VRM Intel Winter 2020 by Amy Hinote

3-Year Vacation

Rental Performance

Google Travel Disruption

Property Manager

or Hospitality Provider?

A Cotswold Welcome

Naming

Vacation Homes

Connecting Technology Systems Experience and Professionalism Matter in 2020

PROPERTY CARE: DEEP CLEANS, INSPECTIONS, AND PROFITABILITY VRM Intel Magazine | Winter 2020

105

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V i s u a l M a r ke t i n g S o l u t i o n s 106

VRM Intel Magazine | Winter 2020

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VRM Intel Magazine | Winter 2020

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VRM Intel Magazine | Winter 2020

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VRM Intel Magazine | Winter 2020

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VRM Intel Magazine | Winter 2020

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VRM Intel Magazine | Winter 2020

Contents On the Cover

58 3-Year Vacation Rental Performance 68 Google Travel Disruption

3-Year Vacation

49 Property Manager or Hospitality Provider?

Rental Performance

88 A Cotswold Welcome

Property Manager

33 Naming Vacation Homes

Naming

Google Travel Disruption

Connecting Technology Systems

or Hospitality Provider?

A Cotswold Welcome

Vacation Homes

Experience and Professionalism Matter in 2020

PROPERTY CARE: DEEP CLEANS, INSPECTIONS, AND PROFITABILITY

80 Connecting Technology Systems

Customer Service

55 Experience and Professional29 Set Your Company Apart ism Matter in 2020 with E.P.I.C. Hospitalityâ&#x201E;˘ 94 Property Care: Deep Cleans, Inspections, and Profitability

Marketing 52 #BookDirect Day, February 5, 2020 63 Keeping Email Subscriber Lists Healthy 64 Abandoned Bookings: Losing Customers During Checkout? 68 SEM Disrupted: Google Travel is Shaking up the Marketing Funnel 72 Expert Advice for Digital Success in 2020

33 Naming Vacation Homes: Advantages, Optimization and Signage 38 Moving the Needle with Call Scoring and Coaching 88 A Cotswold Welcome: UK Hospitality with Honeypot Cottages

Property Care 94 The Importance of Deep Cleans 96 Turning Your Housekeeping Department into a Profit Center 97 Inspections: A Major Key to Housekeeping Success 99 Do You Have a Professional Property Care Team?

VRM Intel Magazine | Winter 2020

Secure access meets smart home automation.

Our new Smart Controller interfaces with BeHome247 Enterprise Property Controlâ&#x201E;˘ to remotely monitor and manage utilities anywhere in the world.

Oracode keyless access allows you to issue and activate access codes to your guestâ&#x20AC;&#x2122;s mobile device while the Smart Controller provides scalable extended home automation capabilities. Visit dormakaba.us/oracode VRM Intel Magazine | Winter 2020

Contents Business

20 Acronym Cheat Sheet 22 The Wild West and the Vacation Rental Industry

Technology

75 Optimizing OTAs: Strategically Working with OTAs in 2020

79 Condo-World Acquires North 26 The 2020s: The Decade of Myrtle Beachâ&#x20AC;&#x2122;s CondoLux Professionalism, Law, and Order 80 API Connectivity in the 42 Stop Doing it Yourself: Vacation Rental Industry Prepare to Delegate in 2020 84 2020 Predictions: Software 49 Property Manager or Execs Discuss Future of Hospitality Provider? Connectivity 55 Experience and Professionalism Matter

85 8 Considerations When Selecting Software

58 3 Years of Performance Across 12 Vacation Rental Regions

87 Barefoot: Providing a Foundation of Trust

104 Ornacor: Crowdfunding Vacation Rental PR Campaigns

Education 52 VRM Intel Live! Destin and Gatlinburg 53 Second Home Investment and Rental Show 53 Vacation Rental Data and Revenue Management Conference 102 Calendar of Events

VRM Intel Magazine | Winter 2020

Dear Readers,

As we enter a new decade, I want to thank you for continuing to read and support VRM Intel Magazine. Keeping pace is a continual challenge as the industry evolves, and it is easy to get waylaid by the noise. Your input keeps us both informed and focused on providing news, information, and events specifically for vacation rental managers. The term vacation rental has taken some hits over the past few years—but even more so in 2019.

Although it’s probably unfair, I still blame Phocuswright for introducing the terms alternative accommodations and private accommodations in its research, lumping new rental segments (i.e., shared housing and urban rentals) with traditional vacation rentals under one umbrella. But it wasn’t just Phocuswright; consumers did the same thing organically, calling everything an Airbnb. I get it. It is difficult to find an easy way to describe a lodging segment that includes apartments, beach houses, cabins, chalets, condos, townhouses, treehouses, spare bedrooms, and air mattresses. For consumers, telling friends, “I’m staying in an Airbnb,” is much simpler. But, in 2019, after attending a dozen conferences, viewing over 30 startup pitch decks, talking to investors and analysts, and commiserating with hundreds of property managers, I’m a little peeved and perplexed— particularly about the viewpoints comparing urban short-term rentals and leisure vacation rentals. Over a billion dollars have been invested in the urban short-term rental sector, including $400M in Sonder, $180M in Lyric, $116M in Domio, and $62M in Stay Alfred. Although we see opportunities for the urban segment, we also see the risks. These models execute strategies that include master leases, facilities management, complete furnishings, reliance on distribution, and a volatile regulatory environment. It may be risky, but this urban rental segment is fast-growing and likely to find its way under hotel flags, giving its investors and founders the potential for astronomical exits. With big risk comes big reward. So why am I peeved? First, the influx of urban rentals has precipitated a contagion of regulatory issues that have spread to leisure destinations. Second, the consistent year-over-year, decade-over-decade growth in the leisure side of the vacation rental industry is being misrepresented as old and fragmented, and in need of a consolidated overhaul. Third, if the considerable risks these newcomers are taking don’t pan out, I’m concerned that the vacation rental industry’s reputation will suffer from guilt by association. I personally believe that the two segments, urban short-term rentals and leisure vacation rentals, need to be looked at differently in the minds of investors, owners, guests, and municipalities, as well as in the media. As a result, at VRM Intel, we have made a decision to primarily focus on leisure vacation rentals and have created new events and initiatives to improve the narrative about our industry. For example, we are launching the Second Home Investment and Rental Show (page 53) and are creating a widespread PR initiative (page 104).

This Winter issue is filled with information supporting vacation rental managers with performance data and articles about the importance of professionalism, the evolution of property management companies into hospitality companies, strategies to address changes at Google, ways to improve site conversion, and the improvement of call center performance. In addition, we address deep cleans, inspections, and housekeeping profitability. I hope you find this issue helpful for your team and your company. I strongly believe this new decade will be game-changing for the professionally managed vacation rental industry, and I am grateful to each of you for allowing me the opportunity to contribute to and chronicle its success. Happy New Year! Sincerely,

Amy Hinote

Editor-in-Chief

VRM Intel Magazine | Winter 2020

VRM intel magazine

Editor-in-Chief Amy Hinote VP of Operations Connie Carlisle, connie.carlisle@vrmintel.com Director of Design and Production

Donato Berbelja Contributors

Ali Cammelletti

Doug Kennedy

Amber Carpenter

Christi Knoll

Jeremy Clayton

Michelle Marquis

Chris Connar

Alex Moshenskiy

Beryl Coulter

Jennifer Perez

Ben Edwards

Natalee Pfeifer

Brynn Flaherty

Matt Renner

Jeremiah Gall

Vincent Rosan

Andy Gaylord

Jack Scherrer

Paul Hanak

Andy Smith

Ren Hinote

Sarah Smith

Alex Husner

Amiad Soto

Ryan Hutchings

Ed Ulmer

Durk Johnson

Sage Viator

Sue Jones

Claiborne Yarbrough

VP of Technology Rebecca Chapman, rebecca.chapman@vrmintel.com Address VRM Intel Magazine LLC

153 Old Mill Road, Fairhope, AL 36532 To subscribe to VRM Intel Magazine to request additional copies, contact info@vrmintel.com or go to www.vrmintel.com © Copyright 2020 VRM Intel Magazine LLC. All rights reserved. We cannot accept responsibility for any mistakes or misprints. Reproduction in part or whole is strictly prohibited without written permission from the publisher. We cannot accept responsibility for unsolicited manuscripts or photographs damaged in the post. Material sent on speculation, unless enclosed with a stamped addressed envelope, will not be returned to sender. VRM Intel is not responsible and will not be held liable for the opinions expressed by contributing authors. VRM Intel Magazine LLC reserve rights of ownership

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Discover everything Kigo Marketplace can do for your vacation rental business and call 1.855.969.3702 or go to www.kigo.net/packnow. Intel Magazine | Winter 2020owners. ©2019 RealPage, Inc. All rights reserved. Kigo and RealPage and associated logos are registered trademarks of RealPage, Inc. or its affiliates. All other trademarksVRM and registered trademarks are property of their respective

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Acronym Cheat Sheet

Acronyms and Initialisms Commonly Used in the Vacation Rental Industry As the vacation rental industry becomes more complex, keeping up with terminology can be challenging, especially if you are new to the sector. While not a comprehensive list, here is a cheat sheet for commonly used acronyms and initialisms used by vacation rental managers.

ADR

DMA

RevPAR

DMO

RMS

ALOS

ERP

ROI

API

KPI

SEM

ARI

MOR

SEO

CPA

OPM

SERP

CPC

OTA

SSO

CPL

STR

Average Daily Rate Artificial Intelligence Average Length of Stay Application Programming Interface Availability, Rates, and Inventory Cost per Acquisition Cost per Click Cost per Lead

CRM

Designated Market Area Destination Marketing Organization Enterprise Resource Planning [System] Key Performance Indicator Merchant of Record Onsite Property Management Online Travel Agency Property Manager or Property Management

Revenue per Available Unit Revenue Management System Return on Investment Search Engine Marketing Search Engine Optimization Search Engine Results Page Single Sign On Short-term Rental

Customer Relationship Management [System]

PMC

CRME

PMP

Property Management Platform

Vacation Rental Manager or Vacation Rental Management

CTA

PMS

VRMC

CTR

POS

VRP

CVB

PPC

We will add to the online version of this list. Send any recommended additions to rebecca.chapman@vrmintel.com.

Certified Revenue Management Executive Call to Action Click-through Rate Convention and Visitors Bureau

VRM Intel Magazine | Winter 2020

Property Management Company

Property Management Software/System Point of Sale Pay per Click

Vacation Rental

VRM

Vacation Rental Management Company Vacation Rental Professional

VACATION RENTAL SOFTWARE

VRM Intel Magazine | Winter 2020

The Wild West and the Vacation Rental Industry The 2020s: This new decade will establish law, order, and professionalism for the vacation rental industry.

By Amy Hinote

he vacation rental industry is like the Wild West.

Over the past 15 years working in the sector, I’ve heard this comparison hundreds of times in articles, discussions, and presentations.

Like many of you, I’ve been asked for 2020 predictions, and each time the question was posed, this comparison between our industry and the Wild West kept replaying in my head. So, like the nerd I am, I researched and watched over a dozen documentaries about US westward expansion over the holidays. And it is true. There are startling similarities between the vacation rental industry’s progression and that of the Wild West. Let’s take a look at some of the stages of westward expansion, the parallels we see in our industry, and—yes—a prediction about where we are heading in this new decade.

Early Explorers and Pioneers Like the Wild West, the vacation rental industry began with early explorers and pioneers.

The Birth of the American Vacation According to historians, although occupational retreats emerged in the early 1800s, the idea of the “American vacation” took a big leap forward in 1869, when Pastor William H.H. Murray published one of the first guidebooks to the Adirondack Mountains. According to Smithsonian Magazine, “Murray broached the then-outrageous idea that an excursion into raw nature could actually be pleasurable. 22

VRM Intel Magazine | Winter 2020

Before that date, most Americans considered the country’s primeval landscapes only as obstacles to be conquered. But Murray’s selfhelp opus . . . suggested that hiking, canoeing and fishing in unsullied nature were the ultimate health tonic for harried city dwellers whose constitutions were weakened by the demands of civilized life." “The scions of New York City took to declaring that they would ‘vacate’ their city homes for their lakeside summer retreats, and the term ‘vacation’ replaced the British ‘holiday’ in common parlance.” (“Where Was the Birthplace of the American Vacation?” by Tony Perrottet, Smithsonian Magazine)

Vacation Rental Pioneers As railroads made destinations easier to access, the idea of “vacating” the city gained in popularity, and developers built roadside camps, then cabins and hotels. Local attractions emerged, and popular destinations saw increased traffic from car travel. For example, in 1916, around 30,000 visitors traveled to Yellowstone National Park, the majority coming by train, but by 1936, 409,000 people were traveling to the park in automobiles. (“How American Tourism Began” by Livia Gershon, JSTOR Daily) In 1922, Eva Peterson, one of the vacation rental industry’s early pioneers, opened Peterson’s Cabins in Wells, Maine. With no plumbing, running water, or electricity, Eva charged 75 cents per person per night. Her oldest daughter and eight grandchildren helped clean and take care of the cabins.

Herbert Plimpton playing with HIS dog in front of New England Village

By 1940, Eva’s daughter Miriam and son-in-law Herbert Plimpton were following in her footsteps, opening New England Village in Hampton Falls, New Hampshire. Their collection of “overnight homes” was arranged like a miniature town. Some buildings were themed as Main Street mainstays with one built like a church, another like a school, and a third like a doctor’s office. Walt Plimpton, Miriam and Herbert’s 10-year-old son, towed a little red wagon from cabin to cabin collecting trash bins and dirty sheets. He brought the sheets home where Miriam washed them, hung them out to dry, and ran them through a mangle to smooth out any wrinkles. Walt then trucked the clean and crisp linens back to the cabins where his older brother, Donald, made the beds.

In June of 1955—900 miles south of the Plimpton’s New England Village—Rae and George Sloane packed up their children and drove onto a ferry with what little they had to start a new life as the only full-time residents on an idyllic North Carolina barrier island called Ocean Isle Beach. Their job was to sell oceanfront lots for Rae’s Uncle Odell, and the Sloanes used money they had inherited after George’s mother’s death to build a house on the island. “When we started, we were selling lots for $500,” said Rae. “Odell paid us 2 percent, and we sold hundreds of them.”

Rental activity increased in the postwar years. The growth of car ownership, rising middle-class wealth, newly established paid vacation benefits for union workers, and the introduction of air travel contributed to the tourism boom. Miriam would visit competitors’ houses in the dark and count the cars in the driveway to track occupancy.

Across the US, pioneering families like the Petersons, Plimptons, and Sloanes built vacation rental businesses in seasonal areas that attracted families vacating their normal lives to embrace the vacation as part of the fabric of the American dream.

By World War II, the idea of vacationing was gaining in popularity. During mandatory nightly blackouts along the coast, Herbert would skirt the rule against outdoor lights by cutting out “OVERNIGHT CABINS” from their cabins’ roll-down shades so people driving by could find them.

Travelers began building and renting vacation homes along the Carolina shores, and by 1965, the Sloanes had built an inn and were managing 25 newly built vacation home rentals. “We had a well with a pump in the backyard,” Rae told us. “I did all the laundry, and I would fold the sheets when they were still a little damp so they would look like they were ironed. You learn to do whatever you can to make it work. I primed many water pumps and scrubbed many bathrooms.”

Old West Speculators

Looking back to the Wild West, as large numbers of pioneers ventured westward to build new lives throughout the territories, speculators entered the race, buying up tracts of land and developing towns and dynasties.

Vacation Rental Destination Developers In the same way, from the 1960s to the 1980s, real estate developers in leisure destinations began accumulating land and building vacation homes and commercial properties for sale and rent. These developers amassed wealth and family fortunes, creating leisure meccas that attracted a multitude of middle-class travelers. Many of these developers not only built homes, they also opened large real estate companies and then built rental businesses to manage the homes as short-term rentals.

From Maine to Florida, along the Gulf Coast, and in lake and mountain destinations throughout the US, developers kept building, and Americans kept buying. Second home ownership exploded as the idea of taking vacations cemented itself in the American psyche.

RAE & Kids

Many of these development/real estate/rental businesses continue to thrive and remain enormously influential in leisure vacation rental destinations across the country. VRM Intel Magazine | Winter 2020

Completion of the Transcontinental Railroad The most critical factor contributing to the explosive westward expansion was the construction of the Transcontinental Railroad connecting the east to the west; and competition was fierce between the Central Pacific and Union Pacific Railroad Companies, who raced toward each other from Sacramento, California, on the one side to Omaha, Nebraska, on the other.

In the early settlements, governments did not have a legal monopoly on keeping order. Instead, “private agencies provided the necessary basis for an orderly society in which property was protected and conflicts were resolved . . . they included such organizations as land clubs, cattlemen’s associations, mining camps, and wagon trains.” (“The Culture of Violence in the American West” by Thomas J. DiLorenzo, 2010)

Accessibility was the key to growth.

We later learned that many of the folktales were fiction.

Explorers and pioneers had previously traveled by wagon, but the railroad provided easier access. Settlers followed the rails by the tens of thousands—and then millions—building cities along the way. Additional railways branched out from the Transcontinental lines, and once-unexplored territories turned into thriving townships. By 1890, the US Census Bureau announced the end of the frontier, meaning there was no longer a discernible frontier line in the west, nor any large tracts of land unbroken by settlement.

Accessibility via Vacation Rental Listing Websites and OTAs Following the analogy, vacation rental websites and OTAs were our industry’s Transcontinental Railroad, giving mainstream travelers easy access to millions of vacation rental properties.

Between 1994 and 2009, OTAs and vacation rental websites (i.e., Vrbo, FlipKey, Airbnb, and hundreds of regional and niche websites) were built and then consolidated. (You can find a more detailed timeline at vrmintel.com/third-party-distribution-channels/) In 2010, only 8 percent of travelers had stayed in vacation homes, but after these websites gained steam, that number grew to 33 percent by 2015. (Phocuswright) With the increased accessibility these websites provided, shortterm rentals spread outside of traditional leisure destinations to cities and residential areas in every corner of the US.

Gunslingers, Outlaws, and Brothels Westward growth was swift, towns sprouted almost overnight, and law enforcement was slow to catch up. Stories of lawlessness inspired folklore that endures today, including tales of gunfights, stagecoach robberies, bank holdups, bounty hunters, and brothels.

VRM Intel Magazine | Winter 2020

According to journalist Laurie L. Dove, “During a 15-year period in the late 1880s, there was an average of only three murders a year in Abilene, Caldwell, Dodge City, Ellsworth and Wichita— the five Kansas cities that served as significant railroad stops. This was far lower than murder rates in the eastern cities of New York, Baltimore or Boston at the time. (The city with the most murders of the five was Dodge City, which had 17 over nine years, less

than two murders per year.) Bank heists were a rarity (about eight bank robberies were recorded in the Wild West from 1859 to 1900) and most people didn’t carry around a loaded six-shooter. In fact, few people carried sidearms at all.” (“Ridiculous History: The Wild, Wild West Was Really the Mild, Mild West” by Laurie L. Dove, 2015) Yet the stories continued to spread.

Vacation Rental Outlaws As previously mentioned, OTAs and vacation rental websites provided more accessibility for guests, and the practice of staying in home rentals expanded well beyond traditional leisure destinations. Short-term rentals have sprung up in every major city and in residential areas where there were no existing laws to address home rentals. As a result, municipal officials are struggling with the best way to regulate this new rental activity.

In addition, fast growth has allowed multidestination business models and rental sites operating as merchants of record to emerge with a focus on short-term gains with little to no contribution to destination growth, sustainable tourism, sensible regulations, the establishment of best practices, or escrow-account protections for homeowners.

Admittedly, our industry has seen instances of illegal, speculative activity in the growing short-term rental industry in the form of online scams, companies that misuse guest funds (i.e., LeisureLink), and rental providers who do not follow regulations. But, like the Wild West, much of the reported lawlessness in the vacation rental industry is fiction or based on isolated activity exploited by AHLA lobbyists, residents fearful of an influx of tourism activity, and homeowners opposed to having short-term renters in their neighborhoods. Today, the industry recognizes that sensible regulations are important for the vacation rental industry to thrive, but city officials have been reacting to fear and folklore instead of methodically analyzing challenges and creating a regulatory environment that benefits all stakeholders.

