VRWS October 2024
This presentation, first shown at the VRWS in Porto, reflects the enormous variation in margins and allocation to which business ledgers and various functions are allocated, with particular attention to staff, marketing, and technology. To analyse performance, we all need data and comparators. Surprisingly, few management companies regularly track their data on performance and financials. There are numerous reasons for this, but it is essential as the market develops further as corporations, politicians, and guests increase pressure levels.
Uncovering the magic
The initial concept was to uncover the successful operators and discover if they had some magic that allowed them to become more profitable than others. We also wanted to know if this was market-driven, knowledge and skills-based, staff business-age, technology-driven bookings, property style and quality/quantity, agency or complete management focussed—or just good financial and staff management.
The industry has many moving parts: two clients, operations, technology, OTAs, and staff management and all report financials in many different ways and for many reasons.
The vast majority of businesses are small, with less than 70 properties. Rentals (read Airbnbs) have become a global phenomenon that attracts legislation, politicians, and investors. Still, it is a trial of fire for small businesses often unable to cope efficiently and deliver a decent lifestyle through rich margins.
The Golden Bullet
Is there a golden bullet? The answer is no, but there are definite indicators of good practice, market approach, technology and business management.
Get Involved?
We have several small companies involved in our discussions. They all aim to exit their businesses with a successful multiple and a well-organised and sustainable company. No one company shares its data with others, but there are clear criteria that are all shareable on a percentage basis. We believe that through discussions on best practices and possible group buying, we can benefit the local companies and influence the supply chains. We will share best practices and any real magic we uncover in this process. Please use the contact form for this.
This is the link to download the VRWS presentation pdf
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