2023 STR Real Estate Trends

Written By Daniel Pitner

The real estate industry is always evolving, and as we head into 2023, there are some emerging trends that are worth keeping an eye on. In this blog post, we will explore the top STR (Short-Term Rental) real estate trends that are expected to shape the market in the next year. As a STR Real Estate investor myself, I have implemented these trends and have recieved amazing feedback from my guests.

The Rise of the Hybrid Model

The lines between traditional hotels and STR properties continue to blur, with a growing number of properties adopting a hybrid model that offers the best of both worlds. This trend seems to be picking up steam in 2023 with a lot of Airbnb hosts (including myself) offering more hotel-like amenities such as daily breakfast, daily house keeping, and concierge services. My guests have loved the hands-own approach and find a lot of value in what we offer.

The hybrid model has become an Airbnb STR trend due to several reasons, including the desire to differentiate from other rental properties, increase revenue streams, and respond to changing consumer preferences. As the short-term rental industry has grown more competitive, hosts have had to find new ways to stand out from the crowd. One of the most effective ways to do this is by offering guests an experience that they cannot get elsewhere. The hybrid model allows hosts to provide unique amenities and services, such as concierge services, spa treatments, and gourmet meals, that are not typically available in traditional rental properties.

Increased Revenue Streams

Another reason for the rise of the hybrid model is the opportunity to increase revenue streams. By offering additional services and amenities, hosts can charge higher rates for their properties. This can lead to increased profitability and a greater return on investment. Additionally, the hybrid model allows hosts to tap into new markets, such as business travelers and luxury vacationers, who are willing to pay a premium for high-end accommodations.

The growing popularity of the hybrid model is also due to changing consumer preferences. Today's travelers are looking for more than just a place to stay. They want an experience that is tailored to their needs and preferences. By offering personalized services and amenities, hosts can create a unique and memorable experience for their guests. This can lead to increased guest satisfaction and repeat business.

The hybrid model can take several forms, ranging from a traditional rental property with a few added amenities to a full-service hotel with a few Airbnb-style accommodations. Some hosts may choose to offer only a few additional services, such as housekeeping or grocery delivery, while others may provide a full range of amenities, including on-site restaurants, fitness centers, and pools. The level of service and amenities offered will depend on the host's goals and resources, as well as the needs and preferences of their guests.

One of the benefits of the hybrid model is that it allows hosts to be flexible and adapt to changing market conditions. For example, if demand for short-term rentals decreases, hosts can pivot to offering longer-term rentals or other types of accommodations. Similarly, if guests' preferences change, hosts can adjust their services and amenities to meet their needs.

Sustainability and Eco-Friendliness

As the global population becomes more environmentally conscious, there has been a growing trend towards eco-friendly practices in the hospitality industry, including in the short-term rental market. In recent years, Airbnb has emerged as a leader in this trend, with many hosts adopting sustainable practices in order to attract environmentally-conscious guests. In this essay, we will discuss the Airbnb trend of being eco-friendly, and examine the reasons behind its growing popularity.

Increased Awareness

One of the main reasons for the rise of eco-friendly practices among Airbnb hosts is the increasing awareness of the impact of human activity on the environment. With climate change and other environmental issues at the forefront of public discourse, many people are looking for ways to reduce their carbon footprint and make a positive impact on the planet. As such, Airbnb hosts are increasingly seeking to incorporate environmentally sustainable practices into their rentals, including reducing energy consumption, conserving water, and reducing waste.

Increase in Demand

Another factor driving the trend towards eco-friendly practices in Airbnb rentals is the increasing demand from guests for environmentally-conscious accommodations. Many travelers are now seeking out accommodations that are aligned with their values and beliefs, and are willing to pay more for eco-friendly rentals that prioritize sustainability. As such, Airbnb hosts who embrace eco-friendly practices are more likely to attract environmentally-conscious guests, and may be able to charge higher rates as a result.

