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Vacation Rental Guest Psychology - Lodging Newsletter June 30, 2020
By Wm, May
Published: 06/30/20 Topics: Lodging Newsletter, Marketing Comments: 0
Well, where do I start? It has been a wild ride since the outbreak of the Covid-19 virus.
First, it was the massive economic slow down. But then, slowly, lodging guests realized they could "Get outta Dodge" and stay in a nice clean private vacation home, with contact-less entry, quarantined with their families, but still get out and about in nature.
Vacation rental bookings have rebounded in all our areas, and jumped hugely in some areas. As mentioned in last month's update letter, our super secret S2D2 Yield Management software prompted us when demand plummeted, but also alerted us to pump up rates when demand then jumped.
The result has been higher income for June and July. August is strong, too. And, with schools not re-opening, we think summer demand and, even, rates can continue into September.
Forgive us for gloating yet again, but we giggled as the local competitors were asleep and snickered as carpet bagging out-of-town managers missed the trend, because they are not in touch with every local market. Some panicked early and dropped rates by half.
We did the opposite and our clients are profiting.
The first office in our network opened in 1964 and we have been watching and learning as consumer behavior and habits change. Never have they changed as greatly and as rapidly as with the virus.
Here is the story.
The Advertising Industry has always been greatly misunderstood. It is not all commercials with beautiful celebrities and cavemen selling insurance on TV. On the Internet, advertising is not all about search engine optimization, pay-per-click Google ads or Facebook's spying on its members.
Having started in the ad agency business, I have spent decades watching, studying and anticipating what customers want to buy. Ad pros never try to sell things to people who don't want them or don't need them. And not just because they want to be ethical, but because they know it's not sustainable.
Famous advertising professor, Ed Bannister, startled his class when he said, "Good advertising just makes a poor product fail quicker." (People try it, hate it, and forget it.)
An agency partner one said, "Advertising is easy. You ask people what they want and then you give it to them." Never has this been more true than during the last four months of a pandemic.
With the advent of vacation rental websites just 20 years ago, travelers figured out that staying with their family in a private vacation home is simply a better deal than staying in a cramped hotel room, with no kitchen, no living room, long walks to the parking lot, and outrageous rates - on a per-guest basis.
The 9/11 tragedy frightened the world, of course, but slowly travel returned. The 2008 recession took away discretionary income, some of which would have been for travel. Slowly it rebounded.
Some guests fall for the pitch from Online Travel Agencies (OTAs) such as Expedia, because they buy the pitch that all bookings are cancellable, that the OTAs list all lodgings, and that they can earn "points" that may have some value.
VRBO.com implied that guests were booking with the "Owner" when, in fact, the majority of properties --especially the well maintained, properly cleaned ones -- are from professional managers. But some guests fell for it.
AirBnB sold guests the option of renting a couch or room in someone's house, until they figured out that guests really want private vacation rental homes. AirBnB produces lots of bookings, but guests can be -- shall we say -- weird. Such as expecting the host to meet them for a drink when checking in, even if it's late at night.
At first Covid pushed people into panic, but then travelers ran out of patience and figured out that the safest lodging option is to rent a professionally-managed private vacation home.
We soared because we always ask customers what they wanted. Yes -- our cleaning exceeds high hospitality standards. Yes -- you can check in without "touching" anyone. Yes -- you can bring your family. Yes -- the homes have solid internet so guests can work while vacationing. And oddly, no -- there are no early check-ins to assure the home has been sufficiently empty prior to arrival. (That is the answer the guest actually wants to hear.)
Our ability to adapt to the changing market place has given even more visitors wonderful vacations and our property clients even more money. If your vacation rental home income has not soared, please give us a call. We'll fix it.
Author: Wm, May, Vortex Managers
Blog #: 0772 – 06/30/20
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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