
Why Personalisation is the Competitive Edge for Short-Term Rental Hosts in 2025
A recent survey by Avantio reveals that 75% of short-term rental (STR) hosts view personalisation as a strategic tool for competing with larger, more established operators. personalised guest experience
The findings underline the importance of creating tailored guest experiences in a growing and increasingly professionalised sector.
Personalisation as a Key Differentiator
Building on these findings, Avantio’s global survey of over 1,000 property managers shows that personalised services are now a defining factor that enables smaller short-term rental (STR) operators to stand out in a crowded and increasingly consolidated market. While larger brands often rely on consistency and scale, independent hosts are turning to personalization to create unique and memorable stays tailored to individual guest preferences.
This trend reflects a broader shift in the travel industry, where modern guests—particularly Millennials and Gen Z travelers—seek authenticity, flexibility, and personal touches over generic experiences. A 2024 report by Skift found that 73% of travelers prefer accommodations that offer local character and personalized service over standard hotel chains, especially when staying in leisure destinations. This is driving STR hosts to go beyond basic accommodation and provide curated recommendations, bespoke welcome packs, and even customized itineraries based on guest interests.
Moreover, advances in property management technology are making it easier than ever for hosts to gather and act on guest data. Tools like CRM integrations, AI-powered messaging, and automated pre-arrival questionnaires allow property managers to learn about guest preferences before check-in—enabling them to offer everything from preferred coffee brands to pre-booked experiences like local tours or dinner reservations. According to a Phocuswright study, 41% of STR operators using personalization technology report higher guest satisfaction and increased repeat bookings.
In addition, personalization can have a measurable impact on revenue. Personalized upselling—offering extras like early check-in, local experience add-ons, or premium toiletries—can significantly boost average booking values. A report from Guesty, a leading property management platform, shows that personalized offerings can increase revenue per booking by up to 30%. These strategies not only improve guest experience but also enhance the host’s bottom line.
In a competitive environment where visibility on platforms like Airbnb and Booking.com is key, personalization also influences reviews and rankings. Guests who feel cared for are more likely to leave positive reviews, which in turn improves a listing’s position in search results and drives more bookings organically.
Ultimately, personalization is no longer just a “nice-to-have”—it is a strategic advantage that empowers small and mid-sized STR operators to thrive in a market dominated by global brands.
Hospitality and Tech Go Hand in Hand
The report highlights that technology is now fundamental to delivering personalised hospitality in the short-term rental sector. Tools like smart locks, automated guest messaging, and CRM systems enable hosts to tailor communication and services without adding manual workload. Platforms such as Hostaway and Guesty allow property managers to gather insights on guest preferences, automate responses, and even trigger personalised upsells during booking or check-in.
This tech-driven approach not only enhances guest satisfaction by providing timely and relevant interactions but also improves operational efficiency. According to a 2024 Transparent Intelligence report, tech-enabled STRs see up to 20% higher occupancy rates and reduced guest communication time by 40%. In short, digital tools are helping hosts deliver hotel-grade service while maintaining the flexibility and charm that travelers expect from short-term rentals.
Competing With Hotel Chains
As the short-term rental (STR) industry matures, property managers increasingly feel the pressure from well-funded competitors such as hotel chains and large-scale operators. These entities leverage extensive resources to offer consistent, brand-driven experiences. However, personalization emerges as a key differentiator for STR hosts, enabling them to deliver more authentic and memorable experiences that today’s travelers seek. personalised guest experience
Recent studies highlight the significance of personalized experiences in the hospitality sector. According to Medallia‘s research, 61% of consumers are willing to spend more with companies that offer customized experiences. Furthermore, McKinsey’s findings indicate that personalized service is valued 2.5 times more by Gen Zers than by baby boomers, underscoring the growing importance of tailored experiences for younger travelers.
In response to these trends, STR platforms like Airbnb have introduced new features aimed at enhancing traveler experiences through personalized services and local experiences. Launched in May 2025, Airbnb’s “services” and “experiences” features allow travelers to book personalized offerings directly through the platform, including private photography sessions, personal fitness training, and locally catered meals. These offerings are now available in 260 cities worldwide, including Texas cities such as San Antonio, Austin, and Rockport. personalised guest experience
By focusing on personalization, STR hosts can not only differentiate themselves from hotel chains but also build stronger connections with their guests, fostering loyalty and encouraging repeat bookings.
Guest Experience is the Future
Investing in personalization strategies is no longer optional but vital for long-term success in the STR industry. From automated check-ins to curated local guides, property managers are finding innovative ways to build guest loyalty and generate positive reviews.
Technological advancements play a pivotal role in facilitating personalized guest experiences. AI-driven guest profiles, for instance, enable property managers to anticipate guest preferences, providing tailored recommendations and services without face-to-face interaction. Additionally, digital concierge services can suggest activities, restaurants, or even the best beaches, enhancing the overall guest experience.
The economic impact of the STR industry further underscores the importance of personalization. The worldwide short-term rental market is estimated to be $135 billion in 2024, with vacation rental listings increasing by 12.8% in 2023. As competition intensifies, delivering exceptional, personalized guest experiences becomes a crucial factor in attracting and retaining guests.
Moreover, personalization contributes to increased efficiency and revenue. By leveraging technology to automate tasks like guest communication and check-in/check-out processes, property managers can streamline operations while providing outstanding guest experiences. This not only enhances guest satisfaction but also creates opportunities for additional revenue through cross-selling and upselling services tailored to individual guest preferences. personalised guest experience
In conclusion, as the STR industry continues to evolve, prioritizing personalized guest experiences will be instrumental in achieving sustained growth and competitiveness.