French King Louis XIII established the first vacation home in 1624 – a hunting lodge now known as none other than the Palace of Versailles in France. In the 1950s, conventional vacation rentals began to pop up across the US. In 1995, VRBO (Vacation Rental By Owner) was founded, followed by AirBNB in 2008 and others.
Fast forward to 2024, and the vacation rental market is now a $20 billion industry in the United States. It is incredibly competitive and highly dependent on digital channels for online sales and bookings. As the industry progressed technologically, the importance of capturing data became clear. Companies like Streamline VRS simplified this process.
Now, artificial intelligence (AI) is sweeping through industries, fundamentally changing workflows and outputs. For vacation rental managers, collecting data is no longer enough; you have to activate the data intelligently.
Online Travel Agencies (OTAs) use sophisticated artificial intelligence (AI) models to create frictionless booking experiences and capture market share from direct booking websites. They provide personalized booking journeys to each guest on the site, prioritizing content that is both relevant and high-converting. How do they achieve this? The same way Amazon and Google customize your shopping or searching experience: through autonomous intelligent data activation.
Due to this investment in AI, experts project that OTAs will capture over 50% of the online booking market by 2025. This means they will have more control over your properties and guests. Your business will also lose revenue due to the increasing fees imposed by OTAs as they dominate the market.
The good news is that property managers have an opportunity to capitalize on their property and guest data and take control of their destiny. By combining data with market expertise and a deeper, more authentic understanding of their guests, VRMs can actually outperform the tech giants.
For example, if you are a vacation rental property management system (PMS) user, you can easily begin your AI journey today. Most PMSs offer sophisticated data collection systems in place that enable you to implement AI quickly.
In case you missed it, Aidaptive recently announced a partnership with Streamline Vacation Rental Software. The two companies have joined forces to provide VRMs with AI technology to drive direct bookings and access predictive intelligence using their property and guest data.
“This partnership with Streamline marks a significant leap forward, transforming the vast sea of data into actionable, growth-driving insights,” said Rakesh Yadav, CEO and founder of Aidaptive. “We are not just changing the game; we’re creating an entirely new playbook for how property managers engage with data, using AI to turn information into a strategic asset that powers decision-making and unleashes unprecedented business potential.”
Streamline and Aidaptive recently hosted a webinar demonstrating how you can leverage your existing properties and guest data to access predictive intelligence, create personalized experiences for your guests, and maximize property discovery and direct bookings by harnessing artificial intelligence. You can replay the online event by clicking here.
We have come a long way from Versailles to an AI-driven world. However, one thing is for sure: Artificial Intelligence is the journey. Not the destination. It’s not a matter of if anymore but when for the vacation rental management industry. Leveraging AI may sound like a futuristic concept, but it’s the present reality that can reshape the way you operate your vacation rental business. Embracing AI can provide you with the tools to streamline operations, enhance guest experiences, optimize pricing strategies, and ultimately boost your bottom line. So, if you’re still on the fence about integrating AI into your vacation rental management toolkit, now is the time to take the plunge and position your business at the forefront of this transformative technology.