How To Be Eco-Friendly

There are many ways in which Airbnb hosts can incorporate eco-friendly practices into their rentals. One of the most common ways is through energy conservation, such as installing energy-efficient appliances, using LED light bulbs, and encouraging guests to turn off lights and appliances when not in use. Another way is through water conservation, such as installing low-flow showerheads and toilets, and encouraging guests to conserve water during their stay. Airbnb hosts may also choose to use environmentally-friendly cleaning products and provide guests with reusable water bottles, as well as offering recycling and composting services.

Technology Integration

As the short-term rental industry continues to grow, technology has become an increasingly important aspect of the Airbnb experience. From online bookings and automated check-ins to smart home technology and guest communication platforms, technology is being integrated into every aspect of the Airbnb process. In this essay, we will discuss the Airbnb trend of technology integration, and examine the reasons behind its growing popularity.

Convenience and Efficiency

One of the main drivers of the trend towards technology integration in Airbnb is the desire for convenience and efficiency. With the rise of online travel booking platforms, travelers have come to expect a seamless and easy booking process. By integrating technology into their rentals, Airbnb hosts can provide guests with a simple and streamlined booking experience, as well as automated check-ins and check-outs. This can improve the guest experience and lead to greater guest satisfaction.

Control and Flexibility

Another reason for the rise of technology integration in Airbnb is the desire for greater control and flexibility. By using smart home technology and automation, hosts can remotely control their rentals, adjust the temperature, and monitor security cameras, even when they are not on-site. This can provide hosts with greater peace of mind and allow them to manage their properties more effectively.

Smart Home Technology

One of the most common examples of technology integration in Airbnb is the use of smart home technology, such as smart locks, thermostats, and lighting. These devices can be controlled remotely, allowing hosts to manage their rentals even when they are not physically present. Smart locks can be used to grant guests access to the rental property without the need for physical keys, while smart thermostats and lighting can be used to reduce energy consumption and improve guest comfort.

Guest Communication

Another way in which technology is being integrated into Airbnb is through the use of guest communication platforms, such as messaging apps and chatbots. These platforms allow hosts to communicate with guests in real-time, providing them with information about the rental property and local attractions, as well as answering any questions they may have. This can improve the guest experience and lead to greater guest satisfaction.

Virtual Reality

Airbnb hosts may also choose to integrate technology into their rentals in order to provide guests with unique and memorable experiences. For example, hosts may use virtual reality technology to offer guests virtual tours of the rental property, or provide guests with smart speakers that can be used to control the lights and play music. By using technology in creative ways, hosts can differentiate their rentals from others on the market and provide guests with a truly unique experience.

The STR Airbnb trend of technology integration is driven by the desire for convenience, efficiency, control, and differentiation. By integrating technology into their rentals, hosts can improve the guest experience, reduce operating costs, and provide guests with unique and memorable experiences. As technology continues to evolve, it is likely that we will see even more innovative ways in which hosts integrate technology into their Airbnb rentals, further enhancing the guest experience and driving the growth of the short-term rental industry.

Increased Focus on Health and Wellness

Over the past few years, there has been a noticeable shift towards health and wellness in the short-term rental industry. With more and more travelers seeking out healthy and sustainable travel options, short-term rental hosts are recognizing the need to prioritize health and wellness in their properties. In this essay, we will discuss the short-term rental trend of increased focus on health and wellness, and examine the reasons behind its growing popularity.

Growing Interest in Healthy living

One of the main drivers of the trend towards health and wellness in short-term rentals is the growing interest in healthy living and sustainable travel. With more and more people becoming health-conscious, there is a growing demand for accommodations that support healthy living. This can include properties that are designed to promote relaxation and stress reduction, as well as accommodations that offer healthy food and exercise options. By offering guests accommodations that prioritize health and wellness, short-term rental hosts can differentiate themselves from traditional hotels and vacation rentals, and appeal to a growing segment of the travel market.

Availability of Wellness-Focused Amenities

Another reason for the rise of health and wellness in short-term rentals is the increasing availability of wellness-focused amenities and services. From yoga studios and meditation rooms to healthy meal delivery services and in-room fitness equipment, there are now a wide range of wellness-focused amenities and services that can be integrated into short-term rental properties. By providing guests with access to these amenities and services, hosts can create a more holistic and immersive travel experience that promotes health and wellness.

