Home Blog Page 54

TurnKey Vacation Rentals Raises $5 Million

By
VRM Intel Staff
-
0

TurnKey Vacation Rentals, one of the most talked-about new business models in the vacation rental industry, received another $5 million in funding last December, bringing their total capital raise to $10 million. This round of funding was not announced in the media, as TurnKey has a history of not disclosing details about their model to the media, avoiding industry panels, and turning down speaking engagements over the last two years. However, when recently asked specifically about their funding, TurnKey confirmed they had completed the $5 million funding round in late December of last year.

According to John Banczak, Co-founder, “Yes, we did complete an additional funding round. The business has really taken hold with HomeAway and Airbnb owners, and we’ve used the money to expand from three markets a year ago, to over twenty this summer. It wasn’t meant to be a big secret, but at the same time, announcing funding isn’t something that matters a whole lot to our customers, so we didn’t feel the need to make a big deal of the last round in the press.”

TurnKey’s funding comes mainly from Silverton Partners, based in Austin, TX, and from some of the biggest names in travel and the internet – Rich Barton (Founder of Zillow, Expedia, Glassdoor), Barney Harford (CEO of Orbitz), Gregg Brockway (Hotwire, Tripit founder), Karl Peterson (Hotwire founder, TPG), Spencer Rascoff (CEO of Zillow) among others.

The largest funding by far in the category has gone to OneFineStay ($80 million), a company similar to TurnKey in a lot of ways, that is focused on the ultra-luxury segment currently operating in four cities. TurnKey has emerged as the most heavily-funded of the remainder of the companies providing management services to vacation homeowners. TurnKey refers to themselves as both a branded guest experience, and an “owner service provider.”

Banczak said, “TurnKey focuses on the upper half of the market, not just the top 1% that OneFineStay does.” Other upstarts include companies like Pillow Homes that just received $2.65 million funding in January, and Guesty that received $1.5 million a year ago – although both focus more on the Airbnb partial-availability homes. Vacasa, once a traditional property manager focused on the Oregon area, has also expanded significantly around the country and remains self-funded.

By Amy Hinote

Are vacation rental companies overvaluing themselves?

By
VRM Intel Staff
-
0

As Airbnb siphons $1 billion from the investment community with a fresh $25 billion post-money valuation, companies in the high-profile vacation rental industry are planning to cash in their chips.

But as Kenny Rogers says, “You never count your money when you’re sitting at the table…”

HomeAway has built its empire through acquisition, but in the last year the company has slowed in purchases of new companies. In HomeAway’s Q2 2015 Earnings Call, CEO and Chairman Brian Sharples was asked about this shift.

His response was, “I think it’s safe to say that the reported valuations of Airbnb have gone to the heads of every small entrepreneur in the world that has something that looks like a vacation rental site.”

Sharples added, “So when we go and look at new growth businesses that seem to be exciting in our category, it used to be very easy for us, because we’re essentially the only buyer, and we could buy on the basis of a multiple of cash flow. Most of the young companies in new geographies, A) don’t have positive cash flow, and B) have very high valuation expectations.”

As a leading transaction advisor for vacation rental management companies, Ben Edwards, President of Weatherby Consulting, echoes the HomeAway leader’s sentiment. “Relative to vacation rental companies, an incorrect valuation, not only sets the wrong expectations, it may identify probable issues associated with the sale of a vacation rentals business.”

Ben Edwards explains:

As vacation rental managers position their company for sale, many valuations are not credible, depicting unrealistic earnings or elevated multiples of EBITDA.

As with the sale of any business, company owners want to maximize value. In the vacation rental industry, that is done through a clear and calculated valuation that depicts a market-rate value for the business…a value that is competitive compared to other vacation rental transactions -and not faux earnings or a lofty, unsubstantiated multiple of earnings.

Companies that shoot high, often have other areas of the business that may not reasonably represented, highlighting probable issues associated with a further transaction. The goal for the seller in selling their company should be to set clear expectations and avoid concerns associated with an incorrect valuation. Getting a market-rate assessment of the business from an expert is advisable. Most professionals charge either a nominal fee or will perform a complimentary assessment of the business.

Extend Your Booking Season!

By
VRM Intel Staff
-
0

Looking for a great way to fill slow periods, promote your brand, save time, increase revenue (and help some great causes)?

Consider posting off-season vacation certificates that are promoted at black tie fundraising events. Setup takes 10 minutes (no software integration required!).   Geronimo’s automated solution handles everything and you simply provide your typical great service on the back end. Post a few photos, valid off-season dates and your max retail rate and voila!.. you’re all set.

There are over 600,000 black tie fundraising events in the US each year and vacations are by far the most popular items offered. These events have proven to create demand for off-season vacations, so why not leverage that demand to your advantage. Every day, Geronimo receives many requests for off-season vacations at properties like yours.

Geronimo has launched its TravelPledge brand for non-profits and already over 3,300 non-profits have private label TravelPledge sites that will promote your company. They recently met with all (1500) Habitat for Humanity affiliates.

If you already an account, sign in to your account. If not, get started and create a new property manager account (free).

 

Geronimo Extend your Vacation Rental Booking Season
Need help posting your certs? Call Amy at 877.265.4273 x700.

Attn: VRMA Members -Vote on Bylaws Change

By
VRM Intel Staff
-
0
VRMA Seminars

The VRMA Bylaws Committee has proposed changes to VRMA‘s Bylaws to better reflect the association’s core value of inclusiveness while making improvements to VRMA‘s governance structure by bringing our practices more in line with those of other successful national and international associations.

After thoughtful consideration by the Bylaws Committee and the Board of Directors, as well as a thorough review by an our attorney specializing in association law, the proposed changes are now presented to the general membership for review and approval. Specifically, these amendments will accomplish the following:

  • Increased participation by all members in the election process. All qualified candidates who meet the application deadline will be listed on the ballot, with those recommended by the Leadership Development Committee so noted. Elections will then be held in advance of the Annual Conference by way of electronic ballot to ensure that all members have an opportunity to vote on those who will serve on the Board of Directors, rather than only those in attendance at the Conference.
  • Improved focus on education and networking at the Annual Conference. Because elections will be conducted in advance of the Annual Conference, attendees at the Conference will be better able to focus fully on the educational content and networking opportunities provided rather than being distracted by the potential of onsite political campaigning.
  • Improved board leadership planning and continuity. These amendments provide for the introduction of a President-Elect office for the Board of Directors. Doing so not only encourages the Board to consider future leadership proactively, but it provides the president of VRMA the opportunity to better plan for his/her year in office and receive adequate advanced orientation to ensure improved continuity. Furthermore, these amendments provide for the addition of the office of Immediate Past President.  Also promoting improved continuity among Board leadership, this position is limited to the individual who has completed his/her term as president in the immediately preceding year, and his/her time in this office would be limited to one term.

 

Click here to review the VRMA Bylaws with proposed changes redlined.

As the primary contact for your company’s membership in the Vacation Rental Managers Association (VRMA) you are designated as the single voting representative.

If you haven’t already done so, this is a reminder to cast your vote on the proposed changes click here. Note that the email address to which this notice was sent must be used for your electronic ballot. You will need this email address along with the password “VRMA” to log into and submit your ballot. Your email address may only be used once, and any other email address will be invalid.

Voting will be open for 30 days, closing at 11:59 pm Eastern on August 22, 2015. A quorum of 25% of our current total company membership is required (currently 170 ballots) to validate the vote and an affirmative majority of the ballots received is required to approve the action in order to pass the Bylaws changes.

VRMA is working with Association Voting to manage electronic balloting. Please add announcement@associationvoting.com to your Safe Senders list to ensure important email communications are not blocked.

 

If you have questions, feel free to contact me at 317-454-8315 ext. 130 or email Mark@vrma.com.

Part 1: TripAdvisor Issues – “What’s going on with FlipKey/TripAdvisor?” (Pt 1 of 4)

By
VRM Intel Staff
-
4

Throughout the second half of 2014 and into 2015, vacation rental managers have been reporting a multitude of issues with their listings on FlipKey/TripAdvisor.

From customer service to technology integration flaws and pricing complaints, property managers have been struggling with listing their properties and are questioning TripAdvisor’s dedication and direction regarding professionally managed vacation rentals.

After having all of their listings disappear from the FlipKey/TripAdvisor sites, one property manager sent the following email to their account manager:

An additional 13 days later……… ALL but the one new listing are still missing from TripAdvisor in [confidential location] ALL missing, [confidential location] ALL missing, [confidential location] ALL missing, [confidential location] ALL missing, This now means that [XX] listings have been MISSING FROM THE TRIPADVISOR LIVE SITES FOR OVER A MONTH DURING THE BUSIEST AND MOST PROFITABLE TIME OF THE YEAR.

