Experts share how to balance best guest experience with profitability – now and in the future

I’m recapping some great insights from representatives from Airbnb, YourWelcome and Eatwith.

These came up during a panel I moderated at the recent Short Term Stay Summit in Barcelona. Read on if you run your business on a platform, whether your own or an existing one, like Airbnb, or if you have a related business.  

Let’s look at today’s typical property manager (PM) with multiple listings to manage. Their guests make a direct booking (less likely these days ??) or through a platform like Airbnb or Booking.com or any of the above.

The guests ?? checks themselves in and out with a key code or collect the key at a drop and collect location. Guest information is forwarded ?? before arrival and perhaps on a welcome note in the rental.

On the day of departure ??, the guests might be referred to a luggage storage platform similar to LuggageHero and off they go. Finally, in comes cleaners and the cycle begins again... ?

In the short-term rental industry, many PMs view that as a positive cycle, as less human contact is decreasing the administration and thereby the cost of running operations.

I can relate, as I’m running a business that does exactly that in the first stages of contact.

But it also means PMs are missing out on an enormous opportunity. They didn’t enhance their brand during that cycle ? and especially not if the guest booked the accommodation through a platform.

They didn’t engage with people to foster key personal connections ?? And they didn’t open channels to boosting their chances for recurring customers or revenue during the stay ??

Not getting traveler’s contact information for future communication is what causes most of the missed opportunity in branding ??

The only time a property manager “owns” their customers is when the guests are staying at the property.

If PMs don’t meet and greet them or at least tailor their own or third-party services directly to them, how do they sell to them? Well, they don’t.

So how do you scale, optimize revenue and minimize the cost of operations while making sure to take ownership of your customers? Because if you are not doing it, someone else for sure will do it instead ??

Here is the list insight from industry experts including Airbnb on how to leverage the guest experience and ensure recurring business

That was the key takeaway for me and the enthusiastic audience of property managers at the panel. Our topic was “Delivering Tomorrow’s Guest Experience,” and we examined today’s landscape and with a peek into tomorrow’s future-scape.

The Summit, which welcomed hundreds of property owners and managers from across Europe, was partnered with the European Holiday Home Association’s General Assembly. 

The insights below are brought to you by Carlos Lascorz, Head of Business Market Development for Airbnb in Spain and Portugal; Henry Bennett, CEO at YourWelcome, a subscription service featuring customized tablets to share and receive guest information and promote additional services; and Sandra Vives, Head of Community and Marketing in Spain for Eatwith, which offers culinary experiences like dinner parties and cooking classes with locals in more than 130 countries.

Solving fragmentation is key to generating business

The travel experience is super fragmented and might involve airlines ??, an OTA, a booking platform, taxi ?? or ride-sharing, luggage storage ??, on-site delivery service for meals ?? or supplies, meals out and sightseeing-related tickets. PMs and other companies are sitting on the opportunities to change that paradigm.

Says Henry of YourWelcome: “The onus has been on the guest to hunt ?????♂??????♀? out services in cities, but we’re trying to put them all in one place.” The company’s on-site tablets recommend a menu of services and will fill other needs as requested. The key, he said, is anticipating services, which YourWelcome does partly through data collection.

At Airbnb, Carlos said, for anyone in the industry to grow ??, an array of services should be offered, including practical ones like airport shuttles ?? and food delivery, as well as travel options, which is why the company is focused on refining and marketing its branded Experiences. At Airbnb, the bar is getting higher. Our vision is to become a total trip platform.”

Travelers still want to keep it real!

Offering “authentic” connections remains high on travelers’ wish lists and is the way PMs and companies can make a difference with the guest experience, said Sandra of Eatwith.

“People want trips that are unforgettable,” she said. “In a survey we did asking travelers if they want to share experiences with locals, 76 percent of Americans said yes. Those are the ones who book tours, classes, dinners. That’s where the magic happens.”

The path to profit: Upsell 

Henry believes that the future success of PMs and other providers lies in upsell, especially because “the cost of relying on occupancy property revenues is getting more expensive” due to rising OTA and property managements system fees and other factors. YourWelcome has calculated that every 1 euro of service revenue is worth 1.60 of occupancy revenue.

Examples of upselling could include striking a deal with a hotel to let short-term renters use its pool ???♂? and gym ??, and taking a cut of that fee. Another option they’re pushing is monetizing late-checkout requests, an add-on that Henry says is becoming more common. YourWelcome calculated that a $40 late checkout fee, which is typical, is more profitable to a property manager than selling a night’s occupancy of $120.

In the U.S., YourWelcome is rolling out an advanced check in-module with easy online check-in that includes a menu of pre-arrival services, such as a stocked refrigerator before arrival.

Technology is key 

While personal communication is important, technology is essential to inform PMs and industry players about customer preferences and industry benchmarks.

Carlos of Airbnb tells PMs that it’s crucial to measure KPIs. “The market is maturing, and guest expectations are growing, so getting ready for that with the proper data and understanding which key things you can control yourself and still be profitable and which you should rely on third party for its importance.” Examples would be cost-per-night comparisons with comparable listings and pointing out missed opportunities, such as flagging four empty nights at a rental with a six-night minimum.

Regarding the proliferation of voice technology, Henry said YourWelcome is integrating it into services where possible, but he thinks that European properties will have difficulty complying with GDPR privacy laws with current voice configurations, so he expects this segment of technology to move slowly.

Sandra at Eatwith said it’s important to be proficient in the technology your customer uses. “We’re getting massive groups from China, and looking at the China market, everyone is booking everything through one app, WeChat. So for that market, having a booking system that will enable guests to book everything through WeChat is key.

Reconnect, don’t disconnect

Even though the panel often focused on technological innovations, I kept thinking of something Henry said: “Property managers have never been more disconnected from their guests.”

So I think the key is to use technology to inform, but don’t forget the human element. Property managers and other service providers should engage with and take more ownership of their customers, especially during that short time when they are actually staying in the property. Investing in getting to know our customers even better will prepare us all for a better future ??

About the author: Jannik Lawaetz is CEO and Co-Founder of LuggageHero, a network of safe, convenient and affordable luggage storage sites in local shops, cafés and hotels. It has stored more than 1.7 million hours of luggage across more than 1,400 drop-off points in Europe and North America. LuggageHero is headquartered in Copenhagen and serves travelers across 37 major cities in Europe and North America, with more to be launched this year. LuggageHero was named one of the Top 25 travel startups to watch in 2019 by PhocusWright and has been recommended by leading media outlets, including New York Times, Lonely Planet and CNBC.