The Rise of Niche Short-Term Rental Markets: Pet-Friendly, Family-Oriented, and Luxury Stays

In recent years, short-term rentals have become a popular alternative to traditional hotels for vacationers and travelers. As the industry grows and diversifies, property owners and managers must find ways to differentiate themselves from the competition. It is not just about guests finding a place to stay; now more than ever, it is about creating more personalization to accommodate your guests’ stay. This is reflected in the changes that short-term rental platforms like Airbnb have made, heavily pushing niched listings such as Treehouses, Castles, A-Frames, and more.

While those types of listings often make for flashy headlines, the rise of new traveling profiles has taken over the travel industry and birthed new niched offerings: pet-friendly accommodations for pet lovers, family-oriented spaces for families on vacation, and luxury stays for those who want to splurge while traveling for business and pleasure. By understanding and catering to the unique needs and preferences,’ unique needs and preferences, hosts can create memorable experiences and tap into the potential for growth and success in these specialized segments of the short-term rental market.

In this edition of STR Trends, we will explore these various niche markets and how they are making waves in today's hospitality industry.

Pet-Friendly Rentals

Market demand for pet-friendly accommodations

According to the American Pet Products Association, the pet industry has seen steady growth, with 67% of U.S. households owning pets. Additionally, the pet industry’s sales grew from $103.6 billion in 2020 to $123.6 billion in 2021. As pet ownership increases, so does the demand for pet-friendly accommodations.

This is even more evident in the numbers, as Airbnb listings alone have seen an increase of nearly 50% in properties that welcome pets.

For hosts, creating pet-friendly accommodations that provide a tailored experience for pet owners who want to enjoy a vacation with their beloved companions without any hassle or worry can increase your likelihood of being booked while adding additional(s) revenue streams.

The rise of this niche also highlights a growing societal shift toward treating pets as part of the family rather than mere possessions or accessories, which bodes well for future advancements in animal welfare and rights initiatives. We see you PETA!

This trend is not limited to traditional vacation spots; even major urban cities are getting on board. Travelers are increasingly seeking lodging options that welcome their furry companions and provide amenities catered to their needs, and they are willing to pay top dollar for it.

Design considerations and amenities for pet-friendly rentals

Hosts should consider incorporating pet-specific amenities, such as pet beds, food, and water bowls, and secure outdoor spaces for play and exercise to attract pet owners. Hosts should also ensure their properties are pet-safe, with easily cleaned flooring, durable furnishings, and no hazardous plants or materials. Information on nearby pet-friendly attractions, such as dog parks, trails, and restaurants, can enhance the guest experience.

But your offerings don’t have to stop just once your guests arrive. Upselling guests on additional amenities such as daily walks, pet sitting (for the guest who may be doing activities in the city), toys, treats, branded dog food, and pet grooming services can increase your bottom line while doubling as outstanding customer service.

Marketing strategies for attracting pet owners

Marketing strategies for attracting pet owners play a critical role in the success of pet-friendly short-term rental properties. Hosts can effectively reach and engage their desired audience by implementing targeted marketing techniques, leading to increased bookings and guest satisfaction. Here are some critical strategies for attracting pet owners:

1. Optimize online listings: A study by TripAdvisor found that properties with more than 20 photos have a 65% higher booking rate than those with fewer images. Hosts should clearly indicate that their property is pet-friendly and highlight specific pet amenities such as pet beds, bowls, and outdoor play areas. Including high-quality images of pets enjoying the property can help create an emotional connection with potential guests.

2. Leverage guest reviews and testimonials: Positive reviews and testimonials from previous pet-owning guests can be a powerful marketing tool. Encourage satisfied guests to leave reviews highlighting their pet-friendly experience and share these testimonials on your website, social media profiles, and online listings.

3. Utilize social media: Social media platforms like Instagram, Facebook, and TikTok offer a visual and engaging way to connect with pet owners. Share images and stories of pets enjoying your property, as well as pet-friendly activities and attractions in the surrounding area. Engaging with pet-focused hashtags, groups, and communities can help increase visibility and reach potential guests.

4. Partner with pet-focused websites and influencers: Collaborating with pet-focused websites, bloggers, and social media influencers can help increase exposure to your target audience. Consider offering special promotions, discounts, or sponsored content in exchange for featuring your property on their platforms. Just like hosts are looking to attract guests, pet companies are constantly looking to find new ways to market to their target audience, spending over $1 billion in 2020 for advertising. Putting their products directly in your home is a win-win for all. There are even “marketing/influencer” websites that will provide you with products for free to place in your home. Or feel free to contact some of the smaller brands to negotiate deals.

5. Create pet-focused content: Develop informative and engaging content tailored to pet owners, such as blog posts or videos showcasing local pet-friendly attractions, activities, and events. This positions you as a knowledgeable resource for pet-friendly travel and can improve your website's search engine rankings, making it easier for potential guests to find you. Don’t forget to include this information in your listings’ welcome guide or digital guide on Airbnb.

