MINNEAPOLIS — ResortsandLodges.com, a leading worldwide Resort and Lodge destination travel website, today announced it is partnering with Barefoot Technologies, one of the founding browser-based vacation rental systems in the travel market, in order to provide ResortsandLodges.com travelers access to more than 20,000 vacation rentals.

Founded in 1999, Barefoot was officially the first browser-based vacation rental system on the market.  They are currently one of the few systems to offer customer relationship management (CRM) software, social media, document management and the most innovative work order system on the market.  They have also attracted more than 20,000 vacation rentals properties, and offer online availability, rates and booking options.

Thanks to the new integrated two-way interface, Barefoot Technologies will be able to publish comprehensive rental details with online rates and availability for ResortsandLodges.com’s nearly 10 million guests to book online.  This two-way interface offers Barefoot’s customers a new channel to attract new travelers and will save the property owners time so they don’t have to individually update rates and availability.

“We have an endless pursuit to ensure our travel audience is able to access the largest collection of accommodations across the world and be able to book them online. This ability will offer travelers the chance to create truly memorable vacation experiences. In order to meet our traveler’s demand we are connecting with properties where the availability isn’t typically sold on travel sites we may have become familiar with; Expedia, Priceline, Hotels.com and Travelocity. Our partnership with Barefoot Technologies is very exciting; we will be able to offer our nearly 10 million guests access to book real-time availability with more than 20,000 unique rental properties across North America,” said Ryan Bailey, CEO of ResortsandLodges.com.

“Our customers are always interested in connecting with shopping sites to generate new customers and it is difficult to do so with major OTAs like Expedia, Priceline and Hotels.com because of their traditionally high commission rates.  It is exciting to find a company like ResortsandLodges.com that offers a channel that is more feasible for resort and property managers,” said Ed Ulmer, President of Barefoot Technologies.

About Barefoot Technologies- Barefoot is a leading provider of browser-based reservation and asset management systems in the vacation rental industry. It has the distinction of being the first browser system in the industry, the first to provide online booking, tenant, owner access and to offer social media tools and is designed to be tailored to meet clients’ exacting needs. Barefoot is also the only system with a full Customer Relations program wrapped into the program, which in effect makes it the only full service system in the industry. Founded in 1998, by leading technology and industry players, the “.NET platform” has become a standard for those who are trend setters in the industry and those who desire to dominate their market with unique functionally. For more information, please contact Barefoot at 603-428-6255, Adam@barefoot.com

About ResortsandLodges.com

ResortsandLodges.com® is a comprehensive online resource for leisure travel with access to unique accommodations worldwide. The site provides the ability to plan and book memorable experiences at resorts, vacation rentals, cabins, holiday rentals, villas, condos, cottages, lodges, boutique hotels, B&B’s and vacation hotels.

Founded in 1998, ResortsandLodges.com was one of the first major leisure travel sites established on the Internet. Over the years, ResortsandLodges.com has received numerous awards and accolades for web design, outstanding usability, fast page loading speeds, and skillful information display.

2014 is shaping up to be the most expansive year to date for the vacation rental industry. We recently sat down with executives from seven on-the-grow vacation rental management companies to discuss everything from growth strategies to company culture, technology and marketing to future predictions for the industry.

The outcome was a veritable avalanche of industry expertise and insight. VRM Intel’s Under the Hood Series details each of the interviews and includes widespread topics that cover every aspect of the vacation rental business.

Recognition + Opportunity = Success

The success of each of these growing companies is grounded in their owners’ abilities to recognize need and seize opportunity in the marketplace.

Rick Elliott, Elliott Beach Rentals
North Myrtle Beach, SC

Following Hurricane Hazel in 1954, South Carolina State Senator Dick Elliott, previously a property maintenance man, saw the need for post-hurricane development and professional property management. Elliott plunged headfirst into real estate and opened the doors to Elliott Beach Rentals. At the time he handled rentals, maintenance, owner relations, guest services and anything else that came along. According to son Rick Elliott, current CEO for Elliott Beach Rentals, “Dad wanted to be on the front line and do it all…greet everyone, check everyone in, and meet with all the owners.”

After receiving his MBA from Univ of SC in 1990, Rick Elliott joined forces with his dad to scale the business; between 1990 and 2013 property management grew from 100 properties to over 1,400 vacation rentals.

Steve Milo, Vacation Rental Pros Property Management LLC
Ponte Vedra Beach, FL

In 2002 Steve Milo, Managing Director and founder of Vacation Rental Pros Property Management LLC, purchased his first vacation rental and struggled to find a competent property management company in the area. He decided to self-manage and explore the opportunity in the market. By 2006 Milo owned or co-owned 10 vacation rentals, and was having great success renting his properties on his website. Seeing the opportunity in the marketplace, he decided to launch Vacation Rental Pros. By the end of 2006, he was managing 25 properties.

Milo’s initial growth was organic. “I started the business in a recession. Many property managers had stopped taking new homes because they were having trouble getting bookings. In hindsight the recession was an opportunity. It allowed us to take advantage of a tougher playing field. By running a lean organization, we were able to be profitable, and we used that profit for marketing. We ended up having more bookings than units.” Only seven years later, Milo’s company now manages over 635 properties in Northeast Florida and along the Southwest Gulf Coast.

Sarah Bradford, Winter Park Lodging Company
Winter Park, CO

Sarah Bradford had little experience with vacation rentals when she and husband Chris purchased their Winter Park, CO condo. Like Milo, Bradford searched high and low for a property manager to market, book, and maintain their rental property. She began marketing and self-managing the property and was soon inundated by requests from a network of friends to help manage their Winter Park properties.

Bradford was managing 25 homes when she and her husband decided to take the leap and make property management her full time job. Within a 3-week period in 2007, they sold their Denver residence and bought a home in Winter Park. Sarah quit her job in Denver, and Winter Park Lodging Company was born, just prior to the arrival of twins in the Bradford home. Through leveraging technologically and bold, beyond-the-box thinking, the company grew. Only six years later, Winter Park Lodging Company now manages 150 homes.

Ashley Hamm, 360 Blue
Santa Rosa Beach, FL

In 2007, Jason Sprenkle was involved in developing condos in the Florida Panhandle, and an opportunity arose to manage some of the properties. Jason reached out to his brother Jeremy Sprenkle, and together founded 360 Blue in 2007 managing six vacation rentals. With a focus on technology and service, by the end of 2013, 360 Blue was managing 237 properties.

Amy Gaster, Tybee Vacation Rentals
Tybee Island, GA

Fresh from a visit to Europe, Amy Gaster thought it would be fun to welcome travelers into their home and decided to turn their downstairs into an apartment-sized vacation rental. At the time, other than a handful of realtors offering rental services to their clients, there wasn’t an established vacation rental presence on Tybee Island. Amy used local online marketing to list the property and, before the renovations were complete, the new apartment was booked for the entire summer. Amy continued to receive calls and quickly recognized the opportunity before her. She contacted her sister Carrie who agreed to come on board.

