The short-term rental (STR) market is booming, but with great opportunity comes great competition. Whether you’re a seasoned property manager, an Airbnb Superhost, or someone just starting out, STR success requires more than just a nice property. It demands strategy, systems, and soul.
If you want to transform your STR from “just another listing” to a thriving business, you’ll need to focus on four non-negotiable pillars of success. These essentials aren’t just about improving your booking rate or reviews – they’re about creating a memorable brand, increasing profitability, and building a scalable business.
Here are the four essentials that separate top 1% STR operators from the rest.
1. Build a Brand That Creates Memories
A brand is more than a logo or the color scheme of your property’s Instagram page. A brand is the emotion your property evokes. It’s about how your guests feel when they discover your listing online, walk through the door, or sip their morning coffee on the patio.
Why does this matter? Because memories are what your guests remember, not just beds to sleep in.
To create a standout brand, focus on delivering a unique guest experience that resonates deeply with your ideal guest. Consider what your guests are seeking. Is your property a bustling urban stay for digital nomads, or a serene retreat for overworked city dwellers in need of peace?
Tips to Create a Brand That Stands Out:
- Identify your target guest. Who are they? What are their goals and challenges?
- Design every detail with intent—from the check-in experience to the type of local coffee you provide.
- Make it clear what makes your property memorable. For example, at Freewyld, we built “Wyld Mode” for screen-addicted city dwellers looking to reconnect with nature. Every element—from the Wyld Mode boxes to the crackle of the fireplace—is designed to create that feeling of disconnection from the digital and reconnection with the real.
Brands with soul create emotional connections, and emotional connections get your guests coming back again and again.
2. Unreasonable Hospitality
Today’s guests are looking for more than just accommodation; they’re looking for connection. And in a world where AI chatbots have become the norm, authentic, human hospitality has become your greatest competitive advantage.
Unreasonable hospitality means going above and beyond to show your guests you care. It’s about delivering ego-less service with a personal touch. Solving problems because you want to, not because you have to. And anticipating your guests’ needs before they even express them.
How to Deliver Unreasonable Hospitality:
- Communicate Proactively: Respond to questions quickly and warmly. If there’s a potential issue, address it before it becomes a problem.
- Anticipate Needs: Is there an anniversary or a special occasion you can celebrate with your guests? Maybe a handwritten welcome note or providing a selection of local snacks could make their stay unforgettable.
- Hire Thoughtfully: Build a team that aligns with your values. At Freewyld, we emphasize hiring local hospitality leads who care as much as we do.
Hospitality today isn’t rocket science—but it does require heart. The STRs that win in this area build experiences guests share with their friends and remember forever.
3. Master Revenue Management
Are you still using “set-it-and-forget-it” pricing? If so, you’re leaving revenue on the table.
Revenue management is where amateurs get exposed, and professionals thrive. Dynamic pricing isn’t an option anymore; it’s a must. The days of using gut instinct to price your property are gone. Booking trends are shifting, demand is unpredictable, and guest behavior is more volatile than ever.
Why Dynamic Pricing Matters:
Dynamic pricing ensures your rates adapt to everything from seasonality to local events to shifting demand. It’s how you maximize revenue without scaring off prospective guests.
Actionable Revenue Tips:
- Use pricing tools like PriceLabs, Beyond Pricing, or Wheelhouse, but don’t rely on automation alone. Regularly analyze your market and adjust rates accordingly.
- Monitor booking windows and local events to predict demand spikes.
- Test promotional discounts or minimum-stay configurations to see what works best for your audience.
One of our clients at Revenue & Pricing Management (RPM) saw a 30% jump in profitability after switching to daily pricing adjustments. Master your revenue strategy, and the payoff? Higher earnings and peace of mind knowing your property is performing to its full potential.
4. Achieve Operational Excellence
Here’s the truth about operational excellence in STRs: it’s not sexy, but it’s necessary.
Everyone loves the idea of Instagram-worthy spaces and glowing reviews, but all of that hinges on having systems and processes in place. Operations are the backbone of your business, and if they’re not rock-solid, things can quickly spiral into chaos.
Operational excellence boils down to three things:
- Systems: Whether it’s an automated cleaning schedule or a checklist for every guest departure, you need clear processes.
- Margins: Every dollar matters. Understand where your money is going and adapt to maintain profitability.
- Emotion-Free Problem Solving: STR success means solving the same issue for the tenth time with patience and professionalism.
Keys to Operational Success:
- Develop Standard Operating Procedures (SOPs) for every process, from cleaning to guest check-ins.
- Build strong relationships with reliable vendors and local service providers.
- Use property management systems (PMS) like Hospitable or Guesty to streamline day-to-day operations.
- Train your team so they can operate autonomously, empowering you to scale your business without burning out.
Remember, operations are where the magic and margin live. The less chaotic your backend is, the more seamless your guest experience will be.
The Formula for STR Success
The short-term rental business is changing rapidly. Being a passive host is no longer enough to thrive in a competitive market. By focusing on these four essentials—Branding, Unreasonable Hospitality, Revenue Management, and Operational Excellence—you can build an STR business that not only stands out but also delivers meaningful and memorable experiences for your guests.
Don’t wait for the market to rebound. Be proactive. Be strategic. And most importantly, be exceptional.
Looking to grow your STR business? Have our team of expert revenue managers look under the hood of your current pricing strategy to see if you’re leaving money on the table (only for hosts that generate $1M+/year in bookings).
