Short Term Rentals Technology Landscape Terminology

Table of Contents

• STR: Short-Term Rentals
• PMS: Property Manager Systems
• Channel Managers and Revenue Managers
• Hotel PMS
• Point Solutions
• Customer Relationship Management (CRM)
• Data Aggregators
• Digital Marketing
• SEO: Search Engine Optimization
• OTA: Online Travel Agency
• Meta Search
• Listing Sites
• Property Acquisition
• Access Control Automation
• Property Automation
• Ancillary Guest Services
• Tech-Enabled Franchise
• Access Control Hardware
  • RFID Key Cards
• Communicate / Guidebook
• Service Optimization
• Know Your Costumer/Client
• Guest Verification
• Hospitality Insurance Policies
• Payments
• Accounting

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What is an STR?

Let's start with the basics: what is an STR?

STR stands for Short-Term Rental, a furnished home or apartment that is rented for a short period of time, usually less than 30 days.

They are often seen as an alternative to hotels and can be 25 to 50% cheaper. STRs can include entire homes, individual rooms, or additional living spaces, and some jurisdictions differentiate between single-family and multi-family homes. 

Short-term rentals (STRs) are popular choices for vacations or relocations, provided by private owners and investors on platforms called OTAs, such as Airbnb and Booking, (and of which you'll learn more later on), and often feature amenities like fully-equipped kitchens, laundry facilities, and some even welcome pets.

Do you want to keep reading about STRs? Check our post "What is an STR?"!

PMS: Property Manager Systems

A Property Management System (PMS) is a type of software that helps short-term rental owners and Channel Managers manage their business (More on that later).

PMS software automates tasks like guest communication, cleaning scheduling and staff, pricing adjustments, and it can also help with managing bookings, organizing maintenance staff, and handling payment processing.

PMS software is also known as Vacation Rental Software or Property Management Software. 

To see in greater detail all the advantages that a Property Management System offers, we invite you to visit this article: What is a PMS?

Channel Managers and Revenue Managers

A channel manager (CM) is a software tool that connects a property management system (PMS) to online platforms (OTAs), such as Booking.com or Airbnb, to automatically update rates, availability, and reservations.

This allows property managers to update multiple online booking sites at once, which can help prevent double bookings and make inventory management easier. Channel managers can also provide key performance reports that can help inform marketing and sales strategies. 

Some benefits of using a channel manager include:

• Saving time
• Increasing online bookings
• Increasing hotel revenue
• Reducing risk of overbookings
• Improving brand recognition

Revenue Managers (RMs) adjust rental prices based on factors like seasonality, local events, and market demand.

By utilizing Revenue Management techniques, property managers and STR owners can maximize occupancy rates by dynamically adjusting rental prices based on variables such as seasonality, local events, and market demand.

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Hotel PMS

In hospitality, PMS stands for Property Management System.

A hotel PMS is a software that helps hotels manage all aspects of their business operations, including guest experiences.

It automates many administrative tasks front office staff are responsible for, such as:

• Reservations
• Check-in and check-out procedures
• Room assignment
• Room rates
• Billing
• Housekeeping activities

A hotel PMS can also store guest information, allow for special requests, and provide extenuating circumstances.

It can integrate payment processing into the booking and check-out process, and offer multiple payment options for guests. 

Hotel PMS are considered the heart of a rental, and is essential for improving the guest experience and increasing efficiency. 

Point Solutions

In the hospitality industry, Point Solutions are specialized tools or software programs that focus on solving one specific challenge within a particular business sector.

These might range from room reservation systems and loyalty program software to recipe building platforms. While point solutions are highly effective for fulfilling that single purpose, businesses may find themselves having to invest in multiple point solutions should they face multiple challenges. This can be costly and time-consuming, creating a need for more comprehensive solutions that cater to all their business needs in one go.

Therefore, the challenge for the hospitality industry is to develop multi-faceted solutions that incorporate several point solutions and provide an efficient way to solve multiple challenges without having to invest in numerous individual products.

