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Lodging Update March 31st, 2019

By Wm. May
Published: 03/31/19 Topics: Vacation Rentals, Vortex Managers Comments: -

Everyone agress that the very best reason for buying a second home is to love it, to bring family and friends to a favorite place, and for everyone to enjoy themselves.

The internet has made another trend possible, and that is for everyone to make better use of their assets.

For example, instead of owning a car that sits parked most of the time, you can share one (so to speak) with your Uber driver only when you need it. If you own a vacation rental home, you can earn money from it when you are not there.

The high mucky mucks of finance would call this "asset utilization" with the acknowledgement that achieving better utilization is always the goal.

Many people jump into vacation rentals with the misconception that the simple way to get maximum income is to set the highest rates. Unfortunately, setting rates has become a strange amalgam of art and science.

So this month, we will dip into the arcane area of rates and pricing.

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- Who sets the rate, the owner or the manger?

- What would the nightly rate be for my home?

- How many nights will it rent?

In the simplest form, answering those questions may sound a bit too glib. "No one sets the rate. The market sets the rate". or "The number of nights will be dictated by the rate."

This does not mean that rates must be low because that leaves money on the table, but setting rates too high on some dates will cause occupancy to crash. The only technique that works is to charge the "very right" price for every day of the year. That is easier said than done. Here is how we go about that process.

DYNAMIC PRICING - The use of seasonal rates has been around forever, albeit in a rudimentary fashion. Set high season rates higher and low season rates low, weekend rates higher than mid week. With dynamic pricing, different rates can be set every day of the year. Rates may need to be adjusted frequently, sometimes as often as daily.

EXACT INSIGHTS - Third party research services sample millions of units every day of the year, for many months or years in advance, querying billions of points of data daily. This reveals what competitors are doing as well as global, regional and local trends. IT builds a graph of price short term and long term to visualize trends and pick optimum yield.

LOCALIZED STRATEGY - Globally based managers get lost in the details and seldom know local events that allow us to tweak prices for better rates and occupancy. Combined with dynamic rates even changes of 5 to 10% can yield more income to owners.

PERSONALIZED STRATEGY - Even within a geographic market, there are rate differences between homes. Luxurious places get higher rates, but there are guests for every type of property. This is done by determining the relationship between homes, those we manage and those we do not.

UPGRADES: Should owners change amenities, add a hot tub or make other improvements, we must revise photos, descriptions, and then anticipate up ticks to capture more income quicker.

OWNER GOALS: Generally rates are within fairly narrow ranges and when science is employed, every home produces more net income than before. Our job is to find the sweet spots between "supply and demand."

We start with the premise that every owner wants to achieve the maximum net income for their property. We understand that some owners present ulterior motives. Some feel they must have a higher rather than a neighbor feeling that their home is superior, or they set a "Rock Bottom" rate that is so high those cut down the number of bookings.

Our approach is more scientific than local competitors and more intricate than the national firms can deduce. The goals is to have the right price every night, and to have it every night in advance, to attract early and late bookers alike.

Clients should buy a second home because they will love and use it. Now with our efficient pricing tools and daily attention to rates and occupancy, they will get the highest asset utilization for the days they do not use the home.

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Author: Wm. May, Vortex Managers
Blog #: 0658 – 03/31/19
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

Lodging Update February 28th, 2019

By Wm. May
Published: 02/28/19 Topics: Vacation Rentals, Vortex Managers Comments: -

Here is a mish mash of "Did You Know" facts, figures, statistics, and plain ol' good wisdom we have picked up over time. DYK - Our definition of "Hospitality Clean" is defined as cleaner that most people leave their homes just after they've done a deep clean. Guests demand clean above all else. Read more

Lodging Update January 31st, 2019

By Wm. May
Published: 01/31/19 Topics: Vacation Rentals, Vortex Managers Comments: -

Vacation rentals are a seemingly simple industry. How tough can it be? Run some ads, take reservations and money, give keys to the guests, find a housekeeper and do it all again. But a day in the life looks little like that. Read more

Lodging Update December 31st, 2018

By Wm. May
Published: 12/24/18 Topics: Vacation Rentals, Vortex Managers Comments: -

DO YOU WANT THE MONEY? If getting the money is not your goal, you may find even the smallest aspects of landlording might make you uncomfortable Read more

Lodging Update November 30th, 2018

By Wm. May
Published: 12/24/18 Topics: Advertising, Dynamic Pricing, Government, Online Travel Agents (OTAs) Comments: -