After earning their real estate licenses in 2000, the sister-team mailed introduction letters to local property owners announcing they were the new “rental girls” in town who were going to do things differently. With high quality service and all-online marketing, they began signing homeowners. Tybee Vacation Rentals now manage over 200 vacation homes.

Brooke Pfautz, All Star Vacation Homes
Orlando, FL

Sixteen years ago serial entrepreneur Steve Trover was approached by his mother, owner of a real estate company in the Orlando area. She was having difficulty finding competent property managers to manage and rent her clients’ vacation rental homes. Trover analyzed the opportunity and, with $1,000 startup capital, founded All Star Vacation Homes. Today the company manages over 250 high-end vacation rentals in four markets.

Ryan Goodman, Kokopelli Property Management
Santa Fe, NM

Charles Goodman, CEO of Kokopelli Property Management, has been in the real estate business as an owner, investor, and property manager since 1976, when he acquired a 5-unit apartment complex in Albuquerque, NM. Operating out of a garage with only a handful of properties, he began managing more rentals and soon launched Residential Property Management in 1996.  Goodman recognized that, through economies of scale, the business of property management could be highly profitable. With the help of his wife and two sons, Goodman grew the company and re-branded it as Kokopelli Property Management. Today the company manages 600+ rentals.

Company Culture:  How to Keep It

In interviews with CEO’s of rapid-hiring companies across America, Inc. asked, “What’s the biggest challenge in managing a growing workforce?” The No. 1 answer, from 72% of respondents:  “Maintaining company culture.”

Ashley Hamm, CFO of 360 Blue, agrees, ““Our top priority is our company culture. The larger you get, the harder it is to maintain.”

So how do vacation rental companies manage to preserve company culture in the midst of high growth? Both Hamm and Brooke Pfautz, Chief Business Development Officer at All Star Vacation Homes, focus heavily on the hiring process.

“We have a strong, passionate culture. Our people ‘bleed’ 360 Blue,” explains Hamm. “To maintain high morale and a consistent company culture, we typically weed through 300 resumes and interview 100 people for each position we hire. If necessary, we opt to delay hiring in order to find the right person for our team.”

All Star Vacation Homes uses the Culture Index as a tool in putting the right people in the right seats. “We live and breathe it,” says Pfautz. “We create the job profile beforehand, determine the optimal profile for the position, and match candidates to appropriate profiles. A high percentage match between the Culture Index and the job profile is a big factor in our interviewing process.”

Another strategy in promoting and motivating company culture is sharing key business information with team members. According to Ryan Goodman, CMO at Kokopelli, “We’ve decided to open our books to our employees. In giving them manageable, simplified job expectations, we’ve found, if they aren’t looking at a budget or P&L, it’s hard to expect them to make the best decision. They also know if they want to ask for a raise, they need to demonstrate how their contribution directly affects the bottom line.”

Sarah Bradford, Winter Park Lodging Company, said, “When we first started, we didn’t even think about company culture. We knew we wanted it to be fun. I read Tony Hsieh’s (CEO, Zappos) book Delivering Happiness, which focuses on making company culture a top priority and helping employees grow personally and professionally.”

Bradford advises, “Formalize your culture and don’t make it cliche. Come up with your values and include your employees in the process. I learned – largely through networking with other managers in VRMA – when new people come on board (that) I, as the owner, have to be the company cheerleader. Now I spend one-on-one time with each new employee and tell them about our growth, our values, and our goals. I also make a conscious, consistent effort to create fun. I bring chocolate, make t-shirts, and have off-site team building activities. If you don’t stay on top of it, one employee can bring the whole culture down and make it seem cool to have a bad attitude.”

Amy Gaster at Tybee focusses on hiring and empowering capable team members:  “My advice is to grow a competent core staff. It’s important to Carrie and me that we invest in (the way) our organization is growing. We make sure everyone is communicating, and we implement shared systems to keep people connected. We train and empower our team to ensure they portray our vision to guests and owners. The end goal is for everyone to be confident in what the company stands for, and to be able to speak in the same voice when interacting with customers and co-workers.”

To preserve company culture in his energetic, bottom-line-focused business, Steve Milo leads by example and focuses on accountability. “In our experience, company culture is incredibly important. Our company has a culture which is high-energy and doesn’t mix with traditional models,” said Milo. “I’m a high-energy owner. I get up early, and I don’t have time for wasted effort. I task people in our company. I hold them accountable and expect them to meet deadlines. Once you start to build a like-minded team, if you bring someone in who’s not a good fit, they typically won’t last for the 90-day probationary period.”

In the vacation rental business maintaining quality relationships with homeowners can be a minefield – one that cannot be ignored.

When asked about the number of properties Elliott Realty manages (1,400), CEO Rick Elliott answers, “We manage one property at a time, one homeowner at a time.”

Elliott added brick and mortar locations to his target areas. “Guests and owners have an increased comfort level and familiarity when they see and feel a physical presence. We staff these offices with Owner Service Professionals, who serve as the point of contact for homeowners in the area. We make sure we hire professional and skilled personnel and we pay them well. It’s a key factor to our success with owners. Elliott Realty’s owners like the continuity that comes with seeing the same face.”

The satellite offices also help Elliott target specific complexes and developments. “It’s our way of investing in a targeted area and taking a large portion of inventory. Our homeowners appreciate that we have made a commitment to them and their area.”

Vacation Rental Pros has a different approach to maintaining owner relations, with overall storefront rent less than 1% of gross income. “I don’t believe in fancy offices, and I don’t believe in offline marketing,” says Milo. “What separates us from other companies in our area is that our bookings are so much stronger; occupancy is higher so we have happier owners. We have a dedicated person for owner relations, and the bulk of our correspondence is through email. We also have a customer service department to answer our owners’ questions. But owners still have my cell phone number.”

Ryan Goodman at Kokopelli says their owners have his cell phone number too, plus he has implemented a proactive strategy in communicating with owners. “No matter how much we’ve grown, we have prioritized the relationship with the homeowner.”

Goodman generates an arrival report every week to see which owners are coming into town; he attempts to schedule face-to-face time with them. “Why try to chase them down when you can proactively get in front of them while they’re in town?” said Goodman. “I have a big face with a big smile and that doesn’t come through in an email or on the phone. I want them to know they are taken care of.”

“Having the right number of people staffed is important, so the owner knows someone is designated to always be watching their home,” adds Ashley Hamm at 360 Blue. “Every 360 Blue homeowner has a point of contact. We also have an owner retention program in which we proactively call to check in with the owners.”

All Star Vacation Homes views the homeowner relationship as a partnership. “The way we look at the relationship with homeowners is (that) we are an asset manager and the homeowner is our partner. We call our owners partners,” said Pfautz. “We have a team member in each market who is the point contact for the owner. When an owner is in town, we know when they are coming and we arrange to meet with them at their home and do a walk-through.”

Winter Park Lodging Company takes a highly personalized approach in their owner retention strategy. “We are always selling to owners,” says Bradford. “We send owner newsletters to keep them informed. We schedule regular proactive phone calls with owners. We give them free lift tickets and passes when we can. Sometimes, we even babysit their kids.“ Bradford adds.

