Vacation Rental Industry Lingo Explained
STRs or VRs? PMs or VRMs? PMSs, Listing Sites, Channel Managers or OTAs? Long-Term and Mid-Term Rentals? What does it all mean?
Once upon a time, the vacation rental industry was a simple concept, before the many websites, technology companies, and national and international management evolved and before the hotel-booking websites joined the mix. Today, guests are served a range of unfamiliar terms and concepts as they searched for the perfect place to stay. As the industry has grown and evolved, so too has the language used by property managers and owners, technology providers, and the ever-growing niche companies that service it.
The vacation rental industry is full of ever-evolving terms, acronyms, technologies, classifications, and new ways of measuring and improving, which makes staying up to date on the proper use of these terms increasingly challenging and important. Educating yourself and your team on the correct terminology is one of the best ways to communicate accurately that you can help to make the most of your resources as you use the ever-growing array of tools to help you increase your occupancy.
Let’s start with some key terminology. In the vacation rental industry, a property refers to a vacation unit or home of any type, and a property group is a group of similar properties in a vacation rental manager’s inventory that are priced together. Property groups are typically used by revenue managers or channel managers.
Understanding terms like these will help you to grow by establishing the vocabulary needed for successful vacation rental and property management. In this first installment of our four-part vacation rental terminology series, we will be diving deeper into the types of vacations and vacation rental lodging.
Types of Vacations
One of the most important things you need to know, as a vacation rental owner or property manager, is that vacation rental properties should be managed differently depending on the market in which these properties are located. The different types of vacation locations are destination vacations and urban market vacations.
A destination vacation is a type of vacation where tourists visit, typically for its inherent, natural, or cultural beauty. The attraction to this location creates a desire to visit for an extended period of time. An example of a warm-weather destination vacation would be a family beach vacation to Destin, Florida or a vacation to a tropical island in Hawaii, and a cold-weather destination vacation would be a ski trip to Breckenridge, Colorado.
Another type of vacation is the urban market vacation, similar to a destination vacation but takes place in each country's large cities or urban areas. An example of an urban market vacation would be a vacation to New York City, Houston, Atlanta or Nashville. These types of vacations are where you will typically find your professional travelers and digital nomads, travelers who perform their occupation entirely online while traveling.
Types of Vacation Lodging
The next thing you need to know is what type of vacation rental you are managing, what type of stays you offer, and how best to explain that to guests interested in your properties.
A vacation rental complex typically refers to a property or group of properties that are owned or managed by a single entity, such as a Home Owners Association (HOA) and are rented out to travelers or vacationers. They may include a range of different types of accommodations, such as apartments, condos, villas, cottages, cabins, or townhouses.
Vacation rental complexes may also offer shared amenities, such as swimming pools, hot tubs, fitness centers, restaurants, or recreational facilities. They are often located in popular vacation destinations, such as beach towns or ski resorts. A condominium, often shortened to condo, is a type of real estate property where each unit is individually owned but is part of a larger complex with shared common areas and amenities.
Similarly, a condo-hotel, also commonly called a condo-tel, is a type of property that combines the features of a condominium and a hotel. It typically consists of individually-owned condo units within a larger hotel complex, with the units often being rented out to guests. The hotel management takes care of the rental process and provides hotel services to guests, such as housekeeping, room service, and concierge. The rental income is shared between the unit owner and the hotel management.
When renting a vacation rental, often the property can be found within one of these larger buildings, or the rental could be located as a standalone property. The types of vacation rental properties that you will find like this are vacation homes, villas, estates and cabins. So what’s the difference in these properties?
A vacation home is a general term used to define any vacation rental property that exits as a standalone property. They are typically located in a popular tourist destination or a place where the owner enjoys spending their leisure time. Villas are a type of large, luxurious house located beachfront or within a scenic countryside. They can vary in size, but are generally spacious and offer a range of high-end amenities and features. Designed for comfort and relaxation with an emphasis on indoor-outdoor living and natural surroundings, villas are often used as vacation homes for families or large groups who want a private, upscale accommodation for a special occasion or relaxing getaway.
If you really want a luxury vacation, try staying for a month-long stay in an estate. An estate refers to a large piece of property that is individually-owned and often includes a variety of structures, such as a main house, guest houses, barns, and other buildings as well as gardens, parks, and other landscaped areas.
If seclusion is more your style, a month-long stay in a cabin is where you should book your vacation. A cabin is a type of rustic, small, and often secluded house that tends to be located in a scenic or natural setting such as a forest or lake, designed to provide a comfortable retreat for vacationers who want to escape the hustle and bustle of everyday life. Vacation cabins are a popular accommodation option for outdoor enthusiasts who enjoy activities such as hiking, fishing, skiing, or boating.
The vacation rental industry has it’s own unique language and terminology. Guests and property managers must be familiar with these terms in order to have a smooth and enjoyable experience. Whether it’s booking a property, checking in, or taking care of the property, understanding these key terms is essential for success in the vacation rental industry.
In our next installment , we will dive into the vacation rental seasons and lengths of stay and why these are important to you as a property manager.
For a full and complete list of vacation rental terms and their definitions, see our Monthly Vacationer Vacation Rental Glossary.