Reference no: EM133428965

The Shepherd's Retreat is a family-owned business, located in Livingston, MT. Judson Gilbert, his wife Nicole Gilbert, and his brother list their family-inherited home on Airbnb and VRBO to customers looking to explore Montana and the tranquility of rural life. With the vast amount of future potential for the property, the owners are excited to begin to expand their business venture with creative and unique ideas to continue to increase the attractiveness of the property to would-be guests. Judson and Nicole are keen on keeping the land as original as possible to maintain the natural beauty that their property boasts, and adding to that in subtle ways for people to enjoy their experience even more.

The property is positioned to solve problems for VRBO or Airbnb guests. It provides visitors with a vacation stay or event venue that transcends the average property. Not only does it provide views for days of the Montana wilderness as well as the driving distance of the Yellowstone Park entrance, but the property is also located on 20 acres. This provides guests with room to roam and explore on the property, which makes it invaluable to people looking to do some hunting or scouting for the vast amount of wildlife that the area offers.  In addition to Yellowstone Park, Chico Hot Springs is also a must-do when visiting the area. Shepherd's Retreat also provides an authentic Montana experience filled with decades of history. 

Shepherd's Retreat is a property for leisure activities and serves large groups for family reunions, weddings, birthday parties, or vacations. Due to the outdoor opportunities such as hiking, hunting, or even skiing this location would be great for the outdoorsy guest. As there is a one-dog-only policy this would be great for dog owners that need the opportunity for long walks. Also, by being so secluded, this type of rental property is great for people looking to disconnect from society and enjoy what the Montana wilderness has to offer. 

The competitive advantages include quality size and price, as the 4500 sq ft home sits on 20 acres of land, allowing room for up to 11 guests for around $200-$500 a night. The location is secluded, where the only neighbors are the local wildlife. With the use of Airbnb and VRBO, the owners are able to increase their chances of having their homes booked, along with providing more and better reviews on each site. The Shepherd's Retreat also has a large advantage over the competition due to having the room to expand on their property, by adding more buildings to house guests or increasing the number of attractive amenities on the property, they will likely be able to increase their price for booking as well as hosting different groups at the same time without them ever coming into contact with one another. Also, by owning the property outright, the owners are able to increase their profit margins and have the extra income needed to make improvements to the property that will attract more diverse groups of people looking for somewhere to stay.
Competitors (Direct and Indirect)

There are a number of direct competitors that have similar features to Shepherd's Retreat in terms of number of occupancy, location, and amenities. In the vicinity of Shepherd's Retreat, out of the 6 properties from Airbnb, only one was found on VRBO. That was the only property found in that area. Successful competitors are superhosts on Airbnb, have more bathrooms, may have better location to towns, offering outdoor amenities like a hot tub and bbq, offering deals on guided fishing trips and river floats, on site ponds that are stocked with fish, host weddings, saunas are available on some properties, handicap accessibility, offer full access to whole property including garages and basements. 

The best amenities are essential when attracting customers, especially outdoor amenities in the cool to warmer months. As being the "Big Sky Country'' a lot of tourists want to be outside so having those comfortable, cozy and accommodating outdoor spaces will create happy guests. For example, several properties cater to outdoor activities and Shepherd's Retreat could add a hot tub, firepit, or an outdoor seating area that would enhance their appeal for people who want to come to enjoy the outdoors while being comfortable. A weakness for other properties that could be a strength for The Shepherd's Retreat is making the property more accessible to handicap people, by doing this they would expand their potential market to people who may not be able to get around as easily. There could also be benefit from offering events such as weddings on the property, taking advantage of the breathtaking views and the large house that is capable of hosting a large number of people. Along with offering weddings, The Shepherd's Retreat could begin offering deals with fishing guides or river guided float trips on the Yellowstone. Something that may also set the property apart would be the addition of a groundskeeper that would be available to help guests get around the property and explore the wildlife and scenery that is offered. 

Marketing is important to be able to connect to the right customer. Shepherd's Retreat is marketed on Airbnb and VRBO, however, there is a difference in what is marketed between Shepherd's Retreat and its competitors. Marketing is a strength among the competitors, there is something that is attention-grabbing with the first picture displayed in every listing. The attention-grabbing photos will make people look at the photos which will lead people to look at the listing. Also, some listings have very detailed copyrighting which is crucial in informing a potential customer of all the property has to offer. 

Similarly, hotels and resorts can be indirect competitors to Shepherd's Retreat as they may not offer the same amenities but they could be booked as an alternative to a short-term rental property. Chico Hot Springs is a popular short-term stay destination that even though it is an hour away from Shepherd's Retreat it is an hour closer to Yellowstone National Park. Campgrounds can be an indirect competitor as well, even though campgrounds do not nearly offer enough of the same amenities, big groups can easily be accommodated in these wide open camping spaces. 

Market Trends 

Business owners need to stay up-to-date on the latest market trends in order to grow and evolve. According to an article of the Forbes website,  there are several market trends for short-term rentals likely to be seen in 2023.

Increased Regulation

Due to the increased demand in short-term rental properties there have also been an increase in regulations involving them around the country. In Dallas, Texas there is now a regulation banning short-term rentals from single-family residential areas. These types of regulations are important to watch out for if these zoning regulations are ever implemented for Livingston, Montana. Although due to the remote location of the Shepherd's Retreat it should not be affected by residential zoning regulations anytime soon. 

Growth of Alternative Accommodations

Airbnb hosted a competition which included a $10 million fund to give entrants $100,000 for their most unique properties. This would appeal to customers looking for new experiences.

Increased Technology

Because of the ever-changing world of technology it is important to keep up with it. From smart-homes to online booking platforms, this is made easier to manage, operate and advertise the properties. 

Increase of Sustainability

As people become more conscious of sustainable products and services, it is expected to see more properties that have a focus on sustainability. Property owners and Managers should consider incorporating more environmentally friendly features in their properties. This may include but not limited to energy efficient appliances or recycling programs (Nichols, 2023).

Porter Five Forces Analysis:

1. Threat of New Entrants

2. Bargaining Power of Buyers

2. Bargaining Power of Suppliers

3. Threat of Substitute of Services

4. Industry Rivalry