Software Market Map for Short-Term Rentals & Vacation Rentals
The Technology Powering our Industry in 2024
Apr 3, 2024 | Wheelhouse and Operto
A Flourishing Technology Landscape meets A.I.
Today, Wheelhouse & Operto are sharing a market map (live visual linked here) and write-up detailing the major software categories & teams empowering the short-term rental & vacation rental space.
Last year, Wheelhouse created and shared a technology map that included 19 categories of software featuring companies with venture funding… a number that surprised many.
However, rapid feedback from friends, clients, and the STR community has indicated that our market map was wrong. People more informed on certain technology streams helped illustrate that there are at least 21 categories of specialized software for STRs.
In addition to expanding the number of categories, our market map has grown to ~200 teams, all who build software primarily for the short-term rental & vacation rental (STR & VR) space.
Increasingly, a number of these teams serve hotels, motels, resorts, and other inventory types (even RVs and Student Housing!), but this market map is heavily weighted toward highlighting those who started by building technology to serve the needs of “distributed supply” (aka – not hotels).
Much like last year, the number of categories and teams we are featuring under-represent the true number of teams building software to power the STRs. For example, if we were to fully build out the PMS & IOT categories, we’d have to take another few weekends to cover those categories in depth.
And, as we’ll detail, while you might think our space is crowded, there continue to be new, talented teams who see our growing industry as an excellent ecosystem in which to develop products and businesses.
Last year, we named 3 major reasons our category was seeing so much innovation.
- Increasing scale of the STR/VR category
- STR/VR continue to take market share from hotels
- Capital continues to flow into our industry to scale operators and to fund software and hardware teams.
- Low “barriers to entry” for entrepreneurs
- The STR/VR has ~100,000+ fast moving, single-decision maker businesses.
- This creates an incredible ecosystem where early-stage entrepreneurs can find early paying customers and iterate quickly to product-market fit.
- The need for specialized solutions
- Running a hospitality business requires being great at many activities (e.g. pricing, cleaning, marketing, etc.)
- Solving one challenge (e.g. listing management) rarely makes one better at addressing another problem (e.g. guest screenings), hence the diversity of categories we see with focused product offerings.
What’s new in 2024?
In our 2024 Technology Map, we’ve added 30 new teams that we’re tracking.
While many of these are new teams, we’ve also been fortunate to meet (or learn more about) a number of teams in the last 15 months, some of which should have made our 2023 map (shame on the editors?!)
The most important learning? In 2024, a 4th major trend is poised to drive innovation forward in our (and every other) space:
- Accessible & effective Generative A.I.
Over the next few years, Generative AI will likely impact every software in your technology stack (including the OTAs and direct sites where you sell your listings).
Last year, we noted that our category’s low barrier to entry (relative to hotel and long-term rentals) meant that our space was the perfect ecosystem to incubate new, promising technologies.
For this map, we identified ~20 teams that are demonstrably using Generative A.I. to empower customers. Admittedly, we are somewhat wary of sharing this map, as we recognize that the current consumer and investment landscape values the perception of A.I. so much that certain teams might be adopting that moniker without the ability to demonstrate true/novel A.I. capabilities.
The space where Generative A.I. is the most demonstrable is the Guest Comms & Upsell spaces, where there collectively are 7+ strong teams (including Besty, HostAI, Enso Connect, Yada.ai and others) building technology to automate and monetize the customer journey/stay.
Additionally, we’re seeing innovation in the marketing & direct space, with teams like Automate helping to create listing descriptions that drive better conversion.
Certainly, other categories are using A.I. as well, but we’ll be more confident by the end of the year that this editorial crew will be able to parse which claims of A.I. can be clearly tied to valuable outcomes for customers.
Despite the potential to read these passages with pessimism, our teams clearly believe that our space will be a (the?) leading category for A.I. coming to the PropTech space. And, while many suspect that most value creation from A.I. will likely go to incumbents, it’s a safe bet that innovation will be driven by fast moving startups.
We look forward to watching and building with these teams in the years to come!
Here’s to the builders,
- Wheelhouse & Operto
#0. A.I. meets V.R. (Vacation Rentals)
Over the course of 2024, expect to hear A.I. discussed at essentially every conference.
And, while new technologies are famous for an adoption curve where hype precedes real, meaningful impact, A.I. may well be worth the amount of conversations that are sure to take place as we come to grips with how this technology will shift our industry and world.
For some basic start points, here’s how we’re thinking about A.I.
- Technically speaking, A.I. refers to a broad set of technologies, including Machine Learning,
- However, in 2024, when people say “A.I.”, they are referring to Generative A.I. (aka – chatbots, agents, visual/audio creation tools, etc.)
- At this point, we think it is fair to say that the Silicon Valley consensus is that Generative A.I. is a paradigm shift with broad implications for essentially every aspect of our work and lives.
- This paradigm shift is most often being compared to prior shifts such as (a) the advent of the internet, (b) the rise of the cloud, and (c) proliferation of mobile devices.
- Good news for you – it will likely make your technology better, more robust, and cheaper, all while allowing you to monetize your business in new ways.
Over the course of the year, both of our teams expect to engage in conversations and product launches of our own, showcasing how this technology can positively impact your business.
In addition, we’re keeping our eye on several teams who are publicly (or privately) pushing into A.I.
- Automate
- Besty.AI
- Enso Connect
- Host.AI
- Yada.AI
- HelloHosty
We’ve captured this short list of teams here, and expect this list to double by the end of 2024.
A.I. is a cross-category technology. Indeed, investors bet that in time, most companies will come to leverage A.I., much like they have adapted to the realities of mobile consumers.
Let’s dive into the now 21 categories of software in our space, to provide an overview of the softwares you could consider to amplify your business, and the teams doing the heavy lifting to build for you and your team’s needs.
The 21 Software Categories:
#1. Property Management Softwares (PMS)
Property management softwares (PMSs) are usually the first software that professional managers and operators leverage in order to scale their business.
Primarily, PMSs help you create and manage listings, and serve as the central information hub of your business.
And, while PMSs differ in their approach, most PMSs have a foundation focused on:
- Inventory Management (photos, content, etc)
- Calendar Management (bookings)
- Unified Guest Comms
Around this core function, differing PMSs offer a range of expansive features & integrations, including (but not limited to):
- Direct Bookings
- Channel management
- Guide Books
- Accounting
- Upsells
- Revenue Management
Generally, your PMS is the nerve center of your business, and it is of paramount importance to find the right PMS for your business needs.
Quick Hits:
- The data center for your listings
- By far the largest category of STR/VR softwares, so finding the perfect solution is a challenge
- For a more detailed market map, we’d again recommend a different flavor of technology mapping developed by our friends at AJL.
Featured PMSs:
#2. Channel Managers (CMs)
Channel Managers (CMs) help you sell your listing on multiple channels and Online Travel Agencies (OTAs) such as Airbnb, VRBO, Expedia, Booking, and many more.
CMs also often connect you to “Meta” sites such as Google, Kayak, etc. Additionally, they distribute your listings on more specialized OTAs such as WhimStay, FabStayz, or other marketplaces that might specialize in your local market or inventory type. Leading CMs will help you sell across 50+ channels, a number that could increase in the future as STR & VR inventory sells across ever more digital marketplaces and networks.
In general, selling on more sites will increase bookings and revenue. As teams professionalize they are likely to increase their distribution channels from 1 → 4 → 40+, even distributing on Corporate Sales channels and the GDS (Global Distribution System) leveraged by hotels & airlines.
In addition to distributing your inventory, many Channel Managers can help you adjust prices or create discounts across channels, to help you account for different booking fees, customer types, or revenue strategies, based on the channel.
Quick Hits:
- The distribution center for your listings
- Helps you sell your listings everywhere
- Helps you set “per channel” pricing strategies
Featured Teams:
#3. Connectivity-as-a-Service
Connectivity softwares is a recent category to emerge in the STR/VR space.
While they might look like a PMS, we believe the key difference is that many PMSs focus on building a multi-functional software in-house, whereas connectivity softwares prioritize integrating best-in-class softwares, and ensuring these systems all work together seamlessly.
Therefore, a connectivity software like Jurny will stitch together softwares like Wheelhouse or Breezeway, while also enabling you to bundle your software purchases.
