Changing Landscape Industry shifts affecting the dual mission - - PowerPoint PPT Presentation
Changing Landscape Industry shifts affecting the dual mission business model for vacation rental mangers Amy Hinote, VRM Intel Magazine VRM INTEL MAGAZINE Inaugural Vacation Rental Womens Summit, Ritz -Carlton, New Orleans February 19-20,
Amy Hinote, VRM Intel Magazine
Industry shifts affecting the dual mission business model for vacation rental mangers
VRM INTEL MAGAZINE
Inaugural Vacation Rental Women’s Summit, Ritz-Carlton, New Orleans February 19-20, 2019
hat happened?
hat did w e learn?
nd ho w am azing is it that w e are finally s tarting to get real-tim e, integrated data in the indus try?
09
Vacation rental leading indicators (USTA and STR)
03
E co no m y U p U p U nem plo ym ent D
D
n C
um er C
U p U p R eal E s tate M arket U p U p H
evP A R (M ay + 3.3%, J un + 4.6%, J ul + 1.8 %) U p U p Internatio nal Travel D
n w n D
es tic Travel U p U p G as P rices S ta table ble V acatio n R ental A w arenes s U p U p
2018 Summer YOY VR Occupancy Rates: FL Panhandle/AL Gulf Coast Provided by Key Data Dashboard
43% 68% 73% 38% 41% 66% 70% 42%
0% 10% 20% 30% 40% 50% 60% 70% 80%M ay J une J uly A ugus t
60
2018 Summer VR YOY Average Daily Rates (ADR) : FL Panhandle/AL Gulf Coast Provided by Key Data Dashboard
$258 $350 $374 $272 $240 $331 $349 $237
$0 $50 $100 $150 $200 $250 $300 $350 $400M ay J une J uly A ugus t
60
2018 Summer VR YOY RevPAR: FL Panhandle/AL Gulf Coast Provided by Key Data Dashboard
$110 $238 $271 $102 $97 $218 $245 $99
$0 $50 $100 $150 $200 $250 $300M ay J une J uly A ugus t
60
2018 Summer VR YOY Booking Window (Days) : FL Panhandle/AL Gulf Coast Provided by Key Data Dashboard
70 87 81 66 72 89 77 62
10 20 30 40 50 60 70 80 90 100M ay J une J uly A ugus t
60
2018 Summer VR YOY Combined Metrics: FL Panhandle/AL Gulf Coast Provided by Key Data Dashboard
64
10.53%
2.86% 2.30%
0.00% 5.00% 10.00% 15.00%
M ay J une J uly A ugus t O ccupancy A D R R evP A R B
indo w
US Travel Association: Travel Trend Index
07
Leading Economic Indicators for Travel (US Travel Association)
07
Vacation rental leading indicators (USTA and STR)
03
E co no m y U p U p U nem plo ym ent D
D
n C
um er C
U p U p R eal E s tate M arket U p U p H
evP A R (M ay + 3.3%, J un + 4.6%, J ul + 1.8 %) U p U p Internatio nal Travel D
n w n D
es tic Travel U p U p G as P rices S ta table ble V acatio n R ental A w arenes s U p U p
2018 Summer VR YOY Combined Metrics: FL Panhandle/AL Gulf Coast Provided by Key Data Dashboard
03
M ay M ay J un J une J ul J uly A u A ugu gus t s t O ccupancy
10.53% A D R
%
%
7% R evP A R
2%
.40%
B
indo w 2.8 6% 2.30%
O TA G ues t F ees H igher? P
ricing? M
ry? C hanging C
um er B ehavio r? D es tinatio n O ut o f F avo r?
02
New generation of vacation rental management companies are structured differently. They are organized to
businesses under one corporate entity.
21
B2C
Consumers
B2B
Owners Real Estate
e.g.,Linens & Laundry, Other Services
Dual Mission Business Model
12
B 2C : B us ines s to C
um er B 2O : B us ines s to O w ner
Changing landscape in vacation rental ecosystem
26
TA s
ata and pricing
erchandis ing
m ediacy
lanning s tage
ew face o f cus to m er s ervice
2B lead gen & bus ines s dev
m unicatio ns , U S P , & tho ught leaders hip
ro perty care: new differentiato r
B 2C : B us ines s to C
um er B 2O : B us ines s to O w ner
37
B2C Change #1. OTAs
TA s pro vide acces s to gues ts w ho w
t o therw is e find yo u.
xpedia and A irbnb s till have gues t fee but are tes ting.
m — no gues t fee.
verall O TA fee s tabilizing at 10-15% + channel m anagem ent fee.
rdparty m
etas earch
OTAs (cont.)
een s
are co m panies and O TA s
TA s s truggling to m anage gues t expectatio ns . ➢ S ubjective expectatio ns ➢ C ancellatio n po licies ➢ M erchant o f reco rd/travel ins urance is s ues /ratings
37
B2C Change #2. Pricing
trategies and fees can caus e a decreas e in bo
and a lack o f pro fitability.
ees and rate parity (N et rates , co s t plus , and pas s ing o ff m arketing co s ts to
ner)
um er trus t in pricing
aulty co m p s ets
eal-tim e, s
are-integrated co m parative data and pricing to
37
B2C Change #3 Merchandising
11
B2C Change #4. Immediacy
inute G
indo w
gents w ho res po nded to a lead w ithin 5 m inutes
s ubm is s io n w ere 21 tim es m
likely to enter the s ales pro ces s than if the agent had res po nded 30 m inutes after the s ubm is s io n.
uto res po nders are no t a replacem ent fo r inquiry res po ns e.
37
B2C Change #5. Planning Stage
P M s are us ing the planning s tage o f the vacatio n to build the relatio ns hip w ith co ncierge s ervices , calls , m ailings , and s pecial s urpris es .
37
Inceptio n P lanning V acatio n M em
Example, Inspectors could be replaced with STAGERS. Inspectors judge past housekeeping performance. STAGERS make sure all if perfect for the coming guests.
B2C Change #6. Customer service looks a little different.
Housekeeping and maintenance teams are the new face of the company.
42
Dual Mission: B2O Built like the B2B Business Model
Differentiation
10
B2B sales and marketing funnel utilized by large multi-destination management companies.
14
1.Tell yo ur bus ines s s to ry 2.Identify and differentiate yo ur s ervice 3.D eterm ine U S P 4.B uild authentic tho ught leaders hip 5.U s e data, facts and authentic tes tim
6.U s e the m edia and co m m unity fo rum s
Communication and Promoting Thought Leadership
33
Property Care is the New Differentiator
11
ro fes s io nalis m 2.C
petitive A dvantage 3.Invento ry A lerts 4.R eal es tate appreciatio n
Amy Hinote, VRM Intel Magazine
Industry shifts affecting the dual mission business model for vacation rental mangers