 

And this particular issue, along with a dozen others, has been reported for the last 18 months to VRM Intel, so we wanted to know…What is going on with TripAdvisor/FlipKey?

 

This series of articles covers the following:

  • History of TripAdvisor/FlipKey
  • TripAdvisor’s decline in customer service and technology support
  • Rate parity for professionally managed and owner managed vacation rentals
  • Difference in treatment of vacation rentals vs hotels, attractions, and restaurants
  • Negative impact of issues for property managers
  • Airbnb, HomeAway and TripAdvisor comparison
  • TripAdvisor’s corporate direction regarding the vacation rental industry
  • Competing with Airbnb by offering free listings to shared space hosts
  • Response from Tracy Zhen, General Manager, TripAdvisor Vacation Rentals
  • United effort among vacation rental managers to address concerns with TripAdvisor CEO

 

Series:

Part 2: TripAdvisor Issues: More support issues, rate parity, discriminatory policies, and the negative impact for vacation rental managers

Part 3: Where is TripAdvisor heading with vacation rentals, and how do they stack up against the competition?

Part 4: Response from TripAdvisor to issues and vacation rental managers unite to address concerns

Click here to get a pdf of the combined series of TripAdvisor Issues articles

 

 

History of TripAdvisor/FlipKey

 

TripAdvisor was founded in February 2000 by Stephen Kaufer, Langley Steinert, and several others. Stephen Kaufer says the original idea wasn’t a user generated social media site to swap reviews. “We started a site where we were focused more on those official words from guidebooks or newspapers or magazines. We also had a button in the very beginning that said visitors add your own review and boy did that just as take off.”

In 2004, TripAdvisor was purchased by IAC/InterActiveCorp. IAC spun off its travel businesses under the Expedia, Inc. name in August 2005.

In August of 2008, Expedia-owned TripAdvisor announced it had taken a majority stake in vacation rental marketplace FlipKey which had 50,000 U.S. vacation rental listings. In perspective – in 2008 -HomeAway had over 250,000 listings.

“Vacation rentals is the hot emerging category in travel and FlipKey has a great foundation and a smart business approach,” said Steve Kaufer, founder and CEO of TripAdvisor about the acquisition. “We believe we can help FlipKey become the leader in the space and, in turn, FlipKey content will satisfy a growing need for TripAdvisor users.”

In December 2011, TripAdvisor was spun off from Expedia in a public offering. FlipKey remained under the TripAdvisor umbrella.

TripAdvisor announced in February 2015 that they are moving away with the FlipKey brand and naming their vacation rental initiatives as TripAdvisor Vacation Rentals (TAVR).

 

TripAdvisor’s Decline in Customer Service and Technology Support

 

As most property managers who work with TripAdvisor know, many of the familiar faces in TripAdvisor Vacation Rentals (TAVR), formerly known as FlipKey, have left the company, leaving an apparent hole in knowledge of the industry.

The customer service issues reported by property managers are:

  • Inaccurate listings and inability to correct issues
  • Issues with technology and integration with software providers
  • Expired listings and deactivated listings appearing as active
  • Listings not being removed after the TAVR advertising contract expires
  • Inability to respond to reviews
  • Inability to suppress reviews on manager-owned websites
  • Lack of technical support
  • Poor customer account management and communications

One property manager said, “I’ve talked to several other managers around the country and they all agree FlipKey’s service to property managers is absolutely horrible. When you call their office their voicemails are always full and they’re always traveling around the country. Somebody needs to bring attention to them so they can get their act together.”

 

Disappearing Listings

Sanctuary Vacation Rentals, located in California’s Monterey Peninsula, saw all of their listings disappear from the TripAdvisor sites in July 2015. The email to TripAdvisor stated, “Last Wednesday (7/15) ALL our listings went offline on our FK Admin site and ALL the live FlipKey and TripAdvisor marketing sites.”

According to an insider, TripAdvisor recently made significant changes to their technology. It is possible that missing or incomplete data fields in integration with software interfaces caused problems, but the lack of experience and industry knowledge in the new TripAdvsior team has made it difficult to identify or address the issues.

 

Rate Display

A vacation rental manager in Oregon reported, “I have gone down to listing only a few homes. Because their model is to list the absolute lowest nightly rate we have, we get lots of people inquiring who are looking for a cheap deal.  For some reason, they do not understand that rates are higher in the summer season and that the posted nightly rate does not include taxes, fees, etc.”

 

Erroneous Reviews

In Maine, Justin Ford, owner of On the Water in Maine Vacation Rentals, said, “The biggest issue we had with FlipKey and TripAdvisor (that they both blamed on each other and never fixed) was that a property that had previously been managed by another rental company switched to us for management.  We, of course, listed it on FlipKey as we have a relationship with them. FlipKey ‘identified’ that the property was the same one listed with the previous agency and not only re-attached previous negative reviews for that property to our new listing of it, but they also copied over the horrible responses to those reviews from the previous agency, and attached our logo to those responses making it out that we responded to the negative reviews.”

 

Ford added, “We spent 6 hours on the phone with FlipKey and TripAdvisor trying to fix it, but neither would. We finally had to change the marketing name of the property and the address slightly to get the negative reviews to disappear.”

Ford received the following response from TripAdvisor:

With our big site migration, that I’m sure you noticed in January, we had a ton of issues and each account manager got quite behind. After February, the team then had two account managers leave and had to start maintaining all their accounts as well. This is by no means an excuse, but I want to make sure you’re aware that, unfortunately, everyone was behind as far as response time goes. Since then we’ve hired two new account managers and have mostly gotten back up to speed. I understand this doesn’t fix the situation you had with slow response rates, but it was definitely an adjustment period here.

 

Annee Martin, founder of Sanctuary Vacation Rentals in Pacific Grove, CA, also received unsatisfactory responses, and as the summer comes to a close, Sanctuary has still not seen all of their listings return to the sites.

Martin said, “We have been thoroughly disappointed in the fundamental lack of stability in their service and technology. Uptime is something that we have come to expect from marketplaces, and we do not have these issues with any other providers. The folks at FlipKey have developed a business model that is counter to the goals and practices of professional managers. Their current model may be better for RBOs.”

As for Justin Ford…”We were extremely frustrated that no one at TripAdvisor or Flipkey would take any ownership to fix (the issues). We recently ended our relationship with FlipKey.”

 

Part 2: TripAdvisor Issues: More support issues, rate parity, discriminatory policies, and the negative impact for vacation rental managers

Part 3: Where is TripAdvisor heading with vacation rentals, and how do they stack up against the competition?

Part 4: Response from TripAdvisor to issues and vacation rental managers unite to address concerns

Click here to get a pdf of the combined series of TripAdvisor Issues articles

 

By Amy Hinote

John DiJulius, Author of The Customer Service Revolution, Interviewed in Vacation Rental Success Podcast

By
VRM Intel Staff
-
0

Heather Bayer interviewed John DiJulius of The DiJulius Group on the Vacation Rental Success Podcast.

DiJulius talks about his brand new book ‘The Customer Service Revolution’ and how his unique view on customer service applies to the Vacation Rental Business.

Bayer first met DiJulius at the VRMA Annual Conference in San Diego last year and was so impressed by his keynote presentation the she knew he would be a perfect guest for the podcast.

Some of the things John talks about:

  • Why the traditional notions of customer service as ‘defense’ and marketing as ‘offense’ are outdated
  • Why 60% of the words we use with clients don’t need to be said
  • How an ‘angry’ rental agreement can lead to buyer’s remorse
  • If you want to be a world class customer service expert, don’t use policies
  • How getting into the day in the life of a guest will change your perceptions of them
  • How Secret Service works and what the acronym ‘FORD’ means *****(warning – this could increase your bookings)*****
  • Why we need to attract the kids, they are the decision makers
  • Anticipating customer needs and focusing on individual touch points

 

Here is a slideshare from one of John’s recent webinars.

 

9 Key Takeaways from HomeAway’s Q2 Earnings Call

By
VRM Intel Staff
-
0

Today HomeAway reported on second quarter earnings:

  • Second quarter revenue of $125.8 million -up 19.5% versus a year ago
  • Second quarter listing revenue of $99.8 million – up 16% versus a year ago
  • Total listings of 1,185,000 -up 14% versus a year ago
  • Completely transitioned out of the pay-per-lead product
  • 50% of all listings were online bookable at quarter end

 

9 key takeaways from today’s earnings call with CEO and Chairman Brian Sharples:

 

1. Focus on Increasing Revenue from Listings

Sharples: In our core subscription business, monetization of our listings continues to improve with average subscription revenue per listing increasing 15% year-over-year FX neutral, and as more of these listings become online bookable, we’ll have opportunities for further monetization growth from ancillary products provided to travelers.

 

2. Moving From a Classified Model to a Transactional Model

Sharples: Our company, as you know, is transitioning from a classified model to a transactional e-commerce marketplace, and therefore we’re focusing on initiatives to improve both the owner and traveler experience with a goal of obviously increasing bookings. At the same time, we seek to improve overall monetization of transactions from both performance-based commissions on the supply side and revenue from travelers in the sale of ancillary products and services.

 

3. Ranking Higher in Sort

Sharples: For our platform suppliers more generally, improvements in response rate and adoption of online booking both now factored into sort order are big wins to traveler experience and net promoter score and we feel confident that these will pay off our shareholders long term.

Sharples: Every quarter we get a little bit more aggressive about taking those PPB listings and moving them up in sort. But they are still overall very under exposed, I mean our subscription listings get five times to 10 times the exposure that our PPB listing do.

 

4. Comparisons with Airbnb

Sharples: Airbnb certainly had a busy quarter. They launched a new campaign, which we actually liked quite a bit, because I think it very much helped the positioning that we’re trying to drive in the marketplace of us being the vacation rental company for families and groups. They obviously completed the big financing, whatever that means, and they started in the U.S. with some efforts with property managers. Although, we don’t really have any indications that’s been successful yet.

Sharples: “We’ve been doing some research in the U.S. and looking at property overlap for Airbnb, and we are surprised that how low it was. We actually did a very thorough job of looking at that and found (the overlap) in the 10% range in the U.S. We’re doing a similar study in Europe, and we do have an expectation the overlap will be higher in Europe -probably not substantially -so maybe 20%.

Sharples: In terms of traffic mix we’re still very heavily skewed towards vacation destinations. We’ve started doing some testing in cities. We have good traffic in cities. We can use a lot more supply in cities in general, but it’s still –relative to Airbnb –I think it’s a 90/10 both ways. They’re going to get 90% of their traffic in cities, and we’re going to get 90% of our traffic outside of cities. We’re competing for a very different kind of traveler. When we did the study on the overlap in U.S. business one of the things that was interesting to me is we found, I think it was about 75% -76% of Airbnb inventory is a one bedroom or less, meaning one bedroom or studio or room of some type. We’re obviously in the family and group business so we target very different kinds of people with our marketing.

 

5. Mobile on the Rise

Sharples: We saw a record level of visits this quarter on smartphone and so we are increasing our investment to improve the mobile experience for our travelers and suppliers. We’ve seen very positive early results from these efforts with booking conversion on our mobile devices up a 150% year-over-year in Q2 and we still think there is a lot of run way ahead to improve this further.

Sharples: We’re at about 48% of total traffic is mobile that includes pads as well as smartphones. Pads convert pretty close to desktop, so that’s not a big issue, but 31% of our traffic in Q2 is smartphone traffic and that’s the highest level that we’ve certainly seen. So we do have a lot of effort going on, on the conversion front with respect to mobile, and as I said it’s been paying big dividends for us.

 

6. On Acquisitions and Investments

Sharples: If you look at we’ve been doing for the last year and a half most of them have been investments in partnerships. So I think it’s safe to say that the reported valuations of Airbnb have gone to the heads of every small entrepreneur in the world that has something that looks like a vacation rental site. So when we go and look at new growth businesses that seem to be exciting in our category, it used to be very easy for us, because we’re essentially the only buyer, and we could buy on the basis of a multiple of cash flow. Most of the young companies in new geographies, A) don’t have positive cash flow, and B) have very high valuation expectations. So I think -for the foreseeable future unless something changes -you will be finding us doing more of the same, future investments in partnerships where it make sense.

 

7. Consolidation of Technology

Sharples: We now have 91% of our global listings on a common backend platform

 

8. Partnerships with Expedia and Kayak

Sharples: The partnership continues to go well with Expedia, and we’re working together well as companies. Probably the biggest news there is that we just went live with Expedia in Europe…They continue to be very much in a test mode, and it’s not having a big impact on our revenue today.

Sharples: With respect to Kayak, we had talked last quarter about the Kayak deal and the fact that we expected that to land sometime around the end of the year. I think we will be ahead of schedule on that, so the teams are hard at work at Kayak trying to get those listings up as soon as they can. We don’t have an actual date yet, but I do think it would be slightly ahead of what we have expected.

 

9. Guest Fees and the Future Monetization Model

Sharples: It’s (charging guest fees) certainly something we’re looking at. I talked about last quarter that we still believe that we’re under monetized as a business. So I just talked about an estimate this year of $14 billion to $16 billion in bookings. And if you look at our revenue estimates, you can calculate monetization is still relatively low versus our competitors and a lot of competitors do make up for that difference on the travelers’ side. We do have a number of options that we’re looking at. Traveler fees would be one, traveler products would be another, different kinds of pricing paradigms for owners were another. We are not prepared to discuss the answer on it yet, because we don’t have it, and we’re certainly going to let people know as soon as we do, but something we’re looking at very closely.

 

By Amy Hinote

Discounting Considerations for Vacation Rental Managers

By
VRM Intel Staff
-
0

As most vacation rental managers enter their early fall off-season, the industry is seeing an avalanche of discounts and special offers for vacation rentals.

However, the decision to discount isn’t as simple as changing a page on the website.

In the vacation rental industry, there are only two reasons to offer discounts:

1. If it results in more revenue.
2. If it is necessary to provide your homeowners with additional occupancy for one reason or another (i.e. contractual obligations or to fulfill occupancy expectations).

 

3 considerations when creating discounts for vacation rentals

 

1. How does this special/discount affect your reservations team and front line employees?

Often a discount of special offer is created, and your reservations agents and front desk team are the last to know, which creates these pain points:

  • Little or no information has been provided to enable your team to respond to inquiries
  • No chance to double check open and close dates
  • No chance to check rate or promo codes
  • No chance to review and implement sales strategies
  • Impossible to ensure a high-quality guest experience -“if you tell me at 3pm that a deal launched at 9am that day, I could have avoided giving a ‘sorry, I don’t know’ response to everyone!”

 

2. How does this special/discount affect your loyal customers?

A vacation rental manager’s loyal customers are by far their biggest asset, their most lucrative leads, and their biggest ambassadors and referral sources.

Loyal customers have historically been content to pay the rack rate as long as there is nothing blatantly better priced for them out there. If, for example, they receive an email from an un-checked and un-filtered mailing which promotes a discount significantly less than their previous rate, there can be consequences.

According to one manager, “Your loyalty has just been blown out of the water and chances are the next time they will call to book and find out if a cheaper rate is available. Or they will question rates and start shopping your competitors for a better deal.”

 

3. How are you promoting your vacation rental offer?

In most cases property management companies advertise their special or offer via their website and in email campaigns. But a big part of the goal of creating an offer is to get new customers.

Therefore, using additional channels to promote a discount can help you reach your goals more effectively.

 

  • Use PPC/Adwords and Create Landing Pages 

Discounts

 

 

  • Use distribution channels.

VRBO Discounts and Special Offers for Vacation Rentals

 

  • Segment your email campaigns to avoid sending to certain segments of past guests.

 

Tips for creating special offers

  • Articulate why a discount is being offered.
  • Set a goal for performance.
  • Think through how staff is affected.
  • Consider how loyal guests will react.
  • Determine which channels will be used to promote the offer.
  • Decide how the email list will be segmented (i.e. Leads and Guests who haven’t booked in 18 months).

 

By Amy Hinote

2015 Vacation Rental Housekeeping Professionals National Conference Agenda

By
VRM Intel Staff
-
0
Housekeeping Boot Camp for Vacation Rentals

The 2015 Vacation Rental Housekeeping Professionals National Conference Agenda has been finalized and posted for your review.

The topics discussed at this years conference include: Sustainable Chemicals, Improving Housekeeping Process, What Laundry Equipment Do I Need?, How to Have a Better a Conversation with my Employees or Boss, just to name a few.

The agenda can be found here: 2015 VRHP National Agenda and Registration.

 

Looking forward to seeing you there!

 

2015 Executive Housekeeper of the Year Award

 

Each year, as part of the National Conference the best of the best executive housekeepers are nominated for the VRHP Executive Housekeeper of the Year award. This award is the only one of it’s kind in the Vacation Rental Industry. The award is given at a formal dinner on TuesdayNight.
The deadline for applications is September 16, 2015. The requirements and process for the application can be found here: 2015 Executive Housekeeper of the Year Award.

 

2015 Stewart Couch Memorial Award

 

VRHP lost a dear friend and colleague Stewart Couch in the spring of 2012.

After learning of the loss of this admired and respected person, the Outer Banks Association of Realtors established the Stewart Couch Memorial Scholarship fund for Hatteras Island seniors seeking higher education.

In recognition of Stewart’s standards, commitment, and contribution to the professionalism of vacation rental housekeeping the VRHP board of directors voted to create the Stewart Couch Memorial Award.

This award will donate $1,000 to the Outer Banks Association of Realtors Stewart Couch Scholarship fund every three years in the name of a member company who holds the professionalism of housekeeping in the highest regard, supports continuing education, and fosters innovation to “raise the bar” for professional housekeeping in the vacation rental industry.

To nominate someone for this award please go the: 2015 Stewart Couch Award. The Deadline for Nominations is September 16, 2015.

Austin Report: Short-term rentals not a neighborhood problem

By
VRM Intel Staff
-
0

Short-term rental regulation has been a hot topic as sites like Airbnb gain popularity in non-traditional vacation rental markets.  As everyone in the VR industry has heard by now, several cities have either passed new ordinances regulating and in some cases banning STR’s.  Austin, TX is a great example of a city that studied the problem and crafted intelligent legislation to regulate short-term rentals a couple years ago.  There is a thorough set of rules around rentals, and a study done a couple years back by the city that looked to see whether short-term rentals were any more bothersome than regular homes.  You can see that study here: https://austintexas.gov/sites/default/files/files/Auditor/au12114.pdf.

 

Bottom line – the study didn’t find a problem.  If we use the number of 311/911 calls about any given home to figure out if that home is a “problem,” then STR’s look pretty darn good.  Comparing the number of 311/911 calls to the total number of STR’s and regular homes – non-STR homes had almost 3X as many problems as STRs – there was a higher incidence of 311 and 911 calls for regular homes than for STR’s.  Of particular note was how many fewer 911 calls there were.  And if we use the number of code compliance citations – STR’s were also far less likely to have a problem.

 

Now that the new city council is in place, the news from Austin is that there has been some activity around checking into whether the STRs are still the model citizens they were a couple years ago.  The local FOX affiliate reported that a crackdown on STRs was happening through the month of July.  You can see the story here: http://www.myfoxaustin.com/story/29447520/crackdown-on-short-term-rentals-begins-this-weekend.

 

From the newsletter sent out about the crackdown – In the first weekend (4th of July weekend), out of over a thousand licensed short-term rentals in Austin city-wide, there was only one verbal warning given about noise.  There were also three homes that appeared to be over occupancy, although it is unclear whether those homes received code violations – they were listed as having scheduled enforcement meetings.

 

Inspecting Doors for Vacation Rentals

By
VRM Intel Staff
-
0

Warped wood. Broken locks. Leaking air. These are just some of the signs that homeowners should consider a front door replacement.

Evaluating main entry doors at least once a year to determine the status of the door’s operational capabilities and energy efficiency features.

Inspecting doors is also a great way for vacation rental managers to implement keyless locks for a homeowner.

“Every component of a home needs to be replaced at some point over time,” says Donna Contat, director of brand management at Therma-Tru Corp. “Most homeowners can get years of service out of their front door, but there will come a time when a door needs to be replaced. That’s why it’s important to annually evaluate and maintain your main entryway.”

According to Contat, there are several easy ways homeowners can determine when it’s time to consider a front door replacement.

 

1. Open and close your doors on both dry and wet, humid days.

Make sure all the components operate smoothly. If your door doesn’t close securely, or fits tightly on humid days, then it’s most likely leaking air on dry days, causing the home to lose energy.

 

2. Inspect the weather stripping around all sides of the front door.

On a bright day, stand inside near your door and look for daylight flowing through the door perimeter. If light is coming in, then so most likely, is external air and possibly moisture. That means it’s time to determine if your foam-filled weatherstripping may have lost some of its compression, cracked or simply worn out.

 

3. Examine your locks to make sure they operate smoothly and are strong enough to help protect your home.

Multi-point locking systems, like those that can be requested on Therma-Tru®doors, offer exceptional peace-of-mind and security for the home. Determine if keyless locks can improve efficiency and security.

 

4. Reach out and touch your door on both hot and cold days.

If you feel the exterior temperatures on the inside surface, then your door may not have adequate insulation. In this situation, consider upgrading the door with a replacement that is more energy efficient and has an ENERGY STAR® qualified rating for your geographic area. Order a multi-point locking system on your next door for a tighter fit against the weatherstripping, which can help provide even greater energy savings.

 

5. Look at the appearance of your door.

If you have a wood door, it may be warping or rotting after years of service. A steel door can get dinged and rust over time. And, it’s possible that the style of the door simply doesn’t match up with the design of your home. These are all red flags that it’s time to replace your front door.

 

6. What to Look for in a New Door

“If it becomes apparent that you’re in the market for a new door, consider one made of fiberglass,” says Contat. “A solid fiberglass door can be up to four times more energy efficient than a solid wood door, plus you get the benefits that fiberglass has to offer, including resistance to rot, rust, dings and weather.”

Another factor to consider is what’s on the inside of your door. The dense polyurethane foam used in the core of Therma-Tru® fiberglass doors helps the doors achieve a high Measure of Thermal Resistance (R-Value). R-Values are important because doors with higher R-Values have a great ability to insulate more heat than those with lower values.

 

According to Contat, homeowners choosing to add decorative glass to their Therma-Tru fiberglass doors can also count on energy-efficient features. The company’s triple-pane construction of most doorlites and sidelites creates both a strong thermal and acoustical barrier. And, factory-coated Low-E glass, available as an option for clear glass, also delivers exceptional energy efficiency. In cold weather, the Low-E glass helps reduce the loss of heat by reflecting the heat back inside the home. In warm weather, Low-E glass reflects the sun’s rays off of the glass, helping keep the interior of the home cool.

 

Which conference(s) should you attend this fall?

By
VRM Intel Staff
-
0
Priceline Brett Keller talks vacation rentals

With a half dozen conferences being held this fall, vacation rental managers are deciding which conferences to attend. With the education being provided at each conference, determining which ones to attend isn’t an either/or decision.

Here is a guide to help you decide which conferences are the right investment for your team.

 

 

First, let’s differentiate between association conferences and user conferences. Then we will look at what each conference has to offer:

 

Association Conferences

Benefits of Attending an Association Conference:

  • Industry news and trends
  • Sponsors and vendors you may not have met before who can help you address your biggest challenges
  • Unbiased educational sessions
  • Industry knowledge and training for new employees (especially upper level and marketing executives)
  • The ability to network with other vacation rental managers
  • Information on regulatory changes and issues

Upcoming Association Conferences:

  • Florida VRM Xtravaganza, Orlando, Sep 9-11 (for Florida property managers)
  • 2015 Vacation Rental Managers Association (VRMA) Annual Conference, New Orleans, Oct 25-28
  • 2015 Vacation Rental Housekeeping Professionals (VRHP) Annual Conference, Orlando, Nov 9-11

 

Software User Conferences

The software user conferences are great for 2 groups: 1) active software users and 2) companies considering purchasing software.

Benefits of attending a User Conference:

  • Maximizing the use of your software
  • Software knowledge and training for new employees
  • New and upcoming functionality
  • Fixes or work-arounds for your technology challenges
  • Network with other software users
  • The ability to find out the strategic objectives of the company and personally ask hard-hitting questions to the software executives
  • Meet other suppliers and vendors who have existing relationships with your software
  • If you are looking to buy a software platform, attending their user conference will give you all of the info and insight you need. The majority of the attendees are active users of that software so you can find out very quickly the challenges they face and get a feel for what your experience will be like. If you are deciding between software platforms, consider attending more than one.
  • Be wined and dined

Upcoming User Conferences

  • Streamline Summit, Scottsdale, Sep 27-30
  • HomeAway’s RezFest, Las Vegas, Oct 6-8
  • LiveRez Partner Conference, Sun Valley, Oct 19-23

 

Tips for maximizing conference attendance:

  • Look at the agendas and sessions now and think about who in your company would benefit from the sessions.
  • If you have new employees who need to understand the vacation rental industry better, consider which conference will give them the best education to excel in their positions.
  • Use the opportunity to connect with vendors and suppliers and schedule face-to-face time.
  • Plan to engage in networking sessions and round tables.
  • Challenge each of your team members who attend the conference(s) to create a list of at least 3-5 action items from what he/she learned.
  • Schedule a post-conference internal meeting to share with stakeholders in your company what each team member learned at the conference and what their take-aways were.

