The luxury vacation rental market is booming, with travelers seeking unique vacation homes and opulent experiences during their getaways. Property managers can tap into this lucrative niche to significantly boost revenue and enhance business.
In this article, we’ll explore the advantages of using luxury vacation rental platforms and which sites property managers may wish to consider.
What are luxury vacation rentals?
Luxury vacation rentals are high-end properties that offer exceptional comfort, amenities, and services. These properties often include private villa rentals, beachfront estates, and sprawling chalets designed to provide an unparalleled travel experience. Amenities can include everything from private pools, personalized concierge services, and home theaters. Guests who choose luxury homes expect superior quality, personalized services, and exclusive locations.
Advantages of offering luxury vacation rentals
Venturing into the luxury vacation rental market offers numerous benefits that extend beyond mere aesthetics and high-end amenities. By transforming your property into a luxurious haven, you can unlock several advantages that enhance both your revenue and your reputation. Let’s explore some of the key benefits:
Increased revenue potential
One of the primary advantages of offering luxury vacation rentals is the potential for increased revenue. High-end properties command premium prices, attracting guests willing to pay for exclusive experiences. This can lead to higher occupancy rates and greater profitability compared to standard rental properties.
Capturing a high-end market
Luxury vacation rentals attract affluent travelers who are willing to spend more on their accommodations. These clients often have higher expectations, but also have the means to pay for exceptional services and amenities. By targeting this demographic, rental managers can build a loyal customer base that values quality and luxury travel.
Enhanced property value and appeal
Investing in luxury vacation rentals can also enhance the overall value and appeal of the property. High-quality furnishings, modern amenities, and unique features can make a property stand out in the market. This not only attracts more bookings but also increases the property’s market value over time.
Leading luxury vacation rental platforms
Desirable luxury travel destinations range from the countrysides of Italy to sprawling Central Park penthouses in New York City to luxury villas in Costa Rica — and luxury vacation rental sites are just as numerable. Let’s explore some of the most popular platforms.
Airbnb Luxe
Airbnb Luxe offers a curated selection of high-end homes, complete with dedicated trip designers to cater to guests’ needs. This platform is ideal for property managers looking to reach a global audience of luxury travelers. The site boasts 50+ categories, including: Luxe homes with a staff and a curated Top-rated Luxe homes section.
Competitive edge: Airbnb is the most widely-known platform, therefore engendering trust from potential customers and benefitting from a greater market reach. Each booking includes access to a dedicated trip designer who assists with every aspect of the stay. This high-touch service model, coupled with Airbnb’s extensive global reach and trusted brand, distinguishes Airbnb Luxe from other luxury vacation rental platforms.
Top Villas
Top Villas is a luxury vacation rental company specializing in — you guessed it, villas! They offer a curated selection of high-end properties worldwide, targeting discerning travelers seeking premium accommodations and personalized services. Popular search categories include: golf vacations, child-friendly, home gyms, basketball courts, large groups, Disney World and Universal Studios.
Competitive edge: Their competitive edge lies in the quality and exclusivity of their properties, bespoke concierge services, including pre-arrival arrangements, private chefs, housekeeping, transportation, and itinerary planning to enhance the guest experience.
Vrbo Luxury Vacation Rentals
Vrbo (Vacation Rentals by Owner) is a well-known platform within the Expedia Group that connects homeowners with travelers seeking unique accommodations. Vrbo Luxury Vacation Rentals is a segment of Vrbo that focuses on high-end, luxurious vacation rentals, catering to affluent travelers who seek exceptional comfort, privacy, and exclusive experiences.
Competitive edge: Much like Airbnb, Vrbo is a known-entity in the short-term rental market, and thus has built-in brand awareness, extensive resources, marketing reach, and technological advancements, enhancing its overall service offering. Bonus: the platform showcases a “Best destinations for luxury vacation rentals” exploration map which could be informative for STR investors.
Luxury Retreats
Luxury Retreats specializes in offering personalized experiences in some of the world’s most luxurious destinations. This platform provides dedicated concierge services, ensuring guests have a seamless and unforgettable stay.
Competitive edge: Unlike broader vacation rental platforms, Luxury Retreats focuses exclusively on the luxury segment, carving out a niche market. Luxury Retreats partners with high-end brands and services, enhancing the overall guest experience and adding value to their offerings.
Plum Guide
Plum Guide is known for its rigorous vetting process, selecting only the top 3% of homes in each destination. Property managers can gain credibility and attract discerning guests by listing their properties on this platform. This focus on excellence attracts discerning travelers who prioritize consistency and quality, allowing the platform to build a reputation for reliability and trust. The site focuses largely on a European market, but also offers properties worldwide.