During growth periods, Kokopelli Property Management, Vacation Rental Pros, and All Star Vacation Homes have all acquired property management companies, producing both opportunities and challenges. Kokopelli entered the vacation rental space in 2003, when they acquired a company which had a small inventory of short-term rentals.  By 2013 the company had acquired 11 other companies and currently manages 220 vacation rentals, along with 500 long-term rentals and 60 commercial spaces.

“When we acquire a company, we typically don’t absorb their employees,” says Ryan Goodman, Kokopelli CMO. “They are less likely to adhere to our standards and procedures. We absorb the work load, closely analyze performance, decide if we need to hire, and hire fresh. There have been a few exceptions when we have absorbed employees if they have some important relationships we feel strongly we would lose without their being on board.”

Steve Milo, Vacation Rental Pros, has acquired four companies, one per year, since 2009, adding 225 properties to his inventory. “The first one was a smaller company that was struggling during the recession. We don’t absorb the employees. We do what is known as an asset purchase. For us, expansion is about quality, not quantity.”

In November 2013 All Star Vacation Homes tapped a new market with its acquisition of Southern California Vacation Rentals. “We surveyed the guests who have stayed in our vacation homes in Orlando since 1998, guests who also continued to request California as a western U.S. destination,” says CEO Steve Trover. “The La Jolla and San Diego destinations are a good fit for expanding the All Star brand on the west coast.”

All Star Vacation Homes retained most of the staff in the acquisition. ““We were very excited to bring the strong leadership and operations team that was in place in Southern California on board as members of the All Star team.” said Brooke Pfautz, Chief Business Development Officer at All Star.

Although their marketing strategies differ, our company executives agree that leveraging technology is a key component in their success. They reference three areas of focus:

1. Property Management Software
2. Company Website
3. Revenue-focused Technology Platforms

1. Property Management Software

In 1990 when Rick Elliott established Elliott Realty, he didn’t have a property management system. Like many VRMA members at the time, he used the “Rez Board” system, a manual method of keeping up with reservations which became inefficient as the company grew.

Putting a solid system in place was a critical part of Elliott’s strategy; he focused first on designing an efficient, scalable reservation system and reached out to IBM certified consultant Rick Flanagan who, in 1993, built a custom system for Elliott Realty – a system still utilized by the company today. Elliott emphasizes, “As a result, we were the first in our area to have online booking on our website.”

From their 2006 beginning, Vacation Rental Pros invested in web-based property management software. “The best thing you can do with your software is to work directly with your vacation rental software provider,” Milo adds. “For example, we worked with Escapia to open up our API so we could create an interface with Salesforce to have a better help desk.”

Tybee Vacation Rentals also implemented web-based software early. “In our first year, we started with a windows-based application, but we quickly identified the need for a web-based solution,” Gaster explains. ”It was our Number 1 goal when we attended our first VRMA conference.”

Like Tybee, 360 Blue decided to change software systems. “It was a difficult process,” Hamm says. “It was tedious and time-consuming, but beneficial for us to change software at the beginning of the year.  We ran dual systems at first and still anticipate using our old system for another year for data purposes.”

All Star also early on sought a web-based property management solution that would also integrate a CMS and better website management.  Limited existing options led Steve Trover to contract with Tracy Lotz to build All Star’s own proprietary system, which has now evolved into the LiveRez platform.  “In this evolving industry and with rapidly changing technology, we needed a solution that could grow with us,” said Trover.

2. Company Website

All company leaders agree – a high-performance company website is essential to their marketing strategy. It must include the following components: online booking, software integration, easy navigation, high-quality photography, original content, area information, and mobile-friendly design.

Milo emphasizes that Vacation Rental Pros immediately invested in their website. “We invested in a user-friendly website and have incorporated a high quality mobile site.”

Amy Gaster at Tybee also prioritizes their website. “We started with a good website, improved it, and continue to find ways to make it better for our guests. It’s also important to remember that many potential owners make decisions on which company they will chose to manage their property based on your online presence and the functionality of your website.”

After outsourcing their website to Blizzard Internet Marketing, 360 Blue has seen an improvement in their conversions. “As we have been looking at our marketing data, more and more of our rental revenue is coming from organic traffic to our website,” said Hamm.

3. Revenue-focused Technology Platforms

Every executive we interviewed utilizes additional technology with heavy attention to return on investment. “Everything we do at Tybee is technology focused,” says Gaster.

NAVIS Sales and Marketing System, Glad to Have You Guest Management System, Status Tracker Housekeeping Software, and various keyless lock systems rated highest among additional technology platforms.

Kokopelli’s Ryan Goodman emphasizes, “We are careful to analyze ROI with the technology we utilize. Everything we spend eats into our margins. We have to ask, ‘What is it adding to our margins?’ For example, we funded our Glad to Have You App as a Santa Fe Tourism App and sold advertising on it. It’s now a profit center with 100 strategic partners in Santa Fe, NM.”

360 Blue also closely monitors ROI on new technology. “We work in an industry of pennies. In order to determine what software and technology we use, we have to evaluate the ROI,” Hamm explains. “We open our P/L to employees, including software prices. So we have 43 employees monitoring whether or not a technology platform is making sense for us. We have a competitive advantage with our relationship with Glad to Have You, as we’re able to beta test any new technology they think up.”

 Crystal-balling the Industry

Most of the executives we interviewed agree that the trend toward consolidation, improved technology, and increased attempts by local and state governments to regulate short-term rentals will impact the vacation rental management industry in the near future.

“Consolidation is a given. We’re in the beginning stages of consolidation, and Wyndham has demonstrated a big appetite for acquisition,” says Milo. “It reminds me of the 90’s with e-commerce sites. What evolved was that Yahoo and AOL attracted eyes, then the consumer sites like Amazon came after. The consumer sites were able to grow because the eyeballs were there. Wall Street has funded some big portals in the vacation rental industry which are drawing eyeballs now, and there are opportunities for property managers to leverage the technology to allow for consolidation and efficiencies. The opportunity is there. No organization has been able to effectively manage vacation rentals on a large scale… yet.”

Goodman agrees. “Consolidation on the online side and the listing side has happened. Consolidation on the service side is coming… next is the franchise model. By establishing a national brand, you get all accounting, marketing, sales, best practices, increased purchasing power, and branding power.”

Hamm at 360 Blue anticipates new technology will be a big factor in the industry. “Technology is (only) going to improve. When we started in the industry, we were decades behind as an industry. And now technology is taking off.”

Concerns about government regulations have prompted several of the executives to encourage participation in local and state government and elections.

According to Amy Gaster, “Following the growth of the vacation rental industry on Tybee, and several proposed rental restriction ordinances, we added two vacation rental managers to the Tourism Council. We were able to demonstrate to the officials and the community that 68% of revenue came from vacation rentals, and we ensured them that we wanted to be good neighbors. We showed the value of tourism and, more specifically, the value brought by vacation rentals to the destination. We knew we had to balance the quality of life issues with residents and we figured out ways to coexist.”

Tybee remains active in government affairs. Gaster adds, “There’s always a risk there could be more regulations and restrictions created. We’re in the process of compiling an official economic impact study, and we continue to communicate with the City and residents as needed in order to be more proactive.”