 

Conference Summaries and Highlights: Coming Soon

 

There is no faster way to learn about the industry and improve your company’s performance than to actively attend these conferences. We hope to see you there!

 

By Amy Hinote

 

 

 

 

 

28 Outdoor Projects To Inspire You

By
VRM Intel Staff
-
0

A superb slideshow that leads to another 28 slideshows covering all sorts of outdoor projects from lighting to grills, porches to planting and decking to decorating.

[houzz=http://www.houzz.com/ideabooks/31524419/list/28-outdoor-projects-everyone-should-know-about w=480]

Outdoor living spaces really do boost conversions so think about upping your game, creating a killer outdoor feature and filling that bookings calendar.

 

Ascent Processing Announces Dawn Yeskulsky As Director of Business Development

By
VRM Intel Staff
-
2
Starfish capture on a cloudy beach

Ascent Processing Inc. recently named Dawn Yeskulsky as its Director of Business Development and Partner Relations. Dawn has been with Ascent Processing since 2010, and has held the position of Divisional Director of Sales since that time. Ascent  is pleased to welcome Dawn to this key position.

Dawn Yekulsky, Credit Card Processing for Vacation RentalsDawn was previously with Rental Network Software and has a long track record in software sales, marketing, and business development, with broad experience creating and managing all phases of the sales cycle.

Dawn will take the lead in strengthening Ascent’s current partnership base and creating new business and technical relationships within the industry. With the knowledge and experience held by Dawn, Ascent enhances its capabilities to build and grow its core business goal of providing the most comprehensive payment processing program in the Vacation Rental Industry.

“We are very excited that Dawn has accepted this pivotal and important role for Ascent.  As the industry continues to grow and payment acceptance becomes more complex, Dawn’s expertise will certainly enhance Ascent’s ability to provide our partners and clients the strongest payment programs and products available in the market.”  Regina Ebert, CEO.

 

top-add

 

Wyndham Continues Buying Spree With Whistler Acquisition

By
VRM Intel Staff
-
0

Wyndham Vacation Rentals announced its acquisition of ResortQuest Whistler. The purchase marks Wyndham’s “first foray” into Canada and adds nearly 600 condominium units to its growing portfolio of vacation rental properties.

ResortQuest Whistler is the largest vacation rentals manager in the Resort Municipality of Whistler.

 

Whistler/ResortQuest History: Is Wyndham repeating history?

  • Whistler Chalets was part of the original roll-up of the foundation of ResortQuest in 1998. (444 units –owned by Patrick McCurdy.)
  • Later in 1998, ResortQuest bought Whistler Exclusive (35 units).
  • In 1999, ResortQuest purchased Mountain High Management, Whistler (275 units).
  • After Gaylord Entertainment purchased ResortQuest, in February 2005, the company acquired 100% of the outstanding common shares of Whistler Lodging Company from O’Neill Hotels and Resorts (600 units) for an aggregate purchase price of $0.1 million in cash plus the assumption of Whistler’s liabilities of $4.9 million.
  • In August 2007, Paul Sanderson (who previously served as VP and GM at O’Neill) purchased ResortQuest Whistler (combined properties) from Gaylord and became a locally-owned and operated company with 750 properties.
  • At the time, Sanderson said, “We are looking forward to bringing positive change to the company in a variety of key areas with the emphasis on local management delivering outstanding service to guests, owners and employees alike.”
  • When Leucadia purchased ResortQuest from Gaylord in 2007, Gaylord had no remaining rental properties in Whistler.
  • In 2013, the independent ResortQuest Whistler partnered with O’Neill Hotels & Resorts to operate Blackcomb Suites vacation accommodation rental property.
  • With the combined properties of the acquisition activity above, Wyndham purchased ResortQuest Whistler with 600 properties.

 

According to the Wyndham press release:

“We are delighted to enter the market in Canada and to welcome ResortQuest Whistler to the Wyndham Vacation Rentals family,” said Mary Lynn Clark, president, Wyndham Vacation Rentals North America. “Whistler joins the already impressive list of world-class ski destinations where we offer travelers the comfort and convenience of a vacation rental along with the peace-of-mind that comes with booking your trip with a trusted hospitality company.”

“We are excited to be joining the larger Wyndham Vacation Rentals family,” said Paul Sanderson on behalf of the selling partners. “We view this as a very positive opportunity for our homeowners, guests, associates and for Whistler itself.”

VRMs: Be Counted. Take the 2015 VRM Survey

By
VRM Intel Staff
-
0

Data collection has begun for the 2015 National VRM Industry Survey. This is the survey that can make a difference for your business!

For several years, Hutchins Canning & Company PA, a certified public accounting and consulting firm known nationally for its expertise in the vacation rental management industry, has published a comprehensive national annual VRM survey. The national survey and related reports have provided unique, never-before-available data to property managers and are an important source of industry information.  Many vacation rental management companies have told us they rely on this survey, with its detailed analysis, to manage and grow their business.

As a certified public accounting (CPA) firm with a 35-year history, you can be assured and confident we maintain the strict confidentiality of your business’ information. No entity, other than Hutchins Canning & Company, will have access to your information.

 

First Time Participant?

If this is your first time participating in the survey, we will release the 2014 compiled survey results to you as soon as you complete the questionnaire. You will then have access to all the metrics and benchmarks from last year’s survey to compare with your company’s current performance. The data collected for the 2014 survey is comprised of information from the 2013 rental season and represents data from 17 states, with $445,000,000 in gross rental revenue

 

Take the Survey

To access the survey, you may download a paper copy or  logon to the survey here:

2015 National Vacation Rental Management Industry Survey

We are releasing the survey early this year to give participants more time to enter their data, We are requesting that all information be entered by the deadline of June 15, 2015.  As soon as all of the survey results are compiled, you, as a participant, will receive a customized report for your business indentifying the trends and metrics necessary for more effective management of your business.

To more easily complete the survey, please have your financial/income statements, for the year ended December 31, 2014, at hand before you begin.

You can exit the survey and resume at a later time. To ensure this functionality, only one survey may be taken on any one computer.  The survey uses “cookies” to save responses, so if you leave the survey, you must come back to the same computer and use the same browser in order to pick up and finish. Also, please ensure that “cookies” are enabled. To make sure your responses are saved if you intend to exit and resume at a later time, hit the “Next” button on the page or the “Done” button at the end of the survey.

 

What Participants Say about the National VRMI Survey

“Thank you Hutchins Canning & company for sharing the most recent Vacation Rental Management industry survey. This is incredibly valuable information to our business. This year’s survey is even more rich with the information and averages we need to benchmark ourselves with our segment of the vacation rental business. Thank you for compiling and sharing this valuable look into our industry. The timing of your releasing this survey  data couldn’t be better. We’re currently in the midst of the budgeting process  in our company and find these averages to be a nice guide in assessing our overall plans. Thank you again for all you do to support our industry!”  Janice Farr, Vice-President, Sun Realty

“Kokopelli Property Management truly appreciates the national survey conducted by Hutchins Canning & Company, P.A.  We find the report valuable as we grow regionally in our area to understand how our industry operates in other locations and other markets.  We participate because we truly believe the “bar can be raised” in the vacation rental industry and choose to be an active participant in this process.  Kokopelli has used the information provided by this survey to expand new lines of service and to create a more rounded approach to the vacation rental experience.  In the near future, we encourage more vacation rental companies participate internationally to produce a better survey report with more industry data.”  Jason Couillard, CPA, Chief Financial Officer, Kokopelli Property Management

“Because we are in a smaller vacation rental market, it’s not always easy to get data. So we are always interested in industry indicators to see how we measure up:  Are we on track with similar firms in other areas?  In the industry as a whole? Is there something new happening that we missed? The annual Hutchins Canning vacation rental survey has proved invaluable; it provides data we’d never be able to access otherwise.  From HR and operations trends to revenue and expense information, we use the survey as we do year end analysis and budget work. I’ll admit that the survey is difficult and very detailed. But I’d also be the first to say that the payoff far outweighs – and outlasts –  the pain of digging out numbers.”  Claire Reiswerg, Owner, Sand `N Sea Properties

Brindley Beach “Phoenix Rising”

By
VRM Intel Staff
-
0

By , North Beach Sun

Everyone handles disaster differently. For Doug Brindley, President of Brindley Beach Vacations, when the company’s Corolla offices burned to the ground on June 12, the way forward was to accept what happened, figure out how to accommodate the guests Corolla guests who would be coming to the Outer Banks on the weekend, and start moving to the future.

