Reflections from DARM – How Property Managers Exceed in Leveraging AI+

AI took center stage at DARM this year, and for good reason. After years of hearing about AI, 2025 feels like the moment AI moved from conceptual promise to practical, everyday integration in the vacation rental industry. Nearly every tool—marketing platforms, dynamic pricing systems, guest messaging, and operations software—now advertises some form of AI baked directly into the product.

It's easy to get excited – the promises that these AI models can deliver are certain to be a gamechanger in the industry. But like any tool, their impact depends entirely on how they’re used.

The companies seeing the real benefits aren’t the ones chasing full automation. They’re the ones augmenting human intelligence, not abandoning it – Known as AI+. And at DARM, the conversations that mattered most centered on this balance.

Where AI Falls Short Without Human Judgment

AI excels in processing speed and scale, but in its current state the limitations become obvious the moment nuance enters the equation. The smartest teams are leaning into AI’s strengths while placing humans at the decision points where context, empathy, and brand protection matter.

1. AI in Guest Communications & Operations

AI-powered messaging tools have become remarkably capable. When trained on property manuals, SOPs, and internal documentation, they can answer a high volume of simple questions instantly—unlocking major efficiency.

But gaps still remain:

• AI cannot read tone or emotion effectively, which means it can’t defuse frustration, rebuild trust after a service failure, or always recognize when a guest is signaling dissatisfaction. In hospitality, that missing nuance is the difference between a five-star stay and a scathing review.

• It cannot diagnose maintenance issues or extract missing context from vague questions like “The TV isn’t working” or “The door won’t open.” A bot can repeat instructions; it cannot investigate, troubleshoot, or escalate with urgency without a deep database of branch-logic and escalatory measures having been built out.

• Its limitations ultimately mirror the limitations of its data. Most PMS systems only store basic need-to-know details—Is there a TV?, Is it pet-friendly?—not the nuanced information guests actually ask for, like How many steps are there to the beach? or Is the driveway steep? Without that context, AI either guesses (hallucinates) or gives an unhelpful answer, both of which undermine guest trust.

This is where property managers must step in. Human-led escalation rules, accurate training data, and real-time interaction remain the backbone of a reliable service experience—reinforced through effective team training and operational support. Without them, AI doesn’t enhance operations—it undermines them.

2. AI in Revenue Management

AI-driven pricing models are now capable of stunningly complex analysis: tracking search demand, event compression, booking curves, airline trends, and even competitor cancellation behavior.

These insights are powerful—but incomplete. This is why revenue leaders rely on strategic revenue management oversight to interpret and guide their decisions rather than follow them blindly.

• AI algorithms already adjust pricing based on market demand, but this still requires human oversight and intervention. Pricing is only one lever in a broader revenue strategy, and AI’s recommendations can easily conflict with the intentional tactics a revenue manager is using to achieve their goals.

• AI cannot account for owner dynamics, where preferences often take precedence over pure revenue strategy—blindly following AI recommendations can quickly create owner discontent when they conflict with those parameters.

• Algorithms don’t understand local nuance such as how certain events can create demand pockets – or how a property’s proximity to those events could justify more of a premium over other properties.

AI provides better data, more insights, but not better judgment. The companies thriving with pricing AI are the ones treating models as assistants—not as autopilots.

3. AI in Marketing

Generative AI can produce outlines, descriptions, and SEO drafts faster than any marketer ever could. But when it comes to content that actually converts, the limitations become clear—and they have real consequences for both brand integrity and direct booking performance:

• AI cannot define or prioritize SEO strategy. In its current state, AI lacks the contextual judgment to understand why a page should exist, how it supports keyword architecture, or where it fits into a broader content roadmap. It can generate pages, but it cannot decide which ones matter—or how they move organic performance forward.

• AI cannot preserve an authentic brand voice. It may generate grammatically correct copy, but it cannot intuit the tone, personality, or emotional cadence that makes a brand recognizable and trustworthy. Generic content dilutes identity and weakens positioning, and consumers can often distinguish between raw AI-generated text and content that has been thoughtfully refined by a marketer.

• AI cannot guarantee accuracy. AI still hallucinates—often confidently—and can unintentionally introduce details that misrepresent a home. A single incorrect claim can erode credibility, frustrate guests, and jeopardize SEO performance.

This is why marketers remain essential—and why many successful property managers still invest in formal marketing and SEO services even with these new tools.

AI can accelerate production, but only humans can ensure the narrative is correct, compelling, and aligned with guest expectations and brand standards. Without that interaction, AI becomes a shortcut to mediocrity, not a lever for growth.

Why Human Intervention Will Become a Competitive Advantage

The true message at DARM wasn’t just that AI is here. It’s that the winners will be the companies who treat AI as a strategic partner rather than a replacement. Human teams are still needed to:

• Audit and refine AI outputs. AI generates answers quickly, but only humans can confirm accuracy, relevance, and alignment with brand standards.

• Define automation boundaries. Without intervention, AI can drift into areas where precision, empathy, or accountability matter too much to automate.

• Manage escalation and service recovery. AI recognizes patterns, but it cannot determine when reassurance, urgency, or true hospitality require a human response.

• Contextualize pricing recommendations. Algorithms detect trends, but revenue managers understand local nuance, owner expectations, and brand positioning.

• Protect brand integrity and compliance. AI has no innate sense of reputation, regulation, or risk tolerance—people safeguard all of these.

AI moves faster. Humans move smarter. The power comes from the combination.

A Smarter Approach to AI in 2026

Instead of rolling out sweeping automation, leading managers are starting with one question: “Where does AI reduce workload without compromising judgment?”

AI will absolutely scale operational capacity, improve decision-making, and unlock new efficiencies across the vacation rental industry. But the value depends entirely on the guardrails surrounding it.

The message from DARM was clear: AI can accelerate growth, but human involvement ensures the growth is sustainable, strategic, and aligned with your brand.

Looking to Implement AI the Right Way? VRM Advocate Can Help.

If you’re ready to harness AI without losing control of your business, reach out to VRM Advocate. We’ll help you scale smarter—with the oversight, structure, and clarity today's AI landscape demands.