STR Terminology Flashcards
STR
Short-term rental
Short-term rental
Anything under 30 night minimums
ABB
Airbnb
Revenue
Total money generated
Profit
Retained earnings after expenses
Retained Earnings
Money left over after expenses & dividends
Capital
Available Cash For Investment
Equity
The value of the asset, less any debt raised against it.
Expenses
Cost of doing business, think mortgage, electricity, management, software etc.
ROI
Return on investment
Net-income
Income after expenses
Passive income
Income that is generated without any input from the individual
Supply
The amount of competition in the marketplace
Demand
The amount of people looking to stay in STRs
Market demand
The amount of people looking to stay in STRs within your market
Booking channels
Airbnb, BDC, VRBO
Booking platforms
Airbnb, BDC, VRBO
OTA
Online Travel Agency - Airbnb, BDC, VRBO
Channel manager
A central hub to operate your STR business from. Inc calendar syncing, messaging, payments, organizing cleaners. Basically a CRM for STRs
Co-Host
Someone that manages a STR on behalf of someone else
Rent-to-rent
Rent the property as a long-term rental, then put it on the STR market to make a profit
Rental arbitrage
Rent the property as a long-term rental, then put it on the STR market to make a profit
Property investor
An individual that invests their own money to purchase a property to generate revenue, not to live in.
Owner
The owner of the STR
Scale
Wanting to bring on more listings, whether that be through investment, co-hosting or rent-to-rent
Pricing software
A tool that helps you gain market insights and make data driven decisions about your nightly rates as well as dynamically update those rates
Pricelabs
Pricing software
HostAway
A good channel manager for 3 listing +
Guesty for Hosts
A good channel manager for <3 listings
Revenue management
The practice of increasing revenue through market data and insights.
AKA, getting booked at the right price at the right time through the right channel to the right person
Booking.com
A booking channel that has 5-7 x more exposure than Airbnb - generally our clients can see up to 30% of bookings generated here, depending on location and property type.
VRBO
Vacation Rental By Owner - A booking channel that has 50% the exposure of Airbnb - generally our clients can see up to 5% of bookings generated here. Owned by Expedia Group
Expedia
Booking channel that owns VRBO
HomeAway
Booking channel owned by Expedia Group
Furnished finder
Monthly furnished rentals
Guests
People that stay in the Airbnbs
Host
Someone that operates a STR
Hosting
Hosting a STR
Superhost
A badge given by Airbnb after they meet certain criteria. Generally with reviews.
Low-season
When the demand is lower in your market
Peak-season
When the demand is the highest in your market throughout a specific period
Off-peak
Any months outside of peak-season
Shoulder-season
The time before and after peak season when the demand is ramping up or ramping down
LLC
Limited Liability Company
Rates
The nightly price you set
Minimum night stay
How many nights can be booked as a minimum in your listing
Minimum night stay strategy
Having your minimum night stays staggered intelligently to fill up your calendar as much as possible
Prices
The price you set for your nightly rate
Pricing strategy
Having your pricing aligned with current market demand
Average lead booking time
The average number of days people book their stay in advance. Fluctuates throughout the year with seasonality.
Cleaners
People that clean your STR
Cleaning fees
The amount you charge for each stay to ideally cover cleaning expenses
Handy man
Someone who can come and fix things at the property
Party-protection
Ways to prevent parties - noise monitors, doorbell cams etc
Problems / challenges
Problems your potential client is facing - such as not getting enough weekday bookings
SEO
Search engine optimization - how to get to the first page of given booking channel
Booking conversions
The percentage of people going from LOOKING at your listing, to BOOKING
Multi-channel
Being across the 3 major booking channels
Constraint
The specific issue/s you’re facing that are creating the ‘problem’
Comp set
Competitive market set - the properties in your area that are most comparable to your own
Local market
STRs within your geographic location
RevPAR
Revenue Per Available Room (night) (Total Revenue / Total Bookable Night) (eg. $5,000 / 30nights = $166.67 RevPAR)
ADR
Average Daily Rate - The average of the rate you charge throughout a certain period (ie month of Jan)
Marketing Strategy
The practice of increasing your exposure and coverting more people to booking
Market data
The data you gather from a pricing software that can help you make data-driven informed decisions
Traffic
The amount of people looking at your listing (all booking channels combined)
Systems and automations
Generally done through a channel manager to save you time
Syncing calendars
If you’re on multiple booking channels, you need to make sure your calendars are connected so you don’t get double bookings
iCal sync
A way to sync calendars through the booking channels without a channel manager. Takes anywhere from 15 mins up to 24 hours to sync and can result in double bookings.