Steve Milo also stays active in government affairs relating to the vacation rental industry. “If you haven’t faced it, consider yourself lucky, but don’t think you won’t. In Florida, it’s been frustrating to see how few property managers will help fund advocacy initiatives and political campaigns. To me, it would be like not paying for insurance. In our industry, it’s a cost of doing business.”

By Amy Hinote

Related Articles:

Part 1: A Look Under the Hood at Vacation Rental Pros

Part 2: A Look Under the Hood at Kokopelli Property Management

Part 3: A Look Under the Hood at Elliott Beach Rentals

This is part 3 in the Under the Hood Series in which we interviewed executives from seven on-the-grow vacation rental management companies to discuss everything from growth strategies to company culture, technology and marketing to future predictions for the industry. 

Part 1: A Look Under the Hood at Vacation Rental Pros

Part 2: A Look Under the Hood at Kokopelli Property Management

Part 4: A look Under the Hood at Winter Park Lodging Company

Following Hurricane Hazel in 1954, South Carolina State Senator Dick Elliott, previously a property maintenance man, saw the need for post-hurricane development and professional property management. Elliott plunged headfirst into real estate and vacation rental management and opened the doors to Elliott Beach Rentals. At the time he handled rentals, maintenance, owner relations, guest services and anything else that came along, including serving as a North Myrtle Beach Councilman from 1962 to 1966.

In 1976, Sen. Elliott was appointed Vice Chair on the Horry County Council, which propelled him into state politics and service. In 1982, he was elected to the South Carolina House of Representatives where he served for 10 years before being elected to the South Carolina Senate in 1992. Sen. Elliott retired from politics in 2013 and is credited with bringing many improvements to the area including infrastructure and roads which expanded tourism in the North Myrtle Beach area.

Rick Elliott, Sen. Elliott’s son, joined forces with his father to scale the business after receiving his MBA from Univ of SC in 1990 (although, make no mistake. He is a Clemson fan through and through). With Sen. Elliott’s time being more and more consumed in service to the state, Rick joined to the team to put in a solid corporate structure which would allow the company to grow from 100 properties under management in 1990 to over 1,400 properties in 2013.

In 1990, Rick handled all the marketing and accounting. “Dad wanted to be on the front line and do it all…meet everyone, check everyone in, and meet with all the owners.”

Elliott Beach Rentals now has 40 full-time employees and adds seasonal employees to the mix during peak weeks, typically from mid-May through the end of September.

Owner Relations

When asked about the number of properties Elliott Beach Rentals manages, CEO Rick Elliott consistently answers, “We manage one property at a time, one homeowner at a time.”

Elliott added brick and mortar locations to his target areas. “Guests and owners have an increased comfort level and familiarity when they see and feel a physical presence. We staff these offices with Owner Service Professionals, who serve as the point of contact for homeowners in the area. We make sure we hire professional and skilled personnel, and we pay them well. It’s a key factor to our success with owners. Elliott Beach Rentals’s owners like the continuity that comes with seeing the same face.”

The satellite offices also help Elliott Beach Rentals target specific complexes and developments. “It’s our way of investing in a targeted area and taking a large portion of inventory. Our homeowners appreciate that we have made a commitment to them and their area.”

“We focus on one area of growth, and try to be the best in that area,” said Elliott. “Business owners should tell customers exactly who they are and what they specialize in. Early on, we saw the fallacy in trying to be all things to all people.”

By 2005, inventory from new development projects had been added to the market, and Elliott Beach Rentals benefited. “We grew because we specifically targeted each development. We grew substantially from 2005-2006 and have been able to maintain sustainable growth since that time,” said Elliott.

Property Management Software

In 1990 when Rick Elliott began to grow Elliott Beach Rentals, he didn’t have a property management system. Like many VRMA members at the time, he used the “Rez Board” system, a manual method of keeping up with reservations which became inefficient as the company grew.

Putting a solid system in place was a critical part of Elliott’s strategy; he focused first on designing an efficient, scalable reservation system and reached out to IBM certified consultant Rick Flanagan who, in 1993, built a custom system for Elliott Beach Rentals – a system still utilized by the company today. Elliott emphasizes, “As a result, we were the first in our area to have online booking on our website.”

Marketing

Elliott’s marketing plan follows their regional-targeting strategy with the creation and promotion of complex-specific, region-specific, neighborhood-specific microsites which include online booking, original content and search engine optimization.

“I would encourage PMs to build microsites for specific area and communities,” said Elliott. “They let people know you want their specific business and are willing to commit to their community. We are able to do a lot of branding of business segments using microsites. We have original content to promote every development in every neighborhood with internal linking between the sites.”

Elliott also advises vacation rental managers to hire a marketing person who has demonstrated skills in social media, online reputation management, and content creation. To supplement marketing efforts, “Get some college kids, give them a big title and pay them $10/hour,” joked Elliott.

Housekeeping and Service

Overall, Elliott prefers to do most things in house, and their volume of business allows them to accomplish that. According to Elliott, this is especially true with their housekeeping department. “If you can hire your housekeepers in-house, I recommend it,” says Elliott. “Additional fees, better service and accountability make it worthwhile for your company.”

Company Culture

Like Sarah Bradford at Winter Park Lodging Company, Elliott puts a large value on being passionate about the work. “You got to have passion. If you don’t have the passion what is it all worth? It is about making people happy, and in our business we get the opportunity to do that every day.”

Elliott Beach Rentals has weekly management meetings. “I used to sit at the head of the table,” said Elliott. “Now, I sit off to the side and just try to provide constructive direction to make sure we are all working together. Sometimes team members don’t want to agree. It is ok to have different opinions, but when you open the door to walk out of the meeting, you walk out as one team.”

Elliott also emphasizes leading by example. “We work in an industry of pennies,” said Elliott. “I get to work early in the morning and walk around the parking lot to pick up cigarette butts and check the dust on the railings in the office hallways. I do this every day to show our employees that owner service is all about the details. Small things make you money.”

Looking to the future

We asked Elliott about the competition third party distribution sites bring to the industry. “All these distribution avenues, I see nothing wrong with them,” said Elliott. “Expedia, HomeAway…I’m big fan of them all. In the past I have shied away because of the damage to our organic search traffic. But other managers can decide for themselves which ones work best for them.”

“It is similar to the NAR (National Association of Realtors), you aren’t going to see FSBO’s (for sale by owner) running the show.”

Elliott also sees more need for targeted marketing in online travel agencies. “There is a need for more niche marketing and segmented marketing in OTA’s,” said Elliott. “I think we will see more of that in the future.”

With consolidation, Elliott observed, “Wyndham is coming in our market. In the end, whoever provides the best service is going to win. The VRMs are going to have to work. We need to have an on-site mentality in managing our properties in order to compete effectively.”

By Amy Hinote

Related Articles:

Part 1: A Look Under the Hood at Vacation Rental Pros

Part 2: A Look Under the Hood at Kokopelli Property Management

Southern Vacation Rentals Partners with Adagio on Scenic 30A to Assume the Management of On-Site Office and More than 50 Properties

Southern Vacation Rentals in Destin, FL has partnered with Adagio Resort in Blue Mountain Beach to assume the management of the on-site rental office as well as more than 50 of the resort’s Scenic 30A luxury vacation rentals.

