Austin is known for its eclectic music scene, tech industry boom, and unique cultural vibe. As such, Austin presents a prime opportunity for STR investors. However, to truly capitalize on the potential of this market, your best strategy is to focus on a niche segment of travelers. Below I’ll break down a few niche markets worth considering when deciding what travelers to target with your airbnb investment in Austin.
1. The Tech Traveler
Austin's reputation as a tech hub, bolstered by events like South by Southwest (SXSW) and the presence of major tech companies such as Apple, Oracle, Tesla, Dell, and IBM just to name a few, makes it a hotspot for tech professionals. Catering to this demographic involves offering high-speed internet, dedicated workspaces, and smart home features. Proximity to major employers’ HQs or tech centers like the Domain or downtown Austin can also be a selling point. If you want to attract techies, you have to think like a techie and craft your property to match. A seamless automated check-in process is a must, but consider additional upgrades like a gaming system and a great desk setup with dual monitors and an ergonomic chair too.
2. Music and Festival Enthusiasts
Austin is dubbed the "Live Music Capital of the World" hosting numerous large music festivals throughout the year and live music can also be enjoyed just about every night of the year. Properties that are within walking distance or a short ride from key venues such as Zilker Park, where ACL (Austin City Limits) is held, or either of the Moody venues are highly desirable. Accommodations near year-round venues a little further out such as Concourse Project or The Backyard are also worth considering. If you want to cater to music enthusiasts, consider outfitting your rental with musical instruments, vinyl records, or themed decor to enhance the experience for music lovers. I personally love the idea of a vinyl room with velvet accents, an entire wall covered in old LPs and a record player with a decent library of records.
3. Health and Wellness Seekers
The health and wellness trend is on the rise, and Austin, with its numerous parks, trails, and wellness centers, is a prime destination for this crowd. A rental property that focuses on wellness could feature amenities such as a yoga area, a private outdoor space for meditation, a home gym, or a cold plunge and sauna. If you really want to cater to this crowd include information on local wellness activities like where you can rent paddle boards/bikes, hiking guides, and contact information for local massage therapists. Make sure to nail the little details with eco-conscious bath products and a water filtration system for drinking water too.
4. Foodies and Culinary Tourists
Austin’s food scene is another major draw, from its famous BBQ joints to trendy food trucks and fine dining establishments. Attract foodies by offering a well-equipped kitchen, nail the details by adding cookbooks such as the Franklin’s Barbecue Collection or local spices such as the Salt Lick’s Rub . Being close to food hotspots like South Congress or East Austin can be a major plus. If you’re catering to foodies, you can also partner with local chefs for private in-house dining experiences or cooking classes that can set your rental apart and provide a memorable experience for culinary tourists.
6. Pet Owners
Many travelers prefer to bring their furry friends along, and Austin is an incredibly pet-friendly city with numerous dog parks and pet-friendly restaurants. If you want to attract the dog mommas and daddies make sure your yard is fully fenced! Include items such as dog beds, crates, food and water bowls, and treats for all the puppers! Offer information on nearby pet-friendly attractions and local pet services like dog walkers to really differentiate yourself.
Why Niche Markets Matter
Focusing on niche markets allows STR investors to stand out in a crowded marketplace. By tailoring your property to specific interests and needs, you can attract dedicated and loyal guests who are willing to pay a premium for a tailored experience. This approach not only maximizes occupancy rates but also enhances guest satisfaction and generates positive reviews, leading to repeat business and word-of-mouth referrals. All of which lead to an increase in your bottom line!
