Clustered vs. Key-Level Listings: How to Decide

Hotels and big brands strive for a uniform experience. A standard room at a Hampton Inn in Pocatello is pretty much the same as the equivalent room in Shreveport — or at least, that’s the idea. Same with McDonald’s, Coca-Cola, and a million other global brands.

This is not the world of vacation rentals, which cater to more specific tastes. Not to say that consistency isn’t key, but VR caters to travelers who want something different and unique. Indeed, a good listing should make clear all the ways that it is not like staying at a hotel.

Even so, there are situations where it might actually make sense to “cluster” your listings together where possible. A building full of condos, for example. Do you really need separate listings for each 2-bedroom unit with the same floor plan? Not necessarily. In fact, there are scenarios where it’s actually in your best interest to group them into clustered listings.

This article will help you figure out the best strategy for you.

Clustered vs. Key-Level: What’s the Distinction 
First, a few definitions. A key-level listing restricts the property description to individual units. Obviously, if your portfolio is mostly single-family homes, that’s a key-level listing. Each house will have different appointments, room layout, views, etc. The appeal of each will vary from guest to guest. In this example, the specifics are part of the charm. The goal is to maximize the appeal of each unique property.

But what if you have a row of cabins or duplexes along a lake? Some might have different color bedspreads or a mirror-image floorplan with the kitchen on the left instead of the right, but they’re the same quality accommodation. The only difference price-wise is whether the units face the lake or the forest. In this example, it might make more sense to use a clustered (sometimes called representative or rep-level) listing.

Pros and cons
To be clear, you don’t always have a choice here. Airbnb, for example, built their brand on key-level listings and require that they be entered that way. OTA rules and policies change all the time. But most OTAs that offer both hotel and vacation rental searches will allow for both.

We’ve already covered the most obvious benefit of a key-level listing: Specificity. If your entire portfolio is single-family homes spread out over a large area, then your listing strategy is chosen for you because no home is really representative of other homes. But if your portfolio includes condos, cabins, duplexes, or any other group of properties with similar characteristics, then you have a decision to make.
 
Consideration 1: Time 
If you have a channel manager like Lexicon on your side, then the number of listings is less burdensome. But if you’re going it alone, clustered listings are a real time-saver. You can get away with one set of photos, one description, one list of standard amenities. The less time you spend juggling listings, the more time you have to think about stuff like dynamic pricing or operations.

But it’s not just your time — it’s also your guests’. If the distinctions between units are subtle at best, their primary concern might be price and availability. Are they really going to care whether unit 14 has a tile floor in the kitchen but unit 5 has linoleum? Probably not. With a clustered listing, your guest only needs to consider the broad strokes and standard amenities rather than wading through individual listings with few differentiators.

Consideration 2: The Algorithm
The specifics of how OTA algorithms work are closely guarded, but it’s safe to say they “like” popular listings with consistent availability. If there’s any question whether “2BR High-Rise Luxury Condos” will drive more traffic than “2BR Luxury Condo 213C,” let us answer: It will. And because a clustered listing saves your guest time, it will continue to be popular.
 
Simply put, 10 2BR units represented by one listing will sort higher than a single 2BR unit listing. The revenue opportunity of this type of listing is much larger and gooses the algorithm, improving your listing’s placement. Not only does it boost your position in search results, but it improves the chances of those coveted badges like “hot listing” that do the selling for you. 

Consideration 3: Appointments and Age 
Not all “clusterable” units are made alike. One condo building might have been built in 1989 while the one next to it is from 2009, though the floorplans are similar. This is definitely a gray area, especially with a group booking. If some people wind up in the older units but see the newer ones, knowing they paid the same price, it could lead to a bad review that you could’ve avoided.

But this scenario offers an opportunity as well. There comes a point where a newer unit adds enough value to justify a higher price, in which case you might want to cluster them together. You might even brand them differently, e.g. “Lakeside Deluxe” and use the listing to emphasize the extra value wherever it falls. In this example, the tile vs. linoleum bit might actually become one of several value-adds.

Consideration 4: Location and Experiential Factors 
Some large VR brands boast hundreds of condos in the same general area. In many cases they were built by the same contractors. The appointments and age are nearly identical, as are the views. But although they’re in the same general area, small differences in location can still make a huge difference. Do you cluster them all together, break them into smaller clusters, or just go key-level?

It depends, but if you have enough units where they can be very similar at the key level but deliver very different experiences due to their location (such as from the pool area or the beach), you should give serious thought to smaller clusters.

Think through the specifics and logistics of the guest experience. Consider why guests come to your area and what they’re likely to do. Think about your age demographics. A 500-foot walk to the clubhouse might not seem like much, but if your clientele runs older, it might be an unwelcome slog. Same for time spent in an elevator or proximity to a busy freeway.

Clustered listings, by their very nature, imply a degree of uniformity that you may or may not be able to deliver. If guests feel that the clustered listing and photos didn’t comport with their experience, that’s probably on you.

Avoid the temptation to go key-level only in the headline but use the same description and photos for each listing. Even if you qualify them as “representative” amenities or photos, your guests will still expect their booking to match what you presented in the listing. Besides, there’s a strong likelihood the OTA would notice and either flag your listing or lower your content score.

Summary
In general, we support a clustered listing strategy whenever possible. It saves time on both ends of the booking, potentially primes the algorithms, and provides opportunities for sub-branding that can help justify higher prices for newer or more appealing units in the same inventory family.

There are always caveats and pitfalls, not the least of which is whether the OTAs you prefer will allow clustered listings to begin with. If they don’t, then you’ll just have to use a mix of key-level and clustered photos and amenities to paint an accurate picture of both individual units and the property or area as a whole.

Another caveat to clustered listings is being too specific with respect to amenities. It’s okay to hold some details back. Pleasant surprises give guests a feeling of unexpected value, and that can lead to some great reviews and word of mouth. For example, if all units in your cluster have jetted tubs or heated floors, consider lumping those into a “many luxurious touches” sort of teaser. Whereas a jetted tub probably isn’t going to inspire anyone to click “Book Now” on its own, the discovery of one can surprise and delight. The same goes for things like high-end bathroom fixtures or power window shades.
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Remember, whatever strategy you choose doesn’t need to be the one you stick with forever. Inventory changes, new properties enter the mix, and repairs and upgrades happen all the time. When they do, you’ll be glad to have a channel management solution to help you roll with the punches and push those changes out across all your listings. ​