“Southern is proud to have partnered with the Tew family who has made Adagio one of the most successful luxury condo resorts on Scenic 30A,” said Southern General Manager Jim Meeker. “By adding more than 50 Adagio by Southern condos onto our program, we look forward to offering both owners and guests the exceptional Southern service and amenities that our loyal owners and guests have come to love over the past 19 years.”

While Southern has been representing properties in South Walton since 1995 and at Adagio since 2003, these new Adagio condos strengthen Southern’s position along this unique stretch of coastline. Southern plans to continue to expand and fortify its standing as a premier player in vacation rentals in 30A, offering a variety of options from studios to eight bedrooms, with an emphasis on the luxury line and catering to the discerning guests who have come to expect more. Staying in a Southern property ensures a “sweet Southern experience.”

The Adagio property is an exclusive community resting directly on the white sandy beach with two pools, fitness room, and seven condo buildings, three of which face the Gulf of Mexico. Also overlooking the Gulf is one of their pools, a stunning 1,700 square-foot infinity edge pool. The other four buildings surround a magnificent center pool stretching more than 8,000 square feet with three tiers, fountains and cascading waterfalls. Each of the condos is individually owned and exceptionally furnished, offering guests a beautiful destination for their next visit to South Walton.

In addition to the property’s amenities, guests atAdagio by Southern benefit tremendously from Southern’s competitive rates, Southern’s hospitality and service and the GoSouthern app, a communication tool that also features free and discounted activities through the Southern Perks program.

New features that owners gain immediately as part of the Southern Vacation Rentals program include valuable advertising and marketing, full financial management, no-cost Maintenance Plan, Peace of Mind Protection Plan, private Owner Link and a professional reservations sales team driving optimal revenue.

Southern Vacation Rentals maintains a small company feel with big company reach and resources. Southern currently represents approximately 985 short term and 800 long term rentals, 40 associations and countless real estate properties throughout Gulf Shores, Orange Beach, Perdido Key, Pensacola Beach, Fort Walton Beach, Destin, South Walton, Panama City Beach and the Forgotten Coast.

A Look Under the Hood at Kokopelli Property Management

This is part 2 in the Under the Hood Series in which we interviewed executives from seven on-the-grow vacation rental management companies to discuss everything from growth strategies to company culture, technology and marketing to future predictions for the industry. 

Part 1: A Look Under the Hood at Vacation Rental Pros

Part 3: A Look Under the Hood at Elliott Beach Rentals

 Part 4: A Look Under the Hood at Winter Park Lodging Company

Charles Goodman, CEO of Kokopelli Property Management, has been in the real estate business as an owner, investor, and property manager since 1976, when he acquired a 5-unit apartment complex in Albuquerque, NM. Operating out of a garage with only a handful of properties, he began managing more rentals and soon launched Residential Property Management in 1996.

Goodman recognized that, through economies of scale, the business of property management could be highly profitable. With the help of his wife and two sons, Goodman grew the company and re-branded it as Kokopelli Property Management. Today the company manages 600+ rentals.

Acquisition and Consolidation

Kokopelli entered the vacation rental space in 2003, when they acquired a company which had a small inventory of short-term rentals. By 2013 the company had acquired 11 other companies and currently manages 220 vacation rentals, along with 500 long-term rentals and 60 commercial spaces.

“When we acquire a company, we typically don’t absorb their employees,” says Ryan Goodman, CMO. “They are less likely to adhere to our standards and procedures. We absorb the work load, closely analyze performance, decide if we need to hire, and hire fresh. There have been a few exceptions when we have absorbed employees if they have some important relationships we feel strongly we would lose without their being on board.”

Looking ahead to acquisition trends, “Consolidation on the online side and listing side has happened. Consolidation on the service side is coming,” said Goodman. “I think what is coming next is the franchise model. By establishing a national brand, you would get all accounting, marketing, sales, best practices, increased purchasing power and branding power.”

We asked Goodman if Kokopelli was still looking to acquire more vacation rental management companies. He responded, “You can’t acquire something if the seller isn’t ready to sell. Many vacation rental managers are in it to retire and will consider selling at that point. However, it may be too late.”

Synergy Between Long-term and Short-term Rental Management

Kokopelli found there was substantial synergy between the processes involved in long and short term rental management. “On the vacation rental side, the ratio of employees to properties managed is about 1:10, while the ratio for long-term residential and commercial properties is closer to 1:100, and one commercial contract can produce ten times the gross revenue from a vacation rental,” said Goodman. “Most vacation rental management companies are highly engaged in real estate sales and short-term rentals. We found that it was more profitable to exit sales and focus on property management, both long-term and short-term. This strategy allowed for more synergy in our processes and services and resulted in an explosion of referrals from realtors, as we were no longer in competition with them.”

Goodman adds, “We created an assembly line approach in order to empower our employees and provide the best owner experience. That’s how we’ve managed to be so successful.” Now Ryan Goodman acts as CEO over vacation rentals, while his brother heads up commercial and long-term rentals.

Open Book Management

Jack Stack’s The Great Game of Business introduced business owners to the concept of Open-book Management as a tool in getting employees engaged in the success of your business by sharing financial and decision-making duties among all employees.

Goodman adopted this approach with his employees at Kokopelli. “We have decided to open our books to our employees. In giving them manageable, simplified job expectations, we have found if they aren’t looking at a budget or P&L, it is hard to expect them to make the best decision. They also know if they want to ask for a raise, they need to demonstrate how their contribution directly affects the bottom line.”

Bringing It In-house

We have an in-house housekeeping department and an in-house service/maintenance department.
“In Santa Fe, we call it the ‘land of mañana’ …or we’ll get to it tomorrow,” said Goodman. “Finding prompt, quality service was a challenge so in order to provide the kind of quality services we needed, we had to bring these services in-house.”

Goodman adds, “We initially ran these at a loss until we built them up. Now we help finance these departments with ancillary services, such as preventative maintenance inspections and freshen-up cleaning for realtors’ showings and open houses. We also market our housekeeping services to our long-term commercial and long-term renters and to VRBO’s. In the short-term rental industry, it doesn’t matter if you rent by owner or are professionally managed, you need housekeeping and maintenance, so we offer these services to VRBO’s, as well.”

“We have found different revenue streams to support the departments we needed to ensure the quality of our service,” said Goodman.

Technology Should Add to the Bottom Line

When looking at technology, Kokopelli is laser focused on their return on investment (ROI).

Goodman emphasizes, “We are careful to analyze ROI with the technology we utilize. Everything we spend eats into our margins. We have to ask, ‘What is it adding to our margins?’ For example, we funded our Glad to Have You App as a Santa Fe Tourism App and sold advertising on it. It’s now a profit center with 100 strategic partners in Santa Fe, NM.”

More Owners = More Profits

Kokopelli has a proactive view toward owner acquisition and owner retention. “We chose to grow by acquisition, but we still have to get creative with our marketing to owners,” said Goodman. “Our relationships with our owners dictate our profitability. Most vacation rental managers are competing for guests. We are competing for owners.”

