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🧠 Why Guests Do What They Do: Using Psychology to Improve Your STR Experience

Explore how behavioral science can inform design, pricing, and communication strategies to influence guest behavior positively. šŸ‘šŸ»šŸ’”

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June 5th, 2025

Good evening STR Report Community!

In today’s issue, you will find:

šŸ“±Today’s Article: šŸ§  Why Guests Do What They Do: Using Psychology to Improve Your STR Experience

šŸ“ˆ Trending Market Highlight: Nashville, Tennessee, and Coeur d’Alene, Idaho

āœ‰ļø STR News: AI Will Drive Hotels to Follow Amazon's Loyalty Playbook & more

šŸ’ø Mortgage Rate Watch

🌲 Unique Airbnb of the Week

šŸ« Subscriber Perks: Go Live Playbook, including: Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, STR Buy Box Template, & Tax Savings E-Book

āœ… Community Perks: Top-Tier Property Management, Personal Airbnb Investment Finder, and STR Loans & More

šŸ“¬ See our collection of newsletters here: Prior Newsletters

🧠 Why Guests Do What They Do: Using Psychology to Improve Your STR Experience

Ever wonder why some guests respect your house rules while others ignore them entirely? Or why a simple message about checkout time works better when it's written a certain way? Welcome to the world of behavioral psychology—and its powerful influence on your short-term rental.

By understanding how people make decisions, you can design an experience that subtly nudges guests toward better behavior, smoother stays, and even higher revenue. Here’s how to put science to work in your STR:

She-Ra 80S GIF

Trying to understand your guests like:

šŸ” 1. Design with Intention

Behavioral psychology shows us that environment shapes action. Want guests to take their shoes off? Place a shoe rack and welcome mat right at the entrance. Want them to use coasters? Make them visible and easy to reach—don’t bury them in a drawer. These cues reduce friction and boost compliance without a word.

šŸ’ø 2. Use Anchoring in Pricing

Ever seen a $600/night rate make a $395/night listing feel like a steal? That’s anchoring bias at work. Use tiered pricing or highlight your ā€œaverage nightly rateā€ vs. competitors to frame your value. Guests are constantly making comparisons—even if they don’t realize it.

šŸ“¬ 3. Nudge with Messaging

The way you phrase your communication matters. Want to increase rule-following? Try positive reinforcement (ā€œThanks for helping us keep this home in perfect shape for the next guest!ā€) or social proof (ā€œ98% of our guests love how quiet and clean this stay is!ā€). These small tweaks can drastically improve outcomes.

šŸ› 4. Make Upsells Feel Effortless

Want to boost revenue with mid-stay cleans, early check-in, or late checkout? Behavioral research shows that timing is everything. Send these offers just after booking or 24 hours before check-in—when anticipation and convenience peak. Use simple buttons and one-click confirmation to remove decision fatigue.

šŸŽÆ 5. Highlight What Not to Miss

Guests suffer from choice overload. Help them focus by featuring just 2-3 standout local experiences or home features in your welcome guide or post-booking email. Framing these as ā€œguest favoritesā€ reduces indecision and increases engagement.

šŸ“… 6. Prime for Reviews (Without Begging)

The recency effect means people remember the last part of their experience most. Leave a handwritten thank-you note or small treat at checkout to leave a positive final impression—then follow up with a review request while that memory is still fresh.

🧠 Final Thought:

Running a top-performing STR isn’t just about amenities and location—it’s about understanding how guests think. By applying just a few principles of behavioral psychology, you can create an experience that feels effortless for them—and more profitable for you.

Nashville, Tennessee 🤠

Downloadable Nashville, Tennessee Short-Term Rental Market Report

Nashville STR Market Report.pdf1.35 MB • PDF File
  • Average Daily Rate (ADR): $332.08 per night

  • Occupancy Rate: 55.38%

  • Annual Revenue Potential: Around $67,126.21 per year

Read our full Nashville, Tennessee Short-Term Rental Market Report attached above.

Coeur d’Alene, Idaho 🌲

Downloadable Coeur d’Alene, Idaho Short-Term Rental Market Report

Coeur d’Alene STR Market Report.pdf7.08 MB • PDF File
  • Average Daily Rate (ADR): $336.97 per night

  • Occupancy Rate: 58.1%

  • Annual Revenue Potential: Around $71,438 per year

Read our full Coeur d’Alene, Idaho Short-Term Rental Market Report attached above.

šŸ“¬ See our collection of 50+ market reports here: Prior Trending Market Reports

🌊 Sojourn expands to Outer Banks with Salt Coast Hosts acquisition
Sojourn LLC has expanded its short-term rental operations to North Carolina's Outer Banks by acquiring Salt Coast Hosts.

šŸ¤– AI Will Drive Hotels to Follow Amazon's Loyalty Playbook
Hotels are increasingly adopting AI-driven personalization strategies, inspired by Amazon's approach, to enhance customer loyalty and expand their services beyond traditional lodging.

āœˆļø Airlines Commit to 2050 Net Zero Goal, But Warn Flyers Face Higher Fares
Airlines remain committed to reaching net-zero emissions by 2050 but caution that the shift to sustainable aviation fuels and cleaner technologies will likely lead to higher ticket prices for travelers.

šŸ“… Marriott Is Deploying a Front Desk AI Tool. It Took Time to Get it Right
Marriott is launching an AI tool to streamline front desk room assignments after years of development to ensure accuracy and enhance guest satisfaction.

šŸ’øMortgage Rate Watch – June 5th, 2025

Current Mortgage Rates (as of June 5, 2025):

30-Year Fixed: 6.87% (↓ 0.09%)
15-Year Fixed: 6.12% (↓ 0.09%)
30-Year Jumbo: 6.98% (↓ 0.07%)
30-Year FHA: 6.38% (↓ 0.07%)
30-Year VA: 6.40% (↓ 0.06%)
7/6 SOFR ARM: 6.26% (↑ 0.02%)

Market Overview: Mortgage rates have posted their largest single-day drop in more than a month, with the 30-year fixed rate falling to 6.87%. This decline was driven by softer-than-expected economic data, including a cooling labor market and a slump in the services sector index—both of which helped trigger a bond rally. The result: downward pressure on mortgage rates, offering a brief reprieve to borrowers after weeks of stubbornly high rates.

Still, rates remain elevated historically, with the 30-year fixed hovering between 6.11% and 7.26% over the past year. Persistent inflation and Fed policy caution continue to keep a ceiling on how far rates can fall.

Rate Trends & Forecast:

  • Short-Term: Rates could continue to trend down if upcoming jobs data confirms economic slowdown. However, markets remain highly reactive, and volatility is likely to persist depending on how inflation and labor reports unfold.

  • Long-Term: With inflation easing but still above the Fed’s comfort zone, significant rate drops are unlikely without major economic shifts. The central bank’s stance and broader market indicators will continue to set the tone through the rest of 2025.

    For real-time mortgage rate updates, visit Mortgage News Daily.

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Subscriber Perks:

šŸ“–šŸ”šŸ’° Go Live Playbook

The "Go Live Playbook" is your all-in-one guide featuring a beginner’s guide e-book, messaging templates, Airbnb welcome book, STR buy box template, and tax savings tips to kickstart your short-term rental success.

Community Perks with The STR Report

šŸ  Top-Tier Property Management ā€“ Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. Mention The STR Report by 6/30/25 & get your first month completely FREE.

šŸ”Ž Personal Airbnb Investment Finder ā€“ Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing at least a 15% Cash-on-Cash return.

šŸ¤‘ STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

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