You may perhaps have recently entered into Vacation Rental Business. If managed properly, it can give you good profits. But new business owners are found to commit some mistakes that could prove to be costly in the near future. You need to be aware of such mistakes so that you can avoid them to achieve success in your venture.
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Worst mistakes made by Vacation Rental Business
1. Listing on only a couple of platforms:
Your target audience should be able to find your business quickly and easily. Only can it flourish and reach set milestones. But to achieve this feat, listing it only on a couple of platforms will not do. Target listings on leading OTAs (online travel agents). If you have secured a listing with HomeAway and Airbnb does not necessarily mean you have fulfilled your task. Also, list your business on smaller platforms. Although the latter might not command a large number of audiences, it can help enhance your business exposure.
2. No dynamic pricing:
A challenging aspect noticed with such a business is establishing a pricing structure. Try to break pricing into peak season rates. This means lower prices due to low demand and higher prices during high demand. Dynamic pricing is found to be a better choice. Do implement proper dynamic pricing mechanism after considering business Risk Assessment. For this, you might be required to invest in sophisticated technology. This allows you to fix rates depending on several aspects like local events demand and availability.
Also Read: How to Start a Rental Property Business During Recession
3. Insufficient amenities and facilities:
Your business might be catering to a low-budget audience. But this does not mean it should be missing basic amenities and facilities. Property Management should be taken care of. Guests of all budgets expect to receive free Wi-Fi. Not providing them with free Wi-Fi will only mean losing your business. Also, consider the facilities sought by your guests based on your region’s climate condition. Heating will be desired in cold regions while air-conditioning or cooling desired in humid, hot conditions.
4. Lack of quality photos:
Not providing superior-quality property images will mean investing in a poor Customer Service Strategy. Top businesses in this industry hire professional videographers and photographers. Images taken on a phone camera should not be uploaded as it is not professional looking. Also, multiple photos should be taken of each room from diverse angles. In case your business is located at a scenic place, then take photos of those views also. Be honest with your property photos. Avoid using filters in them just to enhance its appearance. This way, your guests can get to avail what they had seen earlier in the photos.
5. Lack of proper and regular maintenance:
Improper Property Management will only mean sure business failure. What if your guests arrived only to find problems arising in the plumbing? Hence, every aspect associated with your vacation rental should be well maintained. If anything is damaged, then repair it immediately or simply replace it. The objective is to provide your guests with the maximum comfort possible. With regular maintenance, severe damage to property can be avoided. It also helps save precious money and ensures customer satisfaction.
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6. Poor hospitality:
Perhaps, you are offering the very best facilities to your guests at your vacation rental. But what about hosting your guests? If it is done wrongly, then those facilities are not likely to count. Every person wishes to be treated properly. In case you chose to operate your business without any help, then have a smile always. Establish a proper Customer Service Strategy. Accommodate guests’ wants wherever possible. In case you have to hire employees for assistance, then train and retrain them. Well-remunerated staff will not only be happy but also take proper care of your guests.
Realize the mistakes
Thus, getting to know the mistakes and avoiding them will enable you to move towards success. A proper Risk Assessment strategy will also help your business to be among the most demanded ones in the region.
Source: Cosmo Politian