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US: A new report from travel market analyst Phocuswright reveals that 49 per cent of short-term rental (STR) guests believe hotels provide more information on tours and activities, while 53 per cent think hotels offer better support for the non-lodging aspects of the trip.
Choosing between a hotel and a short-term rental is not always straightforward for travellers, the report found. Hotels can feel more accessible because they include or recommend extra services and activities during a stay, something many STRs have traditionally lacked.
With rising costs and tight profit margins, STR hosts are increasingly looking to offer extra services to keep properties running and cash flowing.
However, many additional fees charged by hosts focus on essentials like pets, late check-out, or early check-in, rather than on activities or guest experiences.
Annie Sloan, CEO of hospitality e-commerce platform The Host Co, said: “[Guests are] asking for food delivery, spa services and instructors who come to them. That’s a huge signal: Guests want comfort, privacy and a sense of exclusivity.”
Airbnb is one company that took the pressure of including services and used it to create a profit margin. Last week, the platform launched its Services feature, which allows guests to book in-home or outside services during their stay.
Despite such innovations, many STR hosts struggle with the time and cost involved in adding extra services, particularly while maintaining high cleaning standards.
Concerns also arise around communication, pricing, and payment logistics, especially as hosts face pressure to turn free offerings—like cribs or rollaway beds—into paid extras, which some find daunting or too “transactional.”
Further complicating matters, federal regulations require mandatory fees to be fully disclosed in total pricing, leading hosts to make extra services “completely optional” to avoid overcharging guests uninterested in additional offerings.
Despite these challenges, Phocuswright highlights the potential benefits of adding services for STR hosts. Expanding service offerings can boost profitability and help short-term rentals compete more effectively with hotels.
Madeline List, manager of research and special projects at Phocuswright, said: “Hotels have already, long ago, figured out that you need to introduce alternative revenue streams if you want to think really seriously about making robust revenue.
“Now, we want to look at the options for the short-term rental sector to do it, not because it’s simple or easy, but because it’s really the next growth step in order to have a healthier revenue, healthier top line. The more hosts or operators who would step up and start offering other things, the less the reputational factor will be a problem,” she added.
Adding services could also improve marketing outcomes, the report suggests. Hosts offering extra amenities may receive more five-star reviews, leading to increased bookings and the potential to raise nightly rates.
Highlights:Â
- 49 per cent of STR guests say hotels offer better tour information and activities, according to Phocuswright
- STR hosts face rising costs but struggle to monetise extra services
- Airbnb and others tap in-home services to boost guest experience and revenue
