AI has already become standard practice in the short-term rental industry. Over half of operators say they’ve started using the technology in some capacity.*
It’s hardly surprising when you consider what a great fit AI is for the hospitality industry. Businesses can automate more routine tasks like revenue management and communication while offering a more personalized guest experience.
Your only hope of staying competitive amid all these technological advances is taking full advantage of AI tools.
But how do you choose which ones? Generative AI and machine learning only came out last year so we’re unsure how best to use them. It doesn’t help that the market is flooded with software with varying degrees of quality.
Let us help you sort the top-tier options from the time-wasters. We’ve compiled this list of the eight AI tools every vacation rental business needs with help from Liam Carolan of Boostly and our very own Hostfully team.
* Hospitality trends in the vacation rental industry, Hostfully 2023
Why do you need AI tools for your vacation rental business?
As artificial intelligence becomes the new normal, businesses must adapt or risk falling behind. Liam Carolan says, “It’s time to get out of the mindset that AI is a choice. The real question is how to integrate the technology successfully into our operations.”
“As many people never take the first step, just spending an hour getting to grips with AI can help you get ahead.”
Mitch Foster, Head of Integrations at Hostfully, adds that AI heralds a shift from a reactive to a proactive strategy. “Throughout the history of short-term rentals, we’ve only ever been able to react. Now we have access to all this data and the ability to predict what’ll happen.”
So, AI technology not only allows you to keep pace with early adopters but also helps you identify opportunities and potential pitfalls. If you don’t use the tools, you won’t just be a step behind. You’re likely to notice a growing divide between you and your competitors.
As Carolan points out, another reason to use AI tools is simply that hosts are busy. “Most people are dealing with guests, owners, contractors, maintenance people, cleaners, and more. Anything that allows you to save time is beneficial.”
Importantly, he says AI tools save time while improving your quality of service. “Many hosts have easy access to knowledge they didn’t have before. You can get advice on running every aspect of your operations.”
The short-term rental industry calls for managers to become experts in everything from accounting and marketing to your town’s local history. With the introduction of AI, you can now deliver.
Top AI tools for short-term rental property management
Here’s a list of the best 8 types of AI tools for short-term rentals on the market and the specific apps you should consider.
Chatbots
Hosts voted guest communication as the area where AI was most likely to have an impact in our latest report. Chatbots can save you a significant amount of time by handling inquiries. As they can instantly analyze a wide database, they’re more likely to give detailed and accurate answers.
ChatGPT is a good option for basic questions. You can create a specialized GPT that answers FAQs about your property and the destination. When it comes to unexpected or unusual requests, you may have to step in.
Specialist tools like our new AI inbox draw from business data to provide more personalized and relevant responses. They can pull information about the accommodation and booking to answer questions. As they tailor responses based on previous interactions with the specific individual, guests are more likely to feel valued and understood.
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That’s especially helpful when it comes to upselling. AI-powered chatbots can analyze the guest’s past interactions and behavior to make targeted recommendations. You can also fill more gap nights and make sure no properties stay empty.
Virtual concierges
Guests often have questions after they’ve checked in. Virtual concierges like AIPEX can provide them with immediate 24/7 assistance from the comfort of their accommodation.
Similar to chatbots, you train virtual concierges on data about your properties and the local area. They can handle a range of inquiries like which restaurants are best for vegans or how to get to the nearest pharmacy.
The main difference is that virtual concierges use a combination of text, audio, and video to communicate with guests. That’s helpful when guests can’t figure out how to operate appliances and need a visual demonstration.
Offering this feature can help you win over Millenials and Gen Z. Recent research shows a growing preference for self-service options among the younger generations. In fact, around half say they’d be less interested in a company if they had to rely on its support.
Operations management
The problem with outsourcing communication to AI is that some messages draw attention to urgent cleaning and maintenance issues. You might miss a complaint about a leaky faucet until the next set of visitors is ready to check in.
AI doesn’t just have to talk to guests. Hostfully integrations Besty AI and HostAI can analyze guest messages to detect issues and assign tasks. The software tells you when it created the task and who’s seen it to help you gauge whether the problem is under control.
Both tools also include sentiment analysis to understand whether guests are satisfied or not. You can see a breakdown of how everyone’s feeling via the dashboard. That way you have more opportunities to fix issues and improve the experience before unhappy visitors leave.
Sentiment analysis can reveal how your guests are feeling about their stay. Source: getbesty.ai
Predictive analytics
Predicting demand and setting prices used to be a gamble. Humans just can’t process the sheer amount of data required to make accurate forecasts.
Now you no longer need to speculate. Dynamic pricing tools like PriceLabs and Beyond use AI algorithms to identify patterns in the data they’ve collected. They’ve already become commonplace with around two-thirds of Airbnb managers using them.
