Meeting Guests (and Their Wallets) Where They Are

It is no secret that 2024 has been a challenging year for most vacation rental markets in the US.? Recent industry conferences and podcasts have put a spotlight on this being the first down year post-pandemic with drops in booking volume ranging from 10-30%.? As much as the economy and inflation have played their part, increased online competition and ease of searching multiple properties have made guests savvier than ever before.

This has caused a surge in last-minute bookings.? Guests are waiting for deals from the perishable, unbooked inventory the same way they might delay shopping online until Black Friday sales start.? If there are multiple homes that would work for their dates of travel, there is less of a sense of urgency to book quickly.? The economy affects affordability and getting the home guests want (or a group booking together want) sometimes means evolving from dynamic pricing to dynamic payments.?

Dynamic payments provide alternative ways guests can pay versus the traditional “one person pays for the booking in a lump sum”.? Lump sum payments may be necessary for last-minute bookings, but guests that want a larger home or to accommodate a group planning in advance desire flexibility.? Flexibility can come in several forms:

• Payment schedule allowing a booking to be paid in installments.? This option offers cash flow flexibility when access to credit for a lump sum may prove difficult (or costly to the guest)
• Dynamic split of a booking among a group where the person booking ONLY pays their portion, with the entire group paying their portion within 7 days of booking
• Evolving from collecting half of a rental now and half 30 days before arrival to collecting the entire booking on a payment schedule within 6-8 weeks of booking

With so many property managers limited to only accepting credit cards and with more demands on consumer credit, dynamic payments can be the differentiator to help a property manager rise above the fray.? In addition, the major online travel agencies (OTAs) have virtually no support for dynamic payments giving property managers another reason for guests to book direct instead.

StretchBill is the only payments platform that is pioneering dynamic payments, not just processing payments for vacation rental property managers.? Adding StretchBill to your direct booking site is simple, and you can email payment links to guests if they don’t book and pay online.??

If you can put yourself in the financial shoes of a guest and meet them where their wallet is you have already won.? StretchBill can provide a dynamic way to make their dream vacation at your properties a reality.