5 Ways Property Managers Are Using AI in Their Short-Term Rental Business

Artificial intelligence (AI) is changing the game for short-term rental management. 

AI tools are giving property managers faster and easier means to improve efficiency, save precious time and expand their business. According to Hostaway’s new AI in the Short-Term Rental Industry report, nearly twice as many property managers are now using AI tools, since they were last surveyed in late 2023.

Let’s take a look at the top five ways vacation rental managers are harnessing AI in their short-term rental operations.

1. Price Optimization

AI-driven price optimization is one of the most powerful tools in a property manager's arsenal with  41.4% of respondents using AI for this purpose.

Dynamic pricing algorithms analyze vast amounts of data including historical and current booking and pricing data, demand and other factors to provide vacation rental properties with the most competitive pricing. Based on rule sets that property managers can dictate, they automatically adjust rental prices across any number of properties.

2. Marketing

AI is also transforming how property managers are marketing their short-term rentals, enabling a targeted approach that can reap more conversions from their efforts.

OpenAI’s ChatGPT, the most popular AI tool according to the report and used by 97.5% of respondents, can deliver SEO-optimized copy and images for marketing purposes – from listing descriptions and social media content to guidebooks and blogs. Hostaway’s ChatGPT integration can even help property managers churn out individualized guest messages and reviews.

Marketing management tools like HubSpot also offer AI assistants to analyze your data and optimize content, increasing reach and engagement without having to hire a dedicated social media manager.

3. Customer Service

Nearly 30% of property managers have adopted AI-driven chatbots to enhance their customer service.

Chatbots such as Yada.ai, HostAI and Botel can instantly respond to guest inquiries, providing reliable 24/7 support. Other functionalities include offering concierge-like local recommendations, asking for guest reviews and proactively notifying guests of important information.

As they continue to learn from each listing’s growing data sets, AI-driven chatbots are set to improve and increase functionalities and tackle even more complex customer service tasks.

4. Operational Efficiency

AI tools can have a pronounced impact on operational efficiency, enabling property managers to scale easily and faster without having to hire more staff.

Short-term rental managers are using Hostaway’s in-platform AI to streamline property management, sync bookings and data across multiple channels, process payments, manage smart locks and track, analyze and report on their financial and other data. Managed across a centralized dashboard, Hostaway brings AI-driven efficiencies and automations to even homeowners with just a single property.

Large vacation rental operators are also tapping into additional AI-driven platforms like Clyr for automated expense management, SuiteOp for IoT automation, AIPEX for guest management and Boom for advanced operations management as they add more properties and grow revenue.

5. Energy Management

Energy management is an emerging area where AI can have significant impact.

As utility prices have increased, savvy vacation rental managers have already opted into AI-driven smart home technology to optimize a property’s energy consumption. 

By automatically adjusting lighting, heating and air conditioning based on occupancy and weather conditions, property managers can drive energy costs down, maintain a lean operation and even claim eco-friendly credentials. There is also the opportunity to upsell extra heating or cooling if desired by the guest.

Embracing AI: The Future of Short-Term Rental Management

The swift adoption of AI by property managers and owners highlights not only AI’s current capabilities but its potential for the future. As the impacts of AI expand into other areas of vacation rental management however challenges remain. Can AI technology ever replicate human empathy and connection, so important to guests and therefore, property managers? AI may not be able to take over every aspect of vacation rental management but the path forward is promising, particularly with Hostaway’s marketplace of short-term rental tools - the largest in the short-term rental industry - available to you.