£22,381 Worth of Marketing Advice in 63 Minutes
Meet Rory Sutherland, Vice Chairman of Ogilvy, one of the largest marketing agencies in the world. He is a marketing genius! Whilst he isn’t in the world of short-term rentals, there are so many lessons to be learned from this conversation that can be applied to STR.
Here are a few I’ve put together for you:
1. Creating behavioural change through fame and visibility
- Build strong brand recognition to drive demand and attract new customers. Similar to how fame creates inbound sales, vacation rental businesses can leverage online platforms and social proof (such as guest reviews, influencer partnerships, and listing site rankings) to create a reputation that draws guests in, rather than spending resources constantly chasing leads.
2. Moving away from pure ROI measures
- STR operators often focus heavily on occupancy rates and short-term ROI metrics. Instead, there should be an emphasis on building long-term relationships with guests. Investing in guest experience or after-stay communication (for example, personalised thank-you notes or loyalty discounts) may not have an immediate quantifiable return, but it can lead to repeat bookings and positive word-of-mouth over time.
3. Charging more can get you more customers
- Rather than competing solely on price, position your property as a premium offering by charging higher rates but delivering more perceived value—such as exclusive amenities, luxury bedding, or unique experiences (like personalised tours or wellness packages). Guests often associate higher prices with quality, and by increasing the price, you can attract a more discerning clientele who value the unique aspects of your property.
4. The importance of human interaction
- While automation and contactless check-ins are growing in popularity, Rory’s example of rail passengers needing reassurance highlights the value of personal touches. STRs can differentiate themselves by offering human interaction when needed—whether through concierge services, personalised guest support, or even offering local recommendations via a phone call. These human elements reassure guests, particularly those unfamiliar with the area.
5. Optimising for overall value rather than efficiency
- Instead of focusing solely on transactional efficiency (e.g. quick online bookings and check-outs), attention should be given to the overall guest experience. This might include surprise upgrades, personalised welcome gifts, or curated local experiences, which create a stronger emotional connection and lead to repeat bookings. The objective is to create a lasting impression rather than just a one-time efficient transaction.
6. Opportunity costs of under-investment in customer service
- Underinvestment in customer service is a common pitfall in many businesses. Operators may focus on acquiring new guests, but improving customer service—by responding quickly to guest inquiries, resolving issues promptly, and ensuring a smooth guest experience—can drastically reduce churn and encourage repeat bookings.
7. The “too good to be true” pricing problem
- If a vacation rental is priced too low relative to others in the market, potential guests might become suspicious of its quality. To avoid the “too good to be true” issue, ensure that pricing reflects the quality of your offering. Enhancing the presentation of the property and highlighting unique features can help justify premium pricing.
8. Customer-centric innovation
- Like Amazon’s focus on customer benefit, STRs can introduce innovations that put guests first. Offering features like “call-back” options for guest support or live chat during their stay can enhance trust and satisfaction, leading to higher guest retention.
9. The role of experience in price perception
- Consumers don’t always seek the most efficient or cheapest option. Instead, they often value unique, memorable experiences. Enhancing the guest journey with local experiences or thoughtful touches creates perceived value, which can justify premium pricing and build lasting guest loyalty.
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