You give your time and money investing in a growing business of tourism. Hospitality and vacation rental seem to be a juicy business on the island of paradise. All the metrics are matched, the number of visitor are growing, other businesses thrive and earn their slice of tourism industry cake. But you’re wondering, why am I earning less than what I expect when starting this?
This situation is pretty common to find, especially in a growing market with a lot of competition. One of the bad examples is probably you are starting with a bad sales loop: Landowner sold you an expensive land that they proclaimed as “golden location”, then construction developer want you to build big project, bigger than what the market wants to pay, and you left out with the only option to rent your property with higher price than market average that fewer people want to pay, your competitor sell with lower price and take all the guests.
The illustration above is the worst scenario that will be the cause why your property is not performing like what you have planned. If you are not in this scenario and you want to fix the situation, there are some observation and action that we can take to help.
Observation: Understanding all the possibilities
Research your potential market
Go back to the beginning, think like you haven’t build your property and observe the neighborhood for the customer persona:
Correct your expectation
compare with market expectation
Don’t be afraid to admit if you found out that you are in the wrong market
This means you are into something
Define your new expectation
Do you want more bookings with low price or less booking with high price? Both lead to revenue achievement but don’t forget to also consider the risk for both strategies.
Make your conclusion from the experiment.
Does your property sell more when it’s cheaper or more expensive but with more service included? What kind of guest that booked? How did they find out? Where else they stay other than your property?
Want to know more about how to optimize Channel Manager to bring revenue for your property? We're hosting this All-Asia Airbnb Host Meetup to bring together all professional and high-growth hosts in the Asia Airbnb community and discuss our day-to-day issues.
Now that you’ve understood the customer persona in your area, apply it to your property. Does it match? Guest can’t be forced anymore. They will choose products that matched to their psychography.
You know that all of this process has to be done persistently every day if you want to get the result. It also can take a lot of time while you need to balance your focus between fixing business side and dealing with guest. But after all, if all of this effort will help you back on your business again, then it’s worth it.
If you want to focus on optimizing your investment, Bukit Vista Hospitality Services can help you do the hard work. We market your property on the most optimized platform and match to the correct audience. We use data to analyze your product and take action necessary to boost your visibility, from taking photos of your properties, advertise your place on multiple digital platforms, taking reservation, suggesting revenue management strategies, and we personally host and meet every guest and make sure they leave exceptional review. We track payments and sent periodic report so you can just sit back and relax, while we take care of your property.
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