Bill's Bountiful Blog
May I keep you posted on my thoughts, ideas, observations, and silliness?. Am I serious? Is it relevant?. Does anyone care? Probably not much.
But in today's age of everyone has something to say, why not me? And who can blame me for jumping into to the pool? For speaking up For laying it out?
"Freedom of the press is guaranteed only to those who own one." - Thomas Wiley, Journalist
Price Right - Lodging Newsletter May 31, 2020
By Wm, May
Published: 05/31/20
Topics: Covid-19 Virus, Dynamic Rates, Lodging Newsletter, Yield Management
Comments: 0
Do these letters always sound like we are bragging?
Sorry, we are constantly innovating and redefining how to do far better management than anyone else. So, yes, I guess we want to crow about it every now and then.
As mentioned last month, we have been working for many hundreds of hours for over a year on version 3.0 of our Yield Management Software called "Strategic, Studied, Dynamic and Distributed" (S2D2).
Some of those giant carpet bagging national companies that try to manage vacation rentals from far away like to think they have good yield management - but they have a major hole in their knowledge. They are not local and don't have wide regional data.
But we do because we have been managing on a "Local, Personal and Global" basis. That means we advertise on every possible advertising website, far more than those giant companies.
We also operate local and regional websites to glean far more information, all of which results in the perfect rates. Super high in high season, modest in shoulder seasons, and lower in slow times.
Every property owner loves the idea of high rates. But getting the highest "possible" rate in every season adds greatly to the best net income for owners.
Yield management is far more complicated than can be imagined. So this letter is going to give you a glimpse to the hundreds of factors that go into the algorithm our data scientists use.
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Everyone has noticed how rates vary on airlines and big hotels. Plus, how the rate for a date in the future may go up and down before the date arrives.
I must admit, I liked it better when it was always $250 to fly to Hawaii on a plane where the entire back section was empty, so I could fold up the arm rests and lay down over four seats, take a nap, and wake up in paradise.
Unfortunately, the airlines were going broke until they began manipulating rates to encourage people to book early, or late and to fill every seat. Until Covid, every seat on every plane has been filled for decades.
Best of all, consumers have subconsciously accepted the idea that rates fluctuate. In fact, many seem to enjoy the game of searching for best rates. They willingly move to less desirable dates (such as midweek), which helps the property fill those dates.
Yield Management does not seem logical on its face. The algorithm does not need to know when the high season or holidays occur, because it looks forward to watch rates and occupancy to predict and set our rates when demand and occupancy is high. Likewise, it ratchets down rates when the market has too many nights available and when competitors are dropping rates.
But, of course, weekends are always more popular, more booked and consequently rates are higher. Same with holidays. The high seasons have the same kind of profile and the science pushes those rates through the roof.
National, regional, and local economic trends are considered. Comparable units ("comp sets") are continuously monitored. Inns, Resorts, and Hotel future booking statistics are computed. Amenities, resorts (if any), and neighborhoods contribute, sometimes more and sometimes less.
If there are small holes in the schedule, rates may be adjusted down to get them sold. But if there are openings when the market is tight, rates go up - sometimes dramatically. Bigger openings may be higher because they offer a wider range, or cheaper if the opening is too large.
When Covid arrived so unexpectedly, S2D2 told us rates were crashing. In areas where rentals continued, we won what bookings were to be had. Suddenly, S2D2 told us "Hey something is going on," just as we noticed guests returning. Then it said, "It's time to bump up rates." And then, "Bump them up again".
Not all markets have returned to normal, but in some markets rates have up to doubled and occupancy is higher than ever before. We noticed the corporate managers missed the trend. Their clients lost thousands of dollars, while we grabbed the market.
New vacation rental owners often ask "What will the rate be?" But today, no person sets the rate. In fact, the market sets the rate. Over millennia, in high school, middle school or earlier, we learned price has always been based solely on "Supply and Demand".
The Yield Management idea, which is so closely tied to intricate supply and demand fluctuations, is so obvious and now, with our help, it is being employed to help every vacation rental client we have make more money.
Author: Wm, May, Vortex VIP
Blog #: 0771 – 05/31/20Sponsor: Vortex VIP – – VortexVIP.com
What Guests Want - Lodging Newsletter September 30th, 2019
By Wm, May
Published: 09/30/19
Topics: Advertising, Channel Management, Dynamic Rates, Employment, Lodging Management, Lodging Newsletter, Photography, Vacation Rentals, Vortex VIP
Comments: 0
This month's letter is intended to be a marketing 101 primer for everyone who wants to know more about marketing, advertising, and public relations.
What makes our lodging managers think they are such hot shots about the marketing anyway?
Simply put, some of our partners have spent decades helping clients sell millions and millions of dollars of stuff, and we know our stuff.
Oh sure our explanation could be lengthy and include a lot of fancy words, but whether selling clothes, groceries, soda pop, yachts, or nights at a vacation rental, the process is exactly the same.