As the number of specialty softwares in the STR/VR space has increased, these teams believe that connectivity is no longer a “feature”, it’s the foundation of a new domain of technology. (A similar evolution has already occurred in marketing/SaaS tech, FinTech, and other domains)
There are a lot of benefits and opportunities in this category that are not initially obvious, but could reinvent how operators think about developing their technology stack. We look forward to writing more on this category in the near future.
Quick hits:
- Softwares that help easily integrate softwares across categories
- With so many speciality softwares emerging, connectivity is increasingly important
- A category that can help teams develop future-proofed operations/tech stacks
Featured Teams:
#4. Revenue Management Softwares (RMSs)
Revenue Management Softwares are designed to help teams maximize revenue.
In the short-term rental world, “RMSs” often refer to dynamic pricing software (such as Wheelhouse) that help teams price their listings perfectly, based on market demand and the booking patterns on each listing.
In addition to dynamic pricing, RMSs often offer market reports, CompSets, and other analytics tools to help individuals and teams both research and analyze their ever-evolving markets.
Revenue Management Softwares are often among the first software systems that teams add to their technology stack, and most RMS will attach to either your PMS, your CM, or your Connectivity team, in order to help you price your listings across all channels.
RMSs can be both rule-based, data-driven, or can sometimes offer both approaches (Hybrid Pricing). Additionally, these systems can be both automated or “on demand”, pushing prices to all of your channels based on pre-set schedules, on-demand, or only when you give them permission to post prices.
Quick Hits:
- RMSs are the pricing & revenue center for your listings
- They help you increase revenue through increased occupancy & nightly revenue
- Advanced RMSs include dynamic pricing along with other revenue tooling.
Top Teams:
#5. Market Data & Insight Softwares
Market Data & Insights softwares provide you with information about how markets and listings are performing.
While sometimes equated with RMSs (see above), we believe these are a separate and symbiotic category of software. Market data tooling prioritizes surfacing unique data. RMSs specialize in translating that data, and your listing’s booking patterns, into automatically updated pricing recommendations. Both categories can (and likely should) be part of a revenue management team’s toolbox.
There are multiple data providers that are extremely effective at showing you Y.O.Y. trends, upcoming demand patterns, and Competitive Sets.
Market Data & Insight tools can be leveraged by teams to create their own pricing strategies, used in conjunction with tools such as Wheelhouse, or even used to inform investments and home purchases.
Quick Hits:
- Market Data Platforms help you see and adjust to market trends
- These tools are a great & symbiotic addition to your RMS.
- In our opinion, when evaluating market data, having 2 platforms you can leverage to double-check market signals is worth the investment.
Top Teams:
#6. Acquisition & Investment Software
For property managers, owner retention and acquisition is critical.
Similarly, for anyone growing their own portfolio, investing in the right location and asset is arguably Step #1. As a result, a number of softwares have emerged to help you expand your portfolio.
Despite being a newer category of innovation, there are already a variety of softwares that:
- Provide data & underwriting software for potential acquisitions
- Help connect you to property owners looking for a property management company
- Provide capital for acquisitions
Over the next few years, as more and more professional capital flows into the STR & VR space, the number of softwares helping with acquisition, underwriting and investment will almost certainly increase.
Quick Hits:
- Expanding your portfolio properly is always a challenge
- Great operators focus on both owner retention and owner acquisition.
- This technology category is early, but promising & important
Top Teams:
- *New Revedy
- *New KeyTurn
- *New Awning
- Nectar
- OwnerPoint
- Rabbu
- STRInsights
- Vintory
#7. Field Operations Software
In the short-term rental space, we like to say that “operators are in the business of selling clean and safe spaces”.
Making this statement a reality is a significant challenge, which is why operators look to Ops Softwares to help them with ticketing, task management, scheduling and communication, and more. These challenges increase if/when to manage listings in multiple markets.
Many teams invest in software to schedule and track cleanings, ensure maintenance teams can quickly resolve issues, and help their Customer Services teammates easily and effectively communicate with guests.
However, Ops Software is not just about improving guest experience and reducing operational headaches. In the STR/VR space, cleanings and additional services can often be a revenue driver, increasing the value of investing in and leveraging these softwares.
