The more discerning traveller can provide luxury property owners with lucrative earning potential in the short-term rental market - But what makes a property ‘luxury’ and how can you capitalise on high-end short-stays?
Higher Rates
Luxury properties offer the ultimate indulgence of comfort and elegance - usually with a considerable price tag. While a person’s definition of ‘luxury’ is subjective, a high-end property typically exudes upmarket decor, top-of-the-line furnishings, and upscale amenities. These include
‘resort-style’ luxuries such as spacious outdoor entertainment areas, landscaped gardens, swimming pools, and sound systems. As opposed to large hotels and resorts, which host hundreds
of guests on a daily basis, short-term rentals can offer a home away from home with high-end
creature comforts - a huge draw for travellers with larger pockets.
At The Stay Hub, our average daily rate (ADR) across all property types in the last 12 months has sat at $282*. In contrast, top-end luxury properties can command rates exceeding $5,000 per night. The key to success is focusing on the overall yield and delivering a lavish guest experience rather than trying to achieve maximum occupancy.
While top-tier pricing excludes some people from being able to afford a booking, under-selling your property can give potential guests the wrong perception about the quality of your short-term rental. Finding the sweet spot for daily rates and ensuring this matches the expectations of your target audience is crucial to success.
Luxury Amenities
With summer fast approaching, now is the time to capitalise on peak season rates, especially for
luxury properties. In Auckland, if you own a high-end rental with stunning views, your property
already has added value. Views over the harbour, beach, or forested areas are particularly popular.
To maximise rates, luxury owners should consider relaxation and entertainment features such as hot tubs, spa baths, expansive decks, BBQs, sun loungers, and the likes of outdoor heaters. In cooler seasons, you can’t go wrong with underfloor heating and heated towel rails. Wine storage in the kitchen and smart appliances are also popular go-tos for upmarket guests. If you want to start a short-stay on a high, consider including a gift pack on arrival. Imagination is your only limitation - think champagne, decadent chocolates, and other treats typically enjoyed on special occasions.
For luxury apartments, state-of-the-art facilities such as swimming pools, spas, gyms, and saunas
will always command premium rates. Parking, which can cost $30-$50 per day in Auckland’s CBD, is particularly attractive to anyone seeking city-centre accommodation.
Some of The Stay Hub’s best-performing luxury apartments are located along Auckland’s Viaduct,
as well as CBD penthouses with sweeping views. Other prime locations for luxury properties around Auckland include city fringe suburbs such as Westmere, Ponsonby, Herne Bay, and Parnell, while seaside locations drive higher ADRs when summer arrives.
Luxury Platforms
When it comes to marketing luxury short-stays, whilst listing breadth and maximising your reach
is important, being featured on platforms that target luxury travellers is vital for bookings. Upper-class travellers tend to favour more exclusive, niche travel providers who specialise in luxury accommodation, such as Homes & Villas by Marriott International. Platforms like this have strict requirements around a property’s quality and, unlike Airbnb, rental owners cannot simply join the website and self-list their properties. To uphold the high standards expected by their audience, platforms like Homes & Villas will only partner with management companies that pertain to their quality service standards.
Marriott International
The Stay Hub was the first property management partner in New Zealand for Homes & Villas by Marriott International - our partnership is built on mutual brand trust and we are proud to have exacting standards that offer a five-star guest experience. Marriott’s expertly curated platform features thousands of premium and luxury short-term rentals, reaching more than 157 million global Marriott Bonvoy® members, including over 350,000 Kiwi travellers. Upmarket properties within The Stay Hub’s portfolio are featured on this exclusive website, reaping the benefits of their wealthy clientele where price is not a barrier of premium experiences.
Although short-term rentals are ‘self-service’ for the most part, a luxury guest expects only the highest standards for their accommodation and overall experience. This can be a full-time job if you want to maximise your returns and get the most out of your investment. A professional property management company can increase your rental income and provide a winning guest experience from start to finish. For more upmarket homeowners, joining a management service will also ensure your property matches the needs of the luxury travel market. If you are interested in short-term renting, The Stay Hub can provide the knowledge needed to make the most informed decision for your property and personal circumstances.
*Data is taken from Keydata for the period beginning 01/09/2022 - 30/09/2023
For more advice, contact us at The Stay Hub. Our experts can talk you through the ins and outs of marketing short-term rentals. To find out what your property could earn in the market, reach out to a short-term rental management company for a FREE appraisal service and expert advice.