Law and Order for Established Cities and Townships throughout the West Western towns matured and grew into cities. Private agencies turned into governments, and laws were established to protect citizens and property rights. Businesses were professionalized, and interstate commerce grew.

A new generation of Americans was born, reared, and educated in areas that only a few decades before had been uninhabited. These children born in the Wild West built careers, lives, and legacies. The Wild West was tamed.

Between 1859 and 1912, the US added 16 states to the union, including (in order) Oregon, Kansas, West Virginia, Nevada, Nebraska, Colorado, North Dakota, South Dakota, Montana, Washington, Idaho, Wyoming, Utah, Oklahoma, New Mexico, and Arizona. VRM Intel Magazine | Winter 2020

The 2020s: A New Decade for Thriving, Professionalized Vacation Rental Management Companies Like the Wild West, the vacation rental industry had its early explorers and speculators. Mainstream accessibility arrived with the proliferation of vacation rental websites and OTAs; and with rapid growth, the industry has its share of bad actors and businesses/investors looking for get-rich-quick opportunities. But through all of this, the professional vacation rental industry, especially at the local level, has matured and proven itself as a sustainable, valuable, and thriving sector of travel.

So here is my prediction This next decade—the 20s—will establish professionalism and bring sensible and sustainable regulations to the vacation rental industry. And those panning for gold and looking for easy ways to make quick fortunes will eventually move to more tempting pastures. The hotel and lodging industry will bring short-term rentals under its umbrella as new standards are adopted to meet guest expectations, and true asset management models will emerge to maximize second home investments. While it won’t happen in the exact year 2020, over this new decade, the vacation rental industry will stabilize and grow with profit-driven, professionalized business models. As for our two industry pioneers, the Plimptons and the Sloanes?

Today, nearly a century after his great-grandmother Eva Peterson 26

VRM Intel Magazine | Winter 2020

began managing her plumbing-free cabins in Maine, Greg Plimpton and his wife Debbie own and operate Cabins for YOU, one of the top five management companies in the Gatlinburg area. The company manages 330 homes with 70 employees, 50 housekeepers, and 25,000 reservations a year. Two of Eva’s great-great-grandchildren serve in leadership positions in the company. If their children stay in the family business, they will be sixth-generation vacation rental managers. But we will have to wait a bit to find out if that will happen. In 2022, on the 100th anniversary of Eva’s original cabins, the youngest of the sixth generation, Ava, will be just four years old.

As for Ocean Isle Beach’s first full-time residents? Sloane Realty Vacations is still thriving with George and Rae’s children, grandchildren, and now great-grandchildren operating and working in the business. Today, Sloane Realty Vacations has 35 year-round employees and manages over 150 long-term rentals and 375 vacation rental properties from Ocean Isle Beach to Sunset Beach. The company is now co-owned by Rae’s children, Tripp Sloane and Debbie Sloane Smith. Debbie is also now serving her 16th year as mayor of Ocean Isle Beach. Most of Rae’s 15 grandchildren and 14 great-grandchildren still live in the area, and three of her grandchildren—Whitney, Chris, and Leah—are also working in the business. Across the country, the descendants of the pioneers, developers, and innovators of this industry will tell the folklore of billion-dollar valuations, gamblers who walked away with fortunes, and speculators who crashed. But what a time it was!

VRM Intel Magazine | Winter 2020

Setting Your Company Apart Differentiating your vacation rental company from the competition with E.P.I.C. Hospitality™

By Douglas Kennedy, President, Kennedy Training Network rain hospitality through the heart and not the head by focusing on concepts such as empathy, patience, intuition, and compassion (EPIC).

As I often say in my conference presentations and private workshops, conveying authentic and genuine hospitality during guest interactions is the single most important task that any lodging company can do to stand out from the competition.

This is especially true in the vacation rental (VR) sector, when traditional differentiating factors such as location, décor, and amenities fail to separate you from your competitors. In other words, your competitors are renting accommodations of a similar size and style, appointed with the same amenities, in the very same neighborhood, development, or building. Because of new technologies, their homes are likely priced similarly, and guests are booking on the same OTA and receiving the same automated text messages on arrival. In this increasingly homogeneous industry, what can one company do to stand out from all of the others? Too many VR managers think the key is to “out-tech” the competition or to put more company-branded gift items in a logoed tote bag. The reality is that the best way to stand out is to obsess about people and not just process.

Touching the hearts of guests ensures repeat business and converts otherwise anonymous guests into social media apostles. This is especially true in the VR side of lodging, where the number one objective of virtually every guest is to create memories that will echo through time as children grow up, couples grow old together, and Facebook memories pop up on the home page five or ten years down the road.

Although connection opportunities are decreasing in frequency, many opportunities exist for VR companies who truly understand and embrace the heart of hospitality—human kindness, especially to strangers.

Let your competition be in the “unit rental” business. Make sure your staff knows your company is in the vacation-memory-creation business. After 30 years of training frontline staff on the essentials of guest service, I intuitively knew it was time for a new approach to conveying this concept, especially to a new generation that was not yet born the year I started my first training company. So I picked up on the favorite word of many young people these days, including my own Generation Z children, which is the word EPIC. VRM Intel Magazine | Winter 2020

Empathy

Patience

Before creating E.P.I.C., I came to realize that too many guest service training programs approach teaching hospitality as if it were merely a series of communication techniques. Perhaps this is because hotel-rating services such as Forbes and AAA put a great deal of weight on specific, scripted phrases, to the point that many staff members are so nervous about using these rigid, standardized phrases that they sound insincere. Yet when you teach only politeness and obsess too much about rigid scripting of guest conversations, the result is fake, disingenuous service. Therefore, I decided it was time for a new model of training through the heart and not the head.

E.P.I.C. Hospitality is a philosophy about how all vacation rental staff members touch the hearts of everyone they encounter. Yes, the end game is how your staff interacts with guests, but authentic, memorable guest hospitality is rooted in intercompany culture.

Intuition

Compassion

To paraphrase her, I’ll just say this: Guests will forget the text message you sent on arrival, the amenity you delivered, and the automated email you sent after check-out, but they will never forget how your maintenance worker or welcome-center staffer showed interest in their child, dog, or aged grandparent.

Here are five train-the-trainer ideas you can use as a road map for training your own staff during in-house meetings. B Rehumanize your guests. Often, frontline workers in the VR space may not have experienced personally the vacation situations that those who are planning and paying for the vacation are experiencing. Therefore, find creative ways to help staff members imagine the guest stories playing out every day in your homes.

One fun activity is to select pictures that represent your guests; you can use actual guest photos taken from social media or those purchased for media use. Assign staff members to work in pairs and pass out pictures representative of different demographics (for example, traditional families, couples groups, friends getaways, and extended families). Have them come up with stories behind the travelers’ plans that explain why this vacation is so particularly important (for example, last trip with the high school senior, first trip with the baby, possibly the last vacation ever because of terminal illness, or first reunion in 10 years).

E.P.I.C. Hospitality begins when we greet our first coworker each shift and continues on through every connection we make, with everyone we encounter, whether that person is a colleague, coworker, homeowner, vendor, or contractor. My mentor and friend, Howard Feiertag, who recently had the Virginia Tech School of Hospitality renamed in his honor at the age of 91, said at his acceptance speech, “Hospitality is simply making people feel good.”

Conrad Hilton, the iconic founder of Hilton Worldwide, said it more formally: “It has been, and continues to be, our responsibility to fill the earth with the light and warmth of hospitality.”

Perhaps the great poet laureate Maya Angelou said it best in her famous quote: “I have learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” 30

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C Assign staff members to write up their own definitions of empathy and share them with the group; then show definitions from Google. Ask half of the group to think of guests they have encountered who had mean, harsh personalities. Ask the other half to think of guests they have met who were going through difficult personal challenges. Ask the groups to alternate sharing their examples. Is it possible there is a backstory behind that difficult guest? D Search Facebook for user groups with words such as kindness and compassion in their names, and then subscribe to their feeds. When you come across meaningful memes, download them as images and share them during your hospitality discussions. E Search YouTube for videos about empathy, patience, intuition, and compassion (E.P.I.C) and share the good ones. F Create a reporting system whereby staff members can identify heartfelt gestures and actions taken by coworkers and colleagues. Then, celebrate these occurrences on intercompany social media (such as a company Facebook group) or in a celebratory email.

VRM Intel Magazine | Winter 2020

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VRM Intel Magazine | Winter 2020

NAMING VACATION HOMES

10 ADVANTAGES TO NAMING THE VACATION PROPERTIES IN YOUR INVENTORY Tara. Pemberley. House of the Seven Gables. Graceland. Oak Alley. Mount Vernon.

he idea of naming homes isn’t new, but the practice seems to have lost some of its romantic appeal over the years. After a recent trip to England’s Cotswolds, passing thatched-roof cottages and High Street townhouses—each with a plaque by the door displaying one enchanting home name after another—I realized that the practice is still alive and well in some areas. And it matters. In Europe and in the United States, owners and managers in leisure destinations have been naming homes for decades for very good reasons that still apply in 2020—perhaps more than ever, as vacation rentals are quickly becoming commoditized on OTAs.

 The advantages below are not just for single-family homes. Naming condos and multifamily units has value, too.

10 Reasons to Name Your Vacation Properties

With an individual name, guests will be more open to understanding that the home is individually owned and unlike any other. They will begin to look at renting the home how they might look at residential real estate: “Can I see myself living/vacationing in this particular home?” New travelers coming into the vacation home rental market don’t always understand the unique nature of individually owned vacation homes. If they haven’t fully comprehended that the rental isn’t a hotel, friction can arise during their stay because their experience may not match their expectations.

Reality that doesn’t meet expectations yields disappointment.

Reality that matches expectations yields satisfaction.

Reality that exceeds expectations yields happiness.

B Naming Homes Helps Get Through—and Around—the Google Funnel While I hesitate to start this list by mentioning how naming properties will impact performance in search engines, things are changing at Google. For those who will only read part of this article, I want to touch on this point before you flip the page.

As you will read in Amber Carpenter’s article on page 68, “SEO/ SEM Disrupted,” Google’s search engine results page (SERP) format is changing for vacation home rental searches. As a result, your company is likely to find less organic (non-paid) real estate on SERPs as Google Travel’s mapped booking platform advances. A memorable property name can help you optimize—and even bypass—Google (if you can etch the name in the minds of current and potential travelers). More on this later, but it’s important to keep in mind as we look at the other advantages of giving a house a name. C Names Are Inviting and Engaging According to Dale Carnegie, “Names are the sweetest and most important sound in any language.” Giving something a name demonstrates that it is special, unique, and worth knowing. Names bestow individual identity. For example, football fans can discuss the performance of college quarterbacks this past season, but when they specifically identify Joe Burrow or Jalen Hurts, they are discussing individuals and their uniqueness with more attachment and engagement. D Names Communicate Uniqueness and Help Set Customer Expectations When you name a home, travelers understand that it is a one-of-akind accommodation—a true vacation home rental. In contrast, for example, Summerhouse Units B804 and B602 are not distinguishable in the minds of customers.

Giving a property a distinctive name creates for the guest an overall—sometimes subconscious—expectation of a unique experience unlike staying at a hotel. It provides the property manager more of an opportunity to accurately set and exceed the guest’s expectations. E People Look for Their Next Vacation While They Are on Vacation While guests are vacationing in your area, they are often drawn to look for places they might want to stay when they come back. They are looking for factors such as the view, proximity to things they like to do, amenities, and home styles and sizes. Identifying properties gets much easier when their names are displayed; guests are significantly more likely to remember a property name than an address. In turn, they are more likely to gain direct access to your site by Googling a property name than an address. F Travelers Connect to Home Names, Especially When Provided a

Backstory As a guest, when you’re choosing a vacation home rental, you have a different connection to the home when you know the property name and its backstory.

Suppose you decide to stay at Chesa Madrisa in Big Trees, California. Your stay becomes even more meaningful when you can share your experience with your friends, family, and coworkers and tell its backstory. According to Chesa Madrisa owner Hilary Gibson, “My grandparents built our vacation home and named it Chesa Madrisa long before we knew how helpful it would be to have a unique name.” VRM Intel Magazine | Winter 2020

Gibson’s grandparents named the Sierra Nevada mountain home after being inspired by the Swiss chalets they had visited. Chesa means “home” in Romansh and Madrisa is the name of their favorite ski run in the Swiss Alps from Klosters to Davos. Her grandfather’s original wooden skis, used in the Alps, hang in the entryway. As a guest, you now have a real connection to a unique home, and any expectations of it being a commoditized, hotel-like accommodation are quashed. G Names Are Memorable, Interesting, and Shareable Chesa Madrisa is now on my list of places to stay, and now that I know its name and backstory, I am much more likely to share a link to the home on Facebook to update my friends, on Instagram to show off my future vacation, and on my Pinterest board titled “Vacation ideas for 2020.” Thus, free network marketing.

Using another example, Low Places is the name of a beach home in Sanibel, Florida. “Low Places is the name of my personal vacation rental,” said Sharon Michie, founder of Cottages to Castles of Sanibel & Captiva, Inc. “You can ‘show up in boots for a blacktie affair’ here. ‘I’ve got friends in (and at) Low Places’—queue the Garth Brooks song!” With so many shareable lyrics from the song Friends in Low Places, the name alone gives guests an irresistible urge to share about the home on social media. The right home name can help you write creative posts on your company’s social media pages, encourage others to share the home’s details page, and expand the property’s social reach in a very short time. H Logistically, Home Names Make the Property Easier to Find Upon

Arrival As more guests bypass office check-in and go directly to the unit, having the property name displayed on the home makes it easier for them to know they are in the right spot without double-checking addresses as they navigate lock boxes or key codes—especially when arriving after dark. While different signage regulations may apply, we’ve mentioned a few options below, including custom doormats and welcome signs for multifamily developments. I Home Names Make the Home Easier to Find Online—and to Book

Direct See Me Lodge was originally named for a family’s three kids (initials C, M, E). It was the perfect name for their house at the top of a ski village in Steamboat Springs. When a guest shares a family photo on Facebook with the caption “We’re on top of the world at See Me Lodge in Steamboat,” their friends can see the picture and Google “See Me Lodge in Steamboat,” which takes them directly to Moving Mountains, the property management company that manages the home.

With more competition from OTAs, multi-destination competitors, and Google Travel, the search marketing funnel is getting both crowded and pricey. When travelers search for a home name, they are significantly more likely to find your booking page directly. J Naming the Home Revitalizes the Billboard Effect on OTAs Although several OTAs work to strip vacation rental branding from photos and descriptions, they do not remove home names because properties with names convert at higher percentages. Guests who want to see if they can find a better deal—or a better experience— by booking directly can simply copy the home’s name and paste it into their search engine to find the home’s manager or owner. 34

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For condo owners and managers, this is key. If the traveler just uses the condo name, they are back in the Google funnel, where OTAs dominate. However, if they search for the home name, they are closer to finding you. Use home names in both property descriptions and photos to help consumers find you directly. K Reservation Agents Can “Put a Name to a Face” Training reservation and sales teams to speak knowledgably about properties is challenging, but giving a home a memorable name allows them to speak to guests in a more engaging way about the differences between properties. In addition, knowing the name helps them remember differentiating factors about the home. It isn’t only guests who relate to home names more personally; your team does, too.

How to Name a Property Working directly with homeowners yields the best results for finding the perfect name for vacation home rentals. The advantages of naming vacation properties do not only apply to single-family homes. Condos, townhouses, and apartments also benefit from having unique names.

Make it meaningful. Consider why the property was purchased, any family history, the location, the view, amenities, and what kind of experience guests will have in the home. When homeowners connect to the name in a meaningful way, they are more likely to share it with their social networks. Make it unique. One of the main advantages of naming a home is that it is found more easily online, so do an online check to ensure the name is unique. If you are committed to a name that isn’t unique, include the destination name in online attributes.

 Consider purchasing a domain name, creating a subdomain, and/or building a landing page that homeowners can share with their social networks.

Where to Display Property Names Once the property has a name, there are two ways to think about displaying the name to maximize the advantages, physically and online.

Exterior Signage It only takes a quick trip up and down beach roads in coastal destinations across the U.S. to see how property names are displayed on homes. Most single-family beach houses have exterior signage on the home, by the driveway, or both. However, if this type of signage isn’t feasible, there are other options available:

Regulations and Restrictions First, investigate municipal signage regulations and POA/HOA/ COA restrictions. Then, get creative.

Exterior Signage on the Home In most cases, for single-family homes, there are legal—and tasteful—ways to display home names on properties using signage. In my recent UK experience in the Cotswolds (page 88), home names are posted using plaques appropriate to the historical nature of the homes.

VRM Intel Magazine | Winter 2020

In more rural areas with long driveways, signage is also displayed by the road or on mailboxes. Be considerate and aware of the destination’s traditions and protocols. A sign that is gaudy or inappropriate can hurt more than help. If the sign can be cobranded with your company name, it is a bonus (e.g., “One Fine Stay,” followed by “by ABC Vacation Rentals” in smaller print). Some destinations also allow additional signage for rental companies to display their company name, phone number, and website.

Window Signage For many multifamily properties, exterior signage is not allowed. However, especially in condos and townhouses, signs can often be placed inside windows that face the hall, walkway, or path. You can see some signs in hall-facing condo windows with sayings such as “Welcome to the Beach” or “Mountain Paradise.” Placing attractive signs with the property name in path-facing windows may be an option for multi-family units.

In some cases, the property name can be displayed on the exterior, but the management company name cannot. For example, in the Cotswolds, the property name plaque is allowed, but exterior signage from rental management companies is not. Instead, property managers display signs in the window closest to the door with a message that the home is available to rent, alongside company contact and website information. (In our UK townhouse rental, the plaque by the door displayed “Sansons Cottage,” and the framed sign inside the window said, “This cottage is available for holiday stays. Contact Honeypot Cottages [logo, phone number, website].”)

Custom Doormats Even in developments with heavy restrictions, an exterior doormat is often allowed. There are a multitude of online suppliers that print affordable custom door and floor mats. A doormat that displays the property name is a good option for multifamily units with no other display options. If done in a tasteful way, not only will guests be able to quickly identify their condo or apartment rental upon arrival, the name of the home will also be etched in their minds. In addition, other guests who pass by and think that particular location would be perfect for their next vacation will more easily remember the unique name and find you for their next trip.

Optimizing the Home’s Name Online One of the primary advantages to naming a vacation rental home is making it easier to find online. To maximize this benefit, there are several ways to use the name to optimize the property’s online presence on your own website, in search engines, and on third-party websites/OTAs. B Property Titles: In your property management software (PMS), displaying the name in the property title makes it easier for guests to find the home through all channels, including your own website’s search function, in search engines (Google, Bing, etc.), and on OTAs. If you are using OTA channel distribution, consider how the information in your PMS is being pushed out to third-party websites and OTAs. In most cases, the name of the home is best placed in the property title, but in some instances, it may be more advantageous to include verbiage about amenities and location in the property title (e.g., 4BR w/ private screened pool, minutes to Disney). C Property Description: Regardless of what you choose for the customer-facing property title, include the home name in the property description. The description is a great place to announce the property name and tell its backstory. In addition to giving guests a clear way to search for your property directly, the name helps guests connect to the home emotionally and recognize it as a unique, individually owned vacation home instead of a commoditized hotel room. D Property Photo(s): Include at least one photo on third-party websites that displays the property name. Whether it is an exterior sign, a window sign, the doormat, or another creative idea, use the photos to help the guests find the home online if they want to search for the direct source for booking. In addition, use the property name in alt tags on your photos. Alt tags are HTML image tags that provide a text title for each image that tells search engines what the photo is showing. E URL: Use the property name in the URL. For example, the URL for See Me Lodge from Moving Mountains is www.movingmountains.com/vacation-rentals/see-me-lodge. Adding the property name to the URL makes it easier to find online and more shareable for guests and homeowners.

