benefits like flexibility, amenities, and experiences. It was not the first time that BUCK and Airbnb collaborated on a marketing campaign and in 2021 they also created a short film about the platform’s history. 

Hiroki Asai, Airbnb’s Chief Marketing Officer, revealed in an interview that the goal was to reinforce Airbnb’s uniqueness. After the pandemic, the company wanted to concentrate on its core business again that strongly revolves around creating experiences. 

New Google AI Authority Joins Airbnb’s Board

James Manyika will be joining Airbnb’s board of directors with immediate effect. He’s currently the Senior Vice President at Google where he leads research, technology, and society. He has also worked at McKinsey where he was in charge of the company’s research on global economic and tech trends. Boasting a PhD in artificial intelligence, he’s also regarded as an authority in the field. 

This move shows Airbnb’s commitments to AI. In August, Brian Chesky, CEO of Airbnb, openly shared about the company’s ambitions to leverage AI when he spoke at the company’s Q2 earnings report. He explained how generative AI is employed to improve the interface of Airbnb and improve personalization, helping them to connect better with travelers. 

Airbnb CEO Shares Updates About Airbnb Upgrades

Earlier this year, Brian Chesky hinted that the platform will roll out more upgrades in 2023. In September, he took to X (formerly Twitter) to shed more light and verified that more upgrades are planned for November.  

Based on user feedback, the platform plans to:

• Refine search results so that alternative accommodation for similar dates gets displayed automatically
• Incorporate a new system for verifying Airbnb listings which will also be extended to dozens of extra countries
• Speed up customer services