Yes, in this industry it really is always something. Something unexpected, something unknown, something new.. REGUATIONS - After decades of operating alternative lodging for guests, cites and towns have begun to restrict, regulate and even prohibit vacation rentals osensibly because they take away affordable housing. It is silly to think that people with expensive second homes are going to rent them out long term for low rates. Its always something out of the blue.. Read more

Lodging Update October 31st, 2018

By Wm. May
Published: 12/23/18 Topics: Advertising Comments: -

Why would Budweiser Beer buy a half dozen ads in the Super Bowl broadcast for about $5 million dollars each? Most viewers watch the entire game, wouldn't just one ad be enough? Is Budweiser stupid? Read more

Lodging Update September 30th 2018

By Wm. May
Published: 12/23/18 Topics: Education, Employment, People, Reputation Comments: -

Today's world is full of negativity, aspersions, and personal attacks. This is nothing new. There have always been negative people but there has also always been some people, a smaller number, who always manage to remain positive. Read more

Lodging Update August 31st 2018

By Wm. May
Published: 12/23/18 Topics: Comments: -

Some call it "Dynamic Pricing." Uber calls it "Surge" pricing, Disney World calls it "Crowd" pricing and supermarkets just call it a plain old sale. Read more

Lodging Update June 30th 2018

By Wm, May
Published: 09/27/18 Topics: Comments: -

With the sun beating down, it's time to repeat some of the funny, wacky, crazy and just plain perplexing things we hear in the lodging industry. (We make none of this up.) Read more

Lodging Update July 31st 2018

By Wm,May
Published: 07/31/18 Topics: Comments: -

Tiny things make all the difference in any endeavor. Here is minutiae about vacation rentaling - How we do it and why our way is better. Read more

Lodging Update May 31st 2018

By Wm, May
Published: 05/31/18 Topics: Comments: -

This is a story of a vendor gone bad or, more accurately, that started badly. The industry news is filled with companies (usually start-ups) with new products all claiming to be the next big thing for vacation rental managers and owners. Read more

Lodging Update April 30th 2018

By Wm. May
Published: 04/30/18 Topics: Comments: -

Creativity is a word that everyone throws around yet most people don't understand nor do many people master it. Read more

Lodging Update March 31st, 2018

By Wm. May
Published: 03/31/18 Topics: Comments: -

Some owners want full-service from their vacation rental manager - to provide global advertising, attentive reservations, hospitality grade housekeeping, careful maintenance and guest services. Other owners really only want help with on-site services while others just need extra bookings for maximum income. Read more

Lodging Update Feburary 28th, 2018

By Wm. May
Published: 02/28/18 Topics: Comments: -

Guests decide just about everything. It is not up to the manager to dictate what guests want. With the internet, guests are given so many options. When a property is missing just one essential amenity, you can lose inquiries and guests. Read more

Lodging Update January 31st, 2018

By Wm. May
Published: 01/31/18 Topics: Comments: -

For the first time ever we are revealing the secrets of advertising, the magic of marketing, and the persuasion of promotion. These are insider tips that generate vivid visibility for every property and increase inquiries and large bookings. Read more

Lodging Update December 31st, 2017

By Wm. May
Published: 12/31/17 Topics: Comments: -

The term "High Definition" may apply to your television but "High Dynamic Range" photography refers to a technological process so powerful that it has been patented by Adobe Software. It's so powerful that our company committed to the cost and quality over a decade ago. Read more

Lodging Update November 30th, 2017

By Wm. May
Published: 11/30/17 Topics: Advertising, Dynamic Pricing, Housekeeping, Vacation Rentals Comments: -

Many of our day-to-day services for property owners are hidden, but essential. Take for example - a day in the life of the reservation staff. Here is a peek. Read more

Lodging Update October 31st, 2017

By Wm. May
Published: 10/31/17 Topics: Comments: -

Here are some of the things we provide to offer the most comprehensive serivce in the vacation rental industry. We do them all because, well they are all required to provide the very best management services. No one else can match all of these. Read more

Lodging Update September 30th, 2017

By Wm. May
Published: 09/30/17 Topics: Comments: -

Many of our day-to-day services for property owners are hidden, but essential. Take for example - a day in the life of the reservation staff. Here is a peek. Read more

Lodging Update August 31st, 2017

By Wm. May
Published: 08/31/17 Topics: Comments: -

Many of our day-to-day services for property owners are hidden, but essential. Take for example - a day in the life of the reservation staff. Here is a peek. Read more

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DETAILS: We work to keep this information up to date, but details do change from time to time based on circumstances, often on short notice, and sometimes beyond our control. To verify any answer or other information you may need, please call or email us anytime. Allow a reasonable amount of time for response. Only legitimate inquiries will be answered.