 Consider offering owners a name package that includes a unique domain, landing page, exterior signage, custom doormat, and property-specific thank-you cards (cobranded with your company). A property name provides a unique, distinctive identity.

In our industry, differentiating properties is becoming more challenging as OTAs and Google seek to commoditize vacation home rentals. Besides the many marketing benefits to making vacation rentals easier to find and share online, naming homes helps guests, staff, and homeowners connect with them in a more meaningful way.

VRM Intel Magazine | Winter 2020

Call Scoring Moving the Needle with Call Scoring and Coaching By Ali Cammelletti

istening to recorded calls for reservation sales and guest services offers invaluable insight into how company’s values are being reflected in direct phone communications. I often hear supervisors say they can hear their team members in the office, and that is all they need to know. While I am always excited to hear that supervisors are paying attention and listening to team members, there is much to be heard when company managers take the time to listen to recorded calls. Coaching employees on how to grow their soft skills and create better relationships is a wonderful way to build trust with your team members and make them feel valued. Recently, I was working with a multi-destination vacation rental management company with a large reservations team, and an employee confided how much it meant to her that the company’s founder and CEO valued her enough as an employee to invest in her and have someone coach her. Another employee at the same company who had improved significantly after coaching told me 38

VRM Intel Magazine | Winter 2020

that she had been looking for guidance about what worked (and didn’t) in her sales calls and was grateful for the effort they had put into helping her be more successful. The CEO was equally touched and grateful that team members looked at the coaching opportunity in such a positive light. To build solid relationships with team members, it is critical to hire for values and then coach additional soft skills.

Over the years, I have updated and altered sales, guest relations, and service points based on what I’ve learned from listening and scoring thousands of calls. Following are some critical areas for creating loyal guests who want to book directly and come back year after year.

Greeting the Caller While it sounds nice to ask for a caller’s name in the initial greeting, often such a greeting seems like a mouthful that makes em-

ployees feel more robotic than authentic. Instead, ask for the caller’s name sometime during the first minute of the call. If the caller offers his/her name right away, I suggest repeating it, just like a verbal handshake.

Using names in calls has many benefits. Research shows that, as humans, we judge people within the first seven seconds of meeting them. I’ve found, if you use the caller’s name, they will listen to the next seven seconds of information that you give.

Asking Questions In my experience, the foundation of any call includes asking two open-ended questions. I am a fan of the following questions: question-circle “What brings you to the area?”

question-circle “What are you looking forward to enjoying while you are visiting?” question-circle “What is important in a home for you and your family?” question-circle “What traditions do you enjoy this time of year?” question-circle “What did you enjoy last time you visited?”

Let callers begin with what they are calling about; then you can transition to asking the above questions as you look up the details related to their inquiry. If you fully understand what is important to your callers, you can eliminate many subsequent follow-up calls, emails, or texts that take place when you make incorrect assumptions. Often, just two questions will allow you to really understand someone. It is best to avoid a series of close-ended questions, which can make people feel disconnected, such as how many people are in the party, how many beds do you need, are you bringing any furry friends, or do you want to be near downtown?

DISC Assessment is another great technique that I like to use for understanding behavioral styles. By listening for answers to the who-what-why-how questions, you can narrow down callers’ behavioral styles to determine whether they are dominant, steady, compliant, or influencing. Then you can match your call techniques to what they like. For example, people with dominant styles do not want to hear about the sand between their toes and the smell of the ocean, yet they do care about facts, such as how many steps there are to the villa or how the travel insurance can benefit them. On the other hand, those with an influencing style enjoy your painting a picture of them sitting on the deck with their morning coffee, looking out at the ocean.

Building Relationships and Connecting People want to do business with people. I have listened to many calls where a team member shared something simple like being from the same area or having children similar in age. The caller’s tone changes, and they ask how they can contact the same provider again.

We are living in a disconnected world while, as humans, we are put on this earth to connect. Even though I have never heard someone say out loud, “Hey, I want to connect today,” connecting is fulfilling. When connection happens on a call, most callers express something along the lines of, “You are the nicest person I have talked to today.” It is essential to empathize with callers when they share something personal or call as the result of a problem. I have listened to many

calls where a caller shared the loss of a family member or something tragic, and the team member didn’t acknowledge it at all. Supervisors may miss this when they hear one side of a conversation. When a caller shares something personal and it is ignored or dismissed, it breaks trust and creates disconnection. No one likes to have someone completely ignore the fact that they just took off their mask. My favorite saying is, “empathize before you educate.”

Putting Callers in the Moment The key is to say “you” and directly relate it to information they have shared. This could be wanting an ocean view, needing time in the warmth of the desert, wanting to walk to all their activities, preferring a private pool at the home, knowing the number of steps, or cancelling the previous year due to an emergency. When describing the home, you might say, “You will be able to sit outside into the late evening with the most pleasant temperatures.”

Educating about Travel Insurance Most companies I work with offer travel insurance and for a good reason. Recently, I had a representative tell me that he doesn’t feel that he needs to discuss travel insurance when callers are concerned with pricing. I believe the opposite. How are callers going to react if they are already financially stretched and they end up having a death in the family, can’t make their trip, and lose thousands that they didn’t have in the first place? I promise that, if they choose not to take the insurance, they won’t be nearly as upset as if they had never been told at all. I remember a call where the representative said she would drop the travel insurance to lower the price and the caller stopped her and said, “No, leave it; with the number of kids we are traveling with, we always buy the insurance.” Besides health-related concerns, the weather in our world is changing, and it is important to let people know their options.

Expressing Professionally I am one of those people who thinks about the words I use to communicate and strives to build relationships with a compassionate tone and warm words. I often hear industry verbiage, such as units and properties. Such verbiage feels the same to me as fingernails scraping on a chalkboard. I understand that we have the word properties in company names and all over websites and technology platforms, yet we can always say house, villa, cottage, or cabin. Notice how much softer and inviting those words feel. The same concept applies to cheaper and expensive. There isn’t anything soft about those words; instead, we can say most economical or best price point, even high-end or luxury. People often use a technique when they struggle to find the right words, filling in with ums. Write the word down, and draw a ghostbuster sign over it. Do this daily and see what happens.

It’s professional to refrain from bad-mouthing third-party booking websites about their added fees and altering of emails, which makes it hard for consumers to contact companies directly. When we talk badly about others, the bad talk does not transfer to the person we are abusing; instead, it reflects on us as people. Keep it positive, and simply state that the best price is always guaranteed when they book directly with the property management company.

Asking for Commitment When asking whether people are ready to commit, you don’t have to be pushy. I am a fan of simply asking, “How does The Cozy VRM Intel Magazine | Winter 2020

Cottage sound for you and your girlfriends?” The key is to do so right after stating the price. Too often I hear an awkward pause after the price is shared, as if stating the price were a question. It isn’t a question. Take it from an industry expert; the next step is to remove the pause and ask for a commitment in a kind way. If they aren’t ready, the next best step is to offer to email them the details so they have them on hand.

“True hospitality consists of giving the best of yourself to your guests.”

—Eleanor Roosevelt

Closing the Call We are in the hospitality industry, so it is up to us to make the booking process easy on people. The best way to do this is to ask, “When are you looking at making a decision?” Then, follow up with, “Can I call you if I don’t hear from you?” This makes it easy to manage leads, and, more often than not, the caller will be grateful for the offer. Then, be sure to use the caller’s name in the closing and rebrand the company name. Rebranding the company name is important these days because multiple booking platforms can be confusing to consumers. I also see it as a form of gratitude. Consumers have options, so thanking them for their business is essential. Smiling and answering questions make it easy to be a service provider, yet being a hospitality expert is more difficult and requires self-reflection and mindfulness about how we communicate and how to be the people we want to be. I encourage you to take the time to ensure your people are getting the personal development they need to be true relationship builders.

Ali Cammelletti of Cammelletti Consulting brings over 30 years of experience in the hospitality industry, having served in many capacities within the industry, from a frontline restaurant and lodging employee to building and owning a successful event planning business, and now running a consulting company. Her current area of expertise is leadership and sales coaching with a relationship-building focus. Visit www.cammelletticonsulting.com for more details.

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VRM Intel Magazine | Winter 2020

Stop Doing it Yourself

By Sue Jones

Prepare to Delegate in 2020 42

VRM Intel Magazine | Winter 2020

hat is it that keeps you from delegating? More often than not I hear, “It is just easier to do it myself versus training someone to do the task right now,” or “There isn’t someone to delegate to who has the skills to complete the tasks as well as I can.”

In today’s workplace, employees want to be challenged, engaged, and provided with increased responsibilities and opportunities. Developing your team through delegation is a great start to keeping them challenged. Gino Wickman1, author of Traction, states, “Be prepared to delegate and elevate yourself. You have to delegate some of your responsibilities and elevate yourself to operate at your highest and best use.” Learning to delegate effectively is the key to providing yourself with the time to focus on those things you do best, things that very few people can do as well as you to generate the most income for your company.

Delegating improves not only your job performance but that of others, providing a vehicle for mentoring and coaching. Delegating builds camaraderie, allows you and your team to get more work done, relieves job burnout, and alleviates stress. Job burnout is a workplace issue characterized by feelings of exhaustion, increased cynicism, and feeling less capable at work. Part of the responsibility for addressing burnout falls on managers to ensure they have the right people in the right roles, understanding what employees do best, and providing them with responsibilities where they can use their strengths. When delegating work, skilled managers understand when to manage and when to coach. When you are managing the delegation of tasks, you are typically focused on directing immediate needs and specific outcomes. You take responsibility for the outcome by telling, directing, and making decisions for the employee about how the task is to be completed. This type of delegation works well in crisis situations when decisions are made swiftly and when employees are new in their positions, have new client and customer relationships, or take on new tasks and responsibilities. You also want to direct employees when they have low-to-moderate competence with skills and lack confidence in their ability to complete the task autonomously. This type of directive delegation will get the job done; however, it will not develop your employees’ skill sets. Coaching works best when delegating responsibilities. A good example is coaching a sports team. It is very rare that you will see

a coach play an athlete who didn’t practice extensively before the game. For athletes to play on game day, they need hours of practice to develop their skills.

In the workplace, you want to delegate and coach your employees when they have some experience in their role, a track record, demonstrated competence with the task, and your confidence in their abilities. Taking time to coach, teach, develop, and guide your employees when they take on new tasks and responsibilities is the key to their ongoing development. Providing coaching and guidance when delegating tasks to employees often results in outcomes that exceed your expectations. When delegating to an employee who has high competence and high commitment to the task, define excellence and get out of the way. One of the most difficult transitions for leaders to make is to shift from doing to leading. One of the strategies that Jack Canfield2 speaks about often in his Success Principles is called complete delegation. It simply means that you delegate a task once and completely rather than delegating it each time the task needs to be done. There is an exercise you can find online at www.thesuccessprinciples.com that will assist you with better understanding what activities you should focus on and what activities you should delegate.

Career and business strategist Jenny Blake3 recommends conducting an audit of your tasks using the rules below to find out which tasks you should delegate. Think about tasks you want to delegate and categorize each type of task using the following list:

B Tiny: Tasks that are so small they seem inconsequential to

tackle but add up. These tasks are never important or urgent, and, although they only take a few minutes, they end up taking you out of the flow of more strategic work (e.g., registering for conferences and booking hotels and flights).

C Tedious: Tasks that are relatively simple are not the best use of your time. Very straightforward tasks can (and should) be handled by anyone but you (e.g., manually inputting data into a spreadsheet or updating KPIs in reports or in your presentation deck).

D Time Consuming: Tasks that are time consuming do not

require you to do the initial research. Others can take it on. This allows you to easily step in when the task is 80 percent complete to provide input, guidance, or direction on next steps.

E Teachable: Tasks

that can be translated into a system or process can be passed along with you still providing quality checks and final approval (e.g., teaching others how to hold, lead, and facilitate meetings in your place).

F Terrible At: Tasks that are not your strength or an area

where you feel unequipped. Think about the tasks that take you far too long to complete, which may produce a less-than-desired result than what a skilled person in that area could produce. A good example is creating PowerPoint presentations. If you are not a PowerPoint guru, delegate this task to someone who is more capable.

G Time Sensitive: Tasks that are time sensitive but compete

with other priorities. When there isn’t enough time to do them all at once, delegate tasks that can be done parallel with your other time-sensitive tasks (e.g., calling an airline to change seat assignments for the following day while you are in meetings). VRM Intel Magazine | Winter 2020

Once you’ve classified your tasks, you’re ready to hand them off. Think about how important the handoff is in a relay race at a trackand-field meet. If the passing runner messes up the handoff or has poor technique, the next runner could stumble, lose their position in the race, or, even worse, drop the baton. These steps provide a clear pathway to delegation and assist you to define your technique.

Six Steps for Effective Delegation B Prepare beforehand (see above). C Clearly define the task to be completed. Be specific. Ask the person to whom you are delegating the task to repeat the information back to you to ensure he or she fully understands. D Outline the timeframe. Be specific about the timeframe in which the delegated task must be completed. E Delegate authority. Defining the level of authority an individual has is key, yet it is often overlooked. The following levels of au-

Delegation Grid Importance of the Task and/or the Amount of Risk Involved

 What has been learned? Effective delegation requires effective communication. Research tells us that what you hear (tone of voice) is 38 percent of the message you communicate. What you see (body language) is 55 percent of the message. The actual words (what is said) are only 7 percent of the message received. When delegating, it is important to think about how you communicate the message. Delegation via email is the least effective way to communicate. Try to delegate with faceto-face communication or by video so that messages can be easily interpreted.

Over the course of the next few weeks, identify and categorize your tasks that fall under the six types of tasks defined on page 43, and make a plan to delegate the low-hanging fruit. Practice is required to become a skillful and effective delegator. Stop doing it yourself. Start directing, delegating, and developing. Keep communicating effectively. Go forth and delegate!

Employee Knowledge and Expertise High

Medium

Low

High

Inform and Initiate

Recommend

Medium

Act

Inform and Initiate

Recommend

Low

Act

Inform and Initiate

thority and delegation grid provide examples of when it might be important to give someone the authority to recommend versus the authority to act or inform and initiate based on the importance of the task and the employee’s knowledge and expertise.

Level 1: The authority to RECOMMEND Level 2: The authority to INFORM and INITIATE

Traction: Get a Grip on Your Business, Gino Wickman, 2011.

Jack Canfield,

http://www.thesuccessprinciples.com/resource/TSP-DelegationExercise.pdf 3

Jenny Blake, https://hbr.org/2017/07/how-to-decide-which-tasks-to-delegate

Level 3: The authority to ACT F Identify checkpoints. Plan time to meet with the individual to review his or her progress and offer guidance. Schedule these meetings frequently at first, and then taper off as you see the task being mastered. G Hold a debriefing session. Don’t forget to take time to debrief. Ask process questions such as:  What went well?

 What could have been improved? 44

VRM Intel Magazine | Winter 2020

Sue Jones, owner of HR4VR, is passionate about creating human resource programs and services that are strategic in scope and consistent with the goals and objectives of vacation rental clients. Sue’s innovative approach to HR and extensive experience encompasses businesses of all sizes in multiple industries. When addressing the needs of her clients, Sue is especially skilled at transferring her knowledge, skills and abilities across business channels in a personable manner. Sue is a veteran of the US Navy, holds a Master’s Degree in Business Administration from Northeastern University and is both SHRM-SCP and SPHR certified.

VRM Intel Magazine | Winter 2020

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VRM Intel Magazine | Winter 2020

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VRM Intel Magazine | Winter 2020

Property Managers or Hospitality Providers?

With the convergence of lodging types in the minds of consumers, traditional property managers are transitioning into hospitality providers

Property Managers or Hospitality Providers? With the convergence of lodging types in the minds of consumers, traditional property managers are transitioning into hospitality providers

By Jeremiah Gall

he role of vacation rental property managers has changed over the past decade. Responsibilities have more than doubled, particularly with respect to operations and guest services. There is a tighter booking window, and the average length of stay is shorter. Hotel and vacation rental inventories have converged on travel websites. Big travel brands are crossing segments as well: Airbnb purchased HotelTonight, Marriott launched its Homes and Villas product, and OYO pushed into vacation rentals. Customers are shopping fluidly between segments and expect the same quality experience whether they stay in a vacation home or a hotel. At this point, “property manager” is becoming a misnomer in the industry, one that fails to convey the full scope of service and value these professionals bring. It’s official: property managers have become hospitality providers.

Why the Title “Property Manager” Isn’t Enough Historically, vacation rental managers were hired by second homeowners to (a) market their homes, and (b) oversee maintenance and property care. Managers generated bookings and rental income, offset by maintenance expenses, and handled the accounting.

VRM Intel Magazine | Winter 2020

Short-term vacation rental property management, much like longterm residential property management, was transactional.

Today, managers are required to take a more proactive and purposeful approach to their work. There is a newfound focus on guest service that demands the full attention and resources of property managers. The job is now more guest-centric, and managers are responsible for facilitating a branded guest experience from the booking process through checkout. Hospitality providers have always made the guest experience the core of their business. While these operators are similarly responsible for upkeep and maintenance, their focal point has always been servicing guests.

Guests staying in a hotel are constantly surrounded by service personnel who see to it that every request and question is promptly resolved. Hospitality providers are in the business of building relationships with guests by creating valuable touchpoints throughout the stay, such as daily cleaning, turndown service, or a personalized concierge. Staff are trained with clear standards of operations that fold into the hotel’s brand guidelines.

Vacation rental property managers are now tasked with all the above but in a more challenging environment with unpredictable variables and competing responsibilities. Unlike hotel proprietors, vacation rental operators are faced with managing properties in differing locations, maintaining large spaces with multiple rooms and exterior amenities, working with several owners who have distinct preferences and expectations, and coordinating various external service partners. A standard hotel room with two beds, a dresser, a TV, and a bathroom is a more predictable setting. In comparison, a vacation home requires significantly more attention to detail and permits a smaller margin for error.

And yet, professional managers of vacation rentals get this done. They turn over a seemingly impossible number of unique homes according to their specific brand standards, and at the same time offer concierge services with maintenance plans tailored to each owner. These offerings are much more than reactive property management and go a long way in shaping the guest experience.

The Role Is Evolving Along with the Industry The modern traveler is looking for a comprehensive, Instagramworthy experience: meaning all the amenities of a hotel plus the uniqueness and privacy of a vacation rental.

Travelers today are demanding more service than ever. These expectations don’t seem to be plateauing any time soon. Moreover, the profile of today’s traveler is younger; 82 percent of millennials traveled last year and cited experiencing new cultures as their primary reason. These guests are accustomed to a higher level of service across every interaction. It’s much more than providing a clean accommodation—the expectation is a curated stay. The need to meet these expectations and facilitate this type of experience has forced managers to rework their offerings and branded experiences to differentiate themselves from the crowd. Managers have responded by expanding concierge service, around the clock availability, and access to extensive local recommendations. Options such as grocery delivery, chefs for hire, drivers, affiliations with excursion providers, itinerary creation, and other personalized offerings have become common and are often influential considerations during the booking process. The sky is the limit

VRM Intel Magazine | Winter 2020

when it comes to amenities, and managers are aware of the implications of failing to increase their service offerings.

Strategies to Embrace This New Terminology The trend toward more service has been a catalyst for continued growth in the short-term rental category and has led to increased demand among those traditionally partial to hotels. Vacation rental managers have met this demand, and while they might not have changed their titles (yet), many managers have already made the transition to being hospitality providers. This is evident in the ways these professional managers talk about their businesses, market their rentals, communicate with guests, and implement brand standards.

For those managers who have yet to transition and double down on “hospitality service,” expanding concierge offerings is less intimidating than it seems. Start by identifying additional amenities that you would like to offer, then work backwards to determine what services you can provide immediately. Discuss the timeline for rolling out these new initiatives with your teams and stakeholders, and track your progress accordingly. Holiday Vacation Rentals, for example, now offers a list of supplies that travelers can request to be stocked at the property ahead of their arrival. Guests can also order flowers, balloons, or gift baskets to celebrate a special occasion during the trip. This is becoming the standard and was much different in the days when guests didn’t know if they needed to bring their own sheets and towels. To scale and sustain these guest amenity programs across your portfolio, managers need to equip themselves with the right tools to access data. When repeat guests book a trip, reviewing information from previous stays is important. Check for historical requests to see if any issues popped up during their stay. Try implementing a survey for new guests to better anticipate their needs, or even soliciting special requests in advance. Taking these proactive steps will help facilitate success for your team and ensure that guests are more satisfied.

Hospitality-Level Service Is the Next Big Opportunity The vacation rental industry is continuing to evolve and mature, and with that comes a change in the set of responsibilities and expectations. The moniker property manager doesn’t nearly encapsulate the work that goes into the job, nor does it capture the emphasis placed on personalized guest service and property care.

Professionals who have traditionally worked with vacation rentals are at the forefront of the movement toward hospitality living, servicing both guests and owners. Those who offer creative amenities and services to curate guest experiences will embrace their new hospitality provider title and capitalize on this huge opportunity. Jeremiah Gall is a serial entrepreneur and vacation rental market veteran with a history of delivering great products to rental managers. Jeremy cofounded FlipKey. com in 2006, which grew into one of the largest vacation rental marketplaces in the world and was acquired by TripAdvisor in 2013. Jeremy cofounded Breezeway in 2016, which provides intelligent software to help property managers automate their property care and maintenance programs and deliver the type of quality experiences that guests and owners demand.

DON’T LET VACATION RENTAL INSURANCE BE THE ELEPHANT IN THE ROOM. No one likes talking about insurance. It’s confusing, complicated and boring. We get it. Don’t let the stampede of insurance options overwhelm you. At CBIZ, we understand your property and liability risk. Let’s discuss the right coverage you need to protect your vacation rental business.

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VRMintel Live!

FE RE N

vrmintellive.com

20 Educational Sessions – Actual Performance Data – 2020 Outlook – New Strategies, Products and Services

VRM Intel is bringing national-conference-level education directly to the Gulf Coast and Gatlinburg regions. With an all-day conference presenting 20 educational sessions and workshops, we're bringing together vacation rental managers, thought leaders, and many of VRM Intel Magazine’s writers and sponsors.

VRM Intel Live! Destin

VRM Intel Live! Gatlinburg

Thursday, January 23, 2020

Wednesday, February 26, 2020

Baytowne Conference Center

Gatlinburg Convention Center

$199 registration fee*

Baytowne accommodations available for $139 with group code 2499PQ

($129 early registration through February 5)*

Education topics include: 2019 performance data, 2020 outlook, Google’s changes, revenue management, executive strategy, owner acquisition, marketing, HR updates, safety, and much more. * We are offering 25% off purchases of 4 or more tickets. Tickets include breakfast sponsored by IMEG, lunch sponsored by Xplorie, and a cocktail party to follow sponsored by Beyond Pricing.

# BookDirect day

3RD ANNUAL #BOOKDIRECT

GUEST EDUCATION DAY

WEDNESDAY, FEBRUARY 5, 2020 THE VACATION RENTAL COMMUNITY IS COMING TOGETHER TO LET GUESTS KNOW THE MANY ADVANTAGES OF BOOKING DIRECT, AND WE NEED YOU! 1. Use the hashtag #BookDirect on Twitter, Facebook, Instagram, and LinkedIn to bring attention to the many advantages of booking vacation rentals directly with managers or homeowners instead of on third-party channels. 2. Send out an email campaign to past and prospective guests with a message about the value of booking direct, booking local, and booking smart.

THEOPMA.ORG IF YOU MANAGE CONDO PROPERTIES, OPMA’S SPRING SUMMIT IS A CAN’TMISS EVENT. Moderated by Simon Lehmann, this event brings together the US’s largest resort condo rental managers to discuss revenue management, onsite services, marketing, customer service, segmentation, policies, and technology.

May 6–8, 2020

Hammock Beach Resort Palm Coast, Florida

ONSITE PROPERTY MANAGEMENT ASSOCIATION SPRING SUMMIT

Second Home Investment

and Rentals Show August 15â&#x20AC;&#x201C;16, 2020 Gaylord Rockies Resort & Convention Center Denver Airport Area With a focus on second homes as investments and assets, this first-ever show presents new rental and real estate performance data, shows the pros and cons of purchasing second homes as investments, discusses asset management, and gives both homeowners and managers the latest information about managing and marketing rental properties. To sponsor this event or submit educational session ideas, contact us at secondhomeshow.com/sponsors or contact connie.carlisle@vrmintel.com

secondhomeshow.com

VRMintel

Vacation Rental Data and Revenue Management Conference

AUGUST 17-18, 2020 GAYLORD ROCKIES RESORT & CONVENTION CENTER DENVER AIRPORT AREA

VRDARM.COM Last yearâ&#x20AC;&#x2122;s inaugural Vacation Rental Data and Revenue Management Conference was a sold-out success. As a result, VRM Intel is expanding this event and bringing together revenue management experts, vacation rental professionals, and technology providers for a two-day educational conference designed to identify best practices and help vacation rental managers determine profit-driven revenue management strategies. With the advancement of comparative data and pricing tools, the science of revenue management for the vacation rental industry is evolving quickly. And this year, we will be presenting market performance data, adding an advanced track, and hosting technology workshops. VRM Intel Magazine | Winter 2020

Pricing is tough. Trust the experts. More data.

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Learn More: beyondpricing.com/property-managers 54

VRM Intel Magazine | Winter 2020

By Ben Edwards

Experience and Professionalism Why They Matter in the Vacation Rental Industry

b egan my career in the vacation rental industry 20 years ago. As a kid out of college, I accepted a job with ResortQuest, preparing federal tax returns. I was immediately fascinated by the vacation rental sector. I would explain my new position to anyone who would listen, yet everyone I spoke to asked me if I was in the timeshare business. In June 2000, vacation rentals were unheard of as a lodging option for mainstream travelers. Fast-forward to today: vacation rentals are listed in the toolbar on Expedia. The entire traveling public is now aware of our former cottage industry. I would estimate that it has taken us 50-plus years to get to this point. There is a wealth of knowledge and experience available to us as vacation rental managers (VRMs), yet we rarely use it.

VRMs continue to search far and wide for the newest, brightest, most progressive widget in an effort to streamline, standardize, and supersize their businesses. The constant quest is actually hurting the business, and it’s time to slow down. It’s time to focus and consider our return on effort, seeking ways to become more effective and produce a meaningful profit.

As we embark on a new year, it’s time to align our business with our experience and become more professional.

Review Service-Oriented Processes One of the quickest ways to increase the “experience” level in your business is to review your processes and develop a service-oriented approach to each issue. As problems arise, they require time and energy to resolve, yet we fail to recognize that the international vacation rental industry is actually thousands of years old. Jesus was born in a stable because there was no vacancy at the inn—or was it a vacation rental? It’s important to note that there are no new issues in the vacation rental industry. Someone, somewhere, has dealt with the same challenge before. We continue to have recurring difficulties in the business, yet we fail to make adjustments or implement corrective action. Developing company-standard resolutions to common issues and to frequently asked questions (FAQs) will help to ensure that your team is VRM Intel Magazine | Winter 2020

more consistent and effective, as in a more-experienced business. Leverage your own proficiency to start, learn from problems that arise, and err on the side of service. Details matter.

Choose Experienced and Professional SS&Ps VRMs also have access to a tremendous amount of knowledge in our vendor partners. With that said, finding the right vendor partner is not always easy. VRMs must run a gauntlet of needs/wants in the business today. Software, services, and products (SS&P) are hurled at us almost daily, and VRMs must get better at navigating this onslaught of solicitations. Generally speaking, business revenues are not increasing at the same rate as new SS&P are being purchased and implemented within the business. Experience is paramount when it comes to vendor partners and SS&P. There is an old adage, “Hire old doctors and lawyers.” The same could be said for the vacation rental industry. Experience matters when deciding which SS&P to purchase, yet we fail to properly weigh experience when making a decision. Time spent in the marketplace, tenure of the vendor contact, the pricing model, service, and support should all be areas of focus.

can follow up with the customer and escalate for resolution if necessary.

How much would you reimburse/pay to avoid a negative review? Over the course of a year, I guarantee your aggregated reimbursement expense is less than what a negative review might cost your business. C Be a good operator/competitor. There is entirely too much infighting in today’s environment, and too many VRMs are trying to game the system. The best businesses in the industry are not overly aggressive. Providing great service, clear communication, and quality properties is key to great business. Service and professionalism sell.

If you have to tell an owner or guest how great your business is, it may be time to review your company. Consider the local market and competition as you conduct business. Your competence will be apparent to owners and guests, as you create a rental program that they actually want to use. D Being professional requires a VRM to be profitable.

Many fee structures, such as flat fees per property or a percentage of revenue, penalize the business. If the service being sold is so great and your business is going to make so much money as a result of a purchase, why not have an agreed-upon sale threshold?

Too many VRMs are not generating a meaningful profit. Certain VRMs are afraid of profits or are reluctant to charge for services provided.

It’s time to hold your vendor partners accountable for the service provided and stop rewarding poor performance.

As you consider the business you want to build and operate, be attentive to experience and professionalism. A thoughtful, measured focus on these two areas will create a sustainable and hugely profitable business. The current bull market, robust economy, and amount of free cash flow will not last forever.

Return on investment is often overlooked, and too many businesses are not getting the product and service they bargained for during the negotiation process. Often, VRMs wind up subsidizing an underperforming vendor partner.

What Does It Mean to be Professional? As you begin to alleviate recurring issues and surround your team with more-experienced partners, the business inherently becomes more competent. Unfortunately, many vacation rental management companies are not grounded in sustainability, profitability, and professionalism. The best businesses in the industry are the most professional ones.

What does it mean to be a professional? Below are three key elements: B Treat owners and guests the way you would want your family to be treated. Issues are going to arise; it is how those issues are handled that is important. Not every owner and guest is out to take advantage of the business. If the home was not cleaned properly or there is an issue during the stay, resolve these problems the way you would want to be treated. It’s okay to draw the line, but most VRMs don’t get to that point. Too many VRMs are combative when issues are presented. One easy way to ensure problems are resolved in a reasonable manner is to follow the LEARN method: • L = Listen to the owner or guest

• E = Empathize with the owner or guest • A = Apologize

• R = React by offering a solution

• N = Notify the rest of the team about the problem so they 56

VRM Intel Magazine | Winter 2020

Your business cannot be successful or be positioned as a professional vacation rental management company if you can’t afford to operate. Sell your service and don’t be afraid to stand behind it. Discounted fees, free services, and gimmicks will lead to a less-profitable and diminished business over time.

Providing exceptional service, clear communication, and well-maintained/clean properties will ensure your business has the attributes needed to navigate an ever-changing industry.

Regardless of the many changes in the sector, these things remain the same.

If you or your business are struggling to adapt to industry change, concentrate on being as professional as possible. And to make the most out of 2020 and beyond, focus on the details of your processes, leverage your experience, and enhance professionalism through service.

Ben Edwards is the President of Weatherby Consulting, a company which provides transaction advisory, consulting, and asset management services with proven success in creating opportunities and solutions in the vacation rental industry. They deliver high-impact results, provide partner-level attention and implement tailored solutions to address each of their client’s unique goals and objectives. As a respected and innovative industry leader, Ben Edwards has been positively affecting the real estate and vacation rental industries for more than 19 years. From managing small resorts, to financial and operational auditing, to opening large scale resort developments, Edwards’s unique background provides a multi-level approach to consulting, transaction and advisory services.

BUSINESS CONSULTING | ACCOUNTING SERVICES | BUY / SELL ADVISORY SERVICES

MAXIMIZE THE VALUE OF YOUR VACATION RENTAL OPERATION OVER 20 YEARS OF VACATION RENTAL INDUSTRY EXPERIENCE IN OVER 200 RESORT MARKETS

Ben Edwards, President WeatherbyConsulting.com

Ben@WeatherbyConsulting.com

(888) 304-1405 VRM Intel Magazine | Winter 2020

Three-Year Vacation Rental Performance Average Daily Rate, Adjusted Occupancy, Adjusted RevPAR, and Average Booking Window across 12 Key Vacation Rental Regions

ow that vacation rental managers and destinations are contributing source data, we are beginning to get a factual view of actual performance over the past three years.

The following key performance indicators (KPIs) were provided by Key Data Dashboard and represent data compiled from 12 key vacation rental markets through December 31, 2019. It is important to note that Key Data Dashboard obtains information directly from property management systems instead of compiling self-reported data or data scraped from OTA calendars.

Reviewing annual data allows us to identify year-over-year trends in booking activity. For example, contrary to what we’ve been told, the average length of stay (ALOS) across these markets has seen little change over the past three years, but it is also not increasing in any of the markets we analyzed.

Average Length of Stay (ALOS) (days) 2017 NC Coast 8 7 Eastern Orlando Regions SC Coast 8 TN Mountain 4 AL Gulf Coast 7 FL Panhandle 6 Gulf Coast Southwest 11 Regions Florida TX Coast 5 CO Mountains 4 8 Western Hawaii Regions Lake Tahoe 7 Oregon 4

VRM Intel Magazine | Winter 2020

2018 8 7 7 4 7 6

2019 7 7 7 4 7 6

5 4 8 6 4

In addition, as you review the average booking window (the number of days between the date the reservation was made and the date of arrival), you will see that the Western regions and Southwest Florida saw a moderate decline in the average booking window, while the other markets experienced guests booking further out on average. In the following pages, we have used adjusted occupancy and RevPAR KPIs. As you read in the fall issue of VRM Intel Magazine, the adjusted paid occupancy percentage accounts for owner stays and maintenance holds, considering only nights available to guests. Although the traditional occupancy rate may be an additional helpful KPI to compare, the adjusted paid occupancy percentage allows property managers to view occupancy from an angle that excludes factors beyond their control. Because the rates of owner stays and maintenance holds vary greatly from property to property, the adjusted paid occupancy percentage is useful for comparing similar inventories and is essential when benchmarking performance against competitors. When calculated using adjusted paid occupancy percentage, adjusted RevPAR becomes a vacation rental-specific KPI. A critical KPI for measuring revenue performance, adjusted RevPAR accounts for both average daily rate and the paid occupancy percentage. At the upcoming VRM Intel Live events and the Data and Revenue Management Conference (p. 52), we will take a deeper dive into year-over-year reservation activity and booking pace in 2020.

Eastern Regions, 3-Year Performance *Data provided by Key Data Dashboard

North Carolina Coast, Orlando, South Carolina Coast, and Tennessee Mountains Average Daily Rate (ADR), 2017–2019

Adjusted Paid Occupancy Percentage, 2017–2019

$350

70.0%

$300

60.0%

$250

50.0%

$200

40.0%

$150

30.0%

$100

20.0%

$50

10.0%

NCCoast Coast NC

OrlandoS Orlando 2017

CoastT SCC Coast 2018

Mountain TNN Mountain

0.0%

OrlandoS Orlando 2017

CoastT SCC Coast 2018

Mountain TNN Mountain

2019

Adjusted Paid Occupancy Percentage, 2017–2019

2017

2018

2019

YOY % Change

NC Coast

$267

$324

$332

2.47%

24.34%

Orlando

$177

$191

$193

1.05%

SC Coast

$266

$287

$298

TN Mountain

$202

$227

$229

2-Year % Change

2017

2018

2019

YOY % Change

2-Year % Change

NC Coast

41.3%

47.0%

50.3%

7.02%

21.79%

9.04%

Orlando

40.5%

48.8%

50.4%

3.28%

24.44%

3.83%

12.03%

SC Coast

47.5%

44.9%

44.1%

-1.78%

-7.16%

0.88%

13.37%

TN Mountain

58.0%

58.2%

60.8%

4.47%

4.83%

Adjusted RevPAR, 2017–2019

Average Booking Window (in days), 2017–2019 150

$180 $160

130

$140

110

$120

$100

$80 $60

$40

$20 $-

NCCoast Coast NC

2019

Average Daily Rate (ADR), 2017–2019

NC Coast NC Coast

Orlando

SC Coast

OrlandoS 2017

TN Mountain

C CoastT

2018

N Mountain

-10

NC NCCoast Coast

Orlando OrlandoS

2019

2017

Adjusted RevPAR, 2017–2019

SCC Coast CoastT 2018

TNN Mountain Mountain

2019

Average Booking Window (in days), 2017–2019

2017

2018

2019

YOY % Change

2-Year % Change

2017

2018

2019

YOY % Change

2-Year % Change

NC Coast

$110

$152

$167

9.87%

51.82%

NC Coast

132

145

138

-4.83%

4.55%

Orlando

$72

$93

$98

5.38%

36.11%

Orlando

1.15%

18.92%

SC Coast

$126

$129

$131

1.55%

3.97%

SC Coast

101

104

108

3.85%

6.93%

TN Mountain

$117

$132

$139

5.30%

18.80%

TN Mountain

1.79%

VRM Intel Magazine | Winter 2020

Gulf Coast Regions, 3-Year Performance *Data provided by Key Data Dashboard

Alabama Gulf Coast, Florida Panhandle, Southwest Florida, and Texas Gulf Coast Average Daily Rate (ADR), 2017–2019

Adjusted Paid Occupancy Percentage, 2017–2019

$230

60.0%

$225

50.0%

$220 $215

40.0%

$210 $205

30.0%

$200

20.0%

$195 $190

10.0%

$185 $180

AL AL Gulf CoastF Coast

LFL PanhandleS Panhandle 2017

2018

W Florida FloridaT SW

X Gulf TX GulfCoast Coast

0.0%

AL AL Gulf Gulf CoastF Coast

Average Daily Rate (ADR), 2017–2019

2017

2018

2019

AL Gulf Coast

$213

$218

$221

1.38%

3.76%

AL Gulf Coast

FL Panhandle

$218

$221

$226

2.26%

SW Florida

$227

$228

$223

TX Gulf Coast

$196

$212

$211

2-Year % Change

X Gulf TX Gulf Coast Coast

2019

2017

2018

2019

YOY % Change

2-Year % Change

49.2%

53.2%

51.7%

-2.82%

5.08%

3.67%

FL Panhandle 49.9%

55.2%

53.2%

-3.62%

6.61%

-2.08%

-1.68%

SW Florida

44.3%

45.5%

44.4%

-2.57%

0.11%

-0.47%

7.65%

TX Gulf Coast

38.6%

39.2%

41.2%

5.10%

6.74%

Adjusted RevPAR, 2017–2019

Average Booking Window (in days), 2017–2019

$140

140

$120

120

$100

100

$80

$60

$40

$20

AL ALGulf GulfCoastF Coast

L FL PanhandleS Panhandle 2017

2018

W FloridaT SW Florida

X Gulf TX GulfCoast Coast

ALGulf Gulf Coast CoastF AL

LFL PanhandleS Panhandle 2017

2019

Adjusted RevPAR, 2017–2019

W Florida FloridaT SW 2018

X Gulf TX GulfCoast Coast

2019

Average Booking Window (in days), 2017–2019

2017

2018

2019

YOY % Change

AL Gulf Coast

$105

$116

$114

-1.72%

8.57%

FL Panhandle

$109

$122

$120

-1.64%

SW Florida

$101

$104

$99

TX Gulf Coast

$76

$83

$87

W Florida FloridaT SW

2018

Adjusted Paid Occupancy Percentage, 2017–2019

YOY % Change

LFL PanhandleS Panhandle 2017

2019

VRM Intel Magazine | Winter 2020

2-Year % Change

2017

2018

2019

YOY % Change

2-Year % Change

AL Gulf Coast

2.60%

10.09%

FL Panhandle

4.17%

-4.60%

-1.58%

SW Florida

131

133

129

-2.82%

-1.47%

4.82%

14.47%

TX Gulf Coast

-5.66%

0.00%

Western Regions, 3-Year Performance *Data provided by Key Data Dashboard

Colorado Mountains, Hawaiian Islands, Lake Tahoe Region, and Oregon Average Daily Rate (ADR), 2017–2019

Adjusted Paid Occupancy Percentage, 2017–2019

$450

70.0%

$400

60.0%

$350 $300

50.0%

$250

40.0%

$200

30.0%

$150

20.0%

$100

10.0%

$50 $-

CO Mountains CO Mountains

Hawaii HawaiiL 2017

Lake Tahoe ake TahoeO 2018

Oregon regon

CO Mountains CO Mountains

Hawaii Hawaii 2017

2019

Average Daily Rate (ADR), 2017–2019

Lake LakeTahoe Tahoe 2018

Oregon Oregon

2019

Adjusted Paid Occupancy Percentage, 2017–2019

2017

2018

2019

YOY % Change

CO Mountains

$300

$346

$363

4.91%

21.00%

Hawaii

$263

$282

$291

3.22%

Lake Tahoe

$364

$386

$395

Oregon

$220

$250

$246

2-Year % Change

2017

2018

2019

YOY % Change

2-Year % Change

CO Mountains

28.6%

29.0%

31.4%

8.28%

9.79%

10.68%

Hawaii

54.6%

60.7%

58.8%

-3.23%

7.58%

2.22%

8.48%

Lake Tahoe

40.7%

38.9%

38.1%

-1.85%

-6.38%

-1.60%

11.82%

Oregon

37.1%

37.4%

40.2%

7.49%

8.36%

Adjusted RevPAR, 2017–2019

Average Booking Window (in days), 2017–2019

$180

120

$160

100

$140 $120

$100

$80

$60 $40

$20 $-

0.0%

CO Mountains CO Mountains

Hawaii Hawaii 2017

Lake Lake Tahoe Tahoe 2018

Oregon Oregon

CO Mountains CO Mountains

Hawaii Hawaii 2017

2019

Adjusted RevPAR, 2017–2019

Lake LakeTahoe Tahoe 2018

Oregon Oregon

2019

Average Booking Window (in days), 2017–2019

2017

2018

2019

YOY % Change

2-Year % Change

2017

2018

2019

YOY % Change

2-Year % Change

CO Mountains

$86

$100

$114

14.00%

32.56%

CO Mountains

-4.23%

-2.86%

Hawaii

$144

$171

-0.11%

19.06%

Hawaii

102

-4.21%

2.82%

Lake Tahoe

$148

$150

$151

0.32%

1.55%

Lake Tahoe

-6.72%

2.42%

Oregon

$82

$93

$99

6.45%

20.73%

Oregon

-4.11%

-1.41%

THE FUTURE OF DATA IS THE DASHBOARD. THE FUTURE OF THE DASHBOARD IS KEY DATA.

