Hi everyone, it’s Gareth here. I have been handling the digital marketing specialist role at Bukit Vista for a few months now and I have been optimizing 100+ Airbnb properties. However, I can’t stress enough how challenging it can be to sustain revenue for a villa rental business during an economic recession. Even so, there is no need to worry, because I’m here to tell you that there are some tactics you can use to keep your finances solid at this uncertain time.
Provide specials and discounts
First of all, let’s be honest here. Who doesn’t like promotions? Besides, during times like this, your potential guests are probably wondering if there are ways to afford accommodation at a better price. When you offer your guests discounts and promotions, you are answering the demand for cheaper accommodation. It’s as simple as supply and demand. Thus it is wise to offer discounts to attract more guests to your villa during slower times. This can help you generate income and fill up your villa during dull periods.
Give them options to choose
Have you ever realized how some supermarkets are rated better than others? Most of the time, it’s because they offer more products to choose from. The same thing can also apply to rental businesses. To draw in a wider variety of visitors, think about providing several lodging options, such as shorter stays or room rents. This can help you reach other segments of the market that prefer shorter stays. In short, being flexible about what the market needs will make your villa more productive.
Encourage loyalty
If you frequently receive repeat customers, think about enticing them with rewards programs or other incentives. Customers love it when they are treated as if they are a part of your business family. Loyalty programs and rewards give your guests more reasons to stay at your place and rewarding them for their loyalty makes them feel appreciated. At the end of the day, hospitality is about creating meaningful relationships.
Reduce your expenses
When it comes to business, we can’t forget about cutting unnecessary costs that could affect your pricing or revenues. Find ways to save money on maintenance and energy expenditures, or try to negotiate lower prices with suppliers, to cut your operational costs. Here in Bukit Vista, we take pricing and the revenues of our partners seriously. That’s why our business intelligence team has come up with dynamic pricing to help rental business owners like you get more out of your properties.
Get people to hear about your villa
Continue to advertise your villa on social media to increase bookings and get people more excited about your place. These days, online marketing can work wonders for your business. In a world where most people are more engaged online, it is a must to promote your hospitality through online content marketing. Simply sharing aesthetic photos of your villa could entice guests to stay at your place compared to others who just let the Airbnb algorithm do the magic.
Think about other revenue sources
Lastly, to generate more cash, think about providing more services or goods like event hosting or providing food and drink alternatives. This could work especially well if your property has a built-in café or restaurant. By offering additional goods and services, you‘re adding more value and convenience to your guests and retaining your guests for longer.
In general, to help retain revenue for your villa rental business during a recession, it’s critical to remain proactive and adaptable.
If you read this article in its entirety, it should answer all of your queries. If you’re still unsure of the projected costs and profits for your property. Contact us at any time if you have any questions about property management or revenue projection.
There are no additional fees for us to handle your property because we also offer a zero management fee for your needs. Because of our revenue-sharing model, we only profit when you do. Check out our property management service to learn more about how we add value to your property and guarantee a large return.