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 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.
- •STR pricing is dramatically harder than hotel pricing, due to product uniqueness and hyper-fragmented demand curves.
- •The article suggests avoiding the top Airbnb markets when investing, as these markets might not offer the best return.
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.
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