One of our partners said it best. "Marketing is easy. Ask customers what they want and then give it to them."
This update is all about that - giving customers what they want. Plus we'll sneak in a little about how we do it and how the competitors don’t.
Why would we publish this when competitors could learn the secrets? Because it's not a secret and they won't do it all anyway. We double dog dare them.
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The only trouble we have with giving customers what they want, so we can produce absolute maximum income for owners is pleading with and even begging owners to do the little things necessary. Here is what guests want:
WHAT WE DO
Hospitality clean - Yep we can do that for you. Guests absolutely want that.
Hospitality maintenance - Fix everything, all the time and quickly. Guests expect it.
Personal - When the guests call, we gotta go take care of them. Guests require it.
Personality - Answer the phone with a genuine smile, or guests will bristle.
Photos - Crisp HDR photos help guests choose. Guests want to see.
3D Tours - The best in the industry. Guests want to see everything.
Floor plans - Professional water colors, so guests can plan who sleeps where.
Website - Custom e-commerce website for each property to help guests return.
24/7 Bookings - Online, phone, chat, and email. Guests book when they want.
24/7 Service - Onsite at any time, we take care of guests or we lose out.
Visible - Advertise on 400+ websites, with dates and rates. Guests find us everywhere.
Social - Posting, commenting, and cooperating. Guests want to interact.
Materials - Rack cards, postcards, bookmarks, etc. prove legitimacy to guests.
Payment - Credit cards, payment plans, occasional incentives that guess want.
Dependable - No double bookings. Guests expect no errors when booking.
Returnees - Extra benefits for loyal guests. Keeps happy guests happy.
Dynamic Rates - Up and down by many factors. Guests accept variability.
WHAT YOU DO
Internet - 49% of guess say no internet wrecks their vacation. Gotta give it to them.
Cable - Gotta have a big TV and cable. Guest don’t book homes without it.
Hot Tubs - Number one requested amenity. Guests can not resist them.
Leftovers - Don’t slough off your used furniture. Guests hate that.
Design - Comfy chairs, quality tables, books, and mattresses. Guests demand comfort.
Color - Creative paint colors, art, and throw pillows, Guests are impressed.
Sleeps - The more beds, the better, with night stands and lamps. Guests read.
Luxurious - Quality towels and linens, replaced regularly. Otherwise guests seethe.
Furnishings - Lots of pots, pans, flatware, and tableware. Guests cook a lot.
Outdoors - Patios, decks, and yes that hot tub. Guests want to lounge.
Now that we see this list, it doesn't seem so very difficult does it? Just follow the list, do your thing and let us do ours. A winning combination.
Marketing is easy, give customers what they want. But will you?
Author: Wm, May, Vortex VIP
Blog #: 0705 – 09/30/19Sponsor: Vortex VIP – – VortexVIP.com
Its Always something - Lodging Newsletter November 30th, 2018
By Wm. May
Published: 12/24/18
Topics: Advertising, Dynamic Rates, Government, Lodging Newsletter, Online Travel Agents (OTAs)
Comments: 0
In 1977 Gilda Radner, one of the original cast members from the first years of the "Saturday Live" television sow, invented a character that made her famous.
Her "Roseanne Roseannadan" was a recurring character on their "Weekend Update" feature offering consumer reporting by reading a letter from a "Mr. Richard Feder, " form New Jersey, with a series of questions to which Roseannadanna then made derogatory comments.
In later shows, for some inexplicable reason Mr. Feder moved to Mt. Saint Helens, Washington State in our neck of the woods.
Invariably while answering the questions, Roseannadanna digressed, launching into stories having to do subjects which had nothing to do with the questions until - and finally - the news co-anchor Jane Curtin would intercept her saying with the catch phrase "Roseanne, you're making me sick"
Roseannadann would smirk and then pause and then conclude, "Well, Jane, it just goes to show you, it's always something - if its not one thing, then its another."
It does seem odd now however, that forty years later, in business in general and our micro world of vacation rentals and lodging we still spend most every day deal within one thing or another.
This is an industry that continues to grow and morph and change and yes "It s always something."
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Yes, in this industry it really is always something. Something unexpected, something unknown, something new..
REGUATIONS - After decades of operating alternative lodging for guests, cites and towns have begun to restrict, regulate and even prohibit vacation rentals ostensibly because they take away affordable housing. It is silly to think that people with expensive second homes are going to rent them out long term for low rates. Its always something out of the blue..
OTAS - Online travel agents like Expedia, HomeAway, AirBnB and so many others are a great way to advertise but make no mistake they are all out to beat out each other. to guest by restricting communications by requiring guests to communicate using their closed-walled messaging systems. That means dozens of new systems to track and master. Its always something more complicated.
EXPECTATIONS - It is rumored that, decades ago, vacation rental customer service consisted of these words, "Here are the keys, good luck." Today guests want quality furnishings, high speed internet, hot tubs, hotel grade mattresses and much more. Its always something, so we provide it.
