Get a watermark-free, fully customizable competition study in our business plan for a short-term rental business
In the bustling world of short-term rentals, understanding the competitive landscape is crucial for standing out and attracting guests.
This blog post will guide you through a systematic approach to analyzing your competition in the short-term rental market. We'll cover how to pinpoint your direct and indirect competitors, assess their strengths and weaknesses, and gather actionable insights. With this knowledge, you can fine-tune your rental strategy to capture the attention of potential guests and secure more bookings.
If you're looking for a ready-made competition study that's fully customizable, be sure to explore our business plan template designed specifically for short-term rental ventures.
What is exactly a "competition study"? Should you make one for your short-term rental business?
A competitor analysis for a short-term rental business involves a detailed examination of other short-term rental offerings in your market.
This includes direct competitors, such as nearby Airbnb or VRBO listings, and indirect competitors, like local hotels or hostels.
The goal is to understand their strengths, weaknesses, marketing tactics, and guest experiences to pinpoint opportunities and threats for your own rental business.
Why do short-term rental owners conduct competitor analyses? Because being informed gives you an edge.
Knowing the landscape helps you to sharpen your own rental's appeal.
For example, if you find that most local rentals lack smart home features, offering a tech-friendly space could set you apart. Or, if competitors are not focusing on family-friendly amenities, providing a rental with child-safe facilities and entertainment could fill that niche.
The advantages of a comprehensive competitor study, like the one outlined in our business plan template tailored for short-term rentals, are numerous. It enables you to sidestep competitors' mistakes and exploit weaknesses in their offerings. It can spark innovation in your property's design, amenities, marketing, and overall guest experience.
Additionally, understanding your competition can inform your pricing strategy, ensuring your rental is competitively positioned. It also keeps you adaptable, allowing you to respond to market changes quickly and effectively.
Should you conduct a competitor analysis if you're launching a new short-term rental venture? Absolutely.
Starting without a grasp of the competitive environment is akin to navigating without a map. A competitor analysis sheds light on the terrain, aiding you in overcoming obstacles and capturing opportunities. It's a crucial element of your business planning, setting the stage for a strategic approach that focuses not just on market entry, but on sustained success.
Is a competitor analysis useful for you? Undoubtedly, especially if you want to make savvy decisions that will distinguish your rental from the rest. Whether it's pinpointing your unique amenities, setting competitive rates, or choosing the most effective promotional channels, a competitor analysis provides the insights necessary to make those choices with assurance.
It's not merely about tracking what others are doing; it's about figuring out how you can do it better or differently to attract and delight guests.
How to conduct a competition study for your short-term rental business?
To conduct a competition study for your short-term rental business, gather information on local competitors by analyzing their property types, pricing, guest reviews, and marketing strategies.
Then, compare these aspects with your own short-term rental to identify your unique selling points and areas for improvement.
We also offer a concise competition study template that you can fill with your own information in our business plan for a short-term rental business.
To make it easier for you to do, here is a 10-step action plan to craft a relevant competition study for your short-term rental business.
Step | Action | Details |
---|---|---|
1 | Identify your competitors | List local short-term rentals, including those listed on platforms like Airbnb and VRBO. |
2 | Analyze their property offerings | Compare their property types, amenities, and unique features to yours. |
3 | Evaluate their marketing strategies | Look at their listings, photography, and promotional tactics on rental platforms. |
4 | Assess their guest service | Read guest reviews and feedback to gauge service quality and responsiveness. |
5 | Study their visual branding | Analyze their listing design, photography style, and overall brand image. |
6 | Check their online presence | Review their listings on multiple platforms, search engine ranking, and direct booking capabilities. |
7 | Understand their pricing strategy | Identify how they price their rentals, including peak season rates and any discount policies. |
8 | Monitor their guest engagement | Observe how they interact with guests on rental platforms and social media. |
9 | Identify their strengths and weaknesses | Based on your analysis, pinpoint areas where they excel or have room for improvement. |
10 | Leverage findings to improve your business | Use insights gained to enhance your property, guest experience, marketing, and pricing strategy. |
What should be included in a competition study for a short-term rental business?
