Autohost stops STR guest fraud at Locale

Locale is an Austin-based short-term rental property management company operating over 100 units across eight properties in Austin, Houston, and Nashville. Combining the best features of hotels and vacation rentals, Locale delivers tailored experiences for modern travelers while maintaining strict security standards.

The Challenge

Prior to Autohost, Locale used a fully manual workflow to screen guests, which was time-consuming and prone to human error. Their operations team had to collect guest information and manually process it through background check software. This inefficient process led to security vulnerabilities, resulting in a costly incident where they experienced a $2,000 chargeback from a fraudulent booking at one of their Houston properties. Additionally, they had to deal with the complications of evicting the guest due to room damages and nonpayment.

Joe Mangioni

Senior Technology Manager at Locale

We decided to try Autohost mostly just for synchronicity and automation. Obviously, a manual workflow really bogs down our operations capacity, and obviously, human error is a big deal. So, that was kind of the driving force behind that.

Why Autohost?

Locale selected Autohost to automate and optimize their guest screening process. When guests book a property, they receive a booking confirmation email and a verification request from Autohost. Through the Autohost portal (branded with Locale’s colors and logo), guests provide their basic information, accept house rules, and verify their ID and credit card. Autohost processes this information, assesses bookings with a risk score (green, yellow, or red), and validates credit cards through Stripe to ensure all information matches. This comprehensive system flags irregularities, such as discrepancies between booking locations and user data, helping Locale identify potential fraud before it occurs.

Joe Mangioni

Senior Technology Manager at Locale

Anytime we onboard software, there is always a short period of time where we’re feeling it out, making sure that it is effective and worth the money, and this is one of the few instances where we onboarded something and almost immediately saw a return. In that specific instance where we caught consecutive fraudulent bookings, the savings of lost revenue right there equaled probably three, four months of software costs, so it paid for itself immediately.

Results

Just one week after implementing Autohost, Locale caught a fraud ring attempting to make multiple bookings at another Houston property. The system flagged and rejected several booking attempts made with suspicious credit cards, which were linked to the previous fraudulent booking through Autohost’s detailed data reporting. This quick action saved Locale over $3,000 in potential losses.

Since adopting Autohost in November 2021, Locale has rejected a total of 90 suspicious bookings—a significant increase over their previous manual screening process. The system has also helped identify underage guests attempting to book using their parents’ information, preventing policy violations before they occur.

Beyond fraud prevention, Autohost has brought operational efficiencies by ensuring the collection of accurate guest contact information, even from third-party booking channels like Airbnb and Expedia. This comprehensive approach to guest screening and verification has contributed to an estimated 15% increase in rental revenue through reduced costs from bad reservations, increased occupancy, and the ability to remove certain booking restrictions.