3 Ways Improving Your Operations Can Improve Your Bottom Line
You’re able to create the ultimate guest experience because you love being a host. Modern Innkeeper understands your passion. We love supplying hosts with quality bathroom amenities and tips on enhancing the guest experience.
With that being said, it’s important to keep in mind you’re a business owner. To keep business booming, it’s essential to improve your bottom line.
Obvious ways to improve your bottom line are to keep costs down and set a profitable nightly rate. But to maximize your business’ potential, you’ll have to do more than the obvious. Improving your vacation rental’s operations can make you more profitable.
Hotel Operations' Josiah Mackenzie says, “To succeed in hospitality, you need to focus on operations above all else.”
Here are three ways running a well-operated vacation rental can increase your profitability.
Helps Marketing
The beautiful part about marketing is your guests can do it for you. You just have to make sure you create a guest experience worth talking about. Positive reviews from guests can be an effective marketing tool. You don’t have to pay for them, and they can lead to other travelers booking your place.
How does this relate to operations?
Hosting a well-operated vacation rental can create an enhanced guest experience your guests want to brag about. This benefit can save you marketing dollars and increase your revenue.
Increases Real Estate Value
Mackenzie said when he worked at Juniper Square, a company that creates and empowers investment partnerships, hotel real estate intrigued investors because they saw an opportunity to “unlock value and outsized returns.”
And what do you think investors did to help them determine the value of these properties? Read their guest reviews!
It’s unlikely investors will come knocking on your door to make you an offer. However, the day may come when you want to sell your vacation rental, and improving your operations can help you get more for it. Your vacation rental having positive guest reviews can help you get more for your property. That’s because your vacation rental having an established reputation can give the prospective buyer/fellow host a head start in their new business venture.
And it all starts with how you operate your vacation rental.
Speaking of having an established reputation…
Establishes Your Brand
Your brand’s reputation is everything. It gives your vacation rental an identity and can influence whether or not guests stay there. Some factors that affect your brand are:
● How you communicate with guests
● Your vacation rental’s listing
The more you put into your vacation rental’s brand, the more you’ll get out of it. Mackenzie emphasized the importance of branding by pointing out one of the most iconic brands in all of hospitality: The Ritz-Carlton. The luxurious hotel chain is worth more than $1 billion and brings in $3 billion in annual revenue.
How did The Ritz-Carlton get there?
“That value is the sum of every interaction every guest has with its brand. For decades,” Mackenzie says.
Your vacation rental won’t ever be worth $1 billion, but improving your operations can help you establish a brand that will increase your vacation rental’s worth.
How You Can Improve Operations
Improving your operations can be impactful and profitable. Now it’s just a matter of taking action. A good place to start is improving how you work with your team:
● Schedule meetings to discuss everyone’s tasks, challenges, etc.
● Organize structured activities to connect with everyone
● Set up a lunch and learn to solve problems together
● Express your appreciation
The benefits of these four action steps can help your vacation rental run like a well-oiled machine and ultimately, make you more profitable.
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