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Home » How Access to OTA Data Democratizes Short-Term Rental Technology
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How Access to OTA Data Democratizes Short-Term Rental Technology

i2wtcBy i2wtcJune 4, 2024No Comments5 Mins Read
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For a very long time, a significant segment of the short-term rental (STR) industry lacked the tools necessary to specialize and scale.

The majority of the STR market is made up of individual hosts and self-managers. Yet these important players are being pushed aside, denied access to the cutting-edge technology they need to compete on an equal footing with the larger players. Why? Because traditional software connections require everything to go through a property management system (PMS), creating an unjustified barrier between hosts and the tools they need.

The promise of a PMS has always been to streamline operations and simplify the complexities of professional property management. But the traditional model, which effectively mandates integration with certain third-party tools, has created a captive system. Hosts who don’t have the funds or time to implement a PMS are unfairly excluded from the playing field and don’t have access to the technology they need to compete.

Until now, hosts have had only two choices: invest in expensive, complex systems that aren’t suited to their scale or needs, or operate at a disadvantage. The current model hampers access to tools that could improve operational efficiencies and revenue potential, stifling the very things they’re trying to drive: innovation and growth.

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The idea that hosts need to be locked into a PMS to access critical tech tools is not only outdated, it’s ridiculous. The only way hosts of all sizes can operate equally is by eliminating the traditional barriers imposed by the PMS model. This means embracing an open, flexible approach to software integration and data access — an approach where hosts have unlimited access to the market and are free to customize their tech stack according to their needs.

The way to revolutionize this outdated PMS model is to give all value-added service providers, point solutions, and technology vendors access to all the resources they need to do their jobs, without requiring the vendor or host to be a PMS user.

The only way for online travel agents and vendors to have a truly liberalized industry is for all technology vendors to be given access to online travel agent data, regardless of whether the vendors themselves or their customers use a PMS.

By allowing technology vendors access to OTA data, the industry can challenge the assumption that hosts, the lifeblood of the industry, need a PMS subscription to develop an advanced tech stack. Hosts can access the tools they need (for example, a digital guidebook that automatically syncs Airbnb booking data) without having to jump through the hoops of a PMS subscription.

OTAs have the power to make this change themselves, but PMSs that care about hosting specialization don’t need to wait – they can do it themselves right now with open APIs.

Quote

The only way for online travel agencies and vendors to have a truly liberalized industry is for all technology vendors to be given access to online travel agency data, regardless of whether the vendors themselves or their customers are affiliated with travel agencies. [property management system].

Pierre Camille Hamana – A Kind Person

This is a win-win for the industry. Software providers can leverage a host’s short-term rental data without having to build their own OTA integrations or force their customers to subscribe to one of their PMS partners. Building direct connections to OTAs takes time, and even then, often requires extensive functionality beyond data access. Breaking down these barriers gives technology vendors access to only the critical data needed to power their software.

This changes everything: hosts who use industry tools and platforms, like guest communication apps and operational platforms, can seamlessly sync their short-term rental data.

Removing the barriers to integration fundamentally redefines the “single source of truth” myth that PMS systems have perpetuated for so long. Individual hosts, owners, and self-managers are no longer the losers in this situation, quite the opposite: they gain access to a wider range of technology tools than those enjoyed by the largest property managers, who are still limited by the integrations their PMS choose to embrace.

The ripple effects of this disruption will be enormous. PMS vendors no longer get to decide who has access to what. The days of onboarding fees, annual contracts, and closed ecosystems of third-party integrations are coming to an end. The STR industry is rapidly moving toward democratizing the technology. This is a change that is long overdue.

Seamless data exchange and integration across diverse platforms must and will become the norm. We must work to create a paradigm shift that will reshape the industry for millions of hosts.

Everyone in the ecosystem benefits from this change. Technology vendors that previously had high barriers to entry now have the opportunity to realize their full potential in untapped markets. OTAs can expect to see a surge in success, efficiency, and profitability as hosts gain access to a broader toolset, resulting in more listings and bookings.

The stranglehold of traditional PMS as the gatekeeper of the industry is over. We are on the brink of a more inclusive, innovative and equitable STR environment, where technology acts as a bridge rather than a barrier to operational excellence. In this environment, there is no longer a clear distinction between “professional” property managers and self-managers.

The future of the STR industry is clear: the time has come to embrace a host-centric approach that prioritizes access, innovation, and equity.

About the author …

Pierre-Camille Hamana is the founder and CEO of vacation rental management platform Hospitable.



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