Using smart tech to transform vacation rental businesses

Using smart tech to transform vacation rental businesses

Lodgify is a Business Reporter client.

Lodgify Chief Technology Officer Marco Cupidi explores how advanced technologies are improving operations for hosts and property managers.

The short-term rental industry hit a new high in 2023, with the number of available listings peaking in the United States last September at 1.64 million – the highest in any single month on record. UK short-stay statistics show similar trends, with RevPAR (revenue per available room) up 112 per cent from January 2021 to January 2024.

While this boom underscores the increasing preference among travellers for unique and personalised lodging experiences, it has also led to a saturated market, making it essential for hosts and property managers to learn how to stand out.

In the past, perks such as pet-friendly accommodations and sustainability commitments used to be enough to convince travellers to book (and rebook). Today, it takes a lot more modern conveniences and innovations to satisfy short-term rental guests.

We’ve seen that vacation rental hosts and property owners who embrace technology are much better equipped to thrive in a dynamic short-term rental market, particularly by using it to optimise pricing strategies, improve guest-host communication and position their brands strategically online to increase direct bookings.

Innovation in the short-term rental SaaS space

As guests become more digitally advanced, hosts have been forced to learn how to move with the trends and incorporate technology into their short-term rental businesses.

That is, in part, why we’ve seen such a steady increase in interest in vacation rental software over the past ten years, with companies such as Lodgify launching to help digitise and simplify operations for hosts worldwide.

What started as a few software companies offering basic tools to manage reservations and create direct booking websites has turned into a thriving market full of advanced solutions offering everything from dynamic pricing tools and marketing capabilities to advanced analytics and multi-channel management.

At Lodgify, we understand the competitive edge technology affords. We have seen first-hand how essential it is to evolve alongside the tech landscape to meet and exceed the expectations of a rapidly growing community of hosts worldwide.

Dynamic pricing algorithms

Dynamic pricing, also known as surge pricing or time-based costing in certain industries, automatically adjusts rates based on real-time market changes.

This smart technology considers factors such as seasonal demand, local events and competition to adjust prices dynamically, ensuring maximum revenue potential for hosts.

By leveraging dynamic pricing, you can eliminate the guesswork in rate-setting, respond swiftly to market changes and significantly increase occupancy rates without having to monitor pricing adjustments yourself consistently. This enhances profitability and ensures that listings remain competitive in a fluctuating market.

When using our Lodgify Dynamic Pricing tool to optimize their pricing strategies effortlessly, for example, we’ve seen the potential for an average revenue increase of 20 per cent.

AI-powered messaging

ChatGPT and other generative AI tools have influenced how we communicate digitally. As a host, you can use these tools to streamline your communication with guests by providing instant, data-informed responses to inquiries.

At Lodgify, for example, our AI Assistant promptly drafts a response to guest inquiries with accurate and helpful information, such as how to check in using a smart lock, your rental’s policies and amenities, or recommendations for activities nearby.

This kind of AI messaging automation translates into a reduced manual workload, freeing you to focus on other critical aspects of your business. It also ensures guests receive immediate assistance whenever needed, increasing overall satisfaction that can result in higher ratings and repeat bookings.

Travel-focused metasearch engine advancements

The organic search landscape looks a lot different now than it did a year ago and will likely continue to change drastically in the year ahead. Amid these changes, metasearch engine integrations represent a significant advancement in how vacation rentals gain visibility and attract organic bookings.

Alberto Fernández, Lodgify’s SEO & Content Manager, acknowledges these industry changes. “The SEO advice we offer to vacation rental owners to help increase traffic to their websites has changed a lot in the past year,” he says, “particularly due to the volatility we’ve seen in search engine rankings in 2024 alone.”

One solution is to integrate with metasearch platforms to increase your property’s exposure to a broader audience. “These integrations allow your vacation rental listings to appear in organic search results,” adds Fernández, “providing direct booking options that bypass traditional fees associated with third-party platforms.”

This not only boosts organic traffic but also enhances the booking process for guests, offering them a seamless experience from search to reservation. It also provides a great way to promote your brand organically online, a key aspect of multichannel marketing – something that will continue to become even more critical as competition continues to increase.

Looking ahead to the future of vacation rental technology

The past few years have seen incredible disruption caused by AI and smart technologies. While many may still be hesitant about the possibilities, we believe these innovations are ushering in a new era of efficiency and profitability for vacation rental businesses and the passionate hosts behind them.

At Lodgify, our roadmap is filled with ambitious initiatives aimed at further transforming technology-powered operations to benefit short-term rental businesses better. This vision encapsulates not just where Lodgify is headed but the future of the entire industry – a future where technology enhances every facet of the vacation rental experience, making it more seamless, profitable and enjoyable for everyone involved.

For more information about Lodgify, visit

About Lodgify

Lodgify is the all-in-one vacation rental platform that empowers independent hosts and property managers with tools to start and grow their businesses. The platform enables hosts, regardless of their level of technical knowledge or experience, to easily create their own website, accept direct bookings and payments, and synchronise all of their property data, reservations and guest communications across major OTA channels such as Airbnb, Vrbo,, Expedia and more. It centralises all property management tasks so hosts can prioritise increasing occupancy and visibility and providing excellent service to their guests.