As holiday rental owners, that’s exactly what we want to do – increase profits from your holiday home. But how?
Some would advocate you invest as little as possible, offer your holiday rental for a mediocre amount of money each week and as a result fill it as many weeks as possible.
But why? When there’s so little profit per week in that model, but a lot of work.
Instead, focus on making more profit per booking rather than getting more bookings.
1. Create a holiday rental that stands out
Create a product that will allow you to charge more per booking. I always say “your changeover costs are the same whatever quality of product you have” so what sense is it to offer a product that is only worth £600 per peak week, when you could create a product that’s worth £900? Ok, there’s time, thought and a little money needed to be invested initially to create that quality product but believe me it will be worth it. You’ll re-coup this investment after one peak season. If you have the basics in place it’s often savvy, little changes that make the big difference.
2. Market to the right people
This quality holiday rental that you have created, needs to be marketed to the right people – the people who will appreciate what you have to offer and who will pay extra for a quality product. This is who you will be targeting and can be known as your ideal customer.
Get to know your ideal customer inside out – what do they read, what do they enjoy doing, what problem for them would a holiday at your holiday rental solve? Once you know them well, you can target your marketing messages directly at them.
3. Build relationships
– with your ideal customer on social media. Find where they hang out – Twitter, Facebook, Google+ ? Use these platforms to build relationships, in other words let them know you exist, what you can offer them and that you are there for them if they need you. But it’s not all about you and your offering, it’s more about them. Not easy, but this approach will bring in the bookings much more than turning them away with a “sell, sell sell” approach.
– with potential guests from their first enquiry. Respond within 2 hours if possible and show you care about them (not getting a booking) at all times. Behave with integrity, for example if you realise they want to be on the coast and you are 20 miles inland, don’t try to push them to book with you. You will get found out and integrity is everything.
– with confirmed guests all the way through the booking procedure, to their holiday, to when they get home. Gather as much information on them as you can (their interests, why they chose your holiday rental etc) which you can use in the future to continue to build relationships.
For more tips to increase your holiday home’s profit, then download my free guide: