Creating partnerships with local businesses can be a powerful strategy for vacation rental owners and property managers. These collaborations not only enhance the guest experience, create strong relationships within the community, and bolster the local economy, but also drive more bookings and increase revenue.
In this guide, we’ll explore:
- The benefits of local partnerships
- The types of businesses to partner with
- The steps to building and promoting these relationships effectively
- How to measure the success of local partnerships
Whether you’re using Airbnb tools for hosts or managing your vacation rental independently, these tips will help you make the most of your community connections.
Why partnering with local businesses is beneficial
Collaborating with local businesses can create a win-win scenario for everyone involved. It benefits your guests, your vacation rental business, and the local economy.
Enhancing the guest experience
Guests are always seeking unique, authentic experiences during their stays. By partnering with local businesses, you can offer your rental guests exclusive deals and curated experiences that immerse them in the local culture. Whether it’s a personalized tour, a dining experience at a local restaurant, or a spa treatment, these partnerships can significantly improve your guest satisfaction.
When your vacation rental provides access (or better yet, built in recommendations and bookings!) to these one-of-a-kind experiences, it sets your property apart from others, which can lead to repeat bookings and rave reviews.
Boosting local economy
Vacation rental partnerships with local businesses create a symbiotic relationship. Your rental property introduces guests to nearby businesses, boosting their customer base, while the businesses, in turn, can recommend your property to their customers.
This helps drive the local economy, supporting small businesses and fostering a sense of community involvement. The increased foot traffic to these businesses can strengthen ties within the community and enhance the overall experience of both locals and tourists.
Case in point: enriched economy, happy guests, successful business
Investing in your local economy can actually make a huge difference. J. Erin Hutchinson, owner of Bark Point Ventures, provides property management services in a very remote and special part of the country: the South Shore of Lake Superior in (far, far, far) northern Wisconsin. Four years ago she started a local farm goods program in cooperation with a nonprofit, Authentic Superior, focused on creating more economic opportunities for the area’s farmers, food producers, and artisans.
Hutchinson says, “This has been an enormously popular program, and made a huge impact on our local small farmers (up here, ALL farms are small enterprises, often run by one person). This year we estimate this program will bring close to $25,000 direct to these farmers. One of the farmers says that this program covers her farm mortgage, making it far easier for her to survive economically.”
Through the program, guests staying at Erin’s properties are sent a menu of farm goods available from local farmers. Guests let the Bark Point Ventures team know what they want, and then Erin works with the nonprofit to get the items delivered to each property prior to the guests’ arrival. Guests pay the nonprofit which makes a big impact on the local economy.
“I’ve lost count of how many positive comments guests have made about this program,” Hutchinson shares. “I know for sure it enhances the guest experience and therefore our reviews and repeat business.”
Increasing short-term rental bookings and revenue
Partner initiatives with local businesses can lead to higher guest satisfaction, which ultimately translates into better reviews, repeat stays, and more bookings. When guests feel like they are getting an authentic experience along with exclusive perks, they are more likely to recommend your property to friends and family.
In addition, these partnerships often give your property a competitive edge, as you can promote these unique offerings in your marketing materials.
Benefiting from passive revenue streams
Rental hosts can take local partnerships to another level with automated promotions and providers. For example, when a guest books a stay through Hostfully’s digital guidebooks, Hostfully’s software partner Viator automatically pulls deals from local businesses, presenting a curated guest experience to renters, and providing hosts with a percentage of any promotions booked. This value-add can sometimes even justify higher rates, resulting in further increased revenue for your vacation rental.
Types of local businesses to partner with
Ready to support local? The types of businesses you choose to partner with will depend on your location, guest demographics, and the kind of experience you want to provide. Here are some top categories to consider.
Restaurants and cafes
Food is a key part of any travel experience. By partnering with local restaurants and cafes, you can offer your guests discounts, special menus, or even exclusive dining experiences. For instance, your guests could enjoy a “chef’s special” at a popular local restaurant or a cozy brunch at a charming café.
These collaborations are particularly valuable if your rental property doesn’t offer dining services, as they give your guests more convenient and curated dining options.
Transportation services, tour operators, and adventure companies
For rental guests who love exploring new places, partnering with local tour guides or adventure companies is a fantastic way to enhance their stay.
Adventure companies could offer hiking tours, kayaking adventures, or cultural excursions. In return, you can promote their services through your short-term rental, ensuring your guests get insider access to these thrilling activities.
You could also collaborate with cultural tour guides who specialize in historical or food tours, allowing guests to dive deeper into the local culture.
Wellness and spa services
If your guests are looking for relaxation, consider partnering with local wellness centers or mobile spa services. You could offer in-home massages or provide guests with discounted passes to a nearby spa. These partnerships add a luxury element to your rental, making it appealing to guests who want a rejuvenating getaway.
Having wellness options readily available can also extend your guest demographic to health-conscious travelers seeking rest and relaxation, thus opening up opportunities for bookings among a wider audience.
Local artisans and shops
Supporting local artisans and boutique shops is another excellent way to partner with the community. You could provide guests with gift baskets filled with locally made goods, or offer exclusive shopping discounts at nearby stores. This not only gives your guests a memorable souvenir from their stay but also supports the local economy.
These partnerships can add a touch of authenticity to your vacation rental, making it more appealing to guests who want to experience the local culture in a tangible way.
Steps to establishing local partnerships
Building meaningful partnerships with local businesses takes time and careful planning. Whether you’re a homeowner or property manager, here are some steps to get started.
Step 1: Researching potential collaboration partners
Start by identifying local businesses that align with your brand and the needs of your guests. Consider what kinds of experiences your guests typically look for, and find businesses that offer complementary services. It’s important to research potential partners thoroughly, ensuring that they have a good reputation and share similar values.
For example, if your vacation rental attracts adventurous travelers, consider partnering with a local tour company that offers unique excursions. If your guests tend to be foodies, look for top-rated restaurants that provide a taste of the local cuisine.
Step 2: Reaching out and building strong relationships
Once you’ve identified potential partners, it’s time to reach out. When approaching local businesses, be clear about the mutual benefits of the partnership. Explain how you can help them attract more customers while also enhancing your guests’ experience.
In your proposal, outline specific ways you can collaborate, such as cross-promotion or offering special deals. Be genuine in your communication, and aim to build long-term, trusting relationships.
Step 3: Negotiating mutually beneficial terms
It’s crucial that both parties benefit from the partnership, so take the time to negotiate terms that work for everyone involved. Whether it’s discounts for your guests or exclusive offers, the key is to ensure that the partnership is mutually rewarding.
You might agree to promote the business to your guests in exchange for a commission, or the business might refer customers to your rental in return for your guest referrals.
Step 4: Formalizing the partnership
Once terms are agreed upon, it’s a good idea to formalize the partnership with a written agreement. This document should outline the specific responsibilities of each party, the terms of the offer, and any financial arrangements. Having a clear agreement helps avoid misunderstandings and ensures that both sides uphold their end of the deal.
Promoting your local partnerships to guests
After establishing local partnerships, it’s time to promote them to your guests. Here’s how.
Highlighting partnerships on your website
Create a dedicated section on your website where you showcase your local business partnerships. This could include information about the businesses, the unique experiences they offer, and any special deals for your guests.
Including these details on your website not only promotes the businesses but also demonstrates to potential guests the added value of staying at your property.
Including information in guest welcome packs
Whether you provide digital or physical welcome packs, make sure to include information about your local partnerships. Offer guests details on how to access special deals, such as discount codes or exclusive invitations. You could even include brochures or small gifts from partner businesses in your welcome basket.
This approach helps set the tone for an exceptional guest experience from the moment they arrive.
Leveraging social media and email marketing
Don’t forget to promote your local partnerships through social media and email newsletters as part of your marketing strategy. Feature the businesses in your posts, highlight any special offers, and tag the companies to encourage cross-promotion. Email marketing can also be a great way to inform returning guests of new partnerships or seasonal promotions.
Promoting these partnerships keeps your guests engaged and excited about the unique experiences you offer.
Measuring the success of your partnerships
It’s important to track the effectiveness of your local partnerships to ensure they are bringing value to your vacation rental.
Tracking guest feedback and reviews
Monitor guest reviews and feedback to see how they respond to your local partnerships. Pay attention to whether guests mention the experiences or deals offered through your collaborations. Positive feedback can signal that the partnerships are adding value to your rental, while any negative comments can help you refine the relationship.
Analyzing booking data and revenue impact
Look at your booking data to assess whether your partnerships are driving more reservations. An increase in bookings or higher revenue per guest could indicate that your collaborations with local businesses are paying off. Use Airbnb tools for hosts to track and analyze these trends, which can help you make data-driven decisions.
Adjusting and improving partnerships
Partnerships should evolve over time, so be open to adjusting and improving your collaborations based on guest feedback and performance metrics. You might want to expand the partnership with a successful business or explore new opportunities with other local companies.
Bonus: Sample collaboration proposal
Not sure how to articulate your proposal to business owners? Here’s an written example of how to approach a local business. You can adjust it for in-person or phone communications.
Dear [Business Owner‘s Name],
I hope this message finds you well! My name is [Your Name], and I manage [Property Name/Company], a [brief description of your rental property or business]. As part of enhancing the guest experience at my properties, I’m always looking to connect with local businesses that provide exceptional services and products that our guests would enjoy.
I believe that [Business Name] could be a perfect match for a partnership. We cater to [your target guest demographic—families, business travelers, tourists, etc.], many of whom are looking for [type of product/service the business offers, e.g., great local dining, unique experiences, transportation options]. I’d love to discuss how we can work together to bring more value to both of our businesses and to the local community.
Here are a few suggestions on how we could collaborate:
- Referrals: We could promote your business through [guest welcome packets, on-property signage, email campaigns, or website features].
- Exclusive Offers: We’d love to provide our guests with exclusive discounts or promotions for your services.
- Cross-Promotion: I’m happy to share more about how we can direct traffic to your business while enhancing our guests’ overall experience.
I would be thrilled to meet with you to discuss the potential of working together. Do you have any availability this week for a brief meeting? I’m confident we could create a win-winpartnership that benefits both your business and our guests.
Looking forward to hearing from you!
Best regards,
[Your Name]
[Your Title]
[Property Name/Company]
[Phone Number]
[Email Address]
[Website]
Conclusion
Partnering with local businesses for your vacation rental is a powerful way to elevate the guest experience, support the local economy, and increase your bookings and revenue. By carefully selecting the right partners, formalizing agreements, and promoting these collaborations to your guests, you’ll create a win-win situation that benefits everyone involved. When done well, successful partnerships serve as validation of the vacation rental industry’s positive impact on local communities.
FAQs
How do I choose the right local business to partner with for my vacation rental?
Start by identifying businesses that align with your brand and guest demographics. Consider the types of experiences your guests typically enjoy and choose businesses that complement those preferences.
What are the benefits of partnering with local businesses for vacation rentals?
Partnering with local businesses enhances the guest experience, supports the local economy, and can increase your bookings and revenue through unique offerings and cross-promotion.
How can I promote my vacation rental‘s local partnerships to attract more guests?
Highlight your partnerships on your website, include them in guest welcome packs, and promote them through social media and email marketing.
What types of partnership agreements should I consider?
There are different ways to structure a partnership, such as referral discounts, affiliate commissions, or exclusive guest deals. It’s essential to have a written agreement that defines expectations, responsibilities, and terms of collaboration.
Can partnering with local businesses increase my vacation rental bookings?
Yes, offering unique local experiences through partnerships can lead to higher guest satisfaction, more positive reviews,
