Helping Your Owners Understand Revenue & Occupancy Expectations
by Jeffery Breece, Manager of Revenue Management, Beyond
We’ve heard from our customers that managing owners’ expectations of their properties’ performances can be a tricky, but necessary task to get right. Open and frequent communication with your property owners is essential to the survival of your business as a property manager.
To help you manage the conversations you will have with your property owners, we have boiled down some key topics to set the right expectations for property pricing and results.
Show Your Owners the Data
Using data-driven, intuitive tools to inform pricing decisions are paramount to driving bookings and retaining owners. We encourage you to show owners how your dynamic pricing tool responds to market changes and adjusts prices automatically. This automation and real-time understanding of market shifts provide you with the quick action you need in this uncertain environment. By sharing examples of your market data, highlighting occupancy information, and explaining how you are quickly adjusting pricing strategies, you will build confidence in trust with your owners.
With the right revenue management tool, you can easily share this information. You can show your owners how their listings are performing compared to others in the area and even compare them to last year.
Set Owner Expectations Early and Often
With the ups and downs of the travel industry, there are new ways you need to think about driving positive outcomes and optimizing revenues. Therefore, it’s critically important you are setting owners’ expectations appropriately in these different situations.
When demand is low, explain your strategy to ensure that you are getting your fair share of bookings. When demand is high, communicate how you will focus on capturing higher rates.
Owners in Drive-to vs Fly-to Markets
Drive-to Markets & Demand
Travel trends have changed greatly due to inflation, recession anxieties, higher travel costs, and the COVID-19 pandemic. During the pandemic, drive-to destinations showed huge demand and recovered faster than fly-to markets. As a result of these changing trends, many of the managers we work with shifted their marketing efforts to capture demand, including focusing on repeat guests, getting current guests to stay longer, and increased advertising. Communicating your plan to your owners is another great way to instill confidence in you as the market expert.
Fly-to Markets & Demand
With demand changing in these markets, marketing tactics can be shifted easily. For example, consider marketing to locals or your loyal repeat customers. These tactics will show your owners that you are doing everything you can to get them bookings. And remember to speak to owners about adjusting minimum prices where necessary, along with minimum stay requirements and length of stay discounts.
It is important to communicate and demonstrate to your owners the value you bring to them and their properties. Using a great revenue management tool 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. Beyond is here to help, get started today!