Lastly, there are certain operational activities – such as trash removal or laundry – that are costly when done individually, and are therefore more effectively outsourced to a specialist like CanMonkey or WashBnb, who can help you streamline your business.
Quick hits:
- Can serve as your operating teams’ nerve center
- Helps your operations teams stay ahead of guest & owner issues
- Can reduce costs & churn, while also helping you drive revenue
Top Teams:
#8. I.O.T. Hardware
Increasingly, owners and operators are leveraging connected devices (IOT/Internet of Things) to enable “remote hospitality”.
These devices are designed to (among other things) improve the guest experience, improve your ability to remote monitor/increase the safety of your homes, and make your operational tasks easier.
Common I.O.T. devices include:
- Digital Locks
- Noise monitoring devices
- Digital Smoke alarms
- Security Systems
- In-home displays or assistants (e.g. Alexa)
Due to the proliferation of connected hardware devices, there are now software platforms that help stitch all these devices together (i.e. Operto).
In reality, this category is broad enough to warrant its own landscape map. For now, we focused on showcasing the IOT hardware & software products that are most specifically designed around the needs of STR & VR operators.
Quick hits:
- IOT is a massive sector of devices
- Many devices are now being designed for the needs of remote hospitality
- IOT devices can be a compelling way to decrease your operational costs, improve your guest experience, and even retain & attract owners.
Top Teams:
#9. Comms & Guest Experience Software
Making sure your guests have a great experience is the foundation of building an enduring hospitality business. Given the criticality of this, softwares have begun to emerge that are entirely focused on helping you ensure your guests have a great stay, by helping you with:
- Guest Communications
- Digital Access
- Guide Books
- Providing your guest with extra amenities
As an example of this, Operto has created the concept of a digital guest experience app “Guest”. This web-based application helps guests do everything from communicate with your staff, easily access the front door, or purchase ancillary items (e.g. tours, food), to request early check-in or extend their stay. Owners can “upsell” directly to the guest and others included in the reservation through the portal. In our opinion, these softwares should be considered as they not only improve your guest’s stay, but also create new opportunities for you to monetize each guest’s visit, and drive repeat bookings to your listing or business.
This is a rapidly expanding software vertical that has top teams competing to both re-invent and monetize the guest stay.
Quick hits:
- One of the fastest-growing sectors of technology
- A means to ensure your guests have better stays
- A way to drive revenue & decrease operating costs
Top Teams:
- *New Besty.AI
- *New Botel
- *New GuestGuru
- *New Host.AI
- *New Host Tools
- *New Visito
- Akia
- Dack, an Operto company
- Duve
- Enso Connect
- Operto Guest
- TouchStay
#10. Direct & Marketing Software
A key aspect of any business is marketing and distribution. In the short-term rental space, the best operators are so successful at marketing that 60%+ (or even as high as 90%) of their revenue is captured via direct bookings.
How do teams achieve this? For the best teams, they invest in a variety of e-commerce activities:
- A great direct booking site
- Retargeting website visitors with ads
- Running digital ads
- Emailing past guests
- Creating engaging social content
- SEO via articles
And, while many US operators derive much of their sales through marketplaces/OTAs like Airbnb, VRBO, and Booking, those sites take a large percentage of revenue from each booking, increasing the importance of investing to attract direct bookings.
Therefore, as teams scale, they often invest in software and teammates to begin to create a robust direct booking business, often via advanced digital e-commerce tactics.
Quick hits:
- Almost every industry invests in e-commerce/marketing tools – the STR/VR space is no different
- The best teams drive significant revenue & decrease channel fees through investments in this category
- Much like any marketing strategy, experimentation and effort are likely the key ingredients of success here
Top Teams:
- New! Aidaptive (included last year as JarvisML)
- New! Automate
- New! Rentamira
- Atlas
- BlueTent
- Boostly
- BuildUp Bookings
- Flip.To
- Hudson Creative
- Lodgea
- NaviStone
- RealTech
- SendSquared
- StayFi
#11. Digital Guidebooks
How do you know that the STR & VR software category has reached maturity?
We’d argue that when ~10 teams are building compelling digital guidebook products, that is a sign our industry has arrived.
