Hospitality’s Competitive Edge: Uniting Sales and Marketing to Win Against Short-Term Rentals

The hospitality industry has long been defined by consistency, service, and trust. But in recent years, disruptors like Airbnb and Vrbo have rapidly gained market share, appealing to travelers seeking space, flexibility, and local experiences. For hotel sales and marketing professionals, this has forced a fundamental question: How can we compete? 

At two recent Rising Leader Council sessions, we tackled this issue from complementary angles, sales and marketing. In the conversations, we explored how hotels can reclaim market share by uniting sales and marketing strategies to emphasize what hotels do best. 

Why Travelers Choose Short-Term Rentals 

Guests aren’t just looking for a place to sleep, they’re searching for experiences that meet a broad set of needs: space, affordability, personalization, and amenities. Travelers often see Airbnbs as better able to accommodate group travel or pet-friendly stays without the added fees that hotels often impose. Examples include pet fees that rival the nightly rate, while Airbnbs offer inclusive pricing. 

A participant shared an anecdote about planning a bachelorette party. The group found hotel teams uninterested and unhelpful. “They looked at us as an obstacle, not an opportunity.” The host of their eventual Airbnb, however, offered a curated welcome and thoughtful touches. The result? The group booked with the rental. 

Personalization and Data-Driven Storytelling 

The discussion turned to how hotels can retake the narrative through digital marketing. Data analytics, review mining, and AI-powered tools like Google Gemini can help marketers identify what travelers truly value. The key questions, what content do they like? How do they book? What language appeals to them? 

One example illustrated how Gemini scraped hotel reviews to recommend stays based on bar experiences, showcasing how hotels can shine if they are strategic about online presence. The key: generate authentic reviews, tell compelling stories, and optimize for platforms that matter. 

Relationship-Driven Selling 

It was emphasized that sales teams must become consultative problem-solvers, not order takers. Travelers want ease, but they also want to feel seen. Whether it’s a group planning a reunion or a corporate event, hotel sales staff need to frame offerings in terms of solutions, not restrictions. 

One participant noted that service is a hotel’s greatest differentiator: “It’s the people — the bartender, the front desk agent who create the experience.” That personal, human connection can make or break a booking. 

When Sales and Marketing Collaborate 

Participants argued for stronger cross-functional collaboration. Regular, strategic meetings between sales and marketing were recommended to assess pace, adjust messaging, and align tactics to changing demand not just annual planning. 

There was also a call for shared metrics. Someone mentioned: “We don’t have a universal KPI across sales, marketing, and revenue.” That makes it harder to tie top-of-funnel activities to bottom-line results.  

What Can Hoteliers Do?  

To compete with short-term rentals, hotels must: 

• Audit and adjust fees: Consider competitive pet fee pricing and value-added messaging. 

• Market experiences, not just rooms: Promote suite layouts, connecting rooms, and amenities in context of group or family stays. 

• Use AI and review data: Optimize visibility through tools like Gemini and manage online reputation proactively. 

• Invest in local influencer partnerships: Micro-influencers can boost credibility and reach in specific markets. 

• Align sales-marketing goals: Set short-term win metrics, timestamp campaigns, and keep reporting transparent.  

Short-term rentals will remain a powerful player in the accommodation ecosystem. But hotels still offer unmatched service, safety, and consistency. The path forward lies not in competing on price or novelty, but in collaboration between sales and marketing teams, between data and intuition, and between guest expectations and operational delivery. 

Katie De Crescenzo, Sales Manager, Desert Hospitality Management(DHM), Marriott (SpringHIll Suites by Marriott Tucson at the Bridges), Rising Sales Leaders Council 

Dylan Massari, Regional Digital Manager – West, Atrium Hospitality, HSMAI Rising Marketing Leaders Council 

This article originally appeared on HSMAI.