Key performance indicators in short-term rental accommodation

Abstract

PurposeThe boom of new players in the accommodation sector has led to an increase in the level of competitiveness and has highlighted the importance of using key performance indicators (KPIs) in organisational decision-making processes as efficient tools for thriving in the growingly competitive environment. This study aims to assess the use of KPIs by owner-managers of small and medium-sized short-term rental accommodation (STRA) units.Design/methodology/approachTo achieve this aim, this research encompasses two different primary data collection methods conducted in 2021. Firstly, from April to May, a set of exploratory interviews with experts within the STRA domain was planned. Secondly, an intensive data collection, from June to September, included an online questionnaire with close-ended questions to a sample of all the companies that manage STRA units in Portugal.FindingsThese managers tend to use more widely financial and operational KPIs that depict relationships with guests and reflect the activity of the STRA units, the external environment and the innovation level. Moreover, younger managers and those with higher levels of education tend to use a “monitoring review of digital platforms” KPI, while less experienced managers use financial and operational KPIs and senior and higher experienced managers place greater value on KPIs associated with customer relationships.Originality/valueSTRA units hold a very relevant position in the hospitality industry, and it is urgent to generate more information to better understand this growing subsector. This research contributes to the literature providing evidence on the importance of KPI to STRA units, for owner-managers and for urban tourism, considering their growth, proliferation and importance for the planning of cities by destination management organisations.