Vacation rental News
Make Extra Money From Alternative Business Opportunities
The average vacation budget for an average family in the Us is between $4,000-$6,000. This varies, of course, depending on how many members in the family, the duration and distance.
Independent of the budget, there are always approximate percentages that guide where or what travelers spend their money on when they decide to go on vacation.
Talking about approximate percentages, on average 20%-25 of the budget is spent on travel, 30%-40% is spent on accommodations, and 35%-50% on experiences, dining, activities, etc..
OTA´s Like Airbnb and Booking.com know this, which is why they also provide their customers options to buy experiences, tours, museum or event tickets, shuttles etc..
Long ago, property managers used to be purely a key and property provider. They would just provide the key and that was it, and in fact, there are many property owners that still do. Professional property managers, however, saw the opportunity to sell extra services and products to squeeze more revenue out of each booking, and it works.
Margins on services and events are quite high, sometimes even bigger than the margins that the property managers can get out of their rental from their owners.
Below is a small list of extras or services that Property managers are regularly offering to their customers and that are making their business more efficient. In reality, there is no need for extra work or expenses in the organization, it is only a question of seeing the margin and the benefit out of what your customers really need and demand of you most of the time. Indeed it may be seen as a better quality service and an option to increase your revenue from your main business.
Depending how your customers reach your properties, here is a list of extras and/or services:
- Shuttle service from and to Airport
- Welcome Pack (basic for breakfast or dinner)
- Basic list Supermarket purchase
- Extra Daily Cleaning Services
- Extra Towels and Sheets replacement every 3 days
- Guided tour ½ day for the whole family
- Historical and Gastronomic visit to town
- Any Rental services like cars, boats, bicycles, motorcycles, canoes, kayaks, paddle boards
We could write a 10-page list but the idea is to show that 95% of your customers do consume, and you know these services, they ask you for a recommendation or they directly ask you for help to find them.
We have listed 8 different services. Your margin could be between $20-$50 for each service, so minimum $180 or maximum $400. Would this represent 50% or 60% of your actual commission for the rental if the rental period is around 5 days?
There is a huge opportunity but many property managers are still focused on the organization and not the business. Our recommendation is to create a department at your agency and make someone responsible for upselling, to earn more revenue with less effort from each booking.
If you are too busy to make it possible, at least try to find a partner or a business associate that could cover this part of the business on your behalf and get paid a cut for it.
There is a way and a margin to make extra money out of alternative business opportunities.
Avantio Vacation Rental Channel Manager News
The latest news and updates from the Avantio Vacation Rental System
Video for Vacation Rentals: 9 Video Tips and Tricks Every Property Manager Should Know
If you’ve ever researched a destination online, you’ll know that videos are the best way to get a sense of the place. Whether...
9 Smart Direct Booking Strategies Property Managers Are Using This Year
Property managers know how important it is to list properties on a wide range of vacation rental sites. But if you only rely...
Vacation Rental Statistics and Trends [Updated List for 2021]
Trends have changed dramatically in the last year, so we wanted to uncover the truth about what’s really going on in the vacation...
7 Tips to Radically Improve the SEO of your Vacation Rental Website
You know that good SEO needs to be part of your vacation rental marketing strategy, especially if you’re aiming to increase your profits...
How to Appeal to the Luxury Traveler and Get More Reservations for Your High-End Villa
The luxury traveler is not your common guest. Find the best tips to promote your high-end villas and fulfill the expectations of your guests.
How to Market Vacation Rentals: 7 Steps Expert Property Managers Take
How to Market Your Villa Rental: 7 Steps All Expert Vacation Rental Property Managers Take.
Avantio Winner as Best Property Management System Second Time in a Row 2021
This year has been one of the most challenging in the history of hospitality, despite this Avantio continues to innovate winning 2 awards.
The 4 Most Powerful Vacation Rental Channel Managers in 2021
Find out the 5 most powerful Vacation Rental Channel Managers in 2021 and why they might be an interesting option for your VR business.
8 Top Vacation Rental Sites to Advertise your Property in 2021
Choosing the right channel for your vacation rentals from a vast number of different platforms can be overwhelming for property managers. Especially when...