The fire started in a pile of mulch stored beside the building, although no one know why the mulch caught fire. The result though was the building is a complete loss. “One of the advantages in a total burn, is you don’t argue about how much of it’s burned.”

With the building in Corolla a complete loss and summer guests coming to the Outer Banks, a plan was needed right away.

 

Brindley Beach Corolla office in flames, Friday, June 12, 2015.

The first step was getting everyone checked in. The obvious answer was to have guests go to the Duck offices in Wee Winks Square, which worked well on Saturday.

“There were unusual things that we had to do,” Doug said. “For Saturday we already had the keys. We had taken them out of the building.”

Sunday was different.

The machine that makes the key for keyless entry was destroyed, and the Sunday keys and not been made. “If I couldn’t make a key. I couldn’t get them in,”he said. There were about 40 units effected on Sunday and Doug and his staff took the most direct route they could.

“As soon as everything opened up, we went out and got Quickset lock sets,” Doug said. “We changed them all out. We figured it out.”

The pride he has in his staff is palpable. A number of times during the conversation, he pointed to examples of how well they have responded and how important that has been. “Everyone that was checking in to Corolla is now checking in here in Duck,” he said. “And the Duck people are still in Duck. Two times the staff in here and they’re doing it with a smile and a laugh and we’re getting good things done.”

Doug also noted that his competitors stepped forward to help where they could. Outer Banks property management is a very competitive market, but there is also a sense of community among the companies.

“Through great help from Jimbo Ward at Beach Realty, he’s renting us his old building in Kill Devil Hills,” he said. “That’s where our back office staff is going. He’s letting a competitor rent it.”
Help also came from Gordon Jones at Coldwell Banker who had extra sets of keyless entry blanks that he sold to Brindley Beach. “He probably wanted to get rid of them, but he didn’t have to sell them to me,” Doug said.

Outside help was also on hand. According to Doug, Steven Craig of Pro Resort Housekeeping, who was working with the company on ways to improve maintenance, was invaluable. “He has 36 years in the business,” Doug noted. “He helped me with critical thinking. He helped me get organization done. I had the perfect person with me . . .”

According to Craig though, the biggest asset was Doug and the Brindley Beach staff. “The biggest help was Doug,” he said. “If I was able to help it was to focus on the people in the company and where each person had their greatest strength, even if it wasn’t their role. People who needed to do more, did without fussing.”

The rebuilding process is already underway. The burned out building will be gone by the beginning of July. Officials in Currituck County have assured Doug they will help him fast track a new office, and if all goes according to plan, new offices will be ready by next summer.

Temporary trailers have been rented for a sales office in Corolla, and Doug is keeping the personal service that has been a hallmark of Brindley Beach. “We call it sit and swat,” he said, probably referring to the occasional mosquito or sand fly. Agents sit under an umbrella by the side of the road, ready to greet anyone who happens by.

“It’s a great way to meet people,” Doug adds.

To Doug it’s putting things back together. “When it breaks apart you got a puzzle,” he says. “With all these pieces and what are you going to do with it. And every now and then, ‘Oh that fits here.’ And then another piece puzzle fits here . . .”

To his wife, there is another way of seeing it. “Joanie is using a phrase that fits,” Doug said. “Phoenix rising.”

Editorial: Owner Service Providers in the Sharing Economy

By
VRM Intel Staff
-
1

The Important Role of Owner Service Providers in the Sharing Economy

Editorial by John Banczak, Co-founder and Chairman, TurnKey Vacation Rentals

It would be virtually impossible for anyone involved in the sharing economy or vacation rental industry to be unaware of the increasingly complex and growing body of government regulations. Short-term rentals are a very attractive lodging solution for families and groups, and improvements in both the ease of finding and booking them over the past several years have enabled more and more travelers to take advantage of them. The increase in popularity has come with increased scrutiny from local governments as well as from lodging alternatives like hotels or B&B’s which view vacation rentals as competition.

Local governments and the American Hotel and Lodging Association (AHLA) presented recently at the FTC Sharing Economy Workshop made fair points that virtually all professional vacation rental property managers agree with:

  • Vacation rentals should be a positive influence in the community
  • They should pay the same type of taxes any lodging provider pays
  • They should be licensed and regulated to promote these goals.

 

What Are Illegal Hotels?

The AHLA uses the phrase “illegal hotels” in a lot of situations. The origin of this phrase seems to stem from large apartment buildings in major metro areas that have been converted to handle short-term rentals. They often resemble hotels in just about every way – multi-story buildings with multiple units per floor, elevators, and a single investor/owner. The AHLA defined them as “individuals or companies operating multiple properties as a business.” While we believe the AHLA understands the difference between a true “illegal hotel” and a traditional vacation rental manager like Wyndham for example, there is some concern that the general public does not.

The “illegal hotel” definition more and more often is starting to be loosely applied to the traditional vacation rental management industry, which is entirely different from a metro-area illegal hotel. Unlike an illegal hotel operator, traditional vacation rental managers do not own units at all – they provide services to individual home owners much like any local service provider.

The decades-old vacation rental management business can be thought of as having two broad categories. The first are Resort Managers (RMs) – folks like Wyndham, Marriott, Westin for example that might manage a vacation rental structure that resembles a resort or hotel, and may have individually or corporate-owned units. The second category are Owner Service Providers (OSPs) – folks like TrueGreen, Lawnlove, America’s Swimming Pool Co, Merry Maids, TurnKey Vacation Rentals, Evolve, Handy, ARS, Paypal, Square, HotSpot Tax, even Wyndham in many areas, and thousands of small business across the country that provide some type of service for an individually owned primary or secondary home. OSPs help most vacation rental owners in some aspect of the process (such as a housekeeper, electrician or lawn service).

Should an individually-owned, single-story, single-family home rented for part of the year be required to have the same type of sprinkler-system, earthquake reinforcements, and health-code inspections as a thirty-story hotel in downtown San Francisco that has multiple restaurants and event catering? Few would agree. But should it pay the same taxes and not be a nuisance to neighbors? Absolutely.

Does a two-hundred unit, twenty-five story apartment building in Manhattan owned by a REIT seem more similar to the twenty-five story hotel across the street than it does a stand-alone single-family home in Austin, TX? It sure does, and the AHLA would have a good argument that that the fire code of the hotel and the apartment building in Manhattan should be similar, while the fire code on the single family home should not.

Do Resort Managers with multi-floor/multi-unit structures seem a lot like hotels? They sure do – many are owned by the same hotel companies represented by the AHLA. Does an OSP that helps an individual home owner take care of their property in some way resemble an illegal hotel? No, individually owned homes whether rentals or not hire all sorts of OSPs to help maintain their property.

 

Professional Vacation Rental Managers are Owner Service Providers (OSP), not Illegal Hotels

A traditional, professional property manager doesn’t run illegal hotels, they are an OSP that may provide a few focused services to owners, or they may provide a wide range enabling an owner a single point of contact for most of their needs. The easiest way to understand what traditional managers is to compare three examples of similar properties in an average coastal community. The first owner does everything on his own, the second owner uses a couple different OSPs, and the third has hired a full-service professional property manager to be their single point of contact. Each home is a single family residence, should have the proper permit to be a vacation rental and should pay all transient occupancy taxes due.

Our first example owner – Joe – owns a three bedroom home a couple blocks from the beach. Joe is retired and spends about four months a year at his vacation home. His primary residence is a three hour drive away. Joe manages most everything on his own – he has listed his home on VRBO since 1999, handles all of his email inquiries, phone calls, takes payment in the mail by check or online through Paypal, and serves as the guests only contact point. He contracts out to local cleaners or course, has a local lawn service, a pool service, a plumber and electrician he uses, and a contractor for larger repairs. He runs his own finances and is responsible for paying his own local taxes each month. He keeps things like spare sheets on site, extra lightbulbs, and has guests bring their own amenities like toilet paper, shampoo, etc. For the most part the rental runs smoothly, save for the occasional instances when Joe’s not available to answer the phone in an emergency, or there is a problem with the quality of housekeeping or pool service. Joe has plenty of time on his hand to handle all of the scheduling and has always been more of a do-it-yourselfer.