PERFORMANCE ANALYSIS

BENCHMARKING INTELLIGENCE

PACING TRENDS

MARKETING

HOW OFTEN DO YOU CHANGE YOUR RATES? In a perfect world you would change them all the time, nimbly adjusting up and down, perpetually optimizing prices, achieving that elusive balance between ADR and Occupancy.

Donâ&#x20AC;&#x2122;t set it and forget it. Optimize instead. K E Y DATA DA S HB OA R D. C OM

S A L E S @ K E Y DATA DA S HB OA R D. C OM

Scrubbing Email Lists Keeping Your Email Subscriber List Healthy ervations and—because it happens in real time—results in a literal up-to-the-moment list.

Using a list that highlights past booking behavior, you can target guests most likely to be interested in specific properties.

Have properties still available during spring break when rates are at a premium? Send an email to past guests who’ve booked during spring break sometime in the past three years. Have a new, pet-friendly, two-bedroom property available starting in June? Send an email to past guests with pets who have booked a two-bedroom home during the summer season.

Targeted Messages, Engagement Segments, and . . . Ghosts

The targeting possibilities are endless, and the open rates are certain to climb.

Segmentation based on engagement

What can indicate that a mailing list needs a tune-up?

The six engagement segments range from Active (subscriber has opened or clicked on an email within 30 days) to Ghost (in the 12 months since the first email was sent, the subscriber has never opened or clicked on an email). At the top end, Active and Engaged subscribers are already paying attention to your marketing message. At the bottom, Ghosts should be purged from the list on a quarterly basis. But what about the three remaining segments (Unengaged, Dormant, and Zombie)?

he incredible return on investment achieved through email marketing means that a vacation rental company’s email subscriber list is one of its most valuable marketing resources. Although most companies focus almost exclusively on growing their subscriber lists, it’s equally important to keep those lists healthy; sending “batch and blast” emails to unresponsive subscribers is an unnecessary expense that hurts deliverability reputation.

To determine if an email subscriber list needs attention, keep an eye on email open rates. If open rates decrease over time, it’s likely the result of a poor deliverability reputation. Internet service providers (ISPs) monitor email open rates to determine a sender’s reputation: low open rates indicate uninterested subscribers and increase the chance that future emails will be sent directly to spam. With a greater number of emails going to spam, open rates decrease even further, and deliverability reputation continues to suffer. If you take no steps to improve the situation, you’ll be spending money to send emails that have increasingly lower chances of ever arriving in an inbox.

Use segmentation to get an unhealthy email list back into shape The simplest way to increase open rates is by providing relevant content to the right subscribers. Be strategic and send personalized emails to segments of your list most likely to respond. Using the two types of list segmentation described below to send targeted emails not only improves deliverability reputation but also keeps brand content in front of the people who truly care, improves return on investment, and increases conversions.

Segmentation based on booking behavior The reservation data in a vacation rental company’s property management software (PMS) are a vital source of information for creating targeted email campaigns. By using an API that populates an email list with data gleaned from a PMS, it’s possible to tap into an almost unlimited array of segmentation options. “Reservation integration” provides information on new, canceled, or updated res-

Another invaluable common denominator with which to divide an email list is subscriber engagement. Engagement segments place subscribers into categories based on the level at which they’ve interacted with your email marketing in the past. Using engagement segments to create email campaigns improves deliverability by gradually weeding out unengaged subscribers and abandoned email addresses while offering interested subscribers a chance to continue hearing from your brand.

An example of an automated email designed to target Unengaged, Dormant, and Zombie subscribers might have a subject line of “Where’ve You Been?” or “We’ve Missed You” as the content theme. Any subscriber who opens the email is automatically moved to the Active segment. If, in particular, you’re interested in either reengaging or bidding farewell to Zombies, try a more straightforward subject such as “Hey, Do You Still Want to Hear from Us?” and include an unsubscribe button in the body of the email. Be proactive; give uninterested subscribers the option to opt out before they mark unwanted messages as spam. A healthy email subscriber list is key to any successful email marketing plan. Sending targeted emails to specifically chosen list segments keeps open rates high, deliverability reputation in good standing, subscribers engaged, and email marketing campaigns successful.

By Jennifer Perez Bluetent Production & Content Specialist VRM Intel Magazine | Winter 2020

By Paul Hanak, Digital Marketing Director, InterCoastal Net Designs

Abandoned Bookings Are PMs Losing Potential Customers during the Checkout Process?

a rt abandonment. Such an ominous term. No company can really and truly get in the mind of consumers during their shopping experience. Amazon isn’t completely sure why a new cooking spatula was left in a consumer’s shopping cart, nor do they know whether the consumer plans on purchasing it in the future. They also don’t know if the consumer purchased it elsewhere for a better price. All they know is that it wasn’t purchased from them at that time.

1) Property Display Page

Understanding the Property Management “Cart”

Search Results Page

Property Display Page

Where users see what inventory you have available with the dates they entered.

Information about the individual property, including photos, reviews, calendar, pricing (limited), and the BOOK NOW button.

One thing is certain: they try unbelievably hard to get the consumer back to buy, no matter the reason for leaving.

Let’s be clear. Our websites do not have a cart. A website visitor can’t add multiple items and check out in bulk like they can with a normal shopping cart. It’s one vacation for each transaction. A single “checkout” process.

All vacation rental websites have two key pages for booking a reservation online: 64

VRM Intel Magazine | Winter 2020

The property display page has all the photos, availability calendars, and guest reviews as well as that giant (it better be giant if you want a good conversion rate) BOOK NOW button for each individual property.

2) Checkout Page

The checkout page is where personal info and credit card information is collected. This is also the page that gives the breakdown of rates and options for travel insurance. This page (even if it is broken down into “steps”) is the closest we get to a shopping cart.

START

Checkout Page Considered the “Cart”. Where users enter their credit card information. Also normally includes the final rates with fees, including travel insurance.

Booking Confirmation Page All done! User has booked the property and is on their way to happiness.

END

How Do You Measure the Booking Abandonment Rate?

The facts we know as a constant:

Let’s be blunt. You can’t. All we have is the checkout page. So really, the only metric you can measure would be the number of visitors to your website who have visited your checkout page but did not visit your booking confirmation/thank you page. You can look at this in Google Analytics by creating a custom segment with a sequence. It’s pretty technical, so get your marketing company to help you out with this.

 Your property detail page never tells the full story.

In this example, over the course of a few months, only 309 users navigated to the checkout page and followed through to the final booking confirmation page. That’s .56 percent of all users.

 Shorter duration stays are becoming the norm (maybe).

However, we also want to compute the number of users who visited the checkout page but not the booking confirmation page. This number will be our cart abandonment rate. Let’s look at a few examples: Without even worrying about the percentage math, we can immediately see that cart abandonment is indeed real. With this being the norm, however, we are stuck in the Amazon spatula situation, asking ourselves the age-old question of why.

Why They Abandon the Booking Let the laundry list begin! Ok, it’s not all bad. However, you first have to dissect human behavior during the booking process before we can assume that they don’t like your product or website.

 Potential guests visit multiple websites (four or five) before booking, including OTAs.

 Cell phone use has exceeded desktop use for total number of users (traffic, not online bookings).  Users are easily confused, especially with special deals and rates.

Your Property Detail Page Never Tells the Full Story Regarding our clients who have a site search bar (a box you can type keywords in to quickly search the website content), take a guess on the top keywords searched on most vacation rental websites.

“Cancellation policy” Where is your cancellation policy posted on your website? Do you have it in your FAQs, or do you have a page dedicated to rental policies that’s easily accessible? If not, then the only place your cancellation policy resides on your website is the checkout page. Potential guests are hungry for that information.

Total Cost Another pitfall is where you display your final rate. It’s always up to the property management company to decide where on the website they want to display their final price (including taxes, fees, travel insurance, etc.).  Some companies display the total amount with taxes and fees in the search results.  Others want to be upfront and show the full pricing breakdown on the property display page.  Some just show the base rate (before taxes/fees) on the property display page thus forcing a user to visit the checkout page to see the final price. The latter is where abandonment metrics become diluted. This could mean that your “cart,” which is the checkout page, is abanVRM Intel Magazine | Winter 2020

doned at a high rate because potential guests don’t want any surprises. If your checkout page is the only page on your website that displays the final rate, then that page is no longer your checkout page. It is now your price check page—and it’s ruining your cart abandonment rate.

This is the nature of the game when someone forks out $2,500 for a week. They could be considering whether the luxuries of a wellstocked condo or home are worth a stricter cancellation policy than that of a hotel room. We may never know. Potential guests on your website also know that by just clicking Book Now on your property detail page, they aren’t actually booking now. They know they are going to that final page to get the full picture. They are going to see if you are tacking on any additional fees or even checking the price of your travel insurance.

Guests Shop Around

checkout, and you force them to call, you could have potentially lost that guest. They could be shopping after calling hours when your office is closed. They could be at work. They could be just browsing. They could have other things to do than sit on the phone for 15 minutes just to get a price from you when your competitor’s website gives it to them immediately. Instant gratification is the name of the game, and property managers need to provide that. Do you know that most online bookings happen between 8 and 10 p.m.? Your office is closed. Your live chat is down. The guest leaves and finds another company that displays their special rates in an easy format. Moreover, those special rates should be apparent while browsing too! That’s why we employ a WAS/NOW price, not only to show the guest the potential savings (since we all hate math), but also to make sure it’s upfront and easy to follow.

Just as you could be competing with surrounding hotel-like accommodations, you could also be up against other VR inventory. Renters are looking at your site, your competitions’ sites, Airbnb, VRBO, and other sources to find the best rental at the best price that fits their needs. That’s why the average conversion rate of a website is anywhere between .3 percent and .5 percent. To keep visitors on your site, consider promoting the best-price guarantee as well as highlighting the benefits of booking directly right in your booking funnel.

Mobile Devices = Higher Abandonments

Shorter Stays Are Becoming the Norm

Nobody books on a cell phone. When I say nobody, I mean a small percentage. However, most of your traffic comes from mobile. According to the stats below (which are pretty normal for a vacation rental company), 54 percent of users are on their phones, but they also have the highest bounce rates (where they leave the site immediately), the lowest number of pages per visit, and the shortest time visiting your site. And finally, look at the horrible conversion rate in that last column.

Or are they? We hear this quite a bit in the VR industry, but a study on page 58 suggests otherwise with real-life data to back up their findings. We can blame the millennials all day long, but those millennials are getting older and are quickly becoming your target demographic. Other studies have shown that people are taking more but shorter vacations each year. It’s important to know what’s popular in your market in each season.

Overall takeaway from this? There are plenty of lookers on cell phones, so they are important, but very few are bookers. We’re just not there yet for various reasons. But more on that later.

Gone are the days where we all load up in the family station wagon, beg Dad to turn on the air conditioning, and get away for a full week. Yes, it still happens, but length of stay is completely market dependent. Property managers are reacting to the demand by modifying their minimum stay policies and offering flexible date searches to broaden the search criteria. It’s the norm now. If that’s not something you offer and your competition does, add another tick to the causes of the abandoned cart.

User Confusion If your website is hard to follow, hard to use, slow, and doesn’t instill trust or a potential relationship in the guest, they won’t book. Transparency is key in this day and age. Everybody is on high alert for potential scams, pitfalls, loopholes, and anything else that may ruin their vacation. (Another reason they are concerned about your cancellation policy.) Another great example would be poor use of specials and deals. If a user can’t book your special rate online or can’t see the discount at 66

VRM Intel Magazine | Winter 2020

What Can We Do to Reduce Booking Abandonment? Roll with the times, keep it simple, and adjust as necessary using the points above. I’ve shown you that users don’t book on their mobile devices as

much as on desktops. Even Google Analytics has a very difficult time tracking users as they navigate between devices. We also know from the stats above that mobile users aren’t as engaged as desktop or tablet users.

That doesn’t mean we should abandon them. Users will start on their phone and research you. Then, when it comes down to that final decision, they book on their desktop. The problem, though, is that there is a very large gap in synergy between the two devices. It’s just plain difficult to find that same property on your computer after you looked at it on your phone. This again hinders the checkout process.

BOOKING Abandonment Footers What if the guest doesn’t fill anything out on the checkout page? Maybe they leave the checkout page to look for a special. Maybe they leave the site but come back a week later. A footer notification that saves the property for them with an easy link back in a floating footer bar makes it very fast and simple to return to what they viewed and to ultimately go back to book.

Remind Me to Book A simple button on your checkout page that reads “Remind Me to Book This Later” offers a quick and simple way for users on mobile devices to email themselves the property information so they can book it on their desktop.



The Final Word on Abandoned Bookings It’s going to happen on any e-commerce website. Cart abandonment is normal, especially in our industry, with high-dollar transactions and when all the final information is located only on the checkout page.

However, each abandoned booking is a potential lead source— leads much more qualified than someone who visited a popular blog post on your website to let slip through the cracks. Do everything you can to get them back. Take the time to examine your website in light of the helpful hints above and see where you can help get them off the fence and ready to book. Whether it’s the tools above, a strategically placed “Wait, don’t go” popup, or remarketing ads, there is always something more you can do to improve your online conversions.



About the author:

BOOKING Abandonment Emails Plenty of times, a user will start to fill out the checkout form and get distracted, on either their phone or desktop. Just as it does for Amazon, a follow-up email works wonders. When you capture the email address, you can easily send a quick automated email reminding the client to come back and finish booking. This tool has been invaluable for many of our clients. A couple of our clients using the cart abandonment email have earned $15,000+ and $9,400+ from guests who have returned to book from the email, and that is just from Dec. 1 to 15, 2019, during the off-season.

Paul Hanak is the digital marketing director at ICND, a “first to market with conversion focused features” web development and marketing company specializing in vacation rentals. Paul has over 12 years of industry marketing experience through his time at ICND and as a marketing director for a large VR company in Myrtle Beach, SC. His expertise on conversion rate optimization is backed by his work with more than 100 clients all over the globe on their digital marketing and website strategies. VRM Intel Magazine | Winter 2020

SEO/SEM Disrupted How Google Travel is Shaking up the Marketing Funnel

By Amber Leto Carpenter

Introduction

ur only certainty in the vacation rental industry is change, and 2019 did disappoint those who enjoy the adrenaline rush of disruption.

Google Travel is not just another channel; it will continue to cause the convergence of organic search engine strategies, pay-per-click advertising, channel/distribution management, and revenue management more so than any other new opportunity in our space during the last decade. This topic is broad, complicated, and evolving faster than we can likely get to print, so I have taken a research point of view while trying to simplify the landscape as much as possible.

For those of you taking a “device break,” or if you just have not looked at search results for your destination in a while, there is a new, bold box of vacation rentals showing up where you might have seen individual listings on Google Maps even a few weeks ago.

Organic vs. Google Travel Placements Not to be controversial here, but I have seen several articles label traffic from the Google Travel module on the search results page as “organic” traffic. This is incorrect for many reasons, even if the traffic to this content is “free” as of now. Organic placement means showing up based on Google bots querying available content, indexing it, and deeming it relevant for search results related to specific queries. Google Travel is curated through inventory fed from a handful of early integration partners that are sending Google property content, availability, and pricing through the Google Hotels application programming interface (API) feed. So yes, as of now, this traffic is “free,” but it is certainly not “organic.” 68

VRM Intel Magazine | Winter 2020

Organic ranking strategies are generally handled by search engine optimization (SEO) teams. In contrast, you need distribution/ channel management, pay-per-click advertising, and revenue management teams to tackle Google Travel.

The Changing Anatomy of Google Search Results There are at least three different versions of a Google Search Engine Results Page (SERP) for queries that contain “destination + vacation rentals,” and it largely depends on whether the destination has inventory being fed through the Google Travel API or via one of the authorized integration partners.

Google started with partners that could provide the largest sets of inventory so it could spread across the map as fast as possible and be as relevant as possible. The reality is OTAs have the most aggregated inventories, so Google started there and has been working down the food chain ever since as it continues to test and iterate the experience for the traveler in search results.

Google SERP Format 1—Legacy/No Google Travel Module As I am writing this article, “Sea Island, Georgia Vacation Rental” queries still produce search results consistently without Google Travel. There are several key elements to these pages that are likely to be few and far between—if not completely extinct by this time next year—but offer the most organic real estate on the page.

Listing Placements in Legacy/No Google Travel Page Format Module  Google Business listing in the right gutter  Three AdWords results at the top of the page  Eight organic search result listings  One AdWords result at the bottom of the page

In the Legacy SERP format, of the available space on the first page of search results, approximately 25 percent of the page is paid listings versus 75 percent organic content.

Listing Placements in Page Format with Vacation Rental Organizations Call-Out Box  No Google Business listings in the right gutter—it is left blank  Four AdWords listings at the top of the page  Eight organic listings

 Three AdWords listings at the bottom of the page  “Vacation Rental Organizations” logo box

It is not clear how Google chooses which brands to show in this vacation rental organizations box, but it does not look like there has been much time spent on it because the logos are mostly cut off or outdated. Not all of the partner logos showing are integrated directly into Google Travel, so it might be pulling from business listings, but it is not clear. Regardless, if you click a logo in this box, it actually takes you to another Google SERP with the brand as the query parameter. I would not be surprised if this box was created by accident, and someone forgot to take it down; it is utterly useless, poorly designed, and loosely related to my original query. This layout provides about 40 percent paid ad space and 60 percent organic listings on the first page.

Google SERP Format 3—*New* with Google Travel Module For destinations where Google Travel integration partners are actively feeding inventory, the first page of Google SERPs for most queries for “[destination] + vacation rentals” returns a page with a new “Vacation Rentals” travel module that displays right below the AdWords listings at the top of the page and before any organic search results.