“For example, we sent out a four piece direct mail campaign to 600 contacts in Angel Fire, NM,” said Goodman. “It cost us $2,000, and we got 15 contracts from it. At the end of 2013, when all rental proceeds from those contracts were calculated, we had a 3,000% return on that investment.”

He adds, “In our market, we don’t do a lot of targeting based on property type. We all know that a 5 bedroom house yields more revenue than a 2 bedroom condo, but not if the owner of the 5 bedroom house is calling every day and upsetting the system. We weed out in the sales cycle, not in the marketing campaign.”

Like Steve Milo, founder and Managing Director at Vacation Rental Pros Property Management (who also manages over 600 rentals), Ryan Goodman says their owners have his cell phone number, and he has implemented a proactive strategy in communicating with owners. “No matter how much we’ve grown, we have prioritized the relationship with the homeowner.”

Goodman generates an arrival report every week to see which owners are coming into town; he attempts to schedule face-to-face time with them. “Why try to chase them down when you can proactively get in front of them while they’re in town?” said Goodman. “I have a big face with a big smile and that doesn’t come through in an email or on the phone. I want them to know they are taken care of.”

Many property managers struggle with owners attempting to market their own properties. Kokopelli chooses to work with owners who want to self-market. “I am not a property marketer, I am a property manager. If I have an owner who thinks he can do a better job marketing his property, I let him do it.”

Advice for Vacation Rental Managers

For vacation rental managers looking to sell their companies Goodman advises, “Get your books in order. Eliminate any expense which isn’t directly impacting your bottom line. You will need 12-18 months of good books. Make sure you don’t have an area within your company which is losing money.”

Goodman also recommends getting involved in organizations like the VRMA. “Pick two or three associations which offer education. Network and get involved. Participating can be expensive and time-consuming, so don’t pick too many, but the networking and education really helps you succeed.”

By Amy Hinote

Related Articles:

Part 1: A Look Under the Hood at Vacation Rental Pros

Part 3: A Look Under the Hood at Elliott Beach Rentals

High-Energy Property Management: A Look Under the Hood at Vacation Rental Pros Property Management

This is part 1 in the Under the Hood Series in which we interviewed executives from seven on-the-grow vacation rental management companies to discuss everything from growth strategies to company culture, technology and marketing to future predictions for the industry.

 Part 2: A Look Under the Hood at Kokopelli Property Management

 Part 3: A Look Under the Hood at Elliott Beach Rentals

Part 4: A Look Under the Hood at Winter Park Lodging Company

A Look Under the Hood at Vacation Rental Pros Property Management

In 2002 Steve Milo, Managing Director and founder of Vacation Rental Pros Property Management LLC, purchased his first vacation rental and struggled to find a competent property management company in the area. He decided to self-manage and explore the opportunity in the market.

By 2006 Milo owned or co-owned 10 vacation rentals, and was having great success renting his properties on his website. Seeing the opportunity in the marketplace, he decided to launch Vacation Rental Pros. By the end of 2006, he was managing 25 properties.

Milo’s initial growth was organic. “I started the business in a recession. Many property managers had stopped taking new homes because they were having trouble getting bookings. In hindsight the recession was an opportunity. It allowed us to take advantage of a tougher playing field. By running a lean organization, we were able to be profitable, and we used that profit for marketing. We ended up having more bookings than units.”

Only seven years later, Milo’s company now manages over 635 properties in Northeast Florida and along the Southwest Gulf Coast.

Running a Tight Ship

Being an exceptionally high-energy property manager, Milo hired his first employee, a bookkeeper, in December 2007. At that time he was managing 125 properties.

“Managing 125 properties (without employees) wasn’t sustainable, but it taught me I can do more for less,” said Milo. “I learned many property managers have too much tied up in G&A Expenses. I learned not to waste money on things that don’t drive revenue.”

Now, the Vacation Rental Pros team puts enormous emphasis on doing everything in a prudent, thoughtful manner to control G&A expenses and profitability. Last year, Milo cut staff and increased sales 30% in 2013 over 2012. Vacation Rental Pros now has 47 employees and outsources cleaning, services, some marketing and photography.

“In general, I am a big fan of outsourcing,” said Milo. “We run a tight G&A. This doesn’t happen by accident. It happens because management buys into the philosophy of keeping expenses low and having productive employees.”

A tight focus on the bottom line is a common thread throughout the company. “We have been mono-focused on property management and have been willing to partner with others for furniture, real estate, and construction,” said Milo. “We also have been willing to stay away from ancillary revenue from these sources.”

#1 –A Great Website

Steve Milo understood the many economic and market benefits of the internet 20 years ago, when he transitioned his consumer catalog business -first to email marketing -and then to ecommerce before successfully selling the business in 1999.

When he ventured into property management in 2006, Milo started out by investing in a user-friendly website, and he credits strategic use of the internet for his rapid expansion in vacation rental property management.

According to Milo, “Today it’s different than it used to be. It is really dependent on original content. We have a lot of content, including 15,000 guest reviews, over 20,000 photos, vacation options and information. The search engines reward content-rich websites. Consumers can book online directly or can call us and talk to a sales agent about the rental property they are interested in. We also invested in an effective, user-friendly mobile site. ”

And to make the business more profitable, he has outsourced website development overseas. “I have successfully utilized overseas programmers at a fraction of what it costs in the U.S. to do our web development,” Milo said.

Milo and his staff have found that the key to having a successful online presence is to keep it simple for customers: “The first thing is it starts with your website, and having a website that is user-friendly and easy to navigate with content properly laid out and updated on a regular basis.”

100% Online Marketing

Milo has been a student of marketing strategies implemented by successful competitors. “The easiest way to determine your marketing strategy is to look at the best in breed in your industry, those that are already established with strong marketing and internet sites. We look at Expedia, Travelocity and Bookings.com to see what they’re doing,” he said.

Vacation Rental Pros has a 100% online marketing strategy. “We never printed a vacation rental catalog, and we don’t spend money on offline marketing,” said Milo. “The fact is you can reach a global audience without the cost of postage.”

One component of his strategy includes investment in pay per click advertising (PPC). With an ecommerce background, Milo learned to utilize PPC carefully and with a great deal of restraint. He works closely with a boutique company who specializes in ecommerce to manage his PPC budget.

Milo also places targeted portal advertising on VRBO.com and other distribution sites, and he has created and maintained a sophisticated database so Vacation Rental Pros is able to execute highly targeted and segmented email campaigns.

In regard to branding, “Branding is overrated in our industry,” said Milo. “There are companies who are too obsessed with their brand and not focused on conversion. Our focus is on the market, conversions and the number of leads generated.”

Technology: The Digital Divide

According to Milo, “The key to running a business in any industry is learning to get the best results from technology. In most industries there is a digital divide and a big difference between those who know how to utilize technology and those who don’t.”

He selected Escapia, a web-based property management system (PMS) to help in the management of his properties. “It was a really good choice for us in 2006. We may come to a point where we outgrow it,” said Milo.

