August 2017 Update: We will be heading to the VRMA National Conference 2017 from 15 to 18 October. If you would like to meet there, just get in touch!
Every October Avantio takes part in the International VRMA (Vacation Rental Managers Association) Conference, of which Avantio has been a member for over two years.
This global annual event presents the industry news, holds debates on the most important issues, evaluates the sector growth and new business opportunities, as well as detects and deliberates on the changes provoked by new technologies, new players in the market and legislative reforms.
This event resembles a worldwide showcase where you have an opportunity to track the origin and directions of the vacation rental industry. However, it is important to look at both the European and American markets and analize them from two perspectives, since these main markets grow and develop in markedly different ways.
This year, 2016, the conference took place in Phoenix (Arizona) where the crucial issues that are fundamental for the majority of businesses were discussed.
Build and increase your business, from the industry changes in vacation rental 2016
The key points of the conference are the following:
- The tourist and vacation rental market has expanded significally over the last year, especially in the North America, where in 2016 it increased by 67% according to Ben Drew, the Senior Director of Business Development of Vacation Rentals of Tripadvisor. The data predicts that the business turnover will reach $37,000 million in 2018. That leads to the growth of competition both from the private and professional sectors.
- It was mentioned that due to the double standards that represent tourist and vacation rental with regards to the city and beach rents, it is highly likely that both concepts will merge and generate the new concept ‘Private Rent’. This not only solves the linguistic problem, but also opens the door to the perception of incorporating other activities from the private sector as well, that would help to complete the package of the services offered.
- Demand for and offers of the additional services are growing in order to be incorporated into the business as enhancers. Both platforms and property managers are becoming more aware of what the tourist consumes and that the rent represents only 35-40% of the expenses of vacation or business stays. Therefore, more and more companies perceiving themselves as a potential services providers, include offering additional services to make the booking more profitable. It is up to you which services to include to enhance your vacation rental business.
- The only possible way for a professional vacation rental property manager to do business is to increase the number of properties it offers to the customers. Due to strong competition, the most appropriate way to guarantee the quality in the property management is to use technological tools, saving time with the best vacation rental software. There are only a few options available: either grow with the demand or disappear as the competition makes the agencies manage more properties, probably with lower profit margins.
- As the competition grows, it forces a professional manager to notably improve the offer available: the quality of its products, integration of services and better treatment of customers. The effect of guests’ reviews is becoming more and more powerful, thus, the agencies should focus on:
a. Check-in and welcoming of guests.
b. Welcome gifts for the guests.
c. Basic services included in the booking price.
d. Bonuses, promotions and discounts to ensure customer loyalty.
Ultimately, the property manager should take better care of guests, gain their loyalty and strive for the company’s brand to construe the relation between experience and the services rendered, like Airbnb and Booking.com.
The industry, particularly Avantio, has been working with these aspects for several years already.
The vision of evolution and growth of the sector has been right – there is no future for software that does not let you to expand your business without increasing the costs, that does not allow you to manage the services or amenities in a simple way or that does not allow you to automate the management of day-to-day issues and requirements that may arise between clients and agents, or portals.
In Avantio we are proud to see that our contribution at an international level is recognized and appreciated in such a demanding and complex market as the North American Market.
We look forward to sharing this information with our clients and readers, since in the professional sector we would like to become a role model for the existing and future professionals of the vacation rental sector.