Google SERP Format 2—Vacation Rental Organizations Call-Out Box This is an interesting version of Google search results that I was surprised to stumble upon in my research on organic results across the industry and the impact of Google Travel. This query for “Palm Springs Vacation Rentals” shows what looks like regular paid and organic search results, except that it has a call-out box labeled “Vacation Rental Organizations” toward the bottom of the page, which contains the logos of several different vacation rental companies. VRM Intel Magazine | Winter 2020

Listing Placements in *New* Google Travel Page Format

 Kitchen

 No Google Business results in right gutter

 Outdoor grill

 Three or four AdWords listings at the top of the page

 Fireplace

 Google Travel module with four search results based on prefilled dates  Seven organic listings

Here is an example for Gulf Shores, Alabama, on Google Travel and what happens if a consumer tries to use these filters.

 Three AdWords listings at the bottom of the page With this layout, the first page of Google search results is 60 percent paid or API generated versus 40 percent organic listings.

Consumer Experience on Google Travel Although this is incredibly rich content that is being fed through the Google Hotel API—and it is certainly an attractive module in search results—and much better than the original map listing view that rolled out—the click journey to research rentals on Google Travel can be a bit confusing and inconsistent, depending on the integration partner feeding the content.

Search Experience For every destination that I searched, the same arrival and departure dates were prefilled in the Google Travel module, basically three weeks from today for a three-night stay.

If a consumer tries to update the arrival dates in the box, it opens a new tab with full search results on the Google Travel website and does not update the results on the original search results page. The Google Travel search results page looks like a simplified OTA layout with dates, occupancy, and filterable search options such as amenities across the top and visible listings on a map in the right gutter that highlight as you click or scroll.

Listings have a hero image with a per-night pricing call-out box, a property title, average star rating with the number of reviews, the logo of the Google Travel inventory feed provider, the number of bedrooms, and max occupancy. This all seems pretty simple and straightforward until you realize that Google has a lot to learn related to search filters, and partners must update amenity mapping for individual listings.

No matter which destination I searched across the globe, Google Travel used the same 12 amenities to filter for every destination. This makes for a poor consumer experience, and some of the amenities are irrelevant based on the destination. Available amenities for filtering rental results are as follows:

 Free Wi-Fi  Air Conditioned  Pool  Hot tub  Patio or deck  Crib  Fitness center  Kid friendly  Pet friendly 70

VRM Intel Magazine | Winter 2020

Original Query: January 18 arrival/January 21 departure; two guests = 4,746 rental results  Refined Query: January 18 arrival/January 21 departure; two guests + Air Conditioned = 3,626 rental results

 Refined Query: January 18 arrival/January 21 departure; two guests + Kitchen = 3,219 rental results  Refined Query: January 18 arrival/January 21 departure; two guests + Crib = 9 rental results

If you have been to Orange Beach in July or August, you probably share my skepticism that there are really over 1,100 rentals that do not have air conditioning, 1,500 that do not have a kitchen, or just nine rentals for the entire destination that have a crib available.

Oddly, there is no refinement option for property type, such as condo or vacation home, and as you can imagine, there are other refinements that are much more relevant than air conditioning at ski and winter destinations; many winter destinations have heat but no air conditioning, and most travelers are eager to refine their search by proximity to ski lifts.

Sample Booking Experiences When you click on a specific rental on the Google Travel search results page, you come to a Google Travel version of a property details page.

This page is a simplified version of what you might see on any vacation rental website and contains an image gallery, reviews, pricing, an oddly titled “about” tab (which is the property description), and a photos tab with all available images at a glance. Original search parameters carry over to this property details page so that calculated pricing displays with a “Book Now” button in blue. This is where the consistent Google Travel experience ends. Depending on the integration partner feeding the inventory, clicking “Book Now” leads you away from Google Travel to a

when they press “Book Now” while also giving them more options since booking funnels have notoriously high abandonment pages.

Conversions on Airbnb and VRBO that originate on Google Travel are subject to channel commissions, and the brand of the individual property manager was not visible. Red Awning

Red Awning has a slight variation on the experience that VRBO and Airbnb provide in that after the consumer clicks “Book Now” on a property detail page on Google Travel, the new tab opens to a Red Awning property detail page obstructed by a modal urging the consumer to complete the booking process.

landing page from the inventory partner in a new tab.

Following the Book Now Button VRBO and Airbnb Inventory being fed from VRBO and Airbnb yield similar experiences after you click “Book Now.” A new tab opens and lands you on a search results page instead of a similar property details page where you can complete the booking.

The search results page has the property that you were reviewing on Google Travel highlighted as the first result, but then it has dozens of property listings below under a heading that leads you to believe that there are many more similar properties to review if you actually are not ready to book.

I found this experience the most confusing because most consumers click “Book Now” to either start the reservation confirmation process or to see further booking details like cancellation policies, terms and conditions, or other information relevant to making a decision. My assumption is that both VRBO and Airbnb are trying to treat the traffic like organic traffic and drive consumers to use their platforms for additional research and clicks/ engagement rather than just a landing page to finalize a transaction. I think there could be a better hybrid approach that allows the consumer to get the details they are looking for

This is less confusing than landing on a search results page, but it felt a bit intrusive. Also, the modal lacks any branding, which makes it feel more like a phishing popup window.

Consumers cannot tell they have been brought to a Red Awning landing page until they close the booking modal and review the property details page, which has the Red Awning branding clearly visible.

However, dates and rates pass over to the Red Awning website and match what was displayed on Google Travel, making it simple to continue booking. TripAdvisor/HolidayLettings

TripAdvisor and HolidayLettings have a similar approach to Red Awning without the modal pop-up, so once a consumer clicks “Book Now” on Google Travel, a new tab opens that lands the guest on a property details page from the respective aggregator website with TripAdvisor or HolidayLettings branding.

For my research, I searched for “San Diego vacation rentals” from the warmth of my home in Bend, Oregon, and, oddly, a US-based property manager listing was listed by HolidayLettings (a UK website). If I were ready to escape the cold and head south to sunny San Diego, I would not book on a UK website, so I am not sure this is the ideal channel to list this property for an American consumer.

 Continued on page 100 VRM Intel Magazine | Winter 2020

The More You Know

Expert Advice for Digital Success in 2020 A Panel Discussion with Bluetentâ&#x20AC;&#x2122;s Digital Marketing Team By Brynn Flaherty, Andy Gaylord, Beryl Coulter, Jack Scherrer, and Alex Moshenskiy

VRM Intel Magazine | Winter 2020

t’s 2020, and staying up-to-date on SEO trends should be on every vacation rental manager’s to-do list. To address SEO topics that will be relevant in the coming months, we assembled a panel of Bluetent’s digital marketing experts: Brynn Flaherty, Andy Gaylord, Beryl Coulter, Jack Scherrer, and Alex Moshenskiy. They’ve compiled a comprehensive list of essential search subjects and provided their personal digital marketing recommendations as well.

HOT TOPICS IN SEARCH AND DIGITAL ADVERTISING Google Vacation Rentals: This was a big topic in 2019, but because

the feature was in beta for the entire year, there wasn’t much opportunity for vacation rental companies to take advantage of it. Because Google Vacation Rentals (GVR) is likely going to change the search landscape pretty dramatically in 2020, making sure your properties are positioned to show up there will be important.

Featured Snippets: Google is changing the way the search engine

results pages (SERPs) look by adding featured snippets: interesting finds, image carousels, and more. These new types of search results take up more real estate in the SERPs, so when a vacation rental company’s web page is rewarded with a featured snippet, it can drive even more traffic and increase the company’s brand exposure. There are many ways to get a featured snippet in the SERPs—savvy digital marketers should be constantly testing content and page structure to see what works.

Competition for High-Volume Transactional Queries: Competition

within the Google SERPs is increasing every day as more and more vacation rental businesses enter the space. As a result, it’s important to develop increased transactional content that ranks for relevant long-tail keywords. Long-tail keywords like “North Lake Tahoe rentals with hot tub” or “Hatteras Island homes with an elevator” are going to be easier to rank because there is less competition. And, because the keyword is more specific and targeted, it is more likely to inspire a conversion.

Quality Content: Increasingly, Google recognizes quality over

quantity when it comes to content. Vacation rental companies have a huge opportunity to stand out from the OTAs by creating quality content that’s relevant to potential guests (visitors’ guides, travel tips, upcoming events, benefits of booking direct, etc.). For the most part, OTAs aren’t creating this type of content. Vacation rental companies can give the best recommendations for their areas, and they’ll be rewarded in the search results. Bonus: Guests love this type of content!

Improving Page Speed: Google continues to come out with different

ways to “grade” websites and measure how fast they load. Google’s expectations for page speed are growing, and this topic is going to become even more important as we move further into 2020.

Leveraging Schema Markup: Schema markup is code that can be

added to a page that gives Google more information about the page’s content and can enhance how the page is displayed in the SERPs. Schema markup is especially powerful because it can result in featured snippets (see above). For example, schema markup can be added to a vacation rental company’s FAQ page, which can help that page show up in the SERPs—complete with expandable menus showing a few questions and answers from that page. With space in the SERPs shrinking these days, schema markup can help

vacation rental companies improve their presence and take up more of that valuable real estate.

Google Ads: Recently, the primary focus of Google Ads has been

changing their platform to rely more heavily on automation and artificial intelligence. Through 2019, we saw significant effects of this, such as increased competition in the ad space because of this change. Automation allows for fewer barriers to entry, meaning more competitors are easily entering the space. OTAs are able to use this automation to scale their advertising rapidly and increase their online presence. Manually creating ads that more accurately target potential guests will help keep vacation rental companies competitive in the increasingly automated ads space.

TEAM RECOMMENDATIONS FOR STAYING COMPETITIVE ONLINE Google Vacation Rentals and Google My Business Brynn Flaherty, Director of Marketing Services Google Vacation Rentals (GVR) is still in beta, but we think it has the potential to fundamentally change the industry’s search landscape in the coming months. We believe vacation rental companies need to list on GVR. Bluetent has taken a proactive stance: in 2019, we started working with Google to integrate directly with GVR through Boost, our channel management tool. The Google My Business platform has many new features that can help local businesses such as vacation rental companies showing up more prominently in the SERPs. OTAs like Vrbo and Airbnb can’t show up in the local Google results, so this is a nice way for vacation rental managers to compete with the big companies. From “Posts” to “Offers” to the new “Shop” feature, we can help our clients increase their brand exposure in real time in Google.

Super Meta Descriptions Andy Gaylord, Content Marketing Manager

As Google’s algorithm has gotten smarter, it has become better at scraping content from websites and rendering it on SERPs. This means meta descriptions have become less important and on-page content has become more important. I am encouraging our clients to focus on clear and concise summaries (super meta descriptions) within the content to give Google and other search engines more to read and render in the search results.

Local Listings and Booking Strategy Beryl Coulter, SEO Account Manager

Many of my clients are active on local listings such as Google My Business. Local listings generally have good placements within the SERPs. When vacation rental companies provide updated local listings, they can show up multiple times in the organic results. Within a local listing, there are more opportunities to share info with guests—property photos, company updates, links to vacation rentals, and so on. OTAs continue to rank well organically and gain recognition with travelers. Many people searching for a vacation rental still think of searching an OTA first rather than going directly to a vacation rental company’s website. Listing on OTAs is important, but so is direct booking—individual properties should be optimized to show up in search results. We recommend that our clients write property descriptions with searchability in mind. VRM Intel Magazine | Winter 2020

Page Speed, Analytics, and Branding Jack Sherrer, Analytics Manager

One of the ways our digital marketing team has been helping clients improve page speed is by migrating third-party marketing scripts (like Facebook tracking pixels, pop-up windows, call-tracking scripts, etc.) from the codebase to Google Tag Manager. That way, each script doesn’t have to load before the page loads, which can drastically improve speed and website performance.

Bluetent’s new business intelligence reporting tool utilizes Google Data Studio to expose areas of opportunity in our clients’ marketing efforts and in website functionality. We can embed this new custom analytics report directly into a Rezfusion Cloud or Pro website so that the data is always at the client’s fingertips. Vacation rental companies can develop actionable insight into website traffic origination, average size of booking windows, performance of marketing campaigns, and more—just by visiting a page on their website. Competing with OTAs, which have infinitely more marketing reach and budget, for organic search results can be difficult for smaller vacation rental companies. Although you need visibility there, it’s more important than ever to push your brand through unique value propositions and excellent customer service. Procure and respond to reviews—the good ones and the bad ones. Be genuine. Leverage your local knowledge. Be better than you are right now.

Targeted, Personalized Digital Advertising Alex Moshenskiy, Digital Advertising Manager

Google Ads is a pay-to-play platform, and our clients are always faced with the issue of how they can compete on far smaller advertising budgets than the OTAs. The OTAs have strong brand recognition and are able to flood the market with large advertising budgets and automation. However, automated ads are often poorly targeted and frequently don’t resonate well with living, breathing searchers. Bluetent focuses on building strong digital advertising strategies for our clients using deep-dive analysis to create personalized ads that connect with target markets. Applying a wide variety of data points allows our clients to efficiently and effectively reach potential customers, drive direct bookings, and compete against the OTAs. Want to stay competitive online? Our digital marketing experts are here to help. Contact Bluetent at 970.510.5615.

VRM Intel Magazine | Winter 2020

Strategically Working with OTAs in 2020 By Michelle Marquis, Chief Revenue Officer, Lexicon Travel

have spent more than a decade in the hospitality industry learning and sharing how to capture more direct bookings with lower acquisition costs. Although much has changed in that time, one thing that has stayed consistent is the effectiveness of online travel agencies (OTAs). Even 12 years ago, I used OTAs to augment my business. Using these channels allowed me to sell six to eight weeks during the summer and over the Christmas holiday period. Even the days adjacent to the sold-out periods were a great time to grab new business, despite commissions of 25 percent at that time. Many things have changed in the past decade but probably nothing more significant than the cost of running a vacation rental company. The arrival of “Big Box” companies with low transactional fees has limited what the industry can charge in commissions. If that weren’t bad enough, there’s been an explosion of property management companies emerging based on the idea that property management is an “easy” business to start. This has resulted in pay-perclick (PPC) costs skyrocketing by as much as 200 percent in some markets, making it difficult to be a profitable property manager.

With PPC costs seemingly out of control, you might wonder why I continue to support investing in OTAs.

The answer is simple. I believe the cost to acquire a new guest using PPC has reached levels that mirror the cost to capture a guest via an OTA. The recent third-quarter earnings calls with Expedia and Booking.com confirmed this. They have the same problem that property managers have, but there is a clear difference—their budget is bigger. One vacation rental manager recently told me her PPC costs had increased 190 percent over an 18-month period. I remember a time when I would barely spend $1,000 per month on PPC. Today that wouldn’t even make a small dent in the available spend for that area. But not all OTAs are the same. Let’s get into the costs of the different OTAs.

Vacation Rental Sites Vacation rental sites, such as Vrbo and HomeAway, have several types of fee options. With commissions varying between 8 and 12 VRM Intel Magazine | Winter 2020

percent, these sites are less expensive than the hotel-style OTAs. One thing to keep in mind is Vrbo and HomeAway attract and market to guests already selecting a vacation rental accommodation. These are not new guests to the market or the category. Also, branding the property manager isn’t typically allowed. This category has a much smaller billboard effect (more on that to follow).

Hotel-style OTAs Hotel-style OTAs typically charge commissions between 15 and 18 percent. Although quite a bit more from the outset, this investment is geared toward new guests because these channels are actually converting hotel guests into vacation rental guests. They are doing inline advertising in hotel searches to sell those travelers on vacation rentals. These are the new guests you’re looking for.

Airbnb And then there’s Airbnb. I believe their brand has become so strong it now falls into the same category as hotel-style OTAs with regard to driving new business. And the real kicker? Airbnb guests are loyal to Airbnb. Capturing these guests once and then owning them (the harder part) is critical. However, because the cost to obtain these bookings is lower, owning the guest might not be as important as it is with hotel-style OTAs.

how does one hack these channels to get the most out of them?

E Getting the Price Right There are so many things you can do to ensure inventory is priced right, is available, and fits sold-out periods. Companies need to understand how their rates compare to their competitors. F Get on the Same Page as your Guests A lot of confusion comes from using automated emails from the channel. Property managers have the ability to customize (and brand) these communications with guests. It is important that property managers set clear expectations with guests about what they are getting with their bookings. G Turning Guests into Fans The OTAs are good at owning guests. There’s an opportunity for property managers to do this, too, by building relationships with guests before they even arrive. Guest communication through hotel-style OTAs is allowed, and you should take advantage of this benefit. H Capitalizing on Reviews It’s a fact that a lack of reviews can hurt bookings. Use the templates within the hotel-style OTAs to encourage guests to leave a review, and respond to reviews as quickly as possible, especially if the review is negative. This is an opportunity brand yourself and talk about what makes your property different that is not part of the listing/ad. I Cost Sharing

B Remember: Listings Are Ads Pay attention to what the ad says (aka, the title/headline) and what the photos represent. A direct connect from a property management software system (PMS) can result in something like “Condo 2bedroom OF.” And believe it or not, I have seen a toilet as the lead photo in more than one advertisement on an OTA. It takes an experienced resource to build out high-converting ads. C Billboard Effect 64 percent of vacation rental guests start with a search on an OTA, yet only 6 percent book on that channel. Although that’s a sobering statistic, the reality is most travelers prefer to book direct. One of the real benefits of OTAs, if done properly, is using the listing for branding. There are several opportunities to brand the listing with hotel-style OTAs. I’m not going to lie, though. This takes some effort on the part of the property manager. Some channel managers brand their own company rather than the property manager. If a listing brands the channel manager, the property manager is missing the billboard effect benefit completely.

This is a scary idea, but is it possible to share any of the OTA costs with the owners? Many property managers are doing this. How can you educate the owners on how things have changed for the business and how they can benefit if they participate in an OTA channel plan? Some managers have used a branded brochure to educate and share why this channel is a valuable investment. J Using a Channel Manager Yes, it costs more, but the right channel manager can help strategically plan everything mentioned above. A direct connect is perfect for those companies that want to dabble in this line of business, but if you want to be strategic and focused on growth, having the right partner can make all the difference. OTA websites garner millions of views every day. Data tells us exactly how guests shop for vacation lodging, where they go, and how they book. Those paying attention to these channels will see more bookings and higher revenue.

D Effective Inventory Management Many property managers block out availability during sold-out times. This hurts the organization more than no bookings in the high season—it also affects shoulder business. Be strategic with this channel. Make sure to utilize restrictions, such as minimum stays and closed to arrival, to fit within the overall channel strategy. Don’t just close out dates unless you want to lose potential bookings.

VRM Intel Magazine | Winter 2020

Michelle Marquis is a leader in innovation, strategy, and best practices surrounding the vacation rental industry. She has been instrumental in successfully building other innovative technology-related businesses in this industry for well over a decade.

CHANNEL MANAGEMENT

g n i t e k r a M

Listings not converting? Lexicon can help. Everyone online is competing for the same thing: attention. It’s hard enough to get it, let alone turn it into new business. OTAs offer millions of eyeballs but frustratingly low conversions. If you still rely on direct connections, it’s no wonder you’re not seeing results. Listings are ads, and if you’re not doing them right, you’re missing out on a huge opportunity. Lexicon Travel Technologies turns the awesome potential of OTAs to your advantage, resulting in more bookings and more revenue. Bring your attention to www.lexicontravel.com.

Call NOW to setup a Free Demo to see just how easy it is to get more bookings and earn more reveue! 435-631 2391 | lexicontravel.com

VRM Intel Magazine | Winter 2020

Condo-World Acquires North Myrtle Beach’s CondoLux Condo-World Continues to Leverage Proprietary Technology and its Hybrid-OTA Model in 2020 Expansion Strategy

ate last year, Condo-World, based in in North Myrtle Beach, South Carolina, acquired one of its regional competitors, CondoLux, bringing Condo-World’s total managed inventory to just over 500 oceanfront condos.

