The Hottest Places to Invest in Property for the Short-Term Rental Market in 2022
Summary
This article discusses the importance of location when investing in short-term rentals and highlights strategies for revenue management. It emphasizes the need to avoid the top Airbnb markets and provides insights on how to assess properties' long-term scalability. The content also delves into the differences between hotel and STR revenue management.
Key Insights
- •The article suggests avoiding the top Airbnb markets when investing, as these markets might not offer the best return.
- •STR pricing is dramatically harder than hotel pricing, due to product uniqueness and hyper-fragmented demand curves.
- •The article highlights that most STR operators make the biggest revenue mistake, not with their pricing tool, but the lack of a daily and weekly pricing routine.
Action Items
- ✓Establish a daily and weekly pricing routine for your STRs.Effort: lowImpact: medium
- ✓Review pacing weekly using Market Penetration Index (MPI).Effort: lowImpact: medium
- ✓Review bookings daily to identify pricing and demand signals.Effort: lowImpact: medium
Tools & Resources
- →Hostaway: Hostaway is an all-in-one vacation rental software solution.
- →Freewyld Foundry: Freewyld Foundry is a resource mentioned.(https://www.freewyldfoundry.com/report)
More from Pricing & Profitability
This article discusses Kansas City's high occupancy rates compared to other World Cup host cities, raising questions about the effectiveness of efforts to increase short-term rental availability. It implicitly touches on market trends and the impact of major events on the STR market. The article likely explores whether increased rental supply can meet demand while analyzing the city's approach to STRs.
Realtor.com's report on best mountain towns for Airbnb returns reveals key locations for STR investment. The analysis likely includes data on occupancy rates, ADR, and RevPAR to identify profitable markets. Understanding these trends helps hosts optimize pricing strategies and choose lucrative destinations.
Airbnb is offering a $750 incentive for some hosts in Georgia during the FIFA World Cup, potentially boosting occupancy and profitability. This program seeks to capitalize on increased demand from the international event, offering financial benefits to participating hosts. Learn how to qualify and leverage this incentive for your STR.
Curated by Learn STR by GoStudioM