Avoid Pitfalls During Your Vacation Rental Software Implementation by Learning From Buyers With Experience

Managing multiple vacation rentals is financially rewarding for property managers, but at the same time, keeping track of bookings, guest needs, and property upkeep can be demanding. Vacation rental software can come to the rescue, offering a centralized platform to automate workflows, simplify communication, and optimize rentals for success. 

However, to make the right purchase, it is crucial to know what features you need, the average software price, and common challenges faced when purchasing vacation rental software.

Each year, Software Advice's advisors speak with thousands of software buyers evaluating new vacation rental software for their businesses. We've gathered insights from these conversations to help small businesses understand the budget requirements, feature needs, and pain points of current users to choose the best tool for their needs.

Prospective buyers and current users prioritize the same feature

After analyzing thousands of vacation rental software reviews available on Software Advice, our findings reveal that both buyers and current users of vacation rental software prioritize the same feature.

• Around 31% of current software users consider reservation management to be the most essential feature in vacation rental software. Likewise, the vast majority of buyers, around 99%, seek this feature in a vacation rental tool.

• These findings indicate that both software buyers and actual users of vacation rental software find immense value in reservation management functionality. The feature simplifies the entire property booking process, enabling property managers to handle reservations efficiently by consolidating bookings from various channels into one system. The feature provides users with a clear view of current and upcoming reservations, allows for quick adjustments, and facilitates communication with guests.

Current pain points for vacation rental software buyers

When our advisors asked buyers what methods they were currently using to handle their day-to-day rental operations, here's what they found:

• Around 49% of buyers use third-party tools, such as content management and ecommerce platforms, for their day-to-day operation workflows. 

• Nearly 30% of buyers do not use any method to automate their vacation rental processes, and around 20% rely on manual methods, such as spreadsheets, to handle their operations.

These discussions shed light on businesses' real-life challenges with their existing methods, which include inefficiency (43%), limited functionality (29%), and new business opportunities (11%).

• Inefficiency: Third-party tools are not specifically designed for vacation rentals, which might lead to integration challenges with booking platforms, payment gateways, and property management systems. Moreover, these may struggle to handle the increased volume and complexity of tasks as the business grows. Similarly, manual methods, such as spreadsheets and pen-and-paper tracking are prone to human errors, such as incorrect information input and overlooked details.

• Limited feature options: Generic third-party tools might not offer essential features, such as automated guest communication and property maintenance tracking tailored to vacation rental management. Likewise, paper records and spreadsheets can store basic information, such as booking dates and guest names, but they lack advanced capabilities, such as automated scheduling and task management tools. Moreover, these do not support the automation of repetitive tasks, which is important for saving time and reducing errors. 

• New business opportunities: Compared to manual methods and third-party tools, vacation rental software offers a suite of advanced tools to enhance operational efficiency, improve guest experience, and optimize revenue management. The software enables multi-channel marketing and real-time availability updates that help property managers attract more bookings and increase occupancy rates.

Reasons for switching to a dedicated vacation rental software

Compared to the existing methods used by professionals, a dedicated vacation rental software solution offers the following benefits:

• Comprehensive feature set: A dedicated vacation rental system offers a wide range of tools specifically designed to manage all aspects of vacation rental operations, providing a significant advantage over traditional methods and generic third-party tools. These features typically include booking management, housekeeping scheduling, guest communication, billing, and maintenance management, all within a single platform.

• Scalability: A dedicated vacation rental management tool enables property managers to expand their operations as the business grows. Unlike manual methods or third-party tools, the system is designed to handle larger transaction volumes and properties efficiently. It offers centralized management of multiple properties, automated booking processes, and synchronized calendar updates across various platforms. 

• Enhanced guest experience: Compared to paper-based recording and third-party software, a dedicated vacation rental software solution provides simplified and personalized interactions throughout the entire guest journey. It automates guest communication, sending timely messages for booking confirmations, check-in instructions, and reminders, ensuring guests feel informed at all times. Additionally, it offers review management capabilities that help users promptly address feedback, leading to repeat bookings.

• Dynamic pricing updates: Unlike manual methods that require constant monitoring and adjustments, a dedicated tool enables property managers to optimize rental rates in real-time based on factors such as market demand, seasonality, and competition. It ensures that the prices remain competitive and reflective of current market conditions at all conditions. This flexibility allows users to maximize revenue by setting higher rates during peak times and adjusting prices to attract bookings during slower periods.

Average budget for vacation rental software buyers

The budget for purchasing vacation rental software varies based on factors such as the number of property listings, customization level, integration requirements, and the required functionality.

However, the average budget across industries for purchasing vacation rental software was approximately $153 per month. 

The chart below highlights the average buyer budget per month for the top industries interested in vacation rental software.

Use cases for vacation rental software

Based on our advisors’ interactions, these are the top industries using a vacation rental tool for different use cases: 

• Individual property managers need vacation rental platforms to simplify their operations and enhance efficiency in managing their properties. Their basic requirements from the software may include centralized booking management to prevent double bookings, automated guest communication for sending booking confirmations, dynamic pricing capabilities for adjusting rates when required, and housekeeping management to manage cleaning schedules. 

• Vacation rental businesses operate on a larger scale and need a system to manage a large portfolio of properties across multiple locations. They may require features such as advanced reporting, customer relationship management (CRM) capabilities, extensive customization options, and integration with various booking channels to maintain competitive advantages and deliver consistent services across their expansive rental portfolios.