AI pricing tools let you set prices based on intricate factors like local events competitor performance, and historical trends. They then adjust your rates in real time so you’re always ahead of market trends. While sudden unexpected events might throw off the algorithm, you’ll have the optimal prices to attract guests the majority of the time.
Guest screening
AI can give you more control and flexibility over the screening process. Tools like Autohost use a proprietary algorithm to scan reservations and assess whether potential guests pose a risk. You can then decide whether to request further verifications or cancel the booking altogether.
There’s no need to monitor the system. Autohost lets you configure which verifications guests must complete based on the property listing, booking channel, and more.
Some listing sites already include these capabilities. Most notably, Airbnb has introduced a proprietary AI to enforce its global party ban across major cities. The algorithm can spot risk factors like short stays and last-minute reservations over public holidays.
You wouldn’t have to take action in this case. Airbnb automatically blocks the reservation and flags the users.
Smoke detectors
Traditional smoke detectors can’t tell the difference between the smoke from cigarettes and burnt toast. This makes it harder to monitor your guests and prevent them from damaging the property.
Hostfully integration, Minut has developed an AI tool that uses advanced algorithms and sensors to get a more accurate reading. If there’s a high risk of cigarette smoke, it sends an alert via the mobile app. Then you have a chance to intervene before the smell permeates all your furniture and leaves unsightly stains.
Generative AI
Running a short-term rental business comes with a surprising amount of writing tasks. You need to fill your website, guidebook, and social media with polished copy that appeals to the right guests.
With the right prompts, AI models like ChatGPT can produce quick text for:
- Property listing descriptions
- Message templates
- Guest reviews
- Blogs and landing pages
- Social media posts
ChatGPT can also translate these texts into multiple languages for your international guests. Preliminary research shows it has similar accuracy rates to dedicated translation apps. The benefit of using ChatGPT is that you get more customization options and contextual awareness. For example, you can ask ChatGPT to remove any mentions of culturally sensitive topics from the translated text.
AI Planner
Now you can use generative AI to do more than create listing descriptions and articles. With the introduction of Hostfully’s new AI planner, you can give each guest customized itineraries. All guests have to do is enter a few details to receive a suggested schedule populated with web links.
Our latest feature uses the following details to create the plans:
- Dates and seasons
- Length of stay
- Size of group
- Ages of people
- Guest needs and preferences
AI planners spare guests from the stress of having to research and plan the trip. They instantly get all the relevant details about opening hours, entry fees, and ticket availability for nearby attractions. As the planner is hosted on a webpage, they can easily refer to the planner when they’re out and about.
Guests aren’t the only ones who benefit. You can link the AI planner to your Viator account to get referral bonuses from the businesses you feature.
When not to use AI tools for STR management
Although AI has many applications within the hospitality industry, they’re not without their limitations. Understanding these can help you use the tools effectively and get the best results.
The main area where AI falls short is making decisions. As Carolan says, “Unless you’ve established a clear set of parameters, you need a human to make the final call.”
He adds that “AI developers might promise to help you make decisions. Now they might be able to do that with cleaning schedules and pricing strategies but it’s often a different story with sudden issues. They can be too complex for AI to cope with.”
Carolan gives an example of a natural disaster. “There are a lot of variables like what to prioritize and who needs to do what. There are going to be too many decision-making factors in that one instance.”
AI can follow instructions and give you actionable insights but it can only help you make decisions. It’s best not to become over-reliant on the tools for plans and strategy.
Another major consideration for Carolan is community. “Part of what we do as hosts is build relationships with other businesses and our guests. You can’t do that without genuine human interaction.”
It’s important to find a balance between AI and hands-on service. You can streamline routine inquiries but still seek opportunities to connect with guests.
Read our guide to the best vacation rental forums and groups for tips on how to find and build communities.
Integrate AI tools effortlessly into your system with Hostfully
Introducing AI tools into your short-term rental business can make you more competitive and resilient. All you have to do is figure out which to use and how to implement them.
Hostfully makes this task easy. Our platform already includes essential AI tools such as our itinerary and inbox features. You can set up every guest to have a phenomenal stay with personalized recommendations and responses.
| “Hostfully aims to continuously pave the way in the vacation rental industry. We’ll continue to add AI features as we explore ways to improve operations while also giving guests the best experience possible.”
David Jacoby, President and Co-Founder of Hostfully |
What’s more, Hostfully integrates with all the leading AI tools on the market. You can choose from the best hospitality chatbots, pricing tools, and more from our 60+ partners. Everything connects seamlessly so you manage all your operations in one place from our dashboard.
