Vacation rentals rarely appear on the competitor spreadsheet of an independent hotel. But they do appear on the guest's screen, right next to your guesthouse, on Booking.com, Google, and Airbnb. An article published by Hotelier News on October 16, 2026, based on PriceLabs research, shows the extent of this competition: 82% of guests who stayed in guesthouses, hostels, or small hotels in the past year would consider renting a vacation property at the same price or a slightly lower price.
This doesn't mean the property will get all these bookings. It means the decision remains open until the last minute, and the one who shows value and responds first wins. In this article, see what the numbers say, why your compset doesn't see this competitor, and what to do on the direct channel to secure the booking.
What the research showed about vacation rentals
The Hotelier News article combines two PriceLabs surveys. In the first, 82% of guests from guesthouses and small hotels said they would consider switching their accommodation to a vacation rental if the price was the same or slightly lower. In the second, 30% of guests with the same profile would consider a vacation rental for the same trip. Among guests of large hotel chains, the rate drops to 16%.
The difference between 30% and 16% is the most important message for those with 20, 30, or 50 rooms. Guests of large chains are tied to loyalty programs, brand standards, and corporate contracts. The guesthouse guest chooses the trip, not the brand, and therefore compares everything. It's worth noting that the numbers measure intention ("would consider"), not actual bookings. Even so, they show that vacation rentals are already competing for the same guests as you.
Why the traditional compset doesn't see this competitor
The compset, the group of competitors that the hotel uses as a reference for pricing, usually includes hotels in the same region and category. Vacation rentals are left out for three reasons: they don't participate in local hotel associations, they don't appear in traditional rate monitoring tools, and many managers simply don't consider them competitors. The result, in the words of the article: independent hotels may be losing bookings to alternative accommodations without realizing it.
Large chains compensate with revenue teams, data history, and inventory to test prices. The independent hotel has less room for error: a room not sold on a specific date doesn't go back on the shelf. Therefore, the competition with vacation rentals needs to be resolved in service and proposal, not just in the price list.
Where the property wins and where the guesthouse wins
Vacation rentals are not the villain. They meet certain needs well: space for families or groups, a kitchen, a lower per-person price for longer stays, and the feeling of being at home. For example, someone staying in the city for two weeks on business tends to look at an apartment.
Guesthouses and hotels win in other areas, which guests don't always see when comparing:
- breakfast and cleaning included, no extra charge at the end;
- reception and someone to solve a problem immediately, even in the middle of the night;
- security, check-in without coordinating key delivery with the host, and clear cancellation policies;
- flexibility: late checkout, crib, transfer, and the right restaurant recommendation.
The problem is that these advantages often remain hidden. The competition is decided by who makes them clear before the guest commits.
Five levers to win over vacation rentals in the direct channel
1. Respond before the host. Someone who requests a quote from a guesthouse usually checks two or three other listings. The first complete response gets ahead. WhatsApp service with WhatsApp and AI that quotes 24/7 ensures that the response arrives in seconds, even outside business hours.
2. Show in the quote what the property doesn't deliver. The room rate alone loses to the per-night price of the apartment. A quote with photos, breakfast, cleaning, parking, and cancellation policy in writing shows the real value of the stay.
3. Price with groups and long stays in mind. This is where the property is strongest. Per-person rates, progressive discounts from a certain number of nights, and connecting rooms for families reduce the gap. Pricing needs to reflect these scenarios, not just the double room rate.
4. Close in the same channel. If the conversation happens on WhatsApp, the payment should also happen there, with an official link, Pix, or credit card. Each additional step is a chance for the guest to return to the listing. A reservation engine serves the same purpose for those who come to the website. See also how installment Pix reduces friction at closing.
5. Follow up with those who went silent. A guest who requested a quote and didn't respond is still deciding. A follow-up on the quote at the right time, recorded in the CRM, recovers some of these reservations before they turn into vacation rentals.
How to expand your compset without becoming a spreadsheet hostage
You don't need to monitor all properties in the destination. The article recommends observing trends: the evolution of demand, booking patterns, length of stays, and peak dates. In practice, three habits already help:
- for holidays and high season, check the price of three to five properties similar to your rooms, in the same area, and for the same number of people;
- ask in customer service what the guest is comparing and record the reason when the booking doesn't close;
- follow reviews: a recent and well-responded reputation weighs in the comparison with host listings.
With this data in the CRM, the reason for loss stops being a guess and starts guiding price, package, and sales arguments.
Frequently Asked Questions
Are vacation rentals competitors of all hotels?
Not with the same strength. The research cited shows that the intention to switch is greater among guests of guesthouses and small hotels (30%) than among guests of large chains (16%). Leisure destinations, long stays, and group travel are the scenarios with the most competition.
Should I lower the room rate to compete?
Not always. The PriceLabs data refers to the same price or slightly lower, which shows that the decision is not just about price. Before cutting the rate, show what is included and respond faster. Price adjustment makes sense for specific dates and profiles, such as groups and long stays.
Do I need a tool to monitor vacation rentals?
For most independent hotels, not at first. A manual check at key dates and recording the reason for loss already shows where the competition is.
With more options on the guest's screen, the one who secures the booking is the one who serves better and shows value first. DeskHotel combines WhatsApp service, AI, quotes, CRM, and reservation engine in one platform, from the first "do you have availability?" to the confirmed payment.
Schedule a free demo of DeskHotel
Source: Hotelier News, "Hotels face limits of traditional compsets," October 16, 2026, based on an article from Lodging Magazine and PriceLabs research.