The Eleventh Hour: How To Attract Last-Minute Short-Term Rental Bookings

With travel demand skyrocketing across various markets, the supply has followed suit, escalating competition among short-term rental hosts and property managers. Differentiating yourself in this saturated market has become paramount, and capturing those sought-after last-minute bookings might just be your pathway to success.

To equip hosts and managers with actionable insights, Rental Scale-Up hosted a complimentary online conference aptly titled, ‘Last-Minute Magic: Free and Paid Marketing Strategies to Boost Short-Term Rental Bookings.’ On June 29, 2023, we convened top-tier short-term rental marketing maestros to impart a wealth of practical tactics. This article distills their collective wisdom, offering a balanced mix of free and paid strategies crafted to entice spontaneous guests, thereby optimizing both your occupancy and rates.

The conference boasted an impressive lineup of esteemed speakers. Carla Chicharro, Head of Marketing at Lodgify, shared effective strategies for content marketing and website optimization. Cynthia Huang, CEO of Dtravel, provided valuable insights on how to optimize listings on major booking platforms. Lastly, Kate Stinchcombe-Gillies, Chief Marketing Officer at Touch Stay, revealed the secrets to crafting compelling brand narratives and establishing robust PR networks for small and medium-sized operators.

Adapting to the Rising Tide: Making Your Property Stand Out to Last-minute Travelers

The urgency to attract last-minute travelers has intensified. With the rapid expansion of short-term rentals outpacing demand in many regions, a strategic approach is required to secure bookings and maintain competitiveness.

This trend is exemplified by two key scenarios. Firstly, the ongoing ‘AirbnbBust‘ phenomenon, where Airbnb’s swift growth resulted in an oversupply of listings, making it more challenging for individual hosts to differentiate themselves.

Secondly, Airbnb’s aggressive push for more listings ahead of major events, as seen in France where they are increasing their footprint for the 2024 Paris Olympics. This strategy contributes to an already saturated market.

However, it’s not just Airbnb contributing to this increase. Data from AirDNA indicates that with house prices falling faster than expected, as demand grows. Consequently, the forecast for listed nights in 2023 has risen to 14% year-on-year, up from 9%.

This increased supply means that demand is dispersed over more listings, potentially leading to lower rates and occupancy. Targeting last-minute bookings can help counteract this, ensuring your property remains attractive and profitable amidst the competition.

What are the best practices being followed by hosts and managers to attract last-minute bookings?

Carla Chicharro emphasized the importance of a strong online presence in attracting last-minute bookings. In the digital age, potential guests often turn to online platforms when looking for last-minute accommodation options:

• Facebook Page Marketing: Regularly updating your profile with last-minute availability can capture the attention of potential guests browsing these platforms. This strategy not only increases your visibility but also signals to guests that you are responsive and active, which can be a deciding factor for last-minute travelers.
• Website Optimisation: An easy-to-navigate site with quality images, detailed descriptions, and clear booking instructions can make the process seamless for potential guests.
• Search Engine Optimisation: By incorporating relevant keywords, maintaining a blog with useful content, and optimizing meta descriptions, you can improve your website’s ranking, making it easier for last-minute travelers to find your listing.

Cynthia Huang recommends having a clear process in place for handling last-minute bookings. In the fast-paced world of short-term rentals, swift and efficient responses to last-minute inquiries can give hosts an edge:

• Community Engagement: Huang suggests using Facebook groups relevant to the listing location and joining host groups in the area. These platforms often have members who are actively looking for last-minute accommodations, making it an ideal place to promote your availability.
• Email and Text Campaigns: Reaching out to previous guests through targeted email and text campaigns can yield excellent results. These guests already have first-hand experience with your property and service, making them more likely to book again if they need last-minute accommodation.
• Guest Extensions: Another innovative strategy Huang recommends is asking existing guests if they want to extend their stay. This not only fills your calendar but also enhances guest satisfaction by offering flexibility.

Kate Stinchcombe-Gillies focuses on building relationships with guests rather than just selling to them. In a market saturated with options, personalized experiences and genuine connections can set your property apart:

• Providing Value: Stinchcombe-Gillies suggests going beyond the basic expectations of accommodation by providing value-added services. This could be in the form of local travel tips, exclusive discounts at nearby attractions, or personalized recommendations based on the guest’s interests.
• Information, Entertainment, and Inspiration: Offering information about local events, entertainment options, and inspiring ideas for things to do can make a guest’s stay more enjoyable. This not only enhances their experience but also increases the likelihood they’ll book again or refer others to your property.
• SMS Outreach: Stinchcombe-Gillies also mentions the potential of using SMS to reach out to future bookings or current guests to ask for referrals. A timely text message can serve as a personal touch that reinforces your relationship with the guest while also encouraging them to spread the word about your property.

What is the most common mistake you’ve seen hosts and managers make when it comes to attracting last-minute bookings?