Over the past 35 years, each company has played a significant role in growing the demand for condo vacations among visitors to the Myrtle Beach Grand Strand area. Between Condo-World and CondoLux, the two companies represent primarily luxury oceanfront condo rentals, including the management of on-site desks at several properties. Both companies have been major contributors to the golf package business as well, booking nearly 30,000 tee times per year. “Condo-World and CondoLux have grown up side by side in North Myrtle Beach both virtually and geographically,” said Alex Husner, Condo-World’s chief marketing officer. “As across-thestreet neighbors, Condo-World and CondoLux had a lot in common. For example, CondoLux also uses RPM, our proprietary software, which made this opportunity even more appealing; and Condo-World.com and CondoLux.net have been the two powerhouse websites in organic searches for anything related to condo rentals in the Myrtle Beach area for many years.”

Now under one umbrella, Condo-World will extend its marketing, revenue management, and property-care services to CondoLux homeowners. Condo-World will be the parent brand for all marketing efforts and in-market signage, but the CondoLux brand— with its large online presence—will be maintained digitally through its websites and social media profiles to provide additional exposure to all properties.

a primary focus on condo travel, Condo-World has been able to target a segment of travelers in a more focused way than other online alternatives, and we expect to see innovative development of its loyalty program in 2020.

Multi-tiered Strategy “After a summer-long exploration of what would be the next big move for Condo-World, we were at a decision intersection,” said Husner. “Our long-term goal is to grow market share locally through our managed portfolio and regionally through our exclusive resort partnerships. There are a variety of outputs that are complementary to both objectives, including the development of our custom loyalty program, building out additional API connections, and licensing our proprietary software.” Husner continued, “When the opportunity presented itself for us to acquire CondoLux, we knew that was the direction we needed to go first. The acquisition was a natural extension of our growth because it increased our managed inventory in North Myrtle Beach from 350 to over 500 oceanfront condos and provided numerous advantages with economies of scale. Even better—the acquisition increased our ability to execute on our three core growth strategies, and now we are able to tackle all these projects as we move into 2020.”

Benefits for Resort Partners As part of its OTA strategy, Condo-World has developed World Class Destinations by Condo-World, a collection of exclusive partnerships with resorts and rental companies with properties outside of its North Myrtle Beach home base.

In addition to its expansion and aggressive in-destination marketing, Condo-World has executed a unique hybrid strategy, which includes (a) increased investment in the development of its proprietary technology to meet the specific needs of condo managers, and (b) the expansion of its national online travel agency (OTA)/ booking site for condo rentals in key resort areas across the US.

“Gone are the days when guests only want to vacation in one spot—more than ever, guests want to try new destinations and take trips more frequently,” said Husner. “Through this program, our guests can ensure that the quality they have come to know staying with us in North Myrtle Beach will be upheld when they visit our partners. With the CondoLux acquisition, our audience has effectively doubled, which will allow us to reach additional guests in a noncompetitive approach that complements our partners’ marketing efforts.”

The hybrid model has been successful at deepening relationships with Condo-World’s loyal guests and with its resort partners. With

This spring, VRM Intel will join Husner to learn more about the growing segment of condo travelers and about Condo-World’s resort partnership programs at the upcoming Onsite Property Management Association Summit, at Hammock Beach Resort in Palm Coast, Florida, from May 6–8, 2020.

Condo-World’s Hybrid OTA Model

Designed to be a pure OTA, Condo-World.com provides its guests a wider range of accommodations through strategic partnerships with preferred resorts and rental companies outside its home base.

VRM Intel Magazine | Winter 2020

Connecting Systems APIs in the Vacation Rental Industry

Vacation rental management is easy, they said.

t sounded simple. Build a website, list homes on Vrbo or Airbnb, throw in a little marketing, check people in, fix any maintenance problems that arise, clean the home after guests leave, invite them back next year, cash the checks.

However, an industry that appeared to have a relatively simple model has become incredibly complex and competitive. In this new decade, vacation rental managers (VRMs) are expected to be experts in customer service, support, hospitality, property care, online and traditional marketing, customer relationship management, housekeeping chemicals, laundry and linens, escrow accounting, privacy laws, asset management, data, revenue management, risk mitigation, taxation, compliance, regulatory processes, and—of course—technology.

To make things even more complicated, to date there is no school to attend or degree to obtain to prepare employees for today’s vacation rental management industry.

Just the sheer number of acronyms and initialisms VRMs are expected to know is astounding.

Here’s a test: How many can you identify? ADR, ALOS, API, ARI, CPA, CPC, CPL, CRM, CRME, CTA, CTR, CVB, DMA, DMO, ERP, KPI, MOR, OTA, PM, PMC, PMP, PMS, PPC, RevPAR, RMS, ROI, SSO, STR, VRM, and VRMC (answers on page 20). New management team members need a terminology lesson and handbook before attending their first meeting.

Of all these acronyms and initialisms, this entire article is devoted to just one: APIs. 80

VRM Intel Magazine | Winter 2020

What Is an Application Programming Interface ( API )? By definition, an application programming interface (API) is a set of routines, protocols, and tools for connecting software applications.

Simply put, in the vacation rental industry, an API is the communication protocol that allows your technology systems to connect and interact with each other.

For example, think about your software system, website, and keyless lock system. Information in your property management software/system (PMS) is pushed out to your website and keyless lock system, and information from your website and keyless lock system is pushed back into your PMS. This connectivity is accomplished via APIs.

Each PMS has a different API specification. Your PMS company provides this API documentation to your other tech providers, and each of your other technology providers “writes to” this API to connect with your PMS. Examples of third-party tech companies that use APIs to connect with your PMS include the providers of your website, customer relationship management (CRM), keyless lock/smart home, property care, housekeeping/maintenance scheduling, comparative data, revenue management, channel management, third-party booking websites, document signing, SMS messaging, travel insurance, and credit card processing. We reached out to 25 technology executives to learn more about API usage and where the industry is heading with connectivity between systems.

APIs Create a Significant Barrier to Entry for Third-Party Tech Companies Because APIs are not standardized, the complexity, learning curve, and expense of implementing and maintaining APIdriven connections with software systems create a significant barrier to entry for emerging third-party technology companies.

For example, Brandon Sauls, founder and CEO of InterCoastal Net Designs (ICND), told us that ICND is currently connected to 20 software companies through APIs, and, as mentioned above, each one is different. As a VRM, how many times have you ventured through a conference exhibit area exploring new technology offerings and asked a vendor, “Do you connect to (or integrate with) my software/PMS?”

This is the first question VRMs ask because they know that— if the answer is no—they cannot use the new solution; any technology purchased that doesn’t have an integration with their software requires prohibitive manual and duplicate entry of the data that would otherwise be pushed/pulled via an API. “Most PMSs have their own structure for how they consume and provide data in their API,” said Anurag Verma, founder and CEO of PriceLabs, “This is very understandable, since each PMS was designed differently in how they store data

and how they develop their API; but [it] creates connection and maintenance challenges.”

In the absence of standardization, there are three key reasons that APIs create a barrier for new technology companies that want to enter the vacation rental industry.

B API integration requires clients, and clients require API integration. API connectivity requires time and resources from both the PMS provider and the new technology provider. The PMS company doesn’t want to invest valuable development resources into connecting with a new technology provider unless they have mutual clients who want the solution, and clients don’t want to buy a solution that isn’t connected to the PMS. Without client demand for the new solution, the process is slow because there is no urgency for the PMS provider.

C “Writing to” APIs requires in-depth, working knowledge of the vacation rental industry. Dozens of new technology solutions for VRMs are being introduced each year, and most of these new tech company founders are coming into the sector from an outside industry. Vacation rental PMS intricacies and eccentricities can trip up the savviest of developers. While the idea of connecting to 10 to 20 PMSs can seem simple at the surface level, the reality of building these integrations requires more than just talent and coding knowledge. Fully understanding how data is entered into and utilized in each PMS requires time, effort, and a certain level of humility that many new third-party developers do not immediately embrace.

One technology startup founder lamented, “The fact that the APIs differ isn't the issue. The issue is that not all of them agree on the basics, like what a booking actually means—is the booking tied to a property, a person or a group of people, what is a room, what is a property? The basics of the English language don't match.”

D Connecting a new solution to a PMS via an API can be costly. Budgeting and planning for the costs associated with API integrations are often ignored or miscalculated by new third-party tech startups. In the same way that each PMS has its own API documentation, each PMS also has its own fee structure. Although some software companies do not charge new vendors for API connectivity, most report having a mix of fee structures, including flat up-front connectivity fees, revenue-sharing agreements, transactional fees, or per-unit fees. Dozens of new technology companies have failed by not understanding the costs associated with API integrations with software systems.

Who Pays for API Access and Usage? Creating and maintaining seamless integrations requires valuable development resources, leading software companies to have different policies for charging for API connectivity. When deciding how to charge vendors, PMS providers consider the demand from VRMs for the third-party solution, revenue models, and the potential that an integration with the third-party solution will help sell more software. Consequently, PMS companies typically implement an API fee structure that includes one or more of the following: VRM Intel Magazine | Winter 2020

 Flat up-front fee  Revenue share

 Transactional fee  Per-unit fee

 Tiered monthly fee According to HomeAway Software general manager, Ryan Hutchings, “We have various types of integrations and connections with third-party companies and Escapia. We do not have a standard ‘API fee’ for connecting to our APIs. Instead, we have individual commercial contracts depending on how the partner is using our API and services, and we have an initial fee to get an account set up. In some cases, it’s a revenue-share agreement; in others, it is a block plan based on properties accessed. Most of the programs have tiered pricing structures with larger volumes being discounted.” While most software companies have a partner fee structure in place, some have decided not to charge vendors for API service and usage, including TRACK and Maxxton.

“We don’t currently charge vendors for access to our API. We do this to keep costs low for vendors and our software customers,” said TRACK’s Matt Renner. “We are an API-first software—our architecture is built this way. So whether you are using TRACK for all of your business operational needs or you want to connect with a third-party application, we are open.” Maxxton’s Chris Connar echoed the sentiment: “We do not charge any fees to third parties connecting to our PMS via API. An open API is essential to exceed the increasingly important IT landscape for VRMs.”

However, Barefoot CEO Ed Ulmer pointed out that the client ultimately pays. “We either charge our clients, the partner, or both. In reality, the client is paying one way or the other, but it is typically hidden by most of our competitors,” said Ulmer. “We try to be transparent. As one of the innovators of API and partner programs in this industry, we continue to look at ways to cover our costs and keep it simple and, most importantly, transparent.” Ulmer also brought up an interesting point that the entire burden of connectivity currently rests on the PMS provider. “I sat in the VRMA session about open APIs, and we were reflecting how best to move forward. One of the questions I put back to the committee is that these third parties should also have an open API so that their info flows back into our system—so will they do that for free? Also, with this flow, how do we protect for GDPR issues, which are expensive to monitor?”

As more new tech startups enter the industry, third-party providers are pushing back on some of the higher API fees being introduced into the market by software providers.

“Some [PMSs] are trying to charge as high as 20 percent—i.e., their businesses seem to be building their product on the backs of their partners rather than building their own products,” said one startup CEO. “I would prefer to move to a referral program and instead focus on improving the integrations for our clients. Drawing off so much revenue makes for stagnation on the product development side. Who wants to grow a shared product that takes so much and gives so little?”

VRM Intel Magazine | Winter 2020

Virtual Concierge Service founder Dana Young added, “We’re not opposed to the monetization of APIs, but moderate ‘pay-per-use’ models are the way they should be done. Look at the way tech industry leaders like Google handle their APIs—pricing is based on monthly usage of requests, with a certain number for free, and volume pricing at high utilization rates. We think that is fair and the way the VR industry players should be structuring their models.”

Challenges Third-Party Tech Companies Face Working with PMS Companies For emerging third-party technology providers, working with software APIs presents multiple hurdles.

“The challenge starts with the sheer number of integrations, given the fragmentation of the market and number of PMS players,” said Young. “Compound that with no standards in place so every integration is custom. Then throw in the navigation of the policies and approval processes involved before you can even get to the technical work.” Another technology provider added: “The legacy systems take sometimes three to five times longer to integrate than the newer systems. Their APIs are just rarely, if ever, updated so everything is a workaround.”

There are some security considerations with API connectivity, as well. “Having the ability to make certain API calls has helped tremendously with troubleshooting API-related issues,” said another technology provider. “However, one thing that could improve is accessibility to different API calls and functions. We’ve seen that access to some API developer environments are ‘all or nothing,’ meaning that you either have access to all the tools and info that an API offers or no access at all. Sometimes, certain API calls lead to sensitive information becoming accessible and also the ability to manage reservations. As you might imagine, this access could be risky if someone troubleshooting is not properly trained and tries to use certain API calls, such as accidently deleting a reservation; especially since there may not be an audit of which specific person [or company] sent the API call.”

Support Challenges Accessing API support from PMS companies can also be a challenge. ICND’s Brandon Sauls explained that while several PMS companies provide his team phone support for API issues, others require them to use a support email that “just lends to a turn in circles trying to resolve issues.” “You have to think—you’ve got three parties involved: our web development team, the client, and the PMS,” Sauls said. “The client does not care who the problem is—they just want it resolved. We catch the brunt end of it often because we are always available and here to take the call.”

Open API Connectivity Is a Priority, But Software Providers Are Still Looking to Build All-In-One Solutions Among vacation rental technology providers, there is widespread agreement that the demand for open and accessible APIs will increase in importance for two reasons: 1) VRMs want to use third-party

tech solutions to augment their service offerings and streamline their businesses, and 2) much of the current innovation in technology is being driven by emerging third-party providers.

“We look at APIs as a vital part of our strategy moving forward. We do not take the position that we can be everything to everyone,” said HomeAway Software’s Hutchings. “APIs allow third parties to offer alternative solutions for our customers. We also recognize that choice is important to our customers for many services that they use. In many cases, our customers want to choose between multiple options, and we try to offer choice through our API integrations. In order to be flexible for customer needs, we think it’s important to provide API access to your data in order to allow them to customize their business. We want a technology platform that enables growth and innovation. This can come from third parties, too.”

All-In-One Software Platforms While software providers are enhancing their APIs to provide more choice for VRMs, they are also actively building all-in-one solutions. Their goal is to provide comprehensive functionality that supports the core aspects of the business while still giving clients the ability to work with the third parties of their choice—as long as integration can be accomplished in a way that aligns with their own business objectives.

“At Guesty, we are working on building an all-in-one platform, and yet we still understand we can’t accommodate all types of re-

quests and use cases,” explained Amiad Soto, cofounder and CEO at Guesty. “We want to offer the best products available for our customers but also allow them to choose [a third-party solution] if they prefer or substitute some functionality with external offerings—including their own. We currently offer tools in our marketplace that compete directly with some of our offerings, and that is okay with us.” Renner told us that most of their clients solely use their system without a need for third-party solutions. “We have over 20 endpoints and over 70 connections currently, and vendors love working with our team and our technology. However, most of our customers—unlike many other so called ‘all-in-one’ solutions—do just use TRACK. They are not typically using core third-party applications.”

According to Connar, “Maxxton believes in the best-of-breed approach; the PMS should still offer most of the functionality and be the center of the organization to decrease complexity versus working with many third-party solutions.” PriceLab’s Anurag Verma predicts a more open API landscape moving forward. “We think that more and more PMSs will start providing open APIs (it’s already a lot more prevalent than five years ago). It only makes sense, because even if the software is allin-one, there are going to be power users who require specific functionality that third-party providers can provide to improve everyone’s experience.”

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VRM Intel Magazine | Winter 2020

Technology Predictions Software Executives Discuss the Future of Connectivity W

hen researching API policies, we asked PMS company executives, “Looking toward the next decade, what are your predictions on how vacation rental managers will use their software and third-party tech companies?”

Amiad Soto, Guesty Our bet is that property management platforms (PMP, and not PMS) will become the key technological piece of software property managers use, and all third parties will need to be accessible from that platform. Staff won’t like to be trained on—and use— 20 different tools on a daily basis, so controlling external products and using them from the PMP is going to save hours at a time and create more efficient and successful management companies.

Ryan Hutchings, HomeAway Software In the next decade, we envision more integration and more API usage overall. We also envision software being the “hub of the wheel” in their (PMs’) strategy of working with third-party tech companies. More PMs are creating their own solutions and/or hiring developers to create products that meet their needs. It is still a large investment of time and resources to develop solutions, so individual PMs must rely on a PMS or other third-party tech platforms to provide solutions and options.

Ed Ulmer, Barefoot At its core, there will be little change. PMs will always need strong trust accounting and a platform. As there is now, there will continue to be innovation generated by new players. Existing players will try to duplicate success and will struggle to be as good as someone who is singularly focused. Google, Zillow, and Amazon will all move the industry further and radically change the experience—with even more focus on attracting the individual homeowner because there is more money to be made that way. Asset management by the PMs will be necessary to maintain inventory. There will also be a need for the PM to focus deeper on niche— which is a trend that occurs as any industry matures. A PM who is the local expert both in managing the property and the full vacation (concierge) will be more trusted and successful. Social media is already swinging toward niche connections. A guest review is no longer trusted, but a review from a friend or a friend of a friend is powerful. Those who sit in or control your social cir84

VRM Intel Magazine | Winter 2020

cles will become more powerful. For example, a Netflix subscriber who watches Last Kingdom would be more willing to book a vacation to the English countryside if the offer is provided during the viewing. Add a points program to that offer and it becomes strong. Another example is booking your entire vacation out west through your EPIC, IKON, or Mountain Collective Pass. You trust your pass, and thus you trust its partners. PMs will need to look at their niches and connect with mediums that have similar messages.

Matt Renner, Travelnet Solutions (TRACK) We are seeing consolidation in the PMS space, and this is a good thing. Many just-OK options are being whittled down to a few good, sustainable ones. I think we will see the same thing for third-party middle ware providers. The thing about software is, if you provide a great solution that offers true value to the customer and with great service, you should be able to create a niche, and I think it is important for the PMS providers to allow customers to choose the solution that is best for their business.

We do, however, see the PMS handling most of the core functionality specifically in the short-term vacation rental space, with certain disciplines creating opportunities for larger third-party players, such as pricing/revenue management systems (RMS). We’ve seen this in the hotel industry where the PMS handles the core of the business, and the RMS is not just seen as software but as a functional discipline and nonnegotiable for hotels (i.e., certified revenue management executives [CRMEs]). So I think this is one function that could live outside the PMS due to the complexities and the service-level layer. Where it gets really interesting is in this convergence of hotel-style inventory and key-level (unit vs. unit type) inventory living in the same system. That is what we’ve been working on in TRACK. What you are going to see is more and more vacation rental companies owning hotel-style inventory and vice versa. These companies are not going to want to have two PMS systems. So you are going to see vacation rental software in the enterprise need to move into the hotel world and that will bring an entirely new set of requirements for connecting systems—including points of sale (POS) and other traditional hotel functions.

Chris Connar, Maxxton We expect PMSs to consolidate to a certain extent and the number of third-party technology solutions to increase and slowly be incorporated into PMS solutions. These third-party technology companies will be an important driver for innovation.

By Vincent Rosan

Shopping for Software? 8 Considerations When Selecting a New Property Management System

t’s an exhilarating time to be in the VR industry—huge technological shifts are underway, and there is a lot of consolidation among vendors and tools. While the potential of streamlined toolsets and cutting-edge tech seem positive, actually putting them into production can be tricky and cause unexpected hiccups along the way.

One recent example is HomeAway Software announcing its plan to sunset two property management systems (PMSs), V12.NET and Australia-based YesBookit, while continuing to develop its Escapia PMS. The goal is to focus on a single product to deliver the best PMS for its customers.

During this transition, vacation rental companies are considering their options for selecting a new property management system. Vacation rental managers weigh their options and decide if they would like to go with best-in-class software options or a PMS company that offers an all-in-one solution. There are a lot of considerations when selecting the right PMS for your organization. We’ve put together an eight-point checklist of things to think about.

B Focus There are pros and cons with both best-in-class PMSs and allin-one solutions that happen to include a PMS. Best-in-class solutions provide the best tool for core PMS functions with deep capabilities and a proven track record. On the other hand, you’ll potentially have to work with multiple vendors to build your guest management tech stack. With all-in-one solutions, you’ll have a more simplistic tool, but these may fall short with functionality, innovation, and support.

C Reputation Find a company that is well regarded by the industry and by its customers. Don’t just take its word for it, though. Ask for references, particularly from former customers.