Here is a table listing 10 elements that could be part of a competition study for a short-term rental business.
Name of the Element | Description |
---|---|
Market Saturation | The number of short-term rental listings in the area and the occupancy rates of those properties. |
Property Types | Variety of accommodations offered, such as apartments, houses, unique stays like treehouses or yurts. |
Pricing Models | Competitors' rental rates, seasonal pricing variations, minimum stay requirements, and special offers. |
Target Audience | Identifying the key demographics and interests of guests who book with competitors, such as families, business travelers, or adventure seekers. |
Location and Proximity | How the location of competitors' properties affects their appeal, including proximity to tourist attractions, business centers, and transport links. |
Marketing Strategies | The channels and methods competitors use to market their properties, including listing platforms, social media, and SEO practices. |
Guest Reviews and Ratings | Analysis of online reviews and ratings on platforms like Airbnb, Booking.com, and VRBO to gauge guest satisfaction and reputation. |
Amenities and Services | The range and quality of amenities provided, such as Wi-Fi, kitchen facilities, or concierge services. |
Interior and Design | The aesthetic appeal and functionality of the rental space, including style, comfort, and any unique features. |
Cleaning and Safety Standards | Competitors' practices for maintaining cleanliness and adhering to safety protocols, particularly in light of health concerns. |
Examples of competition studies for a short-term rental business
Below are three different (very concise) examples of competition studies tailored for a Luxury Villa, a City Center Apartment, and a Countryside Bed & Breakfast.
If you need something more developed, go check our business plan template for short-term rentals.
Luxury Villa Competition Study
Competitive Factor | Description |
---|---|
Property Amenities | High-end features such as private pools, hot tubs, home theaters, and smart home systems. |
Price Range | Premium pricing reflecting the exclusivity and luxury of the property. |
Location | Prime locations with stunning views or in prestigious neighborhoods. |
Guest Services | Concierge services, personal chefs, daily housekeeping, and other tailored guest experiences. |
Design and Decor | High-quality interior design with attention to detail, often featuring works of art and designer furniture. |
Unique Selling Proposition (USP) | Exclusive experiences such as yacht rentals, private vineyard tours, or helicopter transfers. |
City Center Apartment Competition Study
Competitive Factor | Description |
---|---|
Proximity to Attractions | Walking distance to city landmarks, business centers, and entertainment districts. |
Price Range | Competitive pricing that offers value for the convenience of location. |
Accessibility | Easy access to public transportation, parking availability, and nearby airports or train stations. |
Modern Conveniences | Availability of Wi-Fi, a fully equipped kitchen, washer/dryer, and other modern amenities. |
Space Optimization | Efficient use of space with multi-functional furniture and smart storage solutions. |
Unique Selling Proposition (USP) | Local partnerships for discounts at nearby restaurants and events, or in-house tech gadgets for guest use. |
Countryside Bed & Breakfast Competition Study
Competitive Factor | Description |
---|---|
Scenic Location | Idyllic settings with natural surroundings, offering peace and tranquility. |
Price Range | Affordable to mid-range pricing, appealing to guests looking for a country escape. |
Local Charm | Property with local character, possibly historic or with thematic decor. |
Personal Touch | Personalized guest experiences, including home-cooked meals and tailored activity recommendations. |
Outdoor Activities | Proximity to hiking trails, lakes, or other outdoor attractions. |
Unique Selling Proposition (USP) | Special packages such as farm-to-table dining experiences, guided nature walks, or craft workshops. |
You can also read our articles about:
- how to fill a Business Model Canvas for your short-term rental business
- how to segment the customers of your short-term rental business
- how to elaborate a marketing strategy for your short-term rental business
- how to offer short-term rental accommodations (guide)