The Future of STR: Our Seat in the Travel and Tourism Ecosystem

Insights from the Pure Michigan Governor's Conference on Tourism

Last week, I had the privilege of attending the Pure Michigan Governor’s Conference on Tourism, a conference bringing together marketers, leaders, associated venders and service providers from across the travel and tourism sector in my state. And don't hop out of here if you don't have a stake in Michigan, I've got some highly relevant insights to share regardless of where you hang your STR hat.

As a STR-focused attendee, this was an investment to lean in to my business as part of the larger travel and tourism eco-system, and while not everything was directly relevant there were some great takeaways.

A few major themes stood out: the evolving landscape of traveler demographics, the increasing importance of accessibility in short-term rentals (STRs), and the transformative role of technology in shaping how we travel - and what we need to think about in our STR businesses to stay relevant.

I also experienced a bit of the darkside, as well, as one speaker openly disparaged STR while presenting data that showed STR was the preferred lodging choice for 10% of travelers in the survey he was presenting. So, friend, read on to learn more -

The Evolving Traveler Demographics

A striking revelation from the conference was the projection that by 2030, 90% of travelers will not be baby boomers. This demographic shift signals a profound change in the needs and expectations of travelers, skewing towards a younger audience that prioritizes adventure, wellness, and unique experiences over traditional leisure. Let's repeat that for those in the back: travel for leisure will not be the big driver as the boomers start traveling less. For STR owners and operators, understanding this shift is crucial. Engaging with these younger travelers requires not just adjustments in marketing strategies but also in the services we offer, making sure we cater to their desire for an "Instagrammable" stay and authentic local experiences.

Even in the last 6 or so months, since I last saw similar data presented, we've shifted from appreciating the normalcy of returning to the same spot all the time to looking for innovative, unique experiences. And while these are stereotypes, the trends are important to keep a thumb on the pulse and ensure we truly understand our target audience so we tailor our listings and other marketing at the right folks.

The Critical Role of Accessibility

Accessibility is transitioning from a niche consideration to a mainstream demand in the travel industry. At the conference, discussions around the need for standardized accessibility criteria across platforms highlighted a significant gap in the current STR market. With movements underway to standardize these criteria, there’s a compelling opportunity for STR operators to lead the charge in creating truly inclusive environments. By embracing accessibility, not only do we expand our market, but we also enhance our commitment to inclusivity, ensuring that everyone has the chance to experience the joys of travel.

A key note presenter, Kristy Durso of Incredible Memories Travel shared her experience of staying in a hotel that was only a year old - she booked an accessible room as she is a wheelchair user, only to find her "accessible room" was inaccessible - she couldn't reach the door handle, couldn't open or close the curtains, and had issues navigating the sink in the rest room. The ability to offer truly accessible lodging is an opportunity - so if you are looking to do a renovation or a new build STR, consider how it could be made accessible for all. I had a sidebar with another individual who focuses on accessibility who shared with me the fact that the OTA all define accessibility differently - a point her group was working to change and finally getting traction.

Technology: The New Frontier in Travel.

I've been hearing and learning alot on this topic and its an important one for our STR businesses. Technology's role in travel is expanding beyond mere booking platforms. With AI-driven tools capable of crafting personalized travel itineraries, the future of STR marketing is shifting towards direct integration with these technologies. For instance, platforms like Perplexity.ai are setting the stage for a revolution in how travel options are presented and booked; you can ask for a travel itinerary to be put together and AI can do that for you. This evolution in search technology, including the shift away from traditional search engines and the phasing out of cookies, means that we must be agile and proactive in leveraging these new tools to maintain visibility and relevance. While change is a constant, it feels like the pace of change is amped up considerably - a point made in one of the keynotes given by Crystal Washington who made some waves by pointing out we are, in fact, cyborgs given our dependence on our phones these days. Ha.

Claiming Our Seat at the Table

As the travel industry evolves, it's crucial for the STR community to claim its seat at the table. Engaging more actively with destination marketing organizations and tourism boards can help us align our offerings with broader tourism efforts, amplifying our reach and impact. That said, its important to understand that those organizations are typically funded by occupancy or other related taxes. This is a big point in my state, and could be in yours as well. So understand the landscape, how we benefit as part of the industry - but our responsibilities as well. I don't hold with any one member of the industry carrying more of a tax burden than any other but I think its important to acknowledge the complexities of our industry.

The Darkside of Being the New Kid on the Block

There is no question that STR aren't always seen as a welcome addition to the travel and tourism industry. Even knowing that, I was still caught off guard when one speaker at the conference openly disparaged STR on stage during his presentation. While I encountered many who were supportive and had no such bias, that bias does exist. I personally find it interesting - its not just competitiveness, because the reality is we don't compete directly in most markets and recent research supports that thinking. Are we pulling market share? Yes, but because we offer something unique - not because we do a better job at being hotel rooms. Hotels have unique advantages as well.

Further, STR have the ability to be in markets where it doesn't make sense for hotels or motels to go, and STR offers a different type of experience than a hotel. I utilize both types of lodging - it depends a lot on the purpose of the trip, who I'm traveling with, and what's available in the market. So even with the knowledge that STR have a share of the travel and tourism market, contribute to the economic wellbeing of our states and communities, and offer a unique way to bolster the economic standing of individuals in our communities - some still see us as the piranha of the industry and this experience truly brought that to light. But it was only one interaction, but I share it because it - to me, highlights the work we have to do as yet to be truly viewed as welcome partners in the travel and tourism ecosystem.

All in all, I really enjoyed the conference and had some great takeaways to further my business in the coming year. I've attended several conferences in recent months, and its been helpful to piece together the trends - sometimes told from different view points but trends none the less. My key takeaways for STR operators? Stay adaptive, innovative, and forward-thinking.

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Hey Boss! I'm Kate, owner/founder of The CEO Host. If you are interested in taking a leap into short-term rentals - or have some questions about your existing business, my goal - passion, and career, is to help YOU succeed. I've coached hundreds of folks getting started or looking to optimize, analyzed more deals (and duds) than I could count, completed thousands of hours of education and training, attended conferences... So don't be shy. A good CEO knows to bring in expert help - and that's what I'm here for! Lets HOP ON A CALL and chat!

I'll share some more insights in the next week or so, so don't miss out. And if you are a Michigander - don't miss my "State of the State" presentation HERE

Categories: data