API sync
Instant sync of the calendars via specific channels managers that provide it
Security Deposit
A refundable deposit you can charge guests to cover any damages
Airbnb Security Deposit
The amount you set to recoup any damages. Doesn’t actually do anything as it falls under AirCover anyway.
Bond
A refundable deposit you can charge guests to cover any damages
Airbnb insurance
Insurance provided by 3rd party company to insure against damages. Not to be confused with Aircover by Airbnb.
AirCover
Covers you if any damages are made, depending on the decision given by Airbnb. This is not the same as insurance.
Smart Pricing
Dymanic pricing by airbnb - fastest way to lose money every year
Dynamic pricing
Sets your prices automatically based on the market as a whole. It’s a useful tool, but only when given guidance. Otherwise, it’ll take the worst property, the best property, and put you smack in the middle. Generally under or over charging and a great way to lose money.
STR Insurance
Property insurance specifically for STRs
Hobby vs business
People that treat it like a hobby won’t be profitable, people that treat it like a business will.
Professional hosts
Hosts that are using marketing strategies to get seen more, convert more and booked more as a result.
Optimize
The process of achieving the most optimal outcomes
Weekday
Sun - Thur night
Weekends
Fri Sat night
Payments by BDC
Where Booking.com takes payments automatically on the hosts behalf
BDC Preferred partner
A way to increase exposure on BDC once you achieve certain metrics - recommended
Genuis program
Pay more and give a discount to ‘Genius program’ guests as a way to gain additional exposure - not recommended
BDC Visibility Booster
Pay more to gain more exposure on BDC. If you’re not getting many bookings, you can start with it until you gain traction, then turn it off.
Coaching calls
Where clients come to speak in group settings with our revenue managers to get their questions answered
Program
Online content plus coaching
Online content
Online video modules to walk people through step-by-step, click-by-click
Kick-off call
Weekly group calls for new clients as an initiation for the program
Discovery call
A triage call set when someone is disqualified
Strategy Session
The sales call
Onboarding call
After gaining a $100 deposit commitment that they’re going to take action on the next call
BC
Business Consultant
SDS
Sales Development Specialist
PIF
Pay in full (sales terminology)
Outbound dials
The act of calling those who registered for a lead magnet, but didn’t book a call
Evolve
A remote property management company that charges a commission, connects them to a channel manager, uses dynamic pricing and uses VA’s to message your guests
Vacasa
A property management company that charges a commission, connects them to a channel manager, uses dynamic pricing and uses VA’s to message your guests
BNB Formula
A course that teaches rental arbitrage
Brian Page
The owner of BNB formula that teaches rental arbitrage
Airbnb Automated
Teaches rental arbitrage - also does a course on it
STR Restrictions
Local areas that have certain restrictions for Airbnbs
Direct bookings
The process of getting people to book through your own website to save on booking commissions (~15% coms on all 3 major booking channels)
Overall Conversion rates
The % of people that see your listing in search results that follow through to make a booking
First page search impression rate
The % of times your listing shows on the first page of airbnb search results.
Search to listing conversion rate
The % of people that see your listing in search results (any page, not just 1st page) that click on your listing.
Listing to booking conversion rate
The % of people that view your listing page (clicked from search) that follow through to make a booking.
Hospitable.com
channel manager
IGMS
channel manager
Guesty for Pros
A more expensive version of guesty for hosts with more features. Better for larger portfolios and management companies
Lodgify
channel manager
Wheelhouse
Pricing automation software.
Beyond Pricing
Pricing automation software
AirDNA
Market research and dynamic pricing software
Smoobu
Channel manager
