In these times of growing inflation and ever-changing demand for travel, proactively sharing key vacation rental data and analysis with owners is more important than ever. Getting ahead of any worries or concerns from your owners is essential to remind them that their properties are in the best hands.
Sharing the right metrics and information will go a long way in engaging with and strengthening your relationships with owners, which all adds up to stronger owner retention. In addition to sharing revenue, sharing just a few more metrics and analyses is crucial to helping them understand how their properties are performing. And if you can get ahead and manage your owners’ expectations in advance, explaining any drop in demand or helpful rate decreases will be much easier.
Share the Most Accurate Revenue Number: RevPAN
Year-over-year (YoY) revenue is one of the most common ways to measure short-term rental performance. However, (YoY) revenue growth does not always prove that you’ve maximized a listing’s revenue potential. This is where RevPAN comes in.
Revenue per available night, or RevPAN, shows a more accurate and equal picture of revenue management performance over a given period of time. Similar to RevPAR in the hotel industry, RevPAN measures revenue earned for available nights, and can give your owners great insight into the overall performance of their properties. It can help easily demonstrate the opportunity cost of owner stays or maintenance blocks that can have a substantial impact on performance, and it is a fantastic indicator of profitability, since it’s able to clearly communicate whether or not a property is effectively selling all bookable nights when compared to operational costs.
Beyond users have an advantage here as RevPAN is easily available in Insights on our revenue management platform, making it easy to pull this information to send to your owners (and no complicated calculations are necessary!).
Go Beyond YoY Revenue and Share Market Data & Insights
The past few years in the vacation rental world have not operated normally, so comparing year-over-year (YoY) can sometimes be misleading and doesn’t tell the full story.
Instead, share data that compares your owners’ property performance against the market. This will give them the most accurate view and pulse check of how their listings are doing. Note any discrepancies in the data and offer your expert analysis.
Share Your Strategy for Setting Your Minimum Prices
Most owners consider their property as an investment, and they expect to earn a return on that investment. Often though, they think of their minimum price as the amount they need to earn to be ROI positive. However, we know that this is not always the case. It will go a long way to educate your owners about the strategy of setting minimums in order to actually get the most ROI out of their property. Let them know that by analyzing data like occupancy and ADR, you arrive at a better, more accurate minimum price for each season that will drive stronger ROI.
You can also share that you check on how often a property hits the defined minimum price for the next 90 days, as this will ensure the minimum price isn't too limiting and is always allowing the rate to fluctuate based on demand.
Share Details of Your Revenue Management Strategy
With all of these unique/unpredictable trends, take the time to share examples of past performance that highlight great bookings, how you keep up with trends in your market, and how your revenue management platform gives you an edge over the competition. Providing a behind-the-scenes view into your strategy is a great opportunity to show off your expertise, and a chance to open up the conversation beyond just revenue.
A few examples of things you can share with owners:
- In a fly-to market where demand is dropping? Communicate to your owners your strategy for tackling this and getting in front of as many guests as possible, like optimizing rates, expanding your distribution, new marketing tactics, and how your dynamic pricing tool keeps you ahead of the market.
- Have you had a stellar booking lately? Explain how you were able to score this booking and how you can replicate this in the future.
- Share the status of upcoming vacancies what they can expect, reassurances of occupancy rates, and how you are determining (and holding out for) the best market rate.
Beyond is here to help
It is important to communicate and demonstrate to your owners the value you bring to them and their properties. Using Beyond to help show market data, demand trends, and the other tactics you are implementing will strengthen the quality of your owner communications, and build trust. Get our best-in-class data at your fingertips today!