A trends report published today by Hostaway, highlights that vacation rental property management companies with portfolios under ten properties are lagging behind their larger counterparts when it comes to Artificial Intelligence (AI) adoption.
Just 34% of managers with under 10 homes state that they are using AI in some form in their business, compared to 53% of managers with more than 50 properties using AI tools regularly.
AI adoption across larger managers is bang on industry standards, according to a McKinsey Global Survey that claims that across the travel, tourism, and logistics sectors, 51% of companies are now using AI to help service operations.
The report also highlights that increased competition for owners and properties is the biggest issue for vacation rental managers, with 81% stating this is their biggest challenge. However, despite the competition, 79% of managers surveyed stated that they are anticipating growing their inventory in 2024 and that their ADR increased by 37% in 2023.
Whilst 67% said that they were happy with their current tech stack, 29% believe that improved use of technology and business intelligence tools would help them reduce challenges and operate more effectively. This was followed by 18% believing that getting pricing right would be an answer to growth challenges.
The 2023 Short Term Rental Report by Hostaway was completed during October 2023 with over 300 professional property managers surveyed across 30 countries and six continents.
In 2023, Hostaway launched a ChatGPT-powered artificial intelligence tool within its property management software capabilities to support vacation rental business customers to manage listings and increase bookings, by perfecting listings on the OTAs. The tool matches the tone of voice and professional style to each operator’s brand and audience to create brand consistency and can be used no matter what the size of the portfolio.
Saber Kordestanchi, Co-founder and COO of Hostaway, said: “The report highlights that increased competition is what keeps most managers up at night and the industry is still ambitious for greater growth in 2024. AI adoption and the use of smart technology are now simple to implement and easily available, helping managers to meet challenges and ultimately grow more profitable businesses, which is what everyone wants.”