Why do operators invest in digital guidebooks? For many reasons, including offering a better guest experience, monetizing your guest’s visit, and driving customer retention & loyalty. With a great guidebook in your home – either on a specific tablet or on a mobile app – your team can interact with your guests, ensuring every aspect of their stay is easier. As you scale, digital guidebooks may also cut down on the need for certain concierge or customer support services, as your guests might find information about their stay readily at hand, thereby helping them solve their own needs and likely having a better stay.
Quick hits:
- Help guests both navigate your home & nearby area
- Can reduce customer service needs & guest complaints
- Can increase revenue from your guest stays & drive repeat bookings
Top Teams:
#12. Upsells & Loyalty Software
Upsell & Ancillary Revenue software is one of the most exciting categories of development in the STR & VR space. At Wheelhouse we often say, “most operators earn 99% of their revenue via bookings”, hence why we build software to improve this revenue stream. However, in the hotel space, great operators routinely earn 15%+ of their revenue through a variety of upsells & ‘ancillary’ items.
In hotels & resorts, these items include:
- Charging for early check in/late checkout
- Resort fees
- Internet & Cable
- Etc.
In the STR & VR space, operators & entrepreneurs are finding inventive ancillary offerings such as:
- Electric Car Charging
- Scooter & Equipment rentals
- Firewood or Food deliveries
- Tours & Activities
With more space and often longer stays, there is ample opportunity for focused operators to leverage a new range of software, hardware, and services to earn more from their guests, while delivering a better overall guest experience.
Lastly, loyalty is a major driver of customer retention and bookings in the hotel space. Now, teams like Laasie are bringing novel approaches to loyalty programs, designed for operators in the STR/VR space.
Again, given the pace of development in this category, we expect to build a market map for just this category soon.
Quick hits:
- One of the fastest-growing sectors of the VR & STR space
- The best operators think about monetizing their spaces and their guest stays
- Investments here usually drive revenue & improve guest experience
Top Teams:
#13. FF&E / Inventory Management
For hotels, the terms FF&E (Furniture, Fixtures & Equipment) and OS&E (Operational supplies & equipment) refer to all the hard and soft goods in a room/home/property. FF&E refers to ‘permanent’ items, such as couches, mattresses, chairs, light fixtures, and more.OS&E refers to disposable items, such as toilet paper, coffee, light bulbs, etc.
Managing these items in your listings is both challenging and important. For example, if a guest shows up and your pullout couch is broken, it’s easy to see how a guest’s experience could be impacted. If you need to replace a bespoke or valuable item, you might even need to re-photograph your home and/or update your online listing descriptions.
Initially, most individuals and teams manage their FF&E/OS&E from a spreadsheet or a task management platform. However, as teams scale, they will likely need software to help procure, track, and replace FF&E, OS&E and more.
In the FF&E category, we include teams like Cort, who are experts in furniture rentals that can be used to either furnish your listings or replace an item in a pinch. Teams like Minoan, HostGPO, Fulhaus and others can help operators buy items in bulk at a discount, and some even specialize in helping to manage the delivery or even installation of these items.
Again, as our space has grown in scale and complexity, multiple teams have emerged to help you manage this valuable aspect of your operations. And, at some point soon, we imagine this category will need its own market map.
Quick Hits:
- FF&E and OS&E refer to most of the ‘items’ in your rental property
- The softwares and services in this category can help you manage your spaces, buy items more quickly, and even install FF&E items in your home.
- If/when something breaks or runs out, it’s important that you know & can address that issue
Top Teams:
#14. Remote Operations Software & Teams
The rise of “remote operations teams” is another innovative aspect of our space that likely deserves its own market map soon.
Remote Operations teams combine both software and people to manage everything from:
- Remote Concierge
- Remote Cleaner Scheduling
- Remote Revenue Management
- Remote Trash Collection
- Remote Ops & Maintenance
Now, you can hire teams that leverage both in-house and 3rd party software to make your listing or property work perfectly. Some of these teams (such as Evolve) have raised $100mm+, and are transforming the accommodations and hospitality landscape. This is a domain where the tech/teams in the STR/VR space are pushing the envelope of what people thought was possible in terms of remote management of assets.
