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How Technology Is Transforming the Vacation Rental Industry

  • March 30, 2023
  • Jules

Image hairboristpro on Pixabay

Following the significant disruptions brought about by the Covid-19 pandemic, travelers are once again keen to get out and explore. Vacation rentals offer the chance to stay in great locations around the world while still enjoying the comforts of home.

The increasing popularity of vacation rentals means guests now have lots more choice, in terms of destinations and the number and types of properties available. Added to this has been the introduction of innovations that streamline how properties are rented and used by guests. Here are just a few ways in which technology continues to transform the vacation rental industry.

Identity Verification

In the travel world, online identity verification is becoming the new norm. It’s like a digital TSA PreCheck, streamlining the booking process and adding an extra layer of security for both travelers and companies. From verifying passport details to confirming selfie matches, these travel identity verification services ensure that the person booking a flight or hotel is legit, reducing fraud and making travel smoother for everyone.

Guest communications

One of the innovations that has transformed the vacation rental process has been the advent of automated customer service options. For example, an AI-powered chatbot or app-based virtual concierge can complement human guest services advisors, offering 24/7 access to assistance. For hosts, customer service chatbots offer a cost-effective solution to providing customer support, while they can enhance a guest’s stay by providing information on local attractions, dining options and other points of interest. 

However, while automated guest communication has its advantages, many customers still prefer the reassurance of having a real person on hand for issues and emergencies that are beyond the scope of the chatbot or concierge.

Smart home technology and keyless entry

The introduction of smart home technologies allows thermostats, lighting and other appliances to be controlled remotely via a single platform. This provides both convenience for guests and cost savings for property owners. Meanwhile, the evolution of keyless entry means the host no longer has to be present when the guest arrives at the property. Instead, a code can be made available prior to the check-in time. Offering keyless entry avoids the need to replace keys and locks, while the code can be changed between visits, enhancing security. 

While this is great for hosts who live far from their property or have lots of rentals, there are hosts that like offering guests the personal touch and will continue to provide an in-person meet and greet, so they can introduce themselves and show their guests around the property.

Automated identification checks 

One way in which technology is helping to prevent vacation rental scams is through the use of software that can verify guests’ identification. Ensuring that the person making the booking is legitimate is an important aspect of online vacation rental. Fraudsters can take advantage of online booking portals, as the whole rental process is carried out remotely with no face-to-face interaction. 

Therefore, a robust Know Your Customer procedure is important. Software can be employed to automate the submission and verification of guests’ government-issued ID, allowing genuine customers to prove their identity quickly and easily, while weeding out scammers before they can do any harm.

Since the founding of Airbnb in 2008, there have been significant changes in the vacation rental industry, bringing enhanced choice, competition and expectations, as well as certain risks. While not without challenges, innovations in the industry, such as the ones discussed here, have no doubt helped to streamline the vacation rental process for hosts and guests alike.

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Jules

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