Are you playing poker with your business?

Are you gambling with your short-term rental business? 

In the ever-evolving landscape of the hospitality market, with increasing regulations, greater competition and lower rental returns from the OTA’s, property managers and owners face a crucial decision:

Are you playing roulette, leaving things to chance, or are you strategizing like a poker player, carefully planning and navigating the complexities of the game?

Which type of game player are you? 

 

The “Stick” 

The “stick” approach for the risk-averse is a compelling game strategy. 

It involves sticking with what has worked in the past, relying on the OTA’s as a marketing strategy, playing it safe and wanting and easy life keeping things simple.

This mindset resonates with the age-old adage: “If it’s not broken, don’t fix it”, and I see so many business owners share this sentiment on industry social media forums, forming a chorus of advocates for the status quo. 

“I have always used Airbnb.” 

“I have always been fully booked for the summer months.”

“I don’t want to manage bookings myself.” 

“My property is clean, and it doesn’t need to offer anything else, guests are just booking a place to sleep”.

The problem with the “Stick” strategy is that having all of your cards in one hand so to speak, actually increases your risk, just as Meta can go down in a day so could your business if you are dependent on one OTA. 

This is not a sustainable business strategy, your returns diminish over time, your business stagnates, and you don’t stand out as a serious player in the market, so you quickly get left behind. 

 

The “Twist” 

On the other hand, the “twist” players acknowledge the fast pace of changes in the market, they want to take the game seriously, and they accept that change is uncomfortable but calculate risk and monitor the market and their competitors in the game.

While they aren’t necessarily high-risk thrill-seekers, they understand the importance of adapting to the times and recognising the need to invest in their business growth.

The challenge for these players lies in determining whether the actions they are taking in their business are part of a holistic business strategy that can genuinely impact their business positively and quickly enough. 

Direct booking marketing activities in isolation of a brand and trust strategy will not get the card hand you need to win the direct booking game.  

The “twist strategy” is all about business agility and balancing and managing business risk. 

By spread betting, investing in building a strong business brand, and business skills, proactively managing operating costs, implementing an effective direct booking game plan, and exploring ways to enhance the guest experience to attract profitable bookings, these players will remain in the black and not in the red, keeping them in the game.

 

The “Bust”

Contrary to expectations, the true “bust” players aren’t the high-stakes gamblers. 

Instead, they are the business owners who are either new to the game, lacking in knowledge and experience, who naively entered the game believing it to be easier than it is when you find yourself in a game where the rules keep changing.

Instead of investing in the advice of more experienced professional players and experts, this group chose the safety in-numbers strategy asking and making decisions in consensus with other struggling peers on forums.

They have not embraced investing in their business, up levelling their business game skills or seeking the support of an expert to get them beyond where they are stuck.

Be careful of whom you seek your game plan advice from, and carefully choose your mentors and sources of guidance. Selecting the right mentor is crucial to avoid falling prey to misinformation and misleading advice, ensuring you stay on the path to success.

In a time where businesses continually adapting to changing market rules is crucial, these players who are not proactively pivoting their business strategy, sinking further into a mindset of “take my money” failure is the only option, are at serious risk of going bust in 2024.

In a dynamic short-term rental industry, the choice between roulette and poker boils down to assessing your risk tolerance, adaptability, and willingness to invest strategically.

As 2024 unfolds, property managers and owners must decide which type of player they want to be – sticking steadfastly to the past, twisting to meet the present challenges, or risking a bust by avoiding the changes imperative for future success.