Why Japan’s Vacation Rentals Are Hiring Tech-Savvy Management Companies
Photo Credit: A one-bedroom short-term rental managed by H2O Hospitality in Osaka, Japan. H2O Hospitality is a startup in Japan and Korea that manages lodging on behalf of owners with its tech-led system, cutting fixed costs. H2O Hospitality
Skift Take
It's a U.S. bias to assume that the answer to every hotel or vacation rental problem is to have a nationally branded management company take over operations. But in Japan and elsewhere, many owners of travel accommodation prefer an unbranded, behind-the-scenes management partner.
The Japanese market for travel accommodation — including hotels, ryokans (traditional inns), minpaku (short-term rentals), and vacation rentals — is mostly run by independent operators. Yet these family businesses and small lodging companies are often behind the times in technology, at least when it comes to adopting the latest software for operations and marketing.
Japan contrasts starkly with the U.S., which is dominated by chains. One appeal of flagging with a chain is that the chain can make sure every property is run with up-to-date technology. Yet the uniform look and experience of nationally branded lodging have turned off many consumers. Some of these travelers are switching to alternative accommodations instead.
Amusingly, the short-term rental segment is now being professionalized, too, and for a similar reason of seeking cost-efficiency through technology. Companies like Sonder are seeking to operate short-term rentals under their brands. The companies use technolo
