Welcome to our new series, Ask the Expert, where we sit down with industry leaders to discuss the latest insights and strategies in the short-term rental (STR) space.
For our first edition, we’re thrilled to feature Rachel and Rob Alday, co-founders of Abode Luxury Rentals, alongside their revenue manager, Brad Pillsbury.
Together, they share how branding and revenue strategy are transforming their business.
Redefining Hospitality: The Transformative Power of Brand and Revenue Strategy
Hospitality isn’t just about providing a service—it’s about crafting memorable experiences that resonate long after a guest leaves. In today’s competitive STR market, businesses must go beyond booking platforms and amenities to achieve lasting success.
Rachel and Rob Alday have mastered this art. Through thoughtful branding, data-driven strategies, and a relentless commitment to excellence, they’ve redefined what it means to scale, thrive, and build guest loyalty in the STR industry.
At the 2024 Data and Revenue Management (DARM) conference, our Chief Evangelist, David Angotti, sat down with Rachel, Rob, and Brad to explore how their approach to revenue management has propelled Abode from survival mode to sustainable growth.
How Abode Creates Brand Loyalty
A strong brand doesn’t just set a business apart—it drives growth across the entire customer journey. Rachel explained how Abode’s identity as a high-touch, luxury service provider shapes guest perceptions:
“Guests are willing to pay a little more because they associate our brand with curated, reliable, and exceptional experiences. This extends to our concierge services, where we can charge 20% more than competitors because people trust the quality. It’s never the cheapest, but it’s always the best.”
This trust translates directly into revenue. Abode’s guests not only pay premium rates but also rebook year after year, often before their stay has even ended. Rob emphasized the ripple effect this creates:
“When guests rebook right after their stay, homeowners see their calendars filling up for the next year. That creates demand and allows us to adjust pricing to maximize revenue.”
This strategy taps into the principle of fear of missing out (FOMO). As David pointed out, an empty calendar on a luxury listing can deter potential bookings, while scarcity signals—like limited availability for peak dates—drive demand and higher prices.
Branding Beyond the Booking: Creating a Frictionless Stay
While platforms like Airbnb dominate the booking experience, Abode focuses on creating a seamless and memorable post-booking journey.
“You’ll never outdo Airbnb’s booking UX, but you can beat them on the post-booking experience,” David noted.
Rachel and Rob reinforce their brand at every guest touchpoint. Subtle but impactful details, like branded coffee mugs or cozy Abode blankets, build subconscious trust among potential guests browsing OTAs.
“When guests see our logo repeatedly across different listings, it assures them this is a professional and reputable company, not a scam,” Rachel said.
The Hidden Economics of Anticipation
Did you know that most of the happiness around a vacation happens before the vacation even begins?
A Dutch study found that the boost to happiness begins weeks or even months before the vacation starts, likely due to the anticipation of the upcoming vacation.
David described this “anticipation window” as an untapped opportunity for STR businesses to enhance guest satisfaction.
“People imagine a perfect trip in the weeks or months before they go. Once they’re there, real-world imperfections inevitably emerge—bad weather, a minor issue with the property. But if they’ve been thrilled during the anticipatory phase, they’re more forgiving of hiccups during the actual stay.”
Abode leverages this insight to elevate the pre-stay experience through:
- Clear Communication: Timely updates instill confidence in the booking process.
- Concierge Services: Offering curated options upfront ensures guests feel cared for.
- Subtle Branding: Thoughtful touches make the experience feel personal and reliable.
This approach transforms the guest’s mindset, ensuring they arrive excited and ready to enjoy their stay.
Revenue Management: The Art of Anticipation
For Abode, revenue management is both a science and an art. By analyzing market trends and leveraging tools, they strike a balance between maximizing profits and managing expectations with homeowners.
“We use revenue management not just to set prices, but to fine-tune our portfolio,” Rachel said. “If a homeowner has unrealistic expectations for nightly rates, we can use data to have honest conversations about what’s feasible. Sometimes that means parting ways.”
Brad emphasized focusing on consistency over occasional big wins:
“In our market there are days, like Christmas and President’s Day, where you can take two times the normal ski season rate.
But there’s still another hundred nights in the ski season that you’re making good money.. Focus on making good money for those 90, 100 days.
The holidays are still going to happen. It’s sort of like if you’re saving money investing, to have that consistency is more important than a few big wins..”
Shifting from Fear to Confidence
In the STR world, revenue management isn’t just about maximizing nightly rates—it’s about creating stability and strategic growth. Early in their journey, Rachel and Rob found themselves operating out of fear:
- Fear of an empty calendar.
- Fear of losing homeowners.
- Fear of competition.
One of the most transformative lessons Rachel and Rob have learned is the importance of operating from a place of confidence rather than fear.
“ I feel like if we could teach people in the industry one thing, it’s not to act out of fear. It doesn’t seem real to not act out of fear, especially if you’re a small business owner, as a lot of people are in this industry” Rachel shared.
“It used to create so much fear inside of me to lose a home, much less a very good one. But we’ve learned that letting go of unprofitable properties or problematic homeowners actually frees up resources and makes us stronger in the long run.”
This shift has changed not just their decision-making but the entire culture at Abode:
“When you start each year with a calendar full of repeat bookings, it changes the whole vibe. You’re no longer scrambling out of fear—you’re operating with a clear strategy and focus,” Rachel explained.
Key Takeaways for Hospitality Professionals
- Build a Brand That Inspires Trust: From subtle branding in listing photos to delivering consistent, high-quality service, a strong brand sets you apart in a crowded market.
- Use Data to Drive Decisions: Whether it’s pricing properties or managing homeowner expectations, revenue management tools are invaluable for making informed, strategic choices.
- Focus on the Entire Guest Journey: Going beyond the booking experience to create a seamless, memorable stay builds loyalty and encourages repeat bookings.
- Operate with Confidence, Not Fear: Trusting your strategy—and knowing when to let go of unprofitable properties—can lead to greater stability and growth.
Rachel and Rob’s journey proves that mastering the interplay between brand, guest experience, and revenue management can transform your business.
Are you ready to redefine hospitality? Start by focusing on the details that matter most, and watch your business thrive. Stay tuned for more from our Ask the Expert series, where we sit down with industry leaders to discuss the latest insights and strategies in the short-term rental (STR) space.
David Angotti is a Nashville-based, serial entrepreneur who has founded and exited multiple technology and real estate startups, consulted with Fortune 100 brands, and following 13 years of experience in vacation rentals, recently sold a rapidly growing family of OTA brands to Guesty where he is now Chief Evangelist. His successes all have one commonality: data-driven marketing to build brands and delight customers. He has a unique ability to understand the industry holistically having been a RBO, property manager, real estate developer, founder of multiple technology companies, and now an executive at a leading PMS. David is currently laser-focused on helping Guesty customers achieve their full potential as property managers. In this role, his business unit has developed the Amplify by StaySense product suite, which drives direct-like bookings at zero cost for property managers.