Quick Hits:
- These teams leverage software & staff to maintain your listing
- Enable you to have your asset remotely managed by a professional team
- May prove cheaper (in terms of take rate) vs. an in-market property manager
Top Teams:
#15. Local Experiences *New
Apologies! The editors regret leaving this category off the market map last year. That’s what happens when you trust unpaid talent to spend their weekends on this!
As discussed earlier, most VR/STR do not excel at generating revenue from their guest stays. This is why teams like Rent, Xplorie & Viator have emerged to help expand the range of offerings operators can provide their guests.
And, per usual, these offerings are not what they at first appear.
For example, while Xplorie will help your guests find great experiences near your properties, Xplorie will also provide you with guidebooks to help upsell your guests, as well as a marketing platform to re-target guests for future adventures.
While Airbnb and other OTAs have made in-roads into the experience space, we’d look to these 3rd party operators (who can monetize your guests no matter which platform they book through) to continue to make progress developing stand-alone solutions for operators.
Quick Hits:
- Help guests find activities near your property
- Activities can include local experiences (local cooking classes) or more commercial activities (renting jet skis)
- Local experience offerings are intended to help operators drive conversion/bookings, guest retention, and increase revenue.
Top Teams:
#16. Accounting & Taxes Software
Tracking and controlling spend – as well as running proper trust accounting – are incredibly challenging endeavors in the hospitality space.
Luckily, there is a growing group of softwares and remote services that are helping operators navigate this financial complexity.
For example, for taxes Avalara is software that helps ensure you pay the right taxes to each jurisdiction, making sure your business remains in good standing.
And, for spend management and accounting, teams like TopKey can auto-categorize spend items and make owner payouts easier, while enabling you to earn cashback on all spend.
We take the modernization of this software category as yet another strong sign of our industry’s maturity, and some of these softwares are likely essential to have in place before you scale or sell your business.
Quick hits:
- Accounting & tax software has meaningfully improved in the last few years
- These systems can save you time & money, while helping ensure your business stays in good standing
- A well organized financial system can be an imperative, should you be looking to sell your business.
Top Teams:
#17. Payments
Payment Processing companies specialize in providing secure and efficient payment solutions for operators and guests.
The right payment provider can help your team:
- Make sure payments are secure, reducing the risk of fraud
- Accept multiple types of payments, ensuring the largest number of legitimate guests can book with you
- Provide charge back protections for you & your business.
- Automate payments to owners
In our industry, we have specialist providers like the Lynnbrook Group, part of the Inhabit family and a well-respected team in the space.
Additionally, new entrants like Stripe are bringing a wealth of tooling and capabilities to our space, based on their modern and diverse finance platform.
By partnering with a reputable payment processing provider, you can more effectively manage your business – maximizing your revenue while reducing the risk from fraudulent transactions.
Quick hits:
- Reduce fraud & chargebacks
- Enable credit card processing (and other forms of payments) for operators
- Can help automate/simplify owner payouts
Top Teams:
#18. Ranking & Reviews
It’s self-evident that low-ranking properties and properties with low reviews are unlikely to be discovered, clicked on, or booked.
Therefore, figuring out how to maximize your rankings & reviews is an incredibly important aspect of your online presence. No surprise, various softwares have emerged that offer to help you track and improve your rankings and reviews.
This is a relatively nascent area of software, and we expect activity to increase here in the coming years.
Quick hits:
- A newer sector of our industry, potentially still waiting for it’s moment
- Undoubtedly, your business’s online listing’s presence is a critical aspect of your revenue success
- Look for more activity here as the notion of advanced merchandising becomes more important in our space
Top Teams:
#19. Certification and Regulation
Like all spaces, the STR & VR space experiences fraud and bad actors.
For example, we’ve likely all read headlines about travelers who booked homes on an OTA (Online Travel Agency, such as Airbnb, VRBO, Expedia, Booking, etc.), but when they showed up, that property didn’t exist.
Additionally, in many markets, the threat of local regulation looms as a serious business risk.
Hence, a number of teams are focused on creating 3rd party certifications and regulation efforts, to help protect both the consumers and the communities that might be impacted by our space.
For example, Granicus helps operators make sure they are abiding by local regulations.
