Are we lucky - Lodging Newsletter June 30, 2021
By Wm, May
Published: 06/30/21 Topics: AirBnB, Branding, Channel Management, Lodging Newsletter, Vacation Rental Management, Vacation Rentals Comments: 0
Are we just lucky?
By now you have all heard that vacation rentals and other specialty lodging boomed after the initial effects of Covid ironed out a bit. In fact, the income to our client owners jumped dramatically last summer and the trend has continued.
The travel industry is calling it "Travel Revenge", meaning consumers feel they were cheated out of enjoyment and are determined to get their revenge by traveling now and traveling more. There has been much conjecture about why demand surged:
Fly-to destinations were off limits, but most of our drive-to destinations were open for guests.
After spending no travel budget, people had money in the bank to blow.
Guests were frightened to stay in hotels and properties with shared amenities.
Visitors were able to social distance in a home with just their families and feel safe.
They did not have to interface with or, even, meet rental staff.
Vacation Rentals have always required greater cleaning and sanitation.
Guests could work from home and study from home, but using your home.
Customers who had never rented a vacation rental (Newbies) did so.
The entire industry has jumped up in size, almost overnight.
No one else cites this next motivation - but I think many people decided to "Live for today, because tomorrow may never come". Society has decided to enjoy life now, to spend time with family now and, yes, to travel now. No one wants to worry so much about the future because - well, who knew (and who knows) the future.
With the stellar numbers our staff have been producing for clients, was it just luck? This months' newsletter answers that question resoundingly.
The quote "Hope is not a plan" is attributed to many people, but our plan it is what enabled us to produce stellar results during Covid, while others plunged. We didn’t just hope to be ready for the unexpected, we had a plan ready to launch for anything and that plan has never waivered:
Hire committed, compassionate, hyperactive people.
Make partners of all responsible staff.
Commit to continuous training, education, growth.
Be leaders in our industry, study more than everyone else.
Pay people well and treat them with respect.
Another quote, "A rising tide lifts all boats" is attributed to President John F. Kennedy. In lodging, that means everyone in our industry should be doing well at this time. Supply has grown, but demand has outstripped supply quicker than ever before.
The feeling of euphoria that every lodging owner feels may be misplaced. They are just going along for the ride. But just securing many bookings does not mean your property has generated maximum profit. If your manager is not using every possible technique to help your property, you are losing out.
The next quote is "All good things must come to an end" is a proverb dating back to Chaucer in about 1374. For lodging that may mean several things:
The jump in lodging could end overnight, but probably not.
The arrival of newbies just means the market is bigger.
And is likely to stay bigger than it was.
But maybe not as big as currently.
Owners can celebrate their recent gains, but sock away some of their windfall profits and, most importantly, use a management company that pushes to adopt every proven technique and tool that comes along to help properties succeed.
We think and plan months and, even, years in advance. That is what made us ready for the unknown (Covid) and which makes us ready to serve our clients well into the future. We are investing more in technology, advertising, staff training, yield management and creative communications. Even the giant out of town managers can’t match our competence and speed.
Is your manager doing all of those things? Are they studying every possible idea that will keep your property on top? Do they live and breathe this industry, like we do? Or are they just taking a cut of rents without investing it back into themselves to help you do better.
John Wooden is the winningest basketball coach in college history. Some say, the best coach of any sport in any time. He has been my hero for as long as I can remember and he said. "Things turn out best for the people who make the best of the way things turn out."
That is what we did and will continue to do. Come on Covid, take your best shot. We double dare you.
Author: Wm, May, Vortex Managers
Blog #: 0822 – 06/30/21
Sponsor: Vortex Organization – We train quality people to help run unique Inns, Resorts and Vacation Rental Management companies, in an industry that has been a webby net of technology combined with good old fashioned property, guest and owner services. – VortexManagers.com
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