Five tips for Success in the Short Term Rental Accommodation Industry #4

TIP 4. KEEP PACE OF INDUSTRY TRENDS

You cannot afford to be stuck the present and be solely focused on the day-to-day. It’s crucial to keep one eye focused on the future, including upcoming movements in the industry. If you are not anticipating the next big thing, you are destined to fall behind. Successful business owners study trends and anticipate what’s coming around the bend. As accommodation rental owners, you need to stay ahead of trends and ride the wave – maximising returns and the sustainability of your business.

There are a plethora of ways to maintain current in the industry: by joining relevant associations, forming local groups, forums on social media, researching on line and reading magazines and books, listening to podcasts and webinars, attending conferences and networking are all excellent ways to learn more about the industry you are in and the trends from overseas which we usually follow.

Some associations and groups worth considering are:

• Bed & Breakfast Association
•  Farm Stay
• Holiday Rental Industry Association
• Tourism Associations
• Business Networking Groups
• Local Chamber of Commerce
• Networking groups with local owners

Our industry is consumed by the huge world-wide online booking agencies and that is all they are, purely bookings only. They are not accommodation managers, and their primary goal is to make bookings and take a commission. Yes, they serve a useful purpose, however the ideal is to have guests making enquiries direct to you or through your own website.

Airbnb is creeping into all parts of the world and the public often refer to our businesses as ‘Airbnb’. One of the main concerns is the public believe that anybody, anywhere can rent out a room. This has hidden risks involved as some homeowners do not understand the need for appropriate insurance cover, are not aware of safety and security issues, and have little understanding on how to vet their guests appropriately. Unfortunately, this affects the credibility of our industry.

There have been court cases in the Eastern states in relation to properties illegally being offered for accommodation (sub-letting) through Airbnb and high court cases involving local councils and governments on the use of high rise apartment buildings being allowed to holiday let. There are moves in some localities where owners are being asked to register with council for approval to run an accommodation business as it is deemed a commercial operation. It would be advisable for all short-term rental operators to accept and endorse the Holiday Rental Industry National Code of Conduct with House Rules to help maintain standards and to sustain self-regulation.

The current consumer market is choosing fully furnished and self-contained accommodation as an increasingly popular alternative to hotel accommodation. Space, comfort, facilities, amenities, cost and the chance to soak up the ambience of the locality are the main reasons for choosing this type of accommodation. The hotel industry has become concerned with this trend and are involved in the investigations into the short term accommodation industry in most states of Australia, pushing for regulation of our sector.

Holiday rental businesses have not been historically known to work closely together, however if this industry continues to come under attack around the world it is imperative that operators work more closely together and unite against regulatory and community adversity. The more universal version is that short term rental professionals the world over need to find each other as a support network both for our individual well-being and the well-being of the greater whole.

Stay posted for TIP 5. MARKETING AND CUSTOMER SERVICE