The second owner – Susan – owns a three bedroom home right next door to Joe. Susan spends less time at the home as Joe, living a couple hours flight away. Susan is an EMT and cannot be reliably available to answer emails or phone calls so he contracted with Evolve Vacation Rentals – a professional service that lists his property on VRBO, provides 24/7 phone and email support, and handles payments from guests. Susan likes that guests always can reach someone and he doesn’t have to worry about sleepless nights. She also contracts with Hotspot Tax to handle all of her tax filings. She’s always used H&R Block to do her taxes, and he likes the idea of a professional filing each month so it is accurate and verifiable. Susan uses the same local lawn service and pool company as Joe, but has a different housekeeper that she schedules himself, and her own plumber and electrician. She’s looking for a new general contractor as his recently moved out of town. The rental runs smoothly, save for the occasional issues that arise when the plumber is busy or the old general contractor couldn’t be found. Susan doesn’t mind doing a little work now and then, but feels that paying for phone, email and tax service is well worth-it.

The third owner – Fred – owns a three bedroom right next door to Joe. Fred uses the home just as much as Susan, and lives in the same hometown as Joe. He plans on retiring there to live full-time eventually. Fred used to manage his home on his own, but got promoted to a regional sales rep and is on the road most of the week with no time to schedule any of the services. Fred started using Beachwise Vacation Rentals as his OSP. Beachwise acts as a single contact for owners, providing a VRBO listing, phone and email services, and payment handling like Evolve does. Beachwise uses the same housekeeping company, electricians, and plumbers as Joe, but does all the scheduling of them so Fred doesn’t have to. Beachwise also provides regular inspections of the home and keeps basic supplies on hand for renters like toilet paper, shampoo, garbage bags and paper towels. Beachwise handles things like tax payments, they even verify each guest’s photo ID, put digital locks on the doors for added security, and hire a local private security patrol on weekends and during big events. Fred likes having one local point of contact – he is busy at work, and feels better having someone manage all aspects of his home – after all, he spent years saving enough money to afford a second home and wants to make sure it is well looked after.

Each of these home owners has chosen a set of OSPs that work best for their own situation. Whether a home owner is the do-it-yourself type, or they want to have one single point of contact – the combination of OSPs doesn’t change the characteristics of their homes in the community. The homes are identical, all providing the same type of rental to guests. Each home owner is free to switch their plumber, housekeeper or electrician if a newer, better, or less expensive provider comes along. Competition among service providers is strong in the USA and owners benefit from that competition. Beachwise, a single point of contact OSP simply bundles up services for owners that need more convenience.

The mere bundling of services however doesn’t change the home itself, nor does this bundling of services imply that full-service managers like Beachwise are running illegal hotels in their area.

 

OSPs vs Illegal Hotels

We doubt that the AHLA’s intention is to group traditional full-service professional managers into the same category as illegal hotels. We would urge them to clarify this position. Making it difficult to bundle services for home owners, or reducing competition among service providers wouldn’t do anything to curb the type of illegal hotels mentioned in the larger metro areas. It would only serve to hurt the hundreds of thousands of second home owners.

Professional property managers have been providing bundled owner services to individual owners for decades in a thriving, competitive local marketplace serving as a valuable OSP to almost half of all vacation rental home owners. We hope that the all of those discussing the issues in the sharing economy make it a point to fully understand that traditional vacation rental managers are not running illegal hotels, and to further define the type of lodging that has become problematic.

Winning back a customer is like winning back a lover

By
VRM Intel Staff
-
0

The 21st century has brought about big strides in the psychology of customer service. We can thank millennials for helping us “find our truth” and learn relationships between customers and businesses are just as personal as any other serious relationship.

With today’s competitive environment, a business that sincerely wants to win a customer back can take cues from the steps needed to reconcile the most intimate of relationships.

 

6 ways to win back a customer like winning back a lover

 

1. Know why things ended

winning a customer back the break upWhen we’ve lost a lover, it is easy to get defensive and not take a hard, honest look at we did wrong. But if we don’t understand what we did wrong, we can’t fix it.

Some businesses have an easier time than others at capturing data about why a customer left. Sincere exit interviews are critically important when possible, and in most cases, our ex-customers (and our ex-lovers) are eager to share why they moved on. Was the cost too high? Were there better alternatives? Did we ignore their needs to pursue our own agenda? Did we not understand what they were trying to tell us? Were we rude and unsympathetic?

 

2. Sincerely apologize for what we did wrong

Winning back a customer apologiesWhen we are hurt, it is hard to apologize for our part in the breakup…in intimate or business relationships. Once we clearly know where we failed, we need to find a way to be humble and sincere and acknowledge our part of the breakdown to the person we’ve hurt. A simple and personal email or letter to the customer validates their complaints and plants the seed that we care, which is all we want to do with the apology. And with this apology, we don’t ask for them to come back.

 

3. Get in shape

winning back a customer get in shapeTo be alluring enough to be reconsidered, we need to do some self-improvement…We need to look hot again.

What does that look like for you? Do you need to change your call center strategy, give your product or service a face lift, or reduce your costs so you can offer a lower price? You may simply need to adopt a company culture of compassion and service. You had something special that won the customer the first time. Try to recapture the romance and show them that you still have what it takes, but now –after taking some articulated steps -you can meet their needs even better.

 

4. Don’t be annoying

Don't be annoying to your customersMost of us have learned that if we call or text or message too often, our ex will run even faster in the opposite direction. We need to communicate to find out what we did wrong…once. If they tell us, we have something to work with. And we need to apologize…once.

Then, after seriously improving, we can communicate what we’ve done to change. But that it is. Like our ex-lovers, the more we chase, the faster our customers will run.

 

5. Give them easy access and more control

Winning back a customer make it easyFind ways to give ex-customers an easy, unobstructed path to reconciliation. We already have their account information, their billing info, their logins/passwords, and the specifications of what they want. If we know where we messed up, have improved our offerings and are still easily accessible, more often than not, our exes will find it is easier to stay with us than start over with someone new.

Gently offer them incentives…real incentives… to return. Take a hit. We all know what the lifetime value of reconciliation is worth to our company, so we should make our incentives show we truly and deeply care.

 

6. Know when to move on

Winning back a customerLike our ex-lovers, there are some customers we either cannot win back or we are better off without. Inevitably there are a few exes that drain our energy and keep us from moving forward. They prevent us from being the best we can be, and we need to be able to let them go without it hurting our egos or consuming our thoughts or resources. It is important that we conserve our energy and talents for those who we can serve effectively.

 

Relationships are hard, whether they are with an ex-lover or an ex-customer. Reconciliation requires self-awareness, hard work and humility. In business, it is critical that we have something special to offer our customers, but we need to listen to them, improve our services and empower them to choose us.  In this generation more than any before, the choice is theirs.

 

By Amy Hinote

Amy Hinote Marketing for Vacation RentalsAmy Hinote is the founder and editor of VRM Intel which provides news and education for the rapidly expanding vacation rental industry. With a background in finance and marketing and over 10 years im hospitality, Hinote has worked with accommodations and tourism companies, suppliers, and intermediaries and provides insider information about the growing vacation rental industry. Hinote resides just north of Chicago in Evanston, IL.

Contact Amy Hinote
amy.hinote@vrmintel.com
(251) 455-4994

 

Outer Banks Fire at Brindley Beach Vacations

By
VRM Intel Staff
-
0
Another Slide

On Friday night, a fire broke out at Brindley Beach Vacations and Sales in Corolla, NC.

Currituck County spokesman Randall Edwards said the fire started at Brindley Beach Center on Ocean Trail around 7:15 p.m. Due to wind, the flames spread to two houses just north of the recreation center. Edwards said there are road closures in the area as crews work to knock down the fire.

The building was empty and there were no injuries, but the structure is a total loss. A chimney is all that’s left of what used to be the 12,000 square foot building.

Investigators think high winds fanned the flames and caused it to spread, but there is still no word on what caused the fire.

Our thoughts and prayers go out to Doug Brindley, Kelly Hanig and the Brindley Beach team.
 


 

According to the company blog:

We’re not sure what caused the fire; the North Carolina State Bureau of Investigation (SBI), who investigates any fire in an unincorporated town (Corolla), has finished their investigation and found that the fire was of an undetermined origin.

We’ll be rebuilding our Corolla office. As Doug Brindley, the President of Brindley Beach said, “It will be like a phoenix rising from the ashes. It will be better than ever.”

 

Facebook Brindley Beach fire OBX

 

Brindley Beach Fire
 
Brindley Beach Fire After
 

Please ignore the insensitive audio in the video below posted by OuterBanksVoice.com.

