Vacation rental guests are changing their booking habits drastically, meaning Airbnb hosts, Vrbo hosts, and property managers must keep up.

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At Beyond, our unparalleled access to short-term rental market data gives us an early view of what summer is looking like for vacation rental managers across the U.S. One of the most notable trends shaping the industry is the significant reduction in the average booking lead time. This shift towards more last-minute bookings has important implications.

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Booking Lead Times Drop 23%

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Over the last 12 months, we've observed a 23% decrease in average booking lead times across the U.S., with guests now booking their stays a mere 26 days in advance, compared to 31 days in the previous year. 

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How Can You Adjust?

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The move towards shorter booking lead times hints at a larger trend of spontaneity and flexibility in travel plans. Several factors could be driving this shift, including:

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• The desire for last-minute deals
• The flexibility of remote work arrangements allows for more spontaneous travel decisions.
• Increasing confidence in travel safety measures

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For vacation rental managers, this trend necessitates a more agile and dynamic approach to managing bookings and pricing strategies. Traditional models of setting prices months in advance and waiting for guests to book is no longer as effective. Instead, the focus should shift towards understanding market dynamics in real time and being prepared to adjust strategies on the fly.

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In Beyond, you can leverage our industry-leading market analytics to understand booking and market trends specific to your market. Instantly see market-specific booking trends, effective advertising channels, standout amenities, and more. Learn more about Market Insights here.

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Strategies for Adaptation

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1. Leverage Revenue Management Systems

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Investing in an advanced revenue management system is more critical than ever. These systems can analyze vast amounts of data, monitor market trends, and adjust pricing in real time to optimize revenue automatically. By leveraging technology, you can ensure that your pricing strategy is responsive to changes in guest booking behavior, capitalizing on last-minute demand without underselling your property in anticipation. Better yet, using an advanced revenue management system can even predict changes based on consumer search data, automatically updating your pricing before you get a bad booking.

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2. Flexible Pricing Strategies

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With guests booking closer to their travel dates, having a flexible pricing strategy that can adjust based on occupancy levels, time of year, and even the day of the week is key. Avoid the temptation to discount your property too far in advance. Instead, monitor booking patterns and adjust prices to reflect the demand as it develops. Consider implementing seasonal, time-based adjustments to help adapt your price discounting strategy as demand trends shift throughout the year in your market. 

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3. Enhanced Communication

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Given the shorter decision-making timeline, ensuring that potential guests can quickly find information about your property and book without hassle is vital. Streamlining the booking process, from inquiry to confirmation, can make the difference in capturing those last-minute reservations.

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4. Offering Incentives for Early Bookings

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While the trend is towards last-minute bookings, offering incentives for those who book early can help balance your booking calendar. Early bird discounts, special amenities, or flexible cancellation policies for advance bookings can encourage guests to commit earlier.

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5. Stay Informed and Agile

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Staying informed about market trends and guest preferences is essential. Pay attention to travel trends, both globally and within your specific market, and be prepared to pivot your strategies as needed. Agility in responding to the market is a competitive advantage. 

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Again, this is where a revenue management system comes in! With features like Health Scores and a wealth of market data, these solutions can help ensure that you always know what is happening in your market. 

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In essence, modern revenue management for short term rentals involves so much more than a series of levers managers need to pull. It entails a holistic approach, leveraging integrated solutions to enhance overall portfolio performance. Beyond's revenue management solution stands out, offering tools for revenue optimization, strategic insights, and profit expansion to drive business growth effectively.

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Conclusion

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The trend towards shorter booking lead times in the vacation rental industry is a clear signal that flexibility and adaptability should be at the core of your operational strategy. By leveraging technology, employing flexible pricing strategies, and staying attuned to market dynamics, vacation rental managers and hosts can successfully navigate these changing guest preferences. Remember, the goal is not just to react to market changes but to anticipate and strategically plan for them, ensuring sustained success in a rapidly evolving industry.

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Ready to see how much more revenue you can make with Beyond? Sign up today!

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