6. Offer unique and memorable pet experiences: A study by Eventbrite found that 72% of Millennials would rather spend money on experiences than material possessions. To dive even deeper, American Pet Products Association notes that Millennials are the largest group of pet owners in the country and the biggest spenders as well. To stand out from the competition, hosts should consider offering exclusive pet experiences or services, such as pet-sitting or grooming services, customized pet welcome packages, or even hosting pet-friendly events. These unique offerings can create buzz and encourage guests to share their experiences on social media, generating word-of-mouth marketing.

7. Utilize targeted advertising: According to Statista, global digital advertising spending is expected to reach $646 billion by 2024. Targeted online advertising through platforms like Google Ads and Facebook Ads can help hosts reach pet owners actively searching for pet-friendly accommodations. Platforms like Hulu and TikTok are additional advertising sources to reach your audience. Use keywords and ad targeting options to ensure the right audience sees your ads.

Challenges and best practices for pet-friendly rentals

With all things in life, there are risks associated with being furry-friendly. Potential challenges for pet-friendly rentals include property damage, noise complaints, and additional cleaning requirements. To mitigate these risks, hosts can implement clear pet policies outlining rules and expectations, such as breed restrictions, size limits, and the number of pets allowed. Charging pet fees or deposits can help cover additional costs related to cleaning or potential damages.

Airbnb allows hosts the option to include pet fees directly into the nightly booking price rather than a separate charge.

Conducting thorough post-stay inspections can also help identify and address issues before they escalate.

Family-Oriented Rentals

Market demand for family-oriented accommodations

Research shows that family travel makes up 30% of all global outbound tourism trips, with 100 million American families traveling at least once per year. Within that large piece of the pie, 62% of these families seek accommodations offering space, comfort, child-friendly amenities, and activities for parents and children.

As families seek a more personalized and comfortable travel experience, niche short-term rental markets are meeting this demand with tailored spaces designed specifically for families. These accommodations offer amenities that traditional hotels may lack, such as fully-equipped kitchens, play areas for children, and outdoor spaces for the whole family to enjoy.

Furthermore, these rentals provide an opportunity to create unforgettable memories with loved ones. Families can settle into their temporary homes and immerse themselves in local culture while spending quality time together away from the distractions of daily life. The family-friendly trend is proving to be a game-changer in the travel industry. It caters to what modern vacationers truly desire - customized experiences that provide comfort and convenience at affordable prices.

Catering to the needs of families with children can attract a loyal customer base and lead to repeat bookings and positive reviews as hosts grow their business both on and off the major short-term rental platforms.

Design considerations and amenities for family-friendly rentals

Design considerations and amenities for family-friendly rentals should focus on providing a safe, comfortable, and engaging environment for guests of all ages. Hosts must ensure that the property offers age-appropriate amenities, such as cribs, high chairs, toys, games, child-safe spaces, and design elements, including stair gates, outlet covers, and secure fencing around pools or balconies.

A functional layout that allows for separate sleeping areas, ample storage, and comfortable communal spaces is essential for catering to families. In addition, a well-equipped kitchen and large dining table can accommodate home-cooked meals and family gatherings. Another must-have is an in-unit washer and dryer. Giving parents the ability to wash their kid’s clothes at their leisure is a major plus.

Entertainment options, such as high-speed Wi-Fi, streaming services (Disney+ is a must), screen and project, and gaming consoles, can keep guests entertained, while outdoor spaces with playground equipment, family fun items such as a putting green, basketball court, swing set, or a pool can encourage families to spend time together outdoors.

You can attract a whole other group of families by utilizing popular family-friendly characters and themes throughout your home. These themed homes not only can help you stand out but can also widen your audience as well.

By focusing on these aspects, hosts can create a welcoming and family-oriented environment that attracts a broad range of guests, leading to increased bookings and positive reviews.

Marketing strategies for attracting families

Marketing materials should emphasize family-friendly aspects of the property and showcase the available amenities. High-quality photos of families enjoying the property and guest testimonials about their family-friendly experiences can help build trust and credibility. Hosts can also engage with online forums, parenting groups, and social media influencers to reach their target audience.

1. Highlight family-friendly features and nearby attractions on your website, rental listings, and social media channels. A Google study revealed that 88% of travelers with smartphones use search engines for travel-related information.

2. Collaborate with family-focused influencers and bloggers to share their experiences staying at your property, generating buzz and credibility. According to a 2020 Mediakix survey, 89% of marketers find influencer marketing ROI to be as good or better than other marketing channels.

3. Offer special promotions or discounts for families during school holidays or other family-friendly events. Salesforce research indicates that 50% of consumers are likely to switch brands if a company doesn't anticipate their needs, such as providing timely promotions and discounts.