Cynthia Huang identifies the lack of a clear process for handling last-minute bookings as a common pitfall. She stresses that hosts must be prepared for bookings that come in with a short lead time, such as 24 hours:

• Lack of Preparedness: A common mistake is not being ready to accommodate last-minute bookings. This includes not having a clean and ready-to-occupy property or not being able to respond quickly to inquiries.
• Need for a Plan: Hosts should have a plan in place for how to handle these situations. This could include having a dedicated cleaning team on standby, using automated responses for inquiries, or implementing a system to manage bookings efficiently.

Carla Chicharro cautions against the common tendency to slash rates and loosen property policies, like damage deposits and cancellation policies, in an attempt to attract last-minute bookings:

• Rate Discounting: While it may seem like a quick fix, discounting your rates can actually devalue your property in the eyes of potential guests. It might create a perception of low quality or desperation. Instead, Chicharro suggests focusing on showcasing the unique value and experiences that your property offers.
• Loosening Property Policies: Similarly, relaxing policies around damage deposits and cancellations can be more harmful than beneficial. It may attract guests who are not respectful of your property or those who cancel at the last minute, leaving you with vacant dates and potential losses. Instead, maintaining clear and fair policies can help attract responsible guests who value your property.

Kate Stinchcombe-Gillies points out that hosts and managers often err by focusing too much on selling and not enough on cultivating relationships with their guests:

• Overemphasis on Selling: An over-reliance on hard sell tactics can deter potential guests, who are often looking for more than just a place to stay. They’re looking for a unique experience, and hosts who focus solely on selling may miss out on providing this.
• Importance of Value Addition: Marketing should be about offering value, information, entertainment, and inspiration. By focusing on these areas, hosts can create a more appealing proposition for potential guests, increasing their chances of securing last-minute bookings.

How do I optimize my listings on platforms such as Airbnb, Booking.com, and Vrbo to attract last-minute bookings?

Optimizing Listings for Last-Minute Bookings: Expert Strategies

To attract last-minute bookings, it’s crucial to optimize your listings on platforms like Airbnb, Booking.com, and Vrbo. Here are actionable strategies suggested by our experts to make your property stand out and appeal to guests booking at the eleventh hour:

Last-Minute Discounts: Huang suggests setting up a last-minute discount for bookings made within a certain number of days of the check-in date. This can entice guests making last-minute plans.

Discounts for Longer Stays: Offering discounts for extended stays can be particularly appealing to guests booking last minute who are also looking for a deal.

Listing Optimization: A compelling listing description that highlights your property’s unique features, coupled with search-optimized keywords, can make your property more discoverable and attractive. For example, make sure you routinely update the amenities for your Airbnb listings.

Smart Pricing Features: Utilizing dynamic pricing features offered by platforms like Airbnb can help ensure your pricing remains competitive, adjusting based on demand and potentially attracting last-minute bookings.

Unique Offerings: As Chicharro recommends, offering something unique—be it an experience, amenity, or property feature—can differentiate you from the competition and draw in last-minute bookers.

Flexible Booking Policies: Implementing flexible booking policies, such as accommodating changes in check-in and check-out times or offering various payment options, can make your listing more appealing to last-minute guests.

Reaching Out to Previous Guests: Kate highlights the value of maintaining communication with previous guests. Sending a message via the platform’s inbox can remind them of their pleasant stay at your property, potentially encouraging them to book again, especially for last-minute plans. This strategy fosters relationships with your guests and can lead to repeat bookings, contributing to a sustainable business model for your short-term rental.

Remember, these strategies can be adapted across different platforms, ensuring your property is optimized for last-minute bookings no matter where it’s listed.

What can hosts and managers do better, differently, or to stand out to attract last-minute bookings?

Our experts provide unique perspectives on how hosts and managers can differentiate themselves to attract last-minute bookings:

Lean in to your unique offerings: Chicharro suggests leveraging the power of unique offerings. Whether it’s a guided tour, a gardening workshop, or a spa package, these unique experiences or amenities can make a property more attractive and memorable. Tailoring these offerings to align with your property and its surroundings can enhance guests’ stay and encourage last-minute bookings.

Offer smart discounts and track competitors: Huang shares specific strategies for Airbnb hosts. These include setting up a last-minute discount, offering discounts for longer stays, optimizing the listing description with keywords, and utilizing Airbnb’s smart pricing feature. These tactics aim to make your listing more appealing and competitive, potentially attracting more last-minute bookings.

Keep an eye on the bottom line: Stinchcombe-Gillies emphasizes the importance of understanding your business’s margins. Knowing what level of discount you can offer without negatively impacting your business is crucial. She advises hosts and managers to be clear about what they can afford to discount. This ensures that while you’re attracting last-minute bookings with discounts, you’re also maintaining the financial health of your business.

Conclusion:

Attracting last-minute bookings requires a strategic approach that combines competitive pricing, unique offerings, optimized listings, and a deep understanding of your business’s financial margins. By implementing these expert-recommended strategies, hosts and property managers can not only enhance the appeal of their listings on platforms like Airbnb, Booking.com, and Vrbo, but also build a more sustainable and profitable short-term rental business. Remember, the key to success in this dynamic industry lies in differentiation, adaptability, and a relentless focus on delivering exceptional guest experiences.