The links below are some presentations from vacation rental conferences over the last couple of years.
BOOK DIRECT
With so much #BookDirect activity, much of it by people interested in selling their wares, this is an expose of what life is really like. 99% of all attendees’ properties were on OTAs, and they could not survive without them. Book Direct is more about rebooking old customers with no organic traction.
The presentation was to argue for OTAs and question the amount of expense and effort that can be applied to direct marketing with minimal impact.
MIDTERM OPPORTUNITY
The presentation focuses on the premise that managers have a very narrow marketing focus and often ignore opportunities that are staring them in the face.
In particular, the mid-term and corporate hospitality space has enjoyed great booking years, but STR is now seen as an option by employees and corporate travel departments. The two markets sit alongside but rarely cross over, hence “Sliding Doors” which path did you take? This presentation highlights the opportunity and looks at how to reach into new channels and use them as part of a more developed marketing mix,
MANAGERS vs RBO.
It was a don’t throw tomatoes moment for managers as an owner/host vs. manager debate ensued. Data and global market information support the idea that small managers are at the mercy of individual owners.
Guests’ reviews of owners’ properties are better, and Airbnb provides the tools and opportunity. If you were starting out as a manager, would you see the RBO DIY business as a future threat? Airbnb is focused on hosts and co-hosting. It needs managers who are not loyal, and owners come first!
FRANCHISING. YES OR NO?
Have you ever considered running or starting an STR franchise? We look at the official and unofficial franchises, the costs, the actual franchisee opportunity, and the upsides and downsides of being one or the other.
We touch on penalties and Airbnb’s co-host program, which is almost a mini-franchise and argue for and against the Franchise model, which comes in many shapes and sizes. Are you just a cleaner, and is the value at the technology and booking end? Can you do it yourself with some simple tech and reading some books? Are the brands powerful enough?
M&A: Acquisitions of businesses in the rental sector are not infrequent, but like most things in this industry, selling and buying present challenges.
Value, timing, locations, income, margins, staff, contract or asset values, share purchase, due diligence, etc. Even then, the acquiring company may encounter change barriers, cultural differences, owner churn, and much more. This is why M&A is very much like courting or dating, followed by engagement and sealing the deal with a marriage. Both parties must want this, and the exploration of opportunities is paramount. These few slides were a nod in this direction rather than providing that very long checklist of things to consider. Are you a good match?