How AI Is Set to Transform the Way We Interact with Guests

Pierre-Camille Hamana
1/21/2025

In an industry as guest-centric as short-term rentals (STRs), communication is the key to shaping positive guest experiences. Yet it has always been one of the industry’s biggest pain points. The necessity of addressing every guest inquiry almost immediately before, during, and after a stay has historically been a huge burden on hosts.

It only makes sense, then, that once the STR industry began adopting artificial intelligence, enhancing guest interactions was a top priority.

Evolution of AI in Short-Term Rentals

Over the last two years, AI has proved itself to be more than an auxiliary tool; it’s fast become the backbone of guest communication strategies. Initially, its role was limited to basic automated responses—think standard check-in instructions delivered via email or a “thank you” message triggered when a guest checks out. But as machine learning algorithms have become increasingly capable of analyzing guest and property data, as well as communication patterns, all interactions are becoming more personalized by the minute.

Guests are receiving accurate, detailed responses to their questions without hosts needing to lift a finger; real-time translation tools are breaking down language barriers with international guests; and AI is being skillfully employed to infuse brand voice and personality into every message, so guests feel like they’re talking to a person and not a robot.

The reality is, though, that this is just the tiniest fraction of what AI can do for us when it comes to guest interactions. As AI systems become more intuitive and the industry continues to learn how to harvest the right guest data to feed these algorithms, the potential to anticipate, personalize, and meet guest preferences is nearly limitless. AI is shifting from being reactive to proactive, predicting what a guest might want before they even know themselves.

The Rise of the Digital Concierge

We’re already seeing AI evolve into the role of a digital concierge, providing guests with local recommendations, answering questions, and offering advice during a stay. But when fueled with the right information—the size of a party, a guest’s individual preferences, property context, and local conditions—these AI systems can become full-blown personal assistants.

This is why data collection is the next big innovation frontier for the industry. Accurate and comprehensive data is the only thing that can unlock this level of personalization, so naturally, hosts will gravitate toward tools that can be fed enough data on behalf of hosts to release the full potential of these AI tools, without it feeling intrusive and inadvertently harming the guest experience.

Imagine a digital concierge that knows the weather will be cold and recommends a cozy local cafe or somewhere to take children while it’s raining before the guest has even asked. Then think one step further: The weather will be sunny, so an AI concierge takes actual action. It offers to book a guided tour of nearby historical sites or provides an exclusive discount for deckchair hire at the local beach.

Integration with smart home technology then allows these digital concierges to seamlessly create the perfect environment back at the rental. Thermostats are automatically adjusted to cool the property down an hour before the guest returns from the beach; the coffee maker starts making hot drinks for guests waking up. It’s like having your own personal assistant, but you don’t even need to tell it what to do. Each interaction is completely tailored and personalized.

AI can also use the weather to become a powerful upselling tool, proactively offering guests firewood for a chilly evening or kayak rental for a sunny day rather than just suggesting places to go.

The geographically distributed nature of short-term rentals is no longer a barrier either. Once a guest agrees and completes an upsell purchase, the AI concierge promptly supplies the smart lock code to a secure locker. If a weekend forecast spells heavy rain, making it ideal movie-watching weather, the AI might offer a “movie night package” with on-demand films, a projector, and gourmet snacks. Guests can easily accept, and AI handles all arrangements.

These use cases go well beyond the everyday property management tasks that traditionally occupied property managers’ time, but those are solved, too. These algorithms can already detect gap nights in the booking calendar and proactively offer guests the opportunity to extend their stay at a discounted rate. They can also manage late check-out requests efficiently—reviewing the host’s policy, processing any additional fees, and notifying cleaners to adjust their schedules accordingly.

Data: The Fuel for Personalization

But again, this is just scratching the surface. The big revolution will come with personalization, and there is immense potential to creatively add unique value to guests’ stays.

In an industry where every guest interaction can tip the scale between a one-time stay and a loyal customer, this level of personalization can’t begin and end when a guest checks in and checks out. This attention to detail must echo through every interaction, from the moment a guest begins their first search for a property.

We’re fast moving toward a future where STR listings will mirror the levels of personalization we see on platforms like Netflix. Property listings will dynamically adapt based on who is browsing: someone interested in a surfing holiday may see different property highlights and amenities than a couple looking for a quiet getaway. In this way, hosts will be able to showcase the best bits of their properties to appeal directly to the most relevant guests, significantly increasing their chances of securing a booking.

Redefining Guest Interactions

When a guest checks out, AI is stepping in to manage even the minutest details, like ensuring each guest review receives a personalized response. This meticulous attention to detail is setting a new standard in guest service, and this level of attentiveness will really separate the “best” hosts and property managers from the “good.” As AI becomes increasingly widespread in other sectors, the expectation of personalization is seeping into every aspect of consumer experiences, and guests are soon going to expect this as the norm in short-term rentals.

We’re going to see AI take charge of the entire travel booking experience—linking with transportation services, event ticketing, and restaurant bookings to allow guests to plan their entire trip through a single platform. Travel search is set to become far more bespoke, with guests able to tell platforms exactly what they want and not be forced to scroll through hundreds of listings. Consumers will be able to easily whittle down their preferences and requirements, so more granular property data will have a dual use for AI that will be responsible for attracting guests in the first place.

It’s a pivotal time for the industry as we stand on the brink of what feels like a brand-new era, but it’s equally important to remember that these AI-driven systems are only as transformative as the information they receive. What’s exciting is that, as experiences become more personalized and guests feel more “known,” securing bookings and attracting the most relevant guests will only become easier.

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