VRMA International Conference 2023 - Recap

Last week, I had the opportunity to attend the Vacation Rental Management Association (VRMA) International Conference

Last week, I had the opportunity to attend the Vacation Rental Management Association (VRMA) International Conference, a melting pot of insights, trends, and strategies pivotal for anyone in the short-term rental space. In this post, I’ll distill my extensive notes into key takeaways that might be helpful for you. Let's dive in!

What is VRMA?

The Vacation Rental Management Association is a decades old professional association providing education, advocacy, networking, and assistance to vacation rental managers. While it has historically focused on professional property managers (think big portfolios), it rebranded 3 or 4 years ago to welcome smaller professional hosts into its circle. Notably, VRMA has done a tremendous amount of work around advocacy and regulations, and provides a much needed forum for us to come together on this issue and form a united front and - importantly, has funded the necessary research to help refute misinformation and draconian regulations impacting our industry. Learn more at VRMA.org.

Industry Outlook: A Glimpse into the Future

The overarching theme was clear: the industry is recovering and stabilizing after a wild, pandemic-induced high. Demand is growing, yet supply growth is outpacing it, leading to a competitive market. Coastal mountain and urban areas might face challenges until 2025. AI is emerging as a potential game-changer, though it’s still in its infancy.

Key Points:

Expect more of the same in 2024; areas that may continue to drop in 2024 will recover in 2025
Supply is outstripping demand; savvy positioning and differentiation are key.
Embrace AI cautiously; it’s not a panacea but has potential.
Understand your market dynamics and prepare for regulatory challenges.
Sustainability isn’t just nice-to-have; it’s becoming a necessity.

You can grab some of the specific data from my Day 1 debrief from the AirDNA presentation HERE

Advocacy and Data: The Power of Information

The VRMA invested in state-wide data studies in three states (to date) to advocate for the industry, correct misinformation, and challenge overly restrictive regulations. Key data points highlight the economic benefits of short-term rentals and debunk myths regarding their impact on affordable housing.

Key Points:

Effective advocacy requires credible, unified communication.
Short-term rentals contribute significantly to local economies.
Restrictive policies often lead to net losses for municipalities.

Marketing and Sales: Crafting Your Narrative

In the era of direct bookings and online presence, your marketing strategy is more crucial than ever. Separate your website from your channel manager, optimize for SEO, and use social media to build trust, not just push sales. Be ready to increase your marketing budget and consider hiring professionals to navigate the competitive landscape.

Key Points:

Consistency and authority in your destination are crucial.
Social media is about building trust, not direct sales.
Invest in your online presence and SEO.
Prepare to increase your marketing budget in 2024.

Pricing: Finding the Sweet Spot

Understanding price elasticity, pricing bands, and guest behavior can significantly impact your bottom line. Don’t just follow market trends; understand the psychology behind pricing and optimize accordingly.

Key Points:

Price sensitivity varies; understand your market and guest behavior.
Use psychological pricing strategies to your advantage.
Avoid offensive fees and optimize your pricing structure.

Distribution: Navigating the Channels

Diversifying your distribution channels can help capture different market segments. Understand the nuances of each platform and optimize your listings accordingly.

Key Points:

Direct bookings are down but still vital, especially in leisure markets.
Different platforms attract different guest behaviors; plan accordingly.
Focus on VRBO and direct bookings for leisure markets in the US as they have longer, higher revenue bookings

All in all, its hard to distill 2.5 days of sessions, networking and leaning in to a single blog post but I believe understanding the industry trends can be helpful and affirming regardless if you have one STR (or maybe just contemplating) or 300. Feel free to reach out anytime if you need some added support!

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Grab the Free Training!

As we navigate this changing landscape, its hard to know where to put our focus to move the needle and optimize our revenue. I believe that folks who want to provide a great guest experience put in the effort - they show up, they self-educate. I'm offering to share my learnings from my recent journey into hospitality science and consumer behavior research - and how we can leverage what researchers have learned in our short-term rental businesses (and how I've already seen it working for me and my clients!) Grab the Free Training on Listing Optimization - its about 35 minutes! You can grab it HERE

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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!

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Categories: : industry trends