Point solutions offer a number of benefits that can be extremely beneficial to organizations:

• Cost Savings:
  Point solutions are often less expensive than more comprehensive enterprise solutions, making them an ideal solution for smaller companies with limited budgets. This cost savings allows companies to get the features they need without investing in costly, full-scale software suites.
• Tailored Solutions:
  Point solutions are designed to meet specific needs, making them more effective for a given purpose than an enterprise software suite. For example, companies that only need email marketing features can purchase an email marketing point solution rather than investing in an entire Customer Relationship Management (CRM) system.
• Scalability
  Point solutions are typically easier to scale than their enterprise counterparts. Organizations can easily increase or decrease the number of users and features as needed, without investing in costly upgrades that may no longer be necessary.
• Easy Implementation
  Because point solutions are designed with a specific purpose in mind, they are often simpler and quicker to implement than an enterprise solution. This makes them ideal for organizations that need to quickly get up and running with a specific set of features.
• Integration
  Point solutions can integrate easily with existing enterprise systems, making them an ideal choice for organizations that are looking to supplement their existing software suites. This helps minimize the disruption caused by new implementations and allows for a smoother transition.

Customer Relationship Management (CRM)

Customer Relationship Management (CRM) systems help businesses manage customer data, sales, and communication, provide insights and integrate with social media. 

These are the basic types of CRM systems:

• Collaborative CRM: 
  Also known as Strategic CRM, this approach focuses on fostering long-term customer relationships and aligning CRM strategies with overall business goals. It bridges communication gaps between departments (sales, marketing, customer service) by facilitating data sharing, collaboration tools, and workflow automation, aiming to provide a more unified and positive customer experience.
• Analytical CRM:
  Analytical CRMs use data and analytics to gain insights into Human Resources processes and make informed decisions. For example, marketing can look at past performances, customer demographics, and buyer personas to optimize marketing campaigns.
• Operational CRM:
  This type of CRM follows marketing and sales professionals to reach out to clients in real-time. It can provide data collection tools for new customers and loyalty programs for repeat ones.
• On-Premise and Cloud-based CRMS:
  CRM systems can also be on-premise or cloud-based. 
  On-premise CRM systems store their infrastructure, hardware, operating system, and data on the user's premises. 
  And Cloud-based CRM systems offer mobility and access to a variety of apps, by storing data on external servers only accessed remotely by anyone with permission to do so. 

Data Aggregators

Data aggregators in tourism are services that combine data from multiple sources into a single database.

This information can be used to create data repositories that can help with decision-making, marketing, and business performance. 

Data aggregators can help the travel and hospitality industries with:

• Price and promotion modelling
• Enterprise decision-making
• Predictive analytics
• Marketing decision-making
• Business intelligence
• Market knowledge
• Competitor research
• Price monitoring
• Customer sentiment analysis 
  
  Data aggregators can also help travel companies by:
• Selecting images for their websites
• Analysing trends in property availability and transportation costs
• Identifying popular destinations by season
• Determining which demographic groups to target in travel ads 
• Tracking their employees on business trip

Digital Marketing

Digital Marketing in tourism is a cost-effective way to communicate with customers and visitors, and can help businesses grow.

This kind of marketing can help businesses:

• Engage with audiences
• Reach new markets
• Improve messaging
• Increase bookings
• Improve brand visibility
• Build brand loyalty 

Digital marketing in tourism uses a variety of strategies, including: 

• Social media
• Search engine optimization (SEO)
• Email marketing
• Content marketing
• Mobile marketing

Digital marketing allows businesses to target specific groups of travellers based on their interests, demographics, and behaviours.

It also allows businesses to track their successes, such as who is engaging with their content, where they are from, and how long they spend online. 

Some tips for digital marketing in tourism include:

• Choosing 3–4 platforms to focus on and keeping them regularly updated
• Generating innovative content, such as quizzes or surveys, to encourage follower participation
• Encouraging customers to share photos during tours by creating a tour hashtag
• Using data to create personalized travel experiences 

SEO: Search Engine Optimization

Search engine optimization (SEO) in hospitality is the process of improving a hotel's website and STR listings ranking on search engines like Google, Firefox, Edge, Yahoo, and Bing.

The goal of SEO is to increase a hotel's or rental's online presence, drive website and listing traffic, and improve bookings.

SEO can help hotels:

• Increase visibility: SEO can help hotels and rentals target people searching for local accommodations.
• Build trust: SEO can help establish trust with search engines and potential guests by providing high-quality content.
• Create brand awareness: SEO can help you reach potential guests searching for local accommodations by targeting relevant keywords.

Here are some tips for SEOing a hotel or rental website:

• Compress images and video files
• Use headers and format text for easy reading
• Check for broken links
• Give each page a clear purpose
• Focus on high-quality content
• Choose keywords wisely
• Complete a Google My Business listing
• Build links by getting other websites to link back to your site 

OTA: Online Travel Agency

OTA stands for Online Travel Agency or Online Travel Agent.