“The best thing is to work with your vacation rental software (or PMS) provider. For example, we worked with Escapia to open up our API to create an interface with Salesforce to have a better help desk. We also use NAVIS and Glad to Have You.”

Owner Acquisition and Retention

“What separates us from other companies in our area is that our bookings are so much stronger and occupancy is higher, so we have happier owners,” said Milo.

Vacation Rental Pros has a dedicated person for owner relations and the bulk of their correspondence is through email. “We also have a customer service department to answer any questions,” adds Milo. ”But owners still have my cell phone number.”

Milo admits he does occasionally have to “fire an owner.”

To attract new owners to the company, Milo targets by property type (e.g., large, oceanfront homes) and maintains a comprehensive database on every homeowner and property type they have targeted.

Acquisition and Consolidation

According to Milo, “It is irrefutable that there are economies of scale in the vacation rental industry, once you establish your G&A.” Vacation Rental Pros has acquired four companies, one per year, since 2009, adding 225 properties to his inventory. “The first one was a smaller company that was struggling during the recession. We don’t absorb the employees. We do what is known as an asset purchase. For us, expansion is about quality, not quantity.”

As they look to the future, Milo adds, ““Consolidation is a given. We’re in the beginning stages of consolidation, and Wyndham has demonstrated a big appetite for acquisition. It reminds me of the 90’s with e-commerce sites. What evolved was that Yahoo and AOL attracted eyes, and then the consumer sites like Amazon came after. The consumer sites were able to grow because the eyeballs were there. Wall Street has funded some big portals in the vacation rental industry which are drawing eyeballs now, and there are opportunities for property managers to leverage the technology to allow for consolidation and efficiencies. The opportunity is there. No organization has been able to effectively manage vacation rentals on a large scale… yet.”

High-Energy Company Culture

To preserve company culture in his energetic, bottom-line-focused business, Steve Milo leads by example and focuses on accountability.

“In our experience, company culture is incredibly important. Our company has a culture which is high-energy and doesn’t mix with traditional models,” said Milo. “I’m a high-energy owner. I get up early, and I don’t have time for wasted effort. I task people in our company. I hold them accountable and expect them to meet deadlines. Once you start to build a like-minded team, if you bring someone in who’s not a good fit, they typically won’t last for the 90-day probationary period.”

Advice to Growing Vacation Rental Management Companies

We asked Steve Milo if there was anything he wishes he had done differently during his rapid expansion, and he responded, “I wish I had stayed with my gut for the last 7 years. There were times I listened to ‘industry experts’ who offered advice which was not right for our market. For example, my gut was to outsource as much as possible, and I briefly listened to advice from a consultant to bring more in house. It resulted in fractured liaisons for groups of owners. We quickly repaired the mistake and centralized operations, chopped costs and eliminated one-point-of-contact for owners.”

Regarding technology and marketing, Milo identified the following “must-haves” for rental mangers:

1. User-friendly website with online check-out/online booking
2. Web-based vacation rental software
3. Comprehensive database/contact strategy
4. CRM
5. Strong mobile presence

Milo also advises vacation rental managers to join organizations and to become politically aware of any government situations in your area which are unfriendly or becoming unfriendly to short-term rentals.

“Government restrictions are the biggest challenge we face as an industry. If you haven’t faced it, consider yourself lucky, but don’t think you won’t,” warns Milo. “In Florida, it has been frustrating to see how few property managers will help fund advocacy initiatives and political campaigns. To me, it would be like not paying for insurance. In our industry, it is a cost of doing business. The VRMA Eastern Regional Seminar is going to be on Orlando, and we hope to use this opportunity to raise awareness with our political leaders here in Florida.”

By Amy Hinote

Related Articles

Part 2: A Look Under the Hood at Kokopelli Property Management

Part 3: A Look Under the Hood at Elliott Beach Rentals

Part 4: A Look Under the Hood at Winter Park Lodging Company

Looking for New Year’s resolutions that are easier to keep than, say, losing weight or kicking a bad habit you’ve had for 10 years? Turn to your business. No business, or business owner, is perfect, and there is always room for improvement. The New Year is a great time to carry out new strategies, fuel growth and make changes for long-term success.

“A new year brings with it the promise of a fresh start,” said Connie Certusi, executive vice president and general manager of small business accounting at Sage North America. “Why not take a moment to reflect on the lessons learned from the past year and move forward with a new focus on success?”

Whether you need to be more efficient, keep up with the latest technology or implement innovative ways to find and retain new customers, New Year’s resolutions can help you create a plan of attack and stay on track. Here are 10 small-business New Year’s resolutions to help you get started.

1. Get the most “bang for your technology buck”

Commit to fully using all of your technology solutions. So many busy small business owners do not fully utilize the technology investments they’ve made, despite the fact that doing so would likely save them a lot of time, and drive efficiency. Make 2014 the year to become the master of your technology!

2. Adopt mobile payments

I predict, in 2014, significant advancement in the field of digital wallet payments will make credit cards obsolete.

The current magnetic stripe is highly inconvenient for smartphone-enabled customers. And credit card numbers are extremely insecure. Their authorization doesn’t specify the amount of the transaction, so they are routinely “accidentally” used twice by merchants. Or even worse, are stolen from reputable retailers by third parties.

Encrypted digital wallets will provide an answer to all these needs. They will authorize payments for a specific amount. They will be accessible anywhere through secure smartphone apps. And retailers should make them easier to use by providing proximity sensors in checkout registers.

“All businesses, retail or enterprise, large or small, should work to update their payment systems. Customers and business partners will expect to send and receive payments using more secure and convenient methods like Pay-pal or Google Wallet,” said Dr. Satwant Kaur, “First Lady of Emerging Technologies” and chief technologist at Hewlett-Packard

3. Get closer to customers

As we head into 2014, one of our key resolutions is to continue innovating the ways in which we engage with our customers. We view our customers in terms of relationships, not transactions, so it is critical that we are delivering value to them in every engagement, before and after the sale. Our unique support model and online communities are examples of ways we do this today, but there is more we can do. Through the continued expansion of mobile technology and social properties, consumers and businesses are interacting with brands in whole new ways. Next year, businesses should focus on capitalizing on these [tools] to strengthen their customer relationships. — David Duncan, chief marketing officer at Webroot

4. Make customer service a priority

It’s a fact: customer service can make or break your relationship with current and even future customers. Looking ahead to 2014, customer service should be a priority for every small business. We see small businesses taking advantage of the cloud to work smarter and make customers happier. As we learned in our most recent survey, one in six customers would rather see their dentist than speak with a customer service agent. So small businesses, take note! — Matt Lautz, president and chief information officer at CorvisaCloud

5. Focus on marketing efforts

In 2014, we plan to grow spending on marketing along with revenue. In the age of digital marketing, everything is now measurable, and marketing is more accountable than ever. At Message Systems, we are increasing our marketing spend triggered on measurable results from spend in the last quarter. For example, when we see certain activities that grow our sales pipeline and closes, we are able to increase the budget in the following quarters based upon solid knowledge that the spend has a return on investment (ROI). — Steve Dille, senior vice president of marketing at Message Systems