Rent Responsibly has emerged to help communities combat or develop effective local regulations. Sustonica is aimed at helping STR/VR operators create more sustainable (and marketable!) businesses while EnviroRental is a non-profit that provides resources to help make an impact and increase awareness of sustainability.
Quick hits:
- Certification & regulating teams are working to keep our entire category in good standing
- Other teams (Sustonica & VR Formula) are aimed at helping train or educate operators, to drive sustainability or better performance from operators.
- From a business perspective, guests are increasingly looking to 3rd party certifications to trust in an operator and book their property.
Top Teams:
#20. Insurance Softwares & Products
For years, innovative teams have been looking at how to create insurance products that fit the needs of the STR & VR space. In our space, many of the assets (homes & apartments) might normally be candidates for traditional home/renters insurance; however, as soon as you have guests renting your listing, all sorts of potential risks can emerge.
Additionally, in many vacation markets, the threat of hurricanes, floods, fires, and more poses a significant threat to both revenue streams and assets.
Therefore, novel insurance products designed to protect travelers, owners, and property managers have emerged, to ensure that all parties have something to fall back on – if, when, and where disaster strikes.
Quick hits:
- There are many unique challenges related to creating insurance products for the STR/VR space.
- The guest, owners & property manager all have potentially significant risks that can take place before & during each stay
- Natural disasters increasingly threaten a number of STR/VR markets, increasing the need for general insurance products for revenue producing assets
Top Teams:
#21. Guest Screening Software
In hotels, teams often rely on their front desk and onsite security to make sure guests are safe and the property is secure. However, with STR & VR listings, your space may not have anyone nearby to help monitor your space. While using a variety of IoT devices, like noise monitors and digital locks, is effective for alerting you to potential home issues, it’s more ideal to prevent these issues before they arise. Therefore, a range of smart softwares has emerged to help you accept bookings from only the best guests. These teams leverage a variety of AI/ML techniques to identify whether a traveler is going to be a thoughtful user of your space.
Quick hits:
- Knowing the identity of a person who stays in your home is essential to ensure your property, neighbors, and teammates are safe
- With fraud commonplace in the STR/VR space, these softwares can decrease chargebacks and other financial hassles
Top Teams:
Requisite Caveats of this (any?) Software Market Map:
Per last year, the goal of this market map is to drive a conversation around the breadth and specialization of softwares being built to empower the operators in our space. Therefore, allow us to name a few caveats and limitations of our efforts to create a software market map.
- Not all technology teams are listed: Again, this market map is primarily meant to illustrate the breadth of software in our space. In some categories, we chose to limit what we surface (e.g. there are likely 800+ PMSs worldwide, alone!). Instead, we wanted to spend time writing content around how each category was empowering operators.
- Not all teams are categorized perfectly: Many teams’ offerings stretch across 2+ categories. However, for this visual, we decided to add each team’s logo only once, in what we either know or presume is their main focus area. Again, this decision was predicated on illustrating and driving dialogue around the breadth of specialty domains that are emerging in our space.
- Our space moves fast! We have met ~10% of the teams on this map in the last 12 months alone. And, given the quality of developers entering our space, plenty of newer teams have produced stunningly good technology in a short amount of time. Therefore, we consider this market map write-up to be “out of date” as of… now!
This year, we were lucky to collaborate with Operto and other friends in the industry to expand and clarify our market map. However, we continue to expect that any fully robust market map will have to be crowdsourced and dynamic.
If are you on another team we should include? Please add your team here.
We hope this visual helps you and your team learn something new and valuable about the technologies being developed to power your business.
- To review or comment on our market map (built in Figma), please click here.
The Wrap:
As stated before, our teams were both surprised by the quantity, quality, and breadth of softwares in our category. As you might now agree, despite there being a multitude of categories and teams here, a deeper dive into each of these categories would certainly help illustrate the nuance of various offerings.
While you might think of software as a cost center, we’d argue that all of these technology teams realize that their success is dependent on being a business driver for you – helping you reduce operational challenges, improve your guest’s stay, increase safety, scale more seamlessly, retain and attract owners, and increase the revenue and profitability of your portfolio.
If you’d ever like to learn more about these softwares, please use the links provided to reach out to these teams, who can share more about how their service can help you improve and scale your business.
Cheers,
Wheelhouse & Operto