It is a web-based marketplace that allows consumers to research and book travel products and services directly with travel suppliers.

OTAs act as intermediaries between travel inventory suppliers, such as, rentals, airlines, hotels, and tour operators, and connect providers across the travel industry to help travellers plan their trips. Travelers can often access package deals with accommodations and airfare on OTA sites.

Some examples of popular online travel agencies include: Booking.com and Airbnb.com.

Synonyms for OTA include Alternative Distribution System (ADS) and Internet Distribution System (IDS). 

Meta Search

In the hospitality industry, a metasearch engine is a tool that collects information from multiple sources, like online travel agencies (OTAs), and displays it in a ranked list. This allows potential guests to compare options and make an informed choice. 

Listing Sites

Listing sites, also known as online business directories, are a vital tool for hospitality businesses to increase their visibility and reach potential customers.

Listings are public profiles that contain important business information, such as name, address, phone number, website, and hours of operation. They can help customers find a business online and in real life. 

On Online Travel Agencies (OTAs)' websites, such as Airbnb.com and Booking.com, listings are essentially advertisements for short-term rentals posted by hosts. These rentals can be anything from private rooms in a homeowner's apartment to entire houses, cabins, or even unique spaces like boats or treehouses.

Property Acquisition

In hospitality, property acquisition is the process of gaining ownership or control of a hotel, rental or resort property.

This includes the transfer of real property, business, financial assets, and liabilities. The buyer of a rental or hotel also automatically takes over any existing lease agreement. 

Hospitality REITs (Real Estate Investment Trusts) are another way to acquire hospitality properties. They focus on developing, acquiring, managing, or financing the construction of hotels, lodgings, and other hospitality properties. 

Navigating hotel acquisitions requires a deep understanding of the hospitality industry and business acumen. This includes understanding employee contracts, union agreements, and staff benefits, which can have a significant impact on operational costs and flexibility.

The hotel and rental purchase and sales agreement (PSA) includes a due diligence period where the buyer reviews documents like financial data, property surveys, and environmental studies. The PSA also includes closing documents like a general warranty deed, bill of sale, and assignment documents. 

Access Control Automation

In hospitality, Access Control Automation is a system that uses electronic locks and key readers to automatically open and close room doors, and record and store guest information digitally.

This system allows the staff to grant access to guest rooms, and track room access while ensuring guest security.

Access control automation can help hotels:

• Streamline processes
• Minimize costs
• Provide a modern guest experience
• Save energy
• Provide guests with more independence
• Automate check-in
• Reduce front desk workload
• Prevent unauthorized individuals from entering certain areas
• See when rooms are ready for cleaning
• Access control automation can also help hotels collect guest registration data, assign rooms, and issue bills.

Property Automation

Property Automation in hospitality is the use of technology to automate hotel operations, such as managing information, controlling equipment, and performing tasks.

Automation can help hotels and rental owners become more efficient, save time and money, and improve the guest experience.

Some examples of automation in hospitality include:

• Reservations and check-ins
• Marketing: Automation can implement marketing strategies, such as sending smartphone notifications to guests about room availability.
• Guest registration: Automation can scan and record guest identity documents, which can reduce the time it takes to complete the process.
• Upselling and retargeting: Automation can help hoteliers identify opportunities to offer more services or upgrade rooms based on guest preferences and behaviour. 

Automation can benefit both hoteliers and guests by:

• Increasing efficiency
• Reducing errors
• Eliminating frustration
• Boosting revenue
• Cutting costs
• Increasing productivity

Automation in hospitality is not intended to replace human employees, but rather to augment their results. 

Ancillary Guest Services

Ancillary guest services in hospitality are additional services offered by rental owners and hotels to enhance a guest's stay and generate additional revenue.

Ancillary services can include:

• Food and beverage: Room service, restaurants, and bars
• Accommodation: Spa and wellness services
• Transportation: Airport transfers and shuttle services
• Event management: Conference room packages
• Entertainment: Children's play kits, babysitting, and guided tours

Ancillary services can help cater to guest needs and preferences, and create memorable experiences that make the hotel or property stand out. For example, hotels can offer pre-booking options for tours, airport transfers, or spa appointments to make guests feel valued.