6. Revamp social media strategy

Earlier this year, we saw a rise in visual social media platforms like YouTube and Pinterest, coming in just behind the big three [Facebook, Twitter and LinkedIn] in adoption growth among small businesses. In 2014, a picture truly will be worth a thousand words as small businesses increase their adoption of visual-based social networks like Pinterest, YouTube, Instagram, Tumblr and Slideshare. — Mark Schmulen, general manager of social media at Constant Contact

7. Be SEO- and data-savvy

In late 2013, Google began blocking keyword referral data in Google Analytics. Before, you used to be able to see which keywords users entered to bring them to your site and how many visitors came from each keyword. This data is no longer available through Google Analytics. Google’s position on this change is that they are “protecting” the consumer. As identity theft and cybersecurity dominate the headlines, this is Google’s way of making sure consumers feel safe using Google products and platforms. However, the data is still available to Google, just not to digital marketers who rely on their [Google’s] analytics program. In 2014, search engine optimization (SEO) firms will discover new ways to uncover this data (there are several options). Firms will get more creative with how to access and interpret keyword data because it remains a large part of SEO strategy. After all, knowing how visitors are searching helps firms to better understand their target markets and create a better user experience on the website — the foundation of a solid SEO strategy. — JoAnna Dettmann and Kaysha Kalkofen, co-founders of digital marketing firm tSunela

8. Perform a security audit

Next year will be a crucial time for companies to make sure their data stays truly protected. The rise of targeted attacks we’ve seen against corporations — from technology companies like Adobe to retailers like Target — have made this a very real and urgent concern. When it comes to investigating potential vulnerabilities, it’s best to look outside the company and leverage domain experts to probe for risks, examine policy and suggest fixes. While we have very strong security protocols in place, we perform an audit yearly. Next year, we’re expanding the scope of our audit due to the new types of security risks and escalating threats we’ve observed. As the saying goes, if you see a storm approaching, it’s best to bring both a raincoat and an umbrella. — Charles McColgan, chief technology officer at TeleSign

9. Prevent employee fraud

Adopt a code of ethics for employees. Set a “tone at the top” that fraud will not be tolerated at any level of your organization. Draft and approve a code of ethics that includes concise compliance standards that are consistent with promoting ethical behavior across the organization. Require each employee to read and sign the code of ethics — as well as contractors who work on behalf of the organization. — James D. Ratley, CEO at the Association of Certified Fraud Examiners (ACFE)

10. Become more nimble

As mega-retailers like Amazon continue their quest to steal market share from other big-box retailers, both online and off, smaller online businesses will need to become more nimble in how they compete, both from a price, customer service and marketing standpoint. This includes identifying true points of difference and showcas[ing] these points in marketing and branding, delivering personalized experiences, etc. — Matt Winn, marketing communications manager at Volusion

Originally published on BusinessNewsDaily.

HomeAway’s rising online vacation rental bookings may persuade suitors to tackle the most expensive Internet deal since 2007 as an improving economy spurs a rebound in travel.

With listings for more than 700,000 homes around the world, analysts estimate (AWAY:US) that HomeAway will boost sales by about 65 percent in three years. Revenue for all U.S. travel agencies is poised to rise as economic conditions improve, with growth from online booking sites seen fueling the gains, according to IBISWorld Inc. As Priceline.com Inc. (PCLN:US), Expedia Inc. and TripAdvisor Inc. (TRIP:US) eye opportunities in vacation rental services, HomeAway may entice takeover interest, Cowen Group Inc. said.

After surging 81 percent this year, HomeAway traded yesterday at 10.3 times its sales, already a higher multiple than any public Internet company has commanded in a takeover in the last six years, according to data compiled by Bloomberg. While the $3.4 billion company faces competition from rivals such as Airbnb Inc., Piper Jaffray Cos. said HomeAway’s dominant position in the growing online vacation rental market makes it worth the price for potential suitors. Even Google Inc. (GOOG:US) could be interested in a deal, according to Canaccord Financial Inc.

“This whole concept of alternative bookings and travel is a concept that’s here to stay and it’s something that ultimately the bigger players in online travel will need to be participating in,” Michael Olson, a Minneapolis-based analyst at Piper Jaffray, said in a phone interview. “I don’t think people are looking at what the stock has done this year. I think they’re just looking at what the opportunity is going forward, and the opportunity is significant.”

Read more at Bloomberg Businessweek

Dec 10, 2013 — HomeAway, Inc. AWAY -4.79% , the world’s leading online marketplace for vacation rentals, today announced it plans to commence, subject to market and other conditions, an underwritten public offering of 5,500,000 shares of its common stock pursuant to an effective registration statement. An additional 518,630 shares will be offered by the selling stockholders. In addition, the selling stockholders intend to grant the underwriters a 30-day option to purchase up to an additional 902,794 shares to cover over-allotments, if any.

HomeAway intends to use the net proceeds of this offering for general corporate purposes, which may include acquisitions or license of, or investment in, products, services, technologies or other businesses. HomeAway will not receive any proceeds from the sale of shares by the selling stockholders.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. LLC will serve as joint book-running managers for the proposed offering. Stifel, Nicolaus & Company and Pacific Crest Securities LLC, Incorporated will act as co-managers.

The offering of these securities will be made only by means of a registration statement (including a preliminary prospectus for the offering) filed with the U.S. Securities and Exchange Commission on December 10, 2013. Copies of the preliminary prospectus may be obtained from: Deutsche Bank Securities Inc. at 60 Wall Street, Attention: Prospectus Group, New York, NY 10005-2836, by email at prospectus.CPDG@db.com or by phone at (800) 503-4611; J.P. Morgan Securities LLC, Attention: Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by telephone at (866) 803-9204; Goldman, Sachs & Co., Attn: Prospectus Department, 200 West Street, New York, NY 10282, or by phone at (866) 471-2526; or Morgan Stanley & Co. LLC, Attention Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, by email at prospectus@morganstanley.com, or by phone at (866) 718-1649.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About HomeAway:

HomeAway, Inc. based in Austin, Texas, the world’s leading online marketplace for the vacation rental industry, with sites representing over 773,000 paid listings of vacation rental homes in 171 countries. Through HomeAway, owners and property managers offer an extensive selection of vacation homes that provide travelers with memorable experiences and benefits, including more room to relax and added privacy, for less than the cost of traditional hotel accommodations. The company also makes it easy for vacation rental owners and property managers to advertise their properties and manage bookings online. The HomeAway portfolio includes the leading vacation rental websites HomeAway.com, VRBO.com and VacationRentals.com in the United States; HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in Germany; Abritel.fr and Homelidays.com in France; HomeAway.es and Toprural.es in Spain; AlugueTemporada.com.br in Brazil; HomeAway.com.au and Stayz.com.au in Australia; and Bookabach.co.nz in New Zealand. Asia Pacific short-term rental site, travelmob.com, is also owned by HomeAway.

HomeAway also operates BedandBreakfast.com, the most comprehensive global site for finding bed-and-breakfast properties, providing travelers with another source for unique lodging alternatives to chain hotels. For more information about HomeAway, please visit www.HomeAway.com .