GUEST SERVICES -
GOOGLE HOTELS - Wanting to dominate the world, Google is rolling out advertising where lodging operators can display their wares directly on Google pages, possibly by passing those pesky OTA's. Its always something jiving.
ODD ADVERTISING - Ever heard of Glamping? Or Camping? And why would they have anything to do with vacation rentals. We'll websites with odd goals are becoming just another place for guests to find us. We must be diligently looking for the whatever is the new way that consumers are shopping. Its always something innovative.
RATES RACE - As use of dynamic pricing, and automated supply demand response, rent by owners and insufficiently distributed lodging operators rush to lower rates in a dangerous race to the bottom price. Wide adverting, creative imagery, instant service and more allow us to stay ahead of the pack. Its always something innovative.
LOCALIZE - Venture Capitalists are rushing into the vacation rental industry, but allow want to build global brands that reject the local hospitality that guests have come to prefer from vacation rentals. We use local brands, local partners and local tourism to provide more fun and more happiness Its always something local that is better.
FLEXIBILITY _ Unlike other managers with a "one-size fits all" approach we offer flexible programs from full-service Do-It-Yourself assistance and extra bookings. Its always something that must fit what property owner clients want.
Author: Wm. May, Vortex VIP
Blog #: 0628 – 12/24/18Sponsor: Vortex VIP – – VortexVIP.com
Monster Trucks - Lodging Newsletter November 30th, 2017
By Wm. May
Published: 11/30/17
Topics: Advertising, Dynamic Rates, Housekeeping, Lodging Newsletter, Vacation Rentals
Comments: 0
Jeff Bainer of Kittitas County Washington State may know nothing about the vacation rental industry, but he does know all about monster trucks.
The Yakima Herald-Republic newspaper reports that Bainer is a member of the Monster Truck Hall of Fame. Who knew there was such a thing?
Fans of monster trucks know of Jeff's first truck "Hot Stuff" which was launched in 1986, and later rebuilt into a humongous red jeep, said to be the world's largest.
Today he considers himself to be semi-retired because he transports, races and wins "only" 17 events per year, around the country. Who knew there were even that many?.
Bainer makes a comment that is just as relevant to the Vacation Rental business as it is to monster trucks. "Our industry has changed so much in the last three years." It has gone from an industry of independent drives to one dominated by a single company.
As the vacation rental industry has also morphed into something different than what it was just a few years ago. Luckily for us, the big guys are making big mistakes. Smaller vacation rental managers who band together have far more to offer by operating locally while also marketing globally.
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Just like Monster Trucks, Vacation Rental management is changing fast. Innovation has always been at the heart of business. In some industries bigger can be better, but vacation rentals are the opposite. It requires stellar onsite services combined with today's technological tools to advertise globally.
Big Company #1 - has been around for decades, being sold from one conglomerate to another, charging high commissions and loading their overhead with "executives" who do more talking than they do cleaning toilets. Today the company is again for sale to the highest corporate bidder. No where do they promote the sale as better for property owners and guests. In effect, they are selling their property owners short.
Big Company #2 - Likes to buy up local competitors and then discard the local personal touch. They promise technological competence and dynamic pricing which is really no different than what savvy local managers can provide. They offer a comprehensive fee, but supplant it with undisclosed fees, resulting in a large class action law suit. Staff members come and go resulting in HUNDREDS of livid online complaints.
Big Company #3 - Offers a low commission but "manages" from hundreds or thousands of miles away. Owners are forced to find local housekeepers, maintenance staff and hosts because, as the Big 3# spins it, those people are cheap and desperate to work for you. How predatory. The heart of every lodging are the hard-working, loyal, committed and friendly people who do the heavy lifting and are on call 24/7. Then when this company gets a complaint, they blame it on the owner and the local staff.
Big Company #4 - Also promises a lower commission and secret technology to advertise rentals worldwide and on major websites. They fail to admit that all top local managers can now meet or beat their advertising distribution, dynamic rates and photos. They also fail to disclose that they are encumbered with greedy venture capital that requires growth at all costs, even if their services are not up to snuff locally.
Our Company - If you like some of the big company capabilities, but fear the lack of personal local service to care of your valuable vacation home, there is good news. We offer the best of both worlds.
Our well tenured local partners live nearby to keep close track of your place. Our world-class back office professionals provide compelling websites, superior software, dynamic rates, stunning HDR photos as well as 3D tours, not to mention courteous quick sales and reservations, topped off with attentive guest and owner services. Although our first office opened in 1964, we have tech tools none of the big guys have even dreamed of yet.
For our clients we must admit the industry is not perfect and duties are relentless, but we promise to keep investing more time, money and commitment per house than those big guys.
If you are not yet a client, we make you the same promise - lower fees and greater service. Call today. Why wait?
Author: Wm. May, Vortex VIP
Blog #: 0572 – 11/30/17Sponsor: Vortex VIP – – VortexVIP.com
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