Some other ways hotels can generate ancillary revenue include:

• Turning free room upgrades into paid upsells
• Creating a gift shop that sells tourism merchandise
• Focusing on quality instead of quantity 

Tech-Enabled Franchise

A tech-enabled franchise in hospitality is a franchise that uses technology to streamline operations and build customer loyalty.

Technology can help franchisees in the hospitality industry with:

• Ordering, payment, and loyalty rewards
• Digital check-ins and check-outs
• Booking and room availability management
• Customer data and request handling
• Housekeeping tasks

Technology can also help restaurant owners support their franchisees remotely, which can ensure brand consistency and operational excellence.

Digital marketing can also help attract customers to new locations, create personalized experiences, and build brand loyalty.

Some examples of tech-enabled hospitality include:

• Digital apps and QR codes
• Mobile entry keys
• Contactless check-in and check-out
• Management software
• Video management systems
• Computer-based building services
• Sensors
• AI customer identification
• Smart parking
• Self-service kiosks 

The hospitality industry is increasingly relying on technology, which is powered by online, mobile, cloud, IoT (Internet of Things), edge computing, augmented and virtual reality (AR/VR), and low code applications. 

Access Control Hardware

Access control hardware in hospitality can include electronic locks, key readers, and presence sensors.

These devices can automatically open doors when a key is passed, and can track room access and guest security. When a guest leaves a room, the system can detect when the door closes and change the room's status in management software.

Access control systems can be activated by physical devices, such as cards, remotes, or bracelets, or by recognizing biometric features, such as faces, fingerprints, or irises.

In hotels and modern rentals, universal readers are an essential part of access control systems, as they can accept a variety of identification mediums, including RFID key cards and mobile credentials.

Access control systems can provide many advantages, including:

• Convenience: Guests only need to carry a smart card to access the hotel gate, elevator, and rooms.
• Labor cost reduction: Access control systems can reduce labor costs.
• Safety: Access control systems can ensure a high level of product and life safety.

RFID Key Cards

RFID stands for Radio Frequency Identification and is a contactless technology that allows guests to enter their rooms by waving a card in front of a lock.

RFID cards are a newer technology in the hospitality industry and are considered the new standard in hotel room and rental security.

RFID cards use radio waves to communicate with the card system, so guests don't need to touch the card or swipe it. When the card is close to the door, the electronic reader inside the lock uses a radio signal to power the card and send its chip serial number back to the reader for identification. The reader usually beeps and the lock light turns green to indicate that the card has been read.

RFID key cards are compatible with a variety of locking systems, but keep in mind that they can be expensive to set up, easily lost, or left in rooms. 

Communicate / Guidebook

A hospitality guidebook is a resource that provides information to guests about a hospitality business.

A guidebook can include information about the business's amenities, policies, and best practices.

It can also answer common questions from guests, and help businesses stand out from competitors.

Here are some examples of hospitality guidebooks:

• Digital guidebooks: Can answer questions from guests and highlight the business's amenities.
• Hospitality Industry Handbook: Includes compliance information, policies, and best practices for hospitality businesses.
• The Hospitality Concept Handbook: A guide to creating concepts for hotels, food and beverage, retail, and office spaces.
• Handbook of Hospitality Industry and Tourism: Covers fundamental aspects of the hospitality and tourism industry.

Service Optimization

Service optimization in hospitality is the process of using technology to improve operations and personalize experiences for guests. This can help hotels increase guest satisfaction and operational efficiency.

Here are some key aspects of Service Optimization in hospitality:

• Streamlining processes: This could involve automating tasks, improving communication between departments, and using data to identify areas for improvement.
• Enhancing guest experience: The goal is to provide a seamless and personalized experience for guests, meeting their needs and exceeding expectations.
• Optimizing resource allocation: Service optimization helps ensure staff and resources are allocated effectively to meet guest demands and maintain service quality.
• Cost reduction: By streamlining processes and improving efficiency, service optimization can help hotels reduce overall operating costs.

Some examples of Service Optimization tools and techniques include:

• Guest relationship management (CRM) systems: These systems help hotels track guest preferences and personalize communication.
• Housekeeping management software: This software can automate task scheduling and optimize cleaning routes.
• Self-service kiosks: These kiosks allow guests to check in, check out, and access other services independently.
• Guest feedback surveys: Hotels can use feedback to identify areas for improvement in service delivery.

Overall, Service Optimization in hospitality is about using data and technology to create a win-win situation for both guests and hotels: a more efficient operation for the hotel and a more enjoyable and personalized experience for the guest.

