How much opportunity is there for STR ancillaries? Experts weigh in

As the short-term rental (STR) industry continues to evolve, it’s become clear that vacation rentals can be more than just a place to rest one’s head—and Airbnb has tapped into this opportunity with its recent launch of Services.

But what benefit do ancillaries really pose to STR providers? Industry leaders shared their thoughts in a panel-style interview in the PhocusWire studio at Phocuswright Europe.

According to Sylvia Epaillard, co-CEO and chief digital and commercial officer for Interhome, which is being acquired by HomeToGo, ancillaries can be lucrative.

“Some have tried already in the industry, and we've watched that closely,” she said. “Our whole business is designed around self-service stays. People really go there with their own ideas, with their own creativity. And I think not only offering the space where they can develop that creativity but also to actually add certain services is a great opportunity.”

Andrew Bate, CEO of Safely, said pushback from guests on “extra fees” has forced ancillaries to evolve.

“I think in the U.S. from 2021, 2022, 2023 when occupancy was high, pricing power was high, there were fees just being added left and right that added no value or minimal value—administrative fees, parking fees—all these extra fees,” he said.

Now, ancillaries are adding value rather than serving as a money grab and a way to hide extra fees. And part of that has to do with legal changes.

“With local or recent laws, there's a lot more transparency. Airbnb, Booking, Vrbo have disclosed more of the fees,” Bate said. “You can still charge the money, but they've disclosed them and added them to the totals that the booker sees. And so that makes you think, if you're the property manager, the homeowner, you think twice or three times about what you put in there and make sure you can explain it.”

But it’s not just about revenue opportunity, according to Epaillard. 

“I don't think of it as a source for revenue creation,” Epaillard said. “It's more about adding service and quality for our clients, for our guests, and I think making the experience—or our offering—stand out from something else.”

That alone, she said, has “huge value.”

Epaillard and Bate further explored the implications of ancillaries for hosts, lessons companies can take from Airbnb, distribution trends and more in a conversation with PhocusWire senior reporter Morgan Hines.

Watch or listen to the full discussion below: