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UK: ShortTermRentalz spoke with Ross Armstrong, head of portfolio optimisation at Sykes Holiday Cottages, about the upgrades delivering the strongest ROI, the rise of flexible stays and which amenities are set to become essential over the next five years.
Which upgrades deliver the strongest return on investment for owners right now?
Hot tubs continue to be one of the highest-return investments, with properties featuring them earning on average 40% more per year according to our data. Log burners and fireplaces also remain standout features that drive year-round appeal and improving bedroom-to-bathroom ratios can also help to drive more interest.
While we see strong returns from these headline features, there are many ways to implement simple cost-effective upgrades too, including zip-and-link beds that offer flexibility for different group types, high-quality bedding and soft furnishings, or upgrading basic TVs to larger, smart TVs. You can also allow guests to access their own streaming services. These practical updates broaden your potential audience without requiring significant capital investment.
How have booking behaviours changed over the past few years, particularly around short breaks, last-minute stays and flexible changeover days?
Flexibility has become the new currency in holiday letting. Owners who accept multiple bookings in a week achieve on average eight more bookings and 25% more revenue per year compared to those with rigid changeover patterns.
We’re seeing particularly strong demand for short breaks and last-minute bookings, especially in accessible destinations where guests can easily plan weekend or midweek stays. Being agile with changeover days and accepting shorter stays – rather than week-long bookings – significantly increases occupancy, particularly as price sensitivity remains high amid ongoing cost-of-living pressures.
With pet-friendly properties earning more bookings and revenue, do you see this becoming the norm – and what are guests really looking for?
Two thirds of properties on our platform now accept pets, and these properties earn on average eight more bookings and 16 per cent more revenue per year than those that don’t.
Small touches such as providing dog beds, treats and information about local dog-friendly walks create that all-important surprise-and-delight moment that drives positive reviews and repeat bookings. It’s also worth noting that each year, more dogs go on holiday with us than children — so owners who don’t accommodate pets are excluding a significant and growing market segment.
How is dynamic pricing reshaping owner expectations, and how do you balance revenue maximisation with guest perceptions of value during the cost-of-living crisis?
Flexible pricing has changed how successful owners approach income maximisation.
The key is that this form of revenue management works both ways. It allows rates to rise above the base price during peak demand periods, while also reducing prices to remain competitive when sensitivity is high. This flexibility is crucial during the ongoing cost-of-living crisis, ensuring properties remain accessible to guests while still maximising revenue during genuinely high-demand periods.
Looking ahead, which amenities do you expect will move from ‘nice-to-have’ to essential over the next five years — and how should owners future-proof their properties now?
EV charging points could transition from luxury to essential. As electric vehicle ownership continues to rise, charging facilities may become a deciding factor for guests travelling longer distances, particularly to more rural or remote locations.
Beyond that, eco-conscious upgrades — from energy-efficient appliances to sustainable heating solutions — could increasingly influence booking decisions as holidaymakers look to make more environmentally conscious travel choices. These improvements can also help reduce running costs in the long term, delivering a double benefit.
From a practical standpoint, futureproofing is about flexibility and staying on top of property maintenance. Owners who can adapt to diverse guest needs — while maintaining quality — put themselves in a strong position for long-term success.