COVID-19

The COVID-19 pandemic has also played a role in the trend towards health and wellness in short-term rentals. With travelers placing a greater emphasis on health and safety, short-term rental hosts have had to adapt to meet these new expectations. This has included implementing new cleaning protocols and providing guests with hand sanitizer and other health and safety amenities. Additionally, hosts have recognized the importance of promoting health and wellness in their properties as a way to support their guests' overall well-being during these challenging times.

The Importance of Authenticity

As the short-term rental industry continues to grow, authenticity has emerged as an important trend in the Airbnb experience. From unique and personalized accommodations to local recommendations and cultural experiences, Airbnb guests are increasingly seeking out authentic and meaningful experiences that reflect the local culture and community. In this essay, we will discuss the Airbnb trend of the importance of authenticity, and examine the reasons behind its growing popularity.

Unique and Personalized Experiences

One of the main drivers of the trend towards authenticity in Airbnb is the desire for unique and personalized experiences. With the rise of social media and the sharing economy, travelers have come to expect a more personalized and authentic travel experience. This means seeking out accommodations that reflect the local culture and community, and experiences that are off the beaten path. By offering authentic and personalized experiences, Airbnb hosts can differentiate themselves from traditional hotels and vacation rentals, and appeal to a growing segment of the travel market.

Cultural Immersion

Another reason for the rise of authenticity in Airbnb is the desire for cultural immersion and meaningful experiences. Many travelers are now seeking out opportunities to connect with the local community and learn about the local culture. This can include staying in accommodations that reflect the local architecture and design, as well as participating in cultural activities and experiences that are unique to the destination. By offering authentic and meaningful experiences, Airbnb hosts can provide guests with a more immersive and memorable travel experience.

Design and Decor

One of the most common ways in which authenticity is being integrated into Airbnb is through the design and decor of rental properties. Many Airbnb hosts are now designing their rentals to reflect the local culture and history, using materials and furnishings that are unique to the destination. For example, a rental property in Mexico may feature colorful textiles and hand-painted tiles, while a rental property in Japan may feature traditional tatami flooring and shoji screens. By using local materials and design elements, hosts can create a more authentic and immersive experience for guests.

Local Recommendations from Hosts

Another way in which authenticity is being integrated into Airbnb is through the local recommendations and experiences provided by hosts. Many Airbnb hosts are now offering guests personalized recommendations for local restaurants, shops, and attractions, as well as organizing cultural experiences such as cooking classes, guided tours, and language lessons. By providing guests with a more authentic and local experience, hosts can differentiate themselves from traditional hotels and vacation rentals, and create a more meaningful travel experience for guests.

Highlight the History and Culture of your Property

Airbnb hosts may also choose to integrate authenticity into their rentals by highlighting the unique history and culture of the destination. For example, a host in New Orleans may provide guests with information about the city's rich history and cultural traditions, while a host in Hawaii may offer guests a lei-making workshop and provide information about the importance of the lei in Hawaiian culture. By highlighting the unique aspects of the destination, hosts can create a more authentic and memorable travel experience for guests.

Differentiate Yourself

In conclusion, the Airbnb trend of the importance of authenticity is driven by the desire for unique and personalized experiences, cultural immersion, and meaningful travel experiences. By offering authentic accommodations, local recommendations, and cultural experiences, Airbnb hosts can differentiate themselves from traditional hotels and vacation rentals, and provide guests with a more immersive and memorable travel experience. As the short-term rental industry continues to grow, it is likely that we will see even more innovative ways in which hosts integrate authenticity into their Airbnb rentals, further enhancing the guest experience and driving the growth of the industry.

In conclusion, the STR real estate market is constantly evolving. If you want to pull ahead of your STR Real Estate competition you have to stay on top of the current trends and implement them in your properties and management. As a STR Real Estate owner myself, I have implemented all of the suggestions I just wrote about (and I’m testing quite a few more!)

As a Real Estate Agent in Glendale, I help investors find STR Rental Properties in Glendale, Arizona and Phoenix, Arizona that cashflow and meet all the important investing metrics. I would love to chat about my STR Real Estate experience!

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