Know Your Costumer/Client

Know Your Costumer or Know Your Client (KYC) in hospitality is an operations system that combines a hotel's central Hotel Management System (HMS) with over 25 external applications.

The system centralizes a hotel's operations, including guest communications, housekeeping, engineering, concierge, and security. KYC Hospitality uses artificial intelligence and big data to help hotels manage their guests.

It's a process for verifying a customer's identity and a mandatory process in the hospitality industry to ensure safe customer onboarding practices. Methods for verifying a customer's identity include ID paper upload, face recognition, and electronic ID verification.

For example, the Blockpass Mobile App allows users to instantly prove their identity while keeping their data secure. Users can use the app to verify passports, driving licenses, or other documentation that hospitality services may require. 

Guest Verification

Guest verification in hospitality is a process that businesses use to assess the risk of a guest booking a property. It's a standard practice in the hospitality industry that helps ensure the safety and security of both guests and hosts.

Guest verification can help prevent risks such as:

• Property damage
• Parties
• Noise violations
• Fraud
• Criminal activity. 

It can also help build trust between guests and hosts by providing both parties with the peace of mind that they are dealing with legitimate individuals.

Guest verification can involve requesting identification documents, such as passports or driver's licenses, and cross-referencing them with reservation details.

Another method is to ask guests to upload their ID and then take a selfie or selfie video to prove they are the same person. An algorithm or human expert will then assess if it is a match.

Automated Identity Verification Technology, also known as Document Readers, can help staff to verify guests' identity documents and determine if they are genuine or not.

However, guest verification can add complexity and friction to the check-in process, leading to longer waiting times, guest dissatisfaction, and ultimately lower revenue per available room. 

Hospitality Insurance Policies

Hospitality Insurance is a type of insurance policy that protects businesses in the hospitality industry from risks and liabilities.

It's designed to address the unique challenges faced by hotels, restaurants, and other similar businesses.

Hospitality insurance policies can help cover costs in the event of an accident, loss, or damage. They can also cover legal costs if a customer or employee becomes hurt or unwell on the business's property.

Some common risks in the hospitality industry include: food-borne illnesses, accidents, property damage, and customer dissatisfaction.

Some common coverage included in hospitality insurance policies is:

• Loss of income due to cancelled events
• Medical expenses for guests
• Uninsured losses
• Liquor liability
• Innkeepers legal liability. 

Payments

Hospitality payments are the systems and procedures that hospitality businesses use to accept payments from guests.

These systems can include software that allows for secure online payments, or third-party gateways that facilitate payments made by credit card, debit card, mobile payment, bank transfer, or app.

Contactless payments are becoming increasingly important in the hospitality industry because they are hygienic, efficient, and improve the customer experience. They allow customers to make payments without physical contact using smartphones, cards, or other devices.

Hotels and STR managers need to implement secure payment technology policies and procedures to protect customer and business data. Integrated payment solutions can help safeguard sensitive information through encryption, tokenization, authentication, and compliance methods. Payment gateways can also help handle chargebacks in case of fraudulent charges.

Some payment methods that hospitality businesses can accept include: Credit card, Debit card, QR code, UPI, Pay later, Bank transfer, apps like PayPal, Apple Pay, and Google Pay. 

Accounting

Hospitality accounting is a specialized discipline that involves tracking and managing the income, expenses, assets, and liabilities of businesses in the hospitality industry, such as STRs, hotels, restaurants, and resorts.

It includes:

• Handling daily transactions, like hotel bookings, restaurant bills, and spa services
• Recording high volumes of cash transactions
• Tracking guest spending
• Calculating rental revenue and occupancy rates
• Preparing invoices for services rendered
• Complying with Generally Accepted Accounting Principles (GAAP) 

Hospitality accounting is important because it helps businesses in the hospitality industry address unique challenges, such as labor costs, employee turnover, and customer relationship management. It also helps businesses plan budgets, save money for expansion, estimate profits, and maintain growth direction.

For example, hotel accounting helps hotels manage and monitor cash flow, which can help optimize revenue and identify areas for improvement. It also allows hotels to make informed decisions based on real data. 

That's it!

If you're reading this, you now know everything there is to know about the Short-Term Rentals Technology Landscape Terminologies.

We know it all sounds and looks really complicated, but as we said before, we can help you with some of the burden. By working with us, you dont have to worry about managing your properties income as we take care of it all for you.

Our strategies consistently deliver revenue increases exceeding 20% for our clients. Interested?