4. Create family-oriented content, like blog posts or videos, that showcases your property and provides helpful tips for traveling with children.

5. Use high-quality photos to showcase family-friendly amenities like play areas, kid-friendly rooms, and entertainment options.

6. Optimize listing titles and descriptions to attract families by using keywords like "family-friendly," "kid-friendly," and "spacious" to emphasize the suitability of your property for family stays. A study by Phocuswright found that 53% of travelers consider descriptive headlines a critical factor when choosing a short-term rental.

7. Collaborate with family-focused influencers and bloggers to share their experiences staying at your property, generating buzz and credibility. You can offer them discounted or free nights in exchange for their posting.

Challenges and best practices for family-oriented rentals

Challenges for family-oriented rentals may include wear and tear on furniture, noise complaints, and additional cleaning requirements. Hosts can address these challenges by using durable, easy-to-clean furnishings, providing clear house rules regarding noise and behavior, and offering kid-friendly cleaning supplies. Clear communication with guests and responsiveness to their needs can also help ensure a positive experience for both the host and the guests.

Luxury Stays

Market demand for luxury accommodations

The luxury short-term rental market caters to affluent guests seeking high-end accommodations with upscale amenities and services. As more travelers opt for unique and personalized experiences over traditional luxury hotels, there is a growing demand for exclusive and opulent short-term rental options.

Not to mention the growing business/personal trips for remote workers who can spend their time working from anywhere in the world.

Design considerations and amenities for luxury rentals

To attract affluent guests, luxury properties should feature premium design elements, such as high-quality furnishings, state-of-the-art appliances, and luxurious linens. Upscale amenities may include private pools or hot tubs, home theaters, fitness centers, and access to personal chefs or concierge services. Attention to detail and a commitment to providing exceptional guest experiences are crucial for success in the luxury market.

Marketing strategies for attracting affluent guests

Marketing strategies for luxury stays should focus on the exclusivity and unique features of the property. High-quality professional photography, immersive video tours, and detailed descriptions of luxury amenities can help convey the property's value to potential guests. Building partnerships with luxury travel agencies, concierge services, and high-profile influencers can increase visibility and credibility in the luxury market.

1. Develop a visually appealing and user-friendly website that showcases your property's luxurious features, high-quality images, and virtual/Matterport tours. High-quality visuals are essential for conveying the upscale nature of your property and appealing to affluent guests. Additionally, on your website, leverage email marketing to stay in touch with past guests and inform them of special offers, events, or property updates, making your website and emails effective channels for reaching and engaging luxury travelers.

2. Utilize social media platforms like YouTube, Instagram, and TikTok to highlight the luxury experience guests can expect at your property. This could include highlighting the property's unique architecture, design, history, or amenities. Your property is your biggest asset.

3. Collaborate with luxury travel influencers and high-end lifestyle bloggers to showcase your property and reach an affluent audience. A 2019 Influencer Marketing Hub survey found that businesses earn an average of $5.20 for every $1 spent on influencer marketing. You can find influencers on YouTube, Instagram, and TikTok by searching various travel and luxury hashtags.

4. Network with local high-end businesses, like fine dining restaurants, luxury boutiques, and exclusive clubs, to offer special deals or packages for your guests.

5. Create a loyalty or referral program to reward guests for repeat stays or recommend your property to others. The best hotel companies in the world have a loyalty program, and you should too. You can add exclusive partnerships and memberships to your loyalty program by connecting with luxury travel agencies, private jet services, and concierge companies to promote your property to their high-net-worth clientele. Consider joining exclusive travel platforms, such as Luxury Retreats or Inspirato, which cater specifically to affluent travelers. This enhances your property's reputation and exposes it to a broader audience of wealthy guests.

6. Collaborate with local luxury event organizers and venues to host exclusive events at your property, such as art exhibitions, wine tastings, or fashion shows.

7. Utilize experiential marketing by offering personalized experiences or packages, such as private cooking classes, guided tours, or wellness retreats, to cater to the individual preferences of your luxury guests.

Challenges and best practices for luxury stays

Challenges for luxury stays may include higher expectations for guest service, increased competition, and the need for constant updates and improvements. Hosts can address these challenges by providing exceptional customer service, staying current with industry trends, and regularly upgrading and maintaining their properties. Building a solid reputation through positive guest reviews and word-of-mouth referrals can help hosts stand out in the competitive luxury market.

Conclusion

Understanding and targeting niche short-term rental markets can give hosts a competitive advantage in an increasingly crowded marketplace. Hosts can differentiate their properties and attract a loyal customer base by catering to the specific needs and preferences of pet owners, families, and luxury-seeking guests. As the short-term rental industry continues to evolve, hosts who stay abreast of emerging trends and focus on delivering exceptional experiences to their niche markets will be well-positioned for long-term success.