The vacation rental industry is one of the booming industries out there with unreal potential.
As per Statista, this industry is expected to hit a market volume of US$113.50 bn by 2028.
However, driving the desired revenue can be a tough row to hoe, because the vacation rental industry is highly competitive with top players vying for the first spot. Also, expenses like cleaning, maintenance and property management are high, which can squeeze profit margins.
But, there is always a solution for every problem, right?
If your vacation rental business is struggling to boost income, fret not. Below, we have given 8 ways you can improve your revenue.
Let’s take a look.
1. Invest in Revenue Management Service (RMS)
Getting RMS is the most important of all ways. Think of it as your vacation rental’s autopilot for pricing.
For instance, at mr.alfred, we provide Revenue Management Services. So, if you avail of this, you’ll get a dedicated team of experts who adjust the rates of your vacation rentals according to seasonality, local events, and competitor pricing, ultimately helping to squeeze out the best revenue.
To be precise, our RMS includes the following:
Simply put, our RMS comprises everything you need to maximize your revenue.
And, if you combine it with our Property Management System (PMS), you have got yourself a deadly duo!
Want to learn more about our RMS? Get started.
2. Get Listed on Multiple OTAs
While listing on just one channel might seem convenient, it limits your reach.
A study by Expedia Group shows that 80% of travellers use OTAs to book vacation rentals.
The same study also stated that travellers spent most of the time (160 mins) on OTAs before making a booking.
That’s not all, most of the travellers book through OTAs.
All these indicate the importance of being present on multiple OTAs.
By spreading your listings across popular OTAs like Airbnb, VRBO, Booking.com, and Expedia, you expose your rental to a wider audience, significantly increasing your booking potential and revenue.
3. Automate Everything
Automation simplifies your processes by twofold or beyond.
Don’t take our word for it. Here is what a study by Zapier on automation says:
Furthermore, it could also cut some slack for your employees. Check the graph given below.
The wise move would be to implement a Property Management System (PMS). With a PMS like mr.alfred, you can automate almost everything such as guest inquiries, booking confirmations, channel management and more. This altogether streamlines your operations and management, leading to boosted revenue.
Here’s an overview of what mr.alfred offers in our PMS:
Click here to view all the features.
4. Keep Your Listings Up-to-date
Regularly update your listings with fresh photos that showcase the property’s best features (spacious living area, stunning view, inviting pool), accurate descriptions, and any amenity changes to ensure your rental remains attractive and informative to potential renters, leading to potential bookings.
Imagine a guest searching for a vacation rental and coming across a listing with blurry, outdated photos. It wouldn’t exactly inspire them to book a stay, would it?
5. Give the Best to the Guest
From providing top-notch amenities to offering exceptional customer service, go the extra mile to ensure your guests have an unforgettable stay.
This will translate into glowing reviews that attract future bookings and also help bring back the same guests in the future.
Additionally, this will initiate word-of-mouth marketing, which improves your brand awareness and potentially brings more guest enquiries, leading to boosted income.
(Stat Source: Zippia)
6. Get More Customer Reviews
People look at reviews before they book their stay.
That’s not all. A study by Bright Local states that most consumers trust online reviews as much as personal recommendations from friends and family.
The same study also states that customers always read reviews while researching a business.
The bottom line is that reviews dictate whether you’ll receive bookings in the future. Hence, try to fetch reviews from customers.
To make review posting easy, we recommend using mr.alfred’s PMS where you have the option for automated guest reviews, which helps you request reviews from guests and monitor them easily.
7. Improve Your Online Presence
It’s pretty much known to us that almost everyone uses the internet nowadays. From learning, and researching to purchasing, everything is done online.
In fact, 5.32 Billion people use the internet today (Source: Data Reportal).
The study also shows that 74% of internet users leverage social media for brand research.
What’s more, search engines and social media are 2 of the top 3 sources of brand discovery.
Furthermore, search engines and social media are the main online channels for brand research.
In a nutshell, having an online presence means better brand awareness and a better chance for more guests, thereby boosting your revenue.
Winding Up
With all the competition and expenses involved in the vacation rental industry, maximizing the revenue can be quite a task.
However, having an RMS system, listing on multiple OTAs, automating processes, updating listings, providing the best guest experience, encouraging more customer reviews and enhancing online presence are some of the vital ways to boost revenue. Hope that helps.
If you want to streamline your vacation rentals, make sure you check out mr.alfred’s PMS. We also provide a free demo so that you can get first-hand experience before actually using it. Contact us now to book a demo.