Competitive edge: Plum Guide employs a rigorous selection process, assessing properties based on a comprehensive 150-point checklist that covers everything from design and amenities to neighborhood appeal and home functionality.
Onefinestay
Onefinestay offers handpicked high-end homes with hotel-like services, including 24/7 guest support and housekeeping, combining the comfort of a private residence with the services of a five-star hotel. Onefinestay‘s portfolio includes homes in several destinations in the United States of America (New York, California, Colorado, Utah, and Hawaii), as well as vacation spots such as the Caribbean, Central America, Mexico, Europe (France, Spain, Italy), Indonesia, and Thailand.
Competitive edge: Guests benefit from 24/7 guest support and a stringent vetting process guaranteeing that each property meets high standards of quality and comfort. Onefinestay’s focus on guest services, including tailored recommendations and concierge support, sets it apart from other vacation rental platforms, appealing to travelers who desire both the privacy of a home and the convenience of hotel amenities.
Villas of Distinction
Villas of Distinction prides itself on over 25 years of experience, offering a wide range of luxury villas in exotic locations, providing personalized concierge services and tailored experiences. Property managers can benefit from the platform’s focus on high-end vacation rentals and bespoke travel planning.
Competitive edge: Villas of Distinction’s 2500+ worldwide destinations include the usual suspects — as well as several locations in Africa, setting it apart from many other sites. The site also prides itself on Villa specialists who help guests with vacation planning.
Inspirato
Inspirato is one of the smaller luxury travel sites but offers a unique members-only subscription-based model. The platform provides a curated portfolio of high-end properties, exclusive events, on-site concierges, and planning services — similar to a travel agency. Property managers can reach a dedicated community of luxury travelers by partnering with Inspirato.
Competitive edge: Inspiro not only houses exceptional accommodations, but also offers immersive travel experiences. The platform goes beyond standard rental services by offering personalized travel itineraries, local insider tips, and bespoke concierge services, ensuring that each guest can fully explore and enjoy their destination.
Marriott Homes & Villas
Launched in 2019 by Marriott Bonvoy, Marriott Homes & Villas combines the reliability of the Marriott brand with the charm of private homes, offering luxury properties with the backing of a trusted hospitality giant. The platform is ideal for property managers who want to leverage Marriott’s extensive customer base and loyalty program. With worldwide properties, the site offers categories such as: Beach getaways, Mountain homes, Ski destinations, Villas, vineyards, and views, and Warm weather getaways.
Competitive edge: With “Marriott” in its name, this platform ensures a wide reach, bridging both traditional hospitality and vacation home customers. And with a points system to guests, the site gives STR property managers access to potential luxury travel customers who might normally focus on hotel sites.
Other luxury vacation rental sites
The aforementioned luxury vacation sites is by no means an exhaustive list. Other sites to consider include:
- HVN: Focuses on properties and experiences.
- Blueground: Caters to longer stays.
- RetreatMi: Designed as niche meditation, detox, and wellness retreat site.
- Time & Place: Provides full-service properties and adventures.
- The Hideaways Club: Offers exclusive, member-only access to luxury homes.
- Le Collectionist: Features a bepsoke collection of exceptional properties.
- Haven In: Focuses on luxury properties in Paris, Provence, Italy, and London.
- Edge Retreats: Specializes in exclusive luxury villa rentals and private islands.
- Elite Havens: Corners the luxury villa and private home market in Asia.
- BoutiqueHomes: Focuses on stylish, unique vacation homes and small hotels.
Evaluating luxury vacation rental sites for your vacation rental company
Market reach and demographics
As already mentioned, when choosing a luxury vacation rental platform, consider its market reach and target demographics. Platforms like Airbnb Luxe and Vrbo Luxury have a broad global audience, while others like Plum Guide focus on specific markets. Understanding your target guests can help you select the best platform for your property.
Platform fees and commission structures
Different platforms have varying fee structures and commission rates. It’s essential to evaluate these costs to ensure they align with your revenue goals. Some platforms may charge a percentage of each booking, while others have subscription-based models.
Integration with Property Management Systems
Integration with a property management system (PMS) like Hostfully is crucial for streamlining operations. Ensure the luxury travel platform(s) you choose can seamlessly integrate with your existing PMS or your preferred channel manager, allowing for easy management of bookings, guest communication, and property maintenance — all of which are critical in the high-end market.
Conclusion
Participating in the luxury vacation rental market can be a rewarding venture for vacation rental managers. By understanding the benefits, choosing the right platforms, and implementing the proper tools, you can attract high-end clients and set yourself apart within the vacation rental landscape.
