Streamline Summit 2022 Surfaces Tech Trends & Tradewinds

Vacation rental managers are being squeezed between increasing technology costs and average daily rates (ADR) ceilings. At the Data and Revenue Management Conference last month, Tim Cafferty, President at Sandbridge Blue Realty, shared a memory of only using a white board to track bookings and rates a few decades ago. Today there are more than a dozen software options for revenue management.

VRMs have an increasing number of tech platforms to choose from and are feeling the pressure to choose wisely as competition in the space heats up. In fact, this year’s Streamline Summit had a record number of vendors with more than half being technology based.

“It can be overwhelming,” said Valeri Budd, CEO of Rent Branson Vacation Rentals and panelist at the summit. “How much is too much technology?”

Both Steve Schwab of Casago and Carlos Corzo, CEO of Streamline Property Management Software, agreed that no matter how many technology solutions vacation rental managers employ, it’s essential that guests receive a personal touch. The technology should make running a business more efficient and safer, and not replace all human-to-human touch points with guests. That personal phone call, that face-to-face interaction is why VRMs are in the hospitality business.

Karen Haley of Southern Shores Realty shared in one of the breakout sessions how TVs used to be the big new amenity in the properties. Linens were also a game changer, having not been supplied by some managers until the late 1990’s. Keeping things simple allowed managers more time to focus on the guest experience.

Then came an explosion of technology. More and more companies were launching to solve vacation rental companies pain points. In 2014, the Streamline Summit had four vendors. In 2021, there were 52 and this year there were even more. In fact, Matt Landau of VRMB.com, commented that some vendors seem like a solution in search of a problem.

Many of the companies at this year’s conference saw their business grow more than 20% in the last 12 months. Dan Phelan, president and founder Greenday Vacation Rentals, expressed a desire to find the right tech solution to help manage this growth and ways to stay popular with guests. So, what solutions make the best sense for them as business owners?  And how do they decide which solutions make the most sense practically and financially speaking?

Panelists and attendees offered these suggestions:

1.     Think “People First” 

Focus your choices based on what makes for the best guest experience. Matt Loney, CEO of Xplorie, shared that solutions appropriate to the location and guest expectation should be considered first. And now that the industry has seen an influx of first-time vacation rental visitors, keep in mind that there are assumptions rentals will come equipped with hotel-like accoutrements.

“At a hotel, if you need to speak with a person to get help or information you just go to the front desk and talk face to face with someone,” said Loney. “That’s not the same set up in a vacation rental.”

Tech solutions like GuestView Guide, TouchStay and RueBaRue can bridge that gap, providing digital access to answers and assistance with a few clicks. Several panelists said to be sure it’s making the guest experience better and less frustrating, not just being used because it makes the staff’s life easier. And, of course, track the ROI as much as is possible. Ask if these solutions are contributing to a happier guest and better reviews. Because while these apps and in-home devices might be great, sometimes a person-to-person phone call is actually the best solution.

The person-to-person approach works for increasing bookings as well. Sharon Czeresko of Prista Vacation Rentals in Myrtle Beach saw a huge spike after she started hosting in-person happy hour events for her long-term guests. There’s now a waitlist for her snowbirds. Mark Warr from On-the-Sand in San Diego hired what he affectionally referred to as a “bellhop.” This on-staff employee is physically present locally, so no guest ever has to wait more than a few minutes for help or supplies.

2.     Make the Investment

Fred Cercena owns Getaway Vacations Killington, VT, which manages approximately 40 properties. He doesn’t shy away from spending what he needs to on his tech stack. “I spend more on technology because I want to operate at a higher level,” he said. “Think of it as an investment and not an expense.”

Kerri Racicot of Tahoe Truckee Vacation Properties offered another perspective on purchasing technology solutions. “Buying back your time is ROI,” she said. She also warned her colleagues not to delay on an investment. “I regretted hesitating for too long,” said Racicot. “After I made the purchase, I wished I had done it months sooner.”

Don’t make an impulsive decision though. Dennis Robinson of Midgett Realty says take your time on finding the right match.

VRMs find in-person sessions like this one incredibly helpful for learning what is working for others and getting new ideas for investments they had not thought of before. Some of the software recommendations mentioned in “Finding the Right Tech Stack” included Voxer, Hiver, and Re: amaze, for internal and external one-to-one communication.

Other “game changing” technologies mentioned included Lynx, Revmax, Twilio, Breezeway, Whistle, Silicon Travel, LSI Tools and Transparent. Tom Powers, who manages properties in Charleston, SC, also mentioned YouTube. “I create videos showing how to use the TV remote, or how to reset the Wi-Fi router,” said Powers. “They receive hundreds of views, and we get fewer calls with questions about these topics.”

3.     Use the Mutiny Test  

Landau suggested something called The Mutiny Test. Just because vacation rental companies can use all these technologies, doesn’t mean they should.

“Tell your staff you’re taking away a specific solution and see if they mutiny,” he said. “Then you’ll really know if it’s needed.” Landau suggests investing in what he refers to as “advocacy tech” which should improve responsibilities and sustainability.

This speaks to the reality that technology is improving business operations. Schwab is personally very bullish on where technology is going. “Artificial intelligence is going to change our industry.”

Corzo readily confessed he did not want to be left behind on important emerging trends, even including crypto. “I’m watching these 20-somethings making all this money and I’m wondering if I should take this form of payment,” he said. “I honestly don’t know and have been asking vacation rental managers their thoughts on it.” When the room was surveyed, no VRMs raised their hand to show they accepted crypto.  

While VRMs are okay with using multiple tech solutions, they do wish there was one platform that would do all guest communications. Considering all the technology vendors in the vacation rental industry, and at the Streamline Summit, it might be surprising that none fully address this request. However, Streamline has recently integrated with RingCentral.

Schwab pointed out that private equity has come into this industry and reshaped its resources and reach. “It’s a shark feeding frenzy,” added Corzo. That, along with Covid, is changing the guest experience and the way that experience is delivered. Schwab, Landau, and Corzo agreed that the number of vendor solutions, especially in tech, will see a reduction over the next year or two. “There’s an overlap in vendor services that will cause a churn or a consolidation here soon,” said Landau.

“No tech is as helpful as you personally meeting the guest,” said Corzo. “We’re going to over engineer, over automate vacation rentals if we’re not careful. Let’s create an opportunity to bring things back to the human level whenever possible.”