For many vacation rental (VR) markets in the US, bookings accelerated this summer compared to hotels, as many guests choose to vacation differently, opting for vacation homes over hotels and private kitchens over restaurants amid COVID-19.
While it is important to celebrate this success (unless you’re a hotelier!), it’s equally important to remember this: successes born out of a temporary crisis will likely also be temporary.
This is why the savviest VR managers invest their recent cash windfalls into technology. They know that the unusual summer demand will inevitably return to normal levels. When this normalcy resumes, however, they want to stay ahead for good.
Could’ve been revenue: a case study
Despite the market demand over hotels, an analysis of Navis VR clients in seven mountain markets across the US shows that overall voice channel conversion was only 37.43% in 2020 year-to-date. This means that 31,278 voice channel inquiries at these vacation rentals went unbooked this year, representing a huge missed opportunity for these properties with VR demand being so high.
So what does this mean for you?
This year, the average booked value in those markets was $1,898.86. Multiply that by the lost inquiries and we find $59,392,543.08 of potential revenue from these non-booked leads
Clearly, it is expensive to be cheap.
Allow me to explain – with the caveat that there’s a difference between being cheap and being frugal.
Even though VR managers in those markets did better than most hotels this summer, they still lagged in YOY revenue. Many had to shore up their bottom line this year due to financial instability by laying off staff and eliminating amenities, and cutting ancillary services.
They looked hard at software and services, too. I know that many of them reviewed their partnership with us. Ultimately, they knew that every saved dollar is not created equal. Instead of broad cuts, they continued their investment with Navis and developed a plan.
How VRs recaptured leads and won the game
Ultimately, through coordination with their Client Success Strategists and use of Navis solutions, they were able to deploy outbound sales blitzes, email remarketing campaigns, and abandoned shopping cart strategies. On those 31,278 non-booked leads? They recaptured $6,460,515 of otherwise lost revenue.
That’s what I mean by “it’s expensive to be cheap.”
These VRMs focused on topline revenue and realized that no amount of cost-cutting can raise the bottom line if topline revenue suffers. They knew their partnership with Navis, the guidance that their Client Success Strategists provided, and the strategies that our technology allowed them to deploy was worth every penny…all 646,051,500 of them.
We’d love to help your vacation rental company build on the recent momentum with proven strategies and tactics to bring in guests and nurture their loyalty for life. Contact us today to learn more.