 

Just seven months ago Outer Beaches Realty in Avon also experienced a fire. The fire department ruled out arson in that fire. While they have several theories about how the fire started, his official ruling is “accidental.”
 

Outer Beaches Realty Fire
 

Outer Beaches President Alex Risser agreed that the cause of the fire is mostly conjecture but that the most reasonable theory centers on an outside electric outlet under the building.

The thought, he said, is that, over time, salt could have corroded the outlet to cause the blaze. Even though the outlet is above flood level, he added, tide from one or more recent storm could have compromised it.

 

Luxury Retreats gets $11M in Funding Led by iNovia

By
VRM Intel Staff
-
0

Luxury Retreats, a company offering curated luxury vacation rentals, today announced that it has raised $11M in capital funding to continue its differentiation strategy in the fully serviced luxury segment of the vacation rental industry.

“The sharing economy has exploded in popularity and we see a big opportunity in delivering predictability and consistency to our guests,” said Luxury Retreats Founder and CEO Joe Poulin. “We’ve zoned in on a unique niche in the industry. By only offering curated homes and focusing on great guest experiences we’re removing uncertainty and we’re answering a need. Having a brand driving standards for an end to end experience is crucial. Luxury isn’t sold, it’s delivered.”

Poulin added: “We’re thrilled that iNovia and their partners share our vision as we expand into new markets and continue to perfect our offer and operations in existing markets.”

Luxury Retreats’ existing operations include 24/7 concierge support and a team of over 180 luxury travel enthusiasts with the common goal of ensuring every guest vacation comes with surprises – but only the good ones. “We’re breaking down the process to remove as many friction points as possible,” says Poulin. “When it comes to someone’s vacation with their family or friends we have to make sure we get it right.”

Luxury Retreats offers a closed network of over 2,800 hand-picked private homes in 90 destinations around the world and is focused on refining its collection and operations in existing locations while continuing to develop new markets.

As much as the company is focused on the Guest Experience, Luxury Retreats is also continuously striving to improve the Homeowner Experience. Homeowners (whose homes are accepted into the LR network) are assigned a Relationship Manager from day one. The Luxury Retreats approach is opposite to the experience offered by the industry’s listing sites. “Luxury Retreats Homeowners always have someone to speak with and more importantly there is a dedicated person on our team who is looking for ways to improve the performance of their property,” said Poulin who owns a couple of properties himself so he knows the importance of one to one attention first hand.

“Under Joe Poulin’s direction, Luxury Retreats is positioned to further revolutionize the industry by providing even more added value for guests and homeowners alike,” said Chris Arsenault, Managing Partner at iNovia Capital. “We support his aggressive plan to expand Luxury Retreats’ footprint globally and continue to grow their own category.”

The $11 million investment is led by iNovia Capital, a venture capital firm specializing in emerging technologies, and partners including: Claridge Inc., led by President and CEO Pierre Boivin and Executive Chairman Stephen Bronfman; financier Peter Kern of InterMedia Partners; and Andrew Lufty, Entrepreneur and CEO of Groupe Dynamite.

Topsail Realty acquired by Mike Harrington

By
VRM Intel Staff
-
0

Last week Mike Harrington, former CEO at Resort Realty of the Outer Banks, resigned from Resort Realty and acquired Topsail Realty in Topsail, North Carolina.

Topsail Realty currently manages approximately 170 rental properties and was previously owned and operated by Randy Leesburg. The 40 year old company was founded by Leesburg’s father, and Randy Leesburg took over in 1985.

Mike HarringtonMike Harrington worked with Stewart Couch at Hatteras Realty before joining Resort Realty of the Outer Banks in 2007.  At Resort Realty he oversaw over 600 vacation rental homes and led daily operations and strategic growth initiatives for the company.  Harrington currently serves as the President of the North Carolina Vacation Rental Managers Association (NCVRMA), sits on the Board of Directors as Treasurer for the national Vacation Rental Managers Association (VRMA), and is a member of East Carolina’s University’s School of Hospitality’s Advisory Board.

Leesburg will continue to assist in operations and will begin transitioning towards retirement.

Related:

By Amy Hinote

Inbox Avalanche? 3 Ways to Turn VR Inquiries into Gold

By
VRM Intel Staff
-
0
OTA's for Vacation Rentals

Shifts in the hospitality market have put vacation rentals on the map like never before. The Sharing Economy has more travelers looking to vacation rentals as a viable option for their stay. That includes both business and leisure markets. As the popularity of listing sites like HomeAway and VRBO skyrocket, they send a flood of inquiries to Vacation Rental Managers’ inboxes.

That’s more potential revenue–a very good thing, right? Yes, if you can promptly and effectively follow up on those leads. Which brings us to…

 

3 Solutions that Turn Inbox Inquiries into Gold

 

Challenge #1: Listing sites flood you with leads, leads, leads

Here are some statistics from the 130 VRs that use our NAVIS Narrowcast listing lead management technology:

  • Three years ago, 6% of our VR clients’ business came from lead generating inquiries from online listing sites such as HomeAway, VRBO, and FlipKey
  • Today, the proportion of business from these listing sites averages 25%
  • Despite this significant jump, VRs across the country report that they only convert 5% of listing site inquiries.
  • That means 95% of potential revenue gets left on the table!

A major reason: listing sites deliver a separate email for each property inquiry. A potential guest may inquire about 4 properties on one site and 2 of the same properties on a second. Your inbox gets hit with six leads from two different sites–all from the same potential guest. No wonder inquiries build to avalanche proportions!

Solution: The new NAVIS Listing Lead Management (LLM) system consolidates all lead data from email (and telephone) inquiries from the same household into one record. You can access that data with the NAVIS Narrowcast Dashboard and follow up on that business quicker and easier.

 

Challenge #2: You must open every email to determine which leads are most valuable

Solution: NAVIS LLM lets you rank inquiries according to the metrics of your choice (daily rate, length of stay, requested booking dates, etc.). The system automatically queues up leads according to the value to your business at the time of the inquiry and routes them to the highest converter on your sales team–or according to any other skill metric you choose.

 

Challenge #3: You need more resources to follow up quickly on valuable leads.

The VR market is competitive. Even with leads organized and ranked, you may not have enough sales agents to ensure that the most valuable leads get immediate attention.

Solution: NAVIS Auto-Agent automatically responds to inquiries based on attributes such as availability, property recommendations, and repeat guest recognition. Plus, the NAVIS Narrowcast Dashboard tracks whether the potential guest opened or forwarded the auto response email.
Here are three more ways NAVIS helps you zero in on your most valuable guests:

  • It manages all email and telephone leads in one system with features controlled by a single dashboard
  • It’s free of charge to all NAVIS Narrowcast clients
  • You can leverage your collected CRM lead data with NAVIS Reach to create personalized marketing campaigns that reach each potential guest at just the right time in their travel planning cycle

Michelle Marquis, NAVIS VP Marketing and Strategic Initiatives

LiveRez Donates $5,000 to Fight Vacation Rental Regulations in San Diego

By
VRM Intel Staff
-
0

LiveRez is all in with its partners, fighting for fair vacation rental regulations in San Diego. The company recently donated $5,000 to the San Diego Vacation Rental Managers Alliance to help protect its partners against proposed regulations.

Additionally, LiveRez’s own Brittany Funk has been active in the fight locally, attending all of the civic meetings where regulations have been discussed. LiveRez is committed to winning this fight and will continue to stand by its partners until these proposed regulations are struck down!

Short-term rentals have come under fire recently across the United States, but the battles in San Diego have been especially fierce. One such proposal would essentially outlaw short-term rental by limiting rental stays to more than 30 days. Another proposal being pitched would only allow home sharing, meaning that owners could only rent out homes that are their primary residences, many times just an extra bedroom. Either one of these proposals could put many professional management companies out of business.

You can learn more about these issues — and how you can help — at SDVRMA.org.

LiveRez's Brittany Funk (center - front row) sits alongside LiveRez partner Maurice Maio of King of the Beach, at a Pacific Beach Planning Group meeting in March. Many of LiveRez's partners in San Diego have been working tirelessly to oppose unfair rental regulations in the city.

 

Learn More About LiveRez
LiveRez is the most widely used software platform for professional vacation rental managers. The company’s cloud-based, end-to-end platform offers fully integrated solutions for reservation and property management, websites with online bookings, trust accounting, CRM, housekeeping and maintenance, reporting, reviews and more. LiveRez is a proud Gold Sponsor of the Vacation Rental Manager’s Association (VRMA).

Visit LiveRez.com to learn more

1...535455...73Page 54 of 73