D Service It’s going to take a while to transition to a new PMS, and you’re going to have questions—lots of them. There are no “off ” hours in the hospitality industry, so look for a company that will support you 24/7/365. Additionally, consider the level of support you will receive. Ask if the company is adding new divisions or if they’ve scaled to support any new offerings.

E Security The hospitality sector is facing more cybersecurity risks than ever before. As the operations hub, if your PMS is compro-

mised, it can have devastating and extensive consequences. Make sure your new PMS follows cybersecurity best practices and standards in all areas, including network segmentation and control and multifactor authentication.

F Training It’s important that new employees and seasonal staff quickly understand and utilize a new PMS, particularly because training is already such a hefty undertaking.

G Price Do some research to make sure you know exactly what you’re getting for your money. Inquire about additional charges and ask current customers about any hidden fees they may have encountered. As a rule of thumb, if the price sounds too good to be true, it probably is. Also, keep in mind that companies are increasingly adopting revenue-share pricing (i.e., charging users a percentage of their sales). Adopting a PMS is a long-term decision, so take a long-term view when considering your options. Don’t just think about where your company is today but consider where it will be two to five years down the road and how the pricing model could affect your business.

H Business Requirements Before vetting PMS solutions, make a clear list of your top five needs. Every system will have its strengths and weaknesses, and it’s important not to get distracted by the bells and whistles. Frankly, some PMS solutions will be a better fit for your company than others, so stay focused by making sure the top five needs you identified at the beginning are met.

I User Adoption It goes without saying that demonstrations are an essential part of the selection process. Make sure the top five needs you’ve identified are addressed in your demo. In addition to demoing the solution with one of the company’s representatives ask for a demo account where your team can interact with the tools they’ll use daily and test if it actually meets their needs. The shakeup in PMS vendors is just one of many changes affecting the industry today. For more insights and trends from top vacation rental leaders, join us March 2–4, 2020 for the Navigate Hospitality Leaders Conference in San Antonio, Texas. Visit naviscrm.com/ navigate for more information.

Hospitality CRM

VRM Intel Magazine | Winter 2020

A Foundation Built on Trust

It’s time to love your software again . Barefoot’s trust accounting is at the heart of our software. Feel at ease knowing where you money is at all times and whose money belongs to whom.

Love the ease of use, communication tools and functionality for every

department — reservations, managers, housekeeping, maintenance and revenue managers will be happy and productive. The entire relationship is built around you during sales, training and support. Collaborate with a team of experienced professionals that really understands how you want to run your business.

We aren’t going anywhere . Lets’ start a conversation .

sales@barefoot.com

www.barefoot.com/vrm

Barefoot Provides a Foundation of Trust

very year around this time, we think about how to position Barefoot in the vacation rental management software market for the upcoming year. With all the changes in software ownership, new entries, and sunsetting of systems, there is a lot of tumult in the market.

Let’s cut through the noise. At the end of the day, the heart of any true vacation rental management system is delivering real trust accounting. Tested by millions of transactions, Barefoot’s trust accounting has been proven to work consistently, which as many of you know, is no small feat. With the most feature-rich trust accounting system* in the industry, Barefoot provides flexibility in how you build out your unique business rules combined with the best practices required by the certification process and the most stringent requirements outlined by the North Carolina Real Estate Commission. We have the largest average client size in the industry for a reason. The benefits of implementing trust accounting help you in the following ways:  Generate efficiencies and budgeting activities in all operational areas through focusing on accounting transparency.

 Provide a natural barrier-to-market entry for new, less-responsible vacation rental management companies. Trust accounting requirements include a steep learning curve that is too challenging for fly-by-night operators.

By Claiborne Yarbrough

 Become an experienced manager of an established, solid business with guest services that in turn benefits guests to the highest degree When new clients come on board, we go through a rigorous documentation, testing, and implementation process to give them insight into where their money is, including understanding owner/ property accounts, advanced payments, vendor payables, and taxes. We build out a complete system that includes various payment methods and an automated clearing house. Reports in Barefoot will help you understand your liability, revenue pace, and reconciliation. Our accounting support team audits during the implementation process, evaluates each client’s unique situation, and provides recommendations ranging from using no trust accounting, your existing customized trust accounting, or Barefoot trust accounting. Once you’re actively using the system, we provide as much guidance as you need to make sure that your trust accounting is working for you. When considering software, remember that trust accounting is the most important aspect of your overall solution to ensure the highest level of protection for your owners, your guests, and your business. *https://www.barefoot.com/products/accountingBarefoot

 If your exit strategy is to sell, our trust accounting makes you a well-prepared candidate with your accounting in order.

 Position yourself as an asset manager for your owners. One significant piece of this is making sure that your owner’s money is protected, correct, and readily available. Trust accounting ensures this. VRM Intel Magazine | Winter 2020

A Cotswold Welcome Down-Home UK Hospitality with Andy and Sarah Smith, Honeypot Cottages By Ren Hinote

ovember in jolly olde England. Cold. Drizzly. Gray. But, with a bit of luck, an occasional pop of sunshine. During a recent month-long stay, while the weather was chilly, the welcome I received from my property manager was consistently warm. Englandâ&#x20AC;&#x2122;s beautiful Cotswold region is located approximately 75 miles northwest of London. From Heathrow Airport, a visitor is whisked from the hectic, traffic-laden outskirts of London back 88

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in time to an idyllic countryside worthy of any Jane Austen novel. Bright green hills roll by, broken only by narrow lanes bordered by stone fences, picturesque villages, and plentiful white, fuzzy sheep. Even with the addition of central heating, historic cottages, crafted centuries ago from the plentiful golden stone of the Cotswold region, can be less than comfy by twenty-first-century standards.

Late one afternoon, I came in from a brisk walk down the fairy-tale lanes of Chipping Campden and noticed the cottage was less than

warm. After boosting the thermostat a bit, I set about building my daily fire. By evening, I had upped the heat twice more but realized that the cozy living room was not getting any warmer and the kitchen was downright cold.

Edging my chair closer to the fire, I sent a text to Honeypot Cottages’ property manager, Andy Smith. Straightaway, he replied that it sounded like the boiler was out and needed to be “topped off.” He offered to come that night, but I assured him I would be fine. The cozy English comforters are toasty warm! He promised to be there first thing the next morning. My bedroom was upstairs, and I had stayed up late listening to the intense Alabama versus LSU game, online. I told Andy I would most likely sleep in and he could let himself into the cottage the following morning. I woke the next day, dressed, came downstairs, and was welcomed by the crackling of a roaring fire in the fireplace. The large wood basket had been replenished with logs and kindling. It felt like Christmas morning!

Andy had left a note asking me to call, explaining the problem was the boiler, and telling me he would need to go up to the third floor to “top it off.” He didn’t want to do that while I was sleeping for fear he might frighten me. As soon as I texted him, Andy returned immediately, got the heater back on, and stayed to chat a while about my trip, his family, the business, and the magical Cotswold area itself. He even offered to drive me to nearby Dover’s Hill so I could get some good photographs of the rolling hills. Not only did I have a great property manager, I felt as if I had made a new friend.

Decades of Booking Direct Over 40 years before I heard the term or learned its definition, booking direct was simply the way our family traveled. Summer vacations on the private, sugar-white sands of Fort Morgan, Alabama. Autumn canoeing trips to the Buffalo River. Laid-back weekends in Georgia’s Blue Ridge mountains. Spur-of-the-moment visits to New Orleans, Nashville, Natchez, and more. VRM Intel Magazine | Winter 2020

in nearby hamlets Paxford and Ebrington.

The Honeypot Cottages themselves include a delightful array of storybook cottages with appealing names: Badger’s End, Cidermill, Kissing Gate, The Thatch, Silk Mill, and—you guessed it—The Honeypot! The cottage names are posted on each property using plaques that fit the time period the cottages were built, making them easy to find—both in person and online. When we began to plan a vacation, I would pick up the phone—and, later, after searching online—and talk directly with the property management company. I’ve always appreciated the personal contact and the relationship built with property managers from the early stages of vacation planning.

Now, as a woman traveling alone, I value the assurance that the person on the other end of the phone or email will not only be my host but also someone with whom I’ve made personal contact and can call on in an emergency or in an unfamiliar location.

Honeypot Cottages: Badger’s End, Cidermill, Kissing Gate, The Thatch, Silk Mill, and More Andy Smith and his lovely wife Sarah, cofounders of Honeypot Cottages, were introduced by a mutual friend and, within a year, found themselves married and putting together a business plan. They currently manage 16 unique, individually-owned holiday (British for “vacation”) cottages in Chipping Campden, a centuries-old market town at the northern end of the Cotswolds, and 90

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During November 2019, one of the Smiths’ properties became my home away from home. Sansons Cottage, conveniently located on Chipping Campden’s bustling High Street, is located less than a three-block stroll from the butcher, the baker, and the candlestick maker as well as welcoming pubs filled with hearty conversation and inviting fireplaces, tearooms, restaurants, shops, bakeries, and delicious “takeaway meals.” While there, I had only to mention a need or raise a question to Andy or Sarah to have it immediately answered. Their special brand of hospitality was on display from the start. I had fallen in love with the cottage after seeing photos on their Facebook page. And I knew I wanted to stay a month. Midway during the month of November, they already had a three-night booking for the home I was already calling “mine.” Andy reached out to the guests who had previously booked the cottage and persuaded them to switch to another home, just around the corner, to allow me to have a full-month’s stay.

Upon my arrival, I discovered a welcome-to-Chipping-Campden bottle of wine in the refrigerator. Sarah arrived the next morning, bearing a hamper filled with breakfast items: eggs, bacon, milk, bread, jam, and cheese. I learned this was a holiday special they were running for their guests. Just perfect!

Each Friday morning, Sarah and one of her helpers arrived to bring fresh linens, change the beds, clean the bathrooms, chat for a bit, and offer any help I might need.

Because it was November and I am a “fireplace person,” my little woodshed in the garden was depleted twice during my stay. A quick call to Andy brought firewood, stacked in the woodshed and replenished in the inside basket. When I ran out of kindling, Sarah showed up at the door with a fresh bag within minutes of my call. If I needed to go to another village or even the closest city, Cheltenham, to shop, they were available to take me. I had an opportunity to sit down with the Smiths and talk about their business venture.

With a warm smile, Andy explained the beginnings of the business. “When we married, Sarah was working for an agency here in this area, managing and cleaning other people’s second homes and holiday cottages. We bought our first cottage, The Honeypot, in 2007, completely ripped everything out, and started over. It wasn’t long before the word spread, and we were being asked to do the same thing for other people.” “We began with The Honeypot, a holiday cottage in the heart of Chipping Campden, and, before we knew it, the business had grown into Honeypot Cottages,” he continued. “I handle the bookings and management. Sarah Smith Cleaning & Management looks after the rest. Sarah has three or four helpers, all self-employed, who work for her. Our three daughters pitch in and help too.”

Andy added, “A couple of our properties are on the market now, and we constantly have second-home owners contacting us to take on their properties. In addition to caring for our cottages, Sarah’s cleaning service also manages several other second homes.”

Q&A with Andy and Sarah Smith, Honeypot Cottages Ren Hinote (RH): This was my second time staying in one of your cottages. Initially, I remember finding Honeypot Cottages online. How do you use third-party channels to get new guests? And how do you get them to come back, like I did? Andy Smith (AS): We like to use third-party channels to get ourselves

out there along with the big booking sites. However, it’s a real challenge getting noticed because they often have the top spots on Google. We also use other, smaller national agencies that give us opportunities to offer free “late deals,” which helps a lot. Everyone’s

looking for a bargain. We believe the best way to get guests to return is to offer fabulous service in the first place, including good, clear communication, and offers of help for the duration of a guest’s stay. We want our guests to have a holiday that is carefree as well as memorable.

RH: Sarah, you have wonderful linens in your homes. How did you choose the brand, and how do you work with your homeowners to get them to use your linens and towels? Sarah Smith (SS): When we began, our homeowners supplied

their own linens—one set on, one in the wash, and one to spare. Originally, we did all the laundry from our home in Chipping Campden. As the business grew, so did the amount of laundry! We found ourselves spending a huge amount of our spare time washing, drying, ironing, and folding linens. We would get bits done between running the children to after-school clubs, preparing meals, and other things. We often found ourselves up until 2:00 a.m. doing laundry, to make sure there wasn’t a backlog, and stuffing linens into bags for the following day’s changeovers. We soon began shipping the linen out to local ironing people and eventually moved to a local linen company four years ago. We’ve changed linen companies since then, when the standards of the first company dropped. We’re happy with the linen company we currently use. They’re based in Stratfordupon-Avon, and they supply a few hotels and businesses locally.

RH: Having stayed in two of your cottages in the last three years, it appears that you have a standard kitchen package . . . similar plates, glassware, and other items. Is that correct? If so, how did you decide to standardize kitchenware, and how do you work with homeowners on this? SS: We try to go along with our owners’ wishes when it comes to

plates, glasses, and other kitchen essentials. Breakages or lost items can be a challenge. If a cottage allows the space, we try to keep a few spares in the cupboards so that we can quickly replace items. Because we’re located in a country village, we often have to travel to Stratford, Evesham, or Stow-on-the-Wold to purchase replacements, and restraints on our time can make that impossible. If a cottage happens to have breakages, we have to make do with what we can find locally. Consequently, we sometimes supply our cottages with crockery, glasses, or more obscure items, like a cafetiere [a French press coffee maker] from our own kitchen! We’re often missing an item from our home, only to find it in one of the cottages at a later date. VRM Intel Magazine | Winter 2020

RH: What are some of the challenges you face today that you didn’t face when you started the business? AS: Competition! When we began, there were only a few other local

agencies, but now everyone seems to be in the holiday leasing business, especially with the advent of Airbnb, which gives people the option of advertising their own space in their own homes. We’ve heard more than a few horror stories. Guests need to be careful and do their research as much as possible. If guests can locate the owner or agent and talk with him or her directly, it reduces the risk of booking a cottage that isn’t available or a home that doesn’t meet their needs. We much prefer taking bookings over the telephone, but we understand that many guests want to book online. 92

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That’s fine with us, but we like people to know they can ask us any questions at any point in the booking process, straight through to departure.

RH: What challenges do you think vacation/holiday home rental managers will face during the next decade? AS: Definitely competition from the big agencies offering online

booking, taking the first page of Google, and Airbnb. They make it so easy for people to rent their own homes.

RH: What do you love most about your business? AS: Simply put, we love working with people, knowing they’re plan-

ning a special holiday—or just a weekend away—and making sure they have a fabulous stay. We like to offer our support without being underfoot or in people’s faces. We completely enjoy the personal touch. Several of our returning guests call and ask us to meet them at one of our local pubs, The Volunteer Inn, for a drink or a meal. That particular pub and Toke’s (wine, cheese, and delicious homemade takeout foods) offer discount “tokens” to our guests as a special incentive to stop in. It’s truly a small world, and we love discovering “people coincidences.” Often, when talking with potential guests, we learn that we know some of the same people and places. We have an interesting story about two couples, one from Canada and the other

from Australia, who met in a restaurant line in London. They began chatting and learned that one couple had recently stayed in one of our cottages and the other was booked to stay with us in the very same cottage! These two couples have kept in touch and meet in their travels around the world. And it all began when they stayed with us at Honeypot Cottages. Andy and Sarah Smith have found a way to offer a super helping of down-home hospitality in the middle of England’s beautiful and historic Cotswolds. As for this traveler, and I am certain many others, I’ve discovered the “honeypot” of gold in the center of one of the most magical locations on the globe!

VRM Intel Magazine | Winter 2020

By Natalee Pfeifer

The Importance of Deep Cleans

Letâ&#x20AC;&#x2122;s Get Real

VRM Intel Magazine | Winter 2020

his article can easily be filled with dozens—no, hundreds—of reasons why the deep clean is important, and we can outline every facet of what should be touched during said deep clean. However, in 2020, it’s time to take a different approach to this crucial aspect of professional property care. The deep clean is not simply ensuring every nook and cranny is touched, disinfected, scraped, magic erased, laundered, power washed, blowtorched, and Febrezed on an annual/bi-annual/quarterly basis; it is quite literally the heart and soul of professional property care. OK, so blowtorches aren’t necessary, but are you paying attention yet? This single event is checking the pulse of your business. Yes, really.

The Gunk Is Real It is not reasonable or realistic to expect absolute perfection from your staff on a changeover clean. A changeover or turnover clean focuses on disinfecting the kitchen, bathrooms, floors, linens, and surface areas. It is helpful to toss in a weekly rotation of deep cleaning tasks, such as dusting ceiling fans, baseboards, knickknacks and décor, and AC vents, but we simply don’t have enough time, manpower, or resources to justify a full deep clean every week. For example, a home that sleeps 12 people with a 16-week rental season will host about 200 people. A vacation home is lived in (much) harder than a residential home. Of those 200 people, how many do you believe will take the time on their vacation to thoroughly wipe down the blender after they have splattered it while making margaritas? How many will take the time to remove every crumb from the utensil drawer they were just noshing over? And what about the crumbs from the pizza they just sliced that fell into the burner pans and beyond? Do you realize that most people don’t even know you can lift up the range cooktop and clean under it? Honestly, the gunk is real. As vacation providers and memory makers, can we even be mad about this?

The answer is no, we want them to come gunk up these homes because that gunk is money in the bank for us and our owners. That gunk is employment for someone; that gunk helps the economy. We just don’t have time to deal with it on turnover.

Checking the Pulse While the deep clean gives us a chance to “de-gunk,” or clean to perfection, it also gives us a chance to check the pulse of many facets of the business—and it begins in the home.

 Inspect the property thoroughly for those nice-to-have upgrades, the strongly encouraged upgrades, and the critical upgrades.

 Use this time as a great opportunity to plan a replacement schedule with your owner, as well as any necessary renovation plans. Having a minimum standard policy in place for your rental program holds the owner accountable for any necessary upgrades.  Upsell preventative maintenance plans, preventative pest service (especially in your fur-friendly properties), fall or spring maintenance tune-ups, upholstery and carpet cleaning, power washing windows and decks, and, of course, the deep clean.

This process calls for effort across multiple departments and offers the critical opportunity for relationship building with your owners. It is not a good idea to have your owners deep clean the property

themselves, so if it isn’t in your PMA yet, put it in there today. It is beyond embarrassing having to criticize the owners’ hard work, and it isn’t any less embarrassing on their end. Just remove that uncomfortable exchange and keep your deep cleans in-house. The time for deep cleaning is circumstantial to your business and your local industry; however, it is necessary that this process is done, at the very least, on an annual basis.

Deep cleans also keep your staff employed during slow seasons, if this applies to your business. Planning a successful deep cleaning effort across your inventory of properties is quite the logistical feat. It is important to communicate with an owner prior to scheduling a deep clean. Completing a deep clean right before a construction crew enters the home and erases your efforts is not the perfect scenario. Ideally, a deep clean is performed just prior to or following the rental season. If a home is particularly well used, a mini-deep clean during the season is also necessary.

Pricing Deep Cleans Pricing a deep clean can be tricky, and many factors must be considered.

 How long should the deep clean take? The process is a strenuous and lengthy one. Expect a deep clean to take anywhere from a full day to a week, depending on the size of the property and how many days or weeks it was rented.  Are you paying your cleaners hourly or piece rate?

 Will your cleaner be laundering linens on the property or bringing them back to an in-house facility? Will they be outsourced, or both in-house and outsourced? Even with an in-house laundry facility, bulky and specialty comforters that require dry cleaning will need to be sent to a dry cleaners, so you should factor in that cost, as well as the cost of extra trips to and from the dry cleaners. Or you can simply bill it directly to the owner.  What will your market bear? A property management company should expect to charge anywhere from one-and-a-half to five times the amount of a typical turnover cleaning fee. This approach may not result in a solid return on investment (ROI) if your cleaning fees are on the low end, so you may want to consider creating a formula to calculate an hourly fee. For instance, if you charge $20 to clean a small apartment on changeover, even utilizing the five-times multiplier, then this would not result in a solid ROI, especially if your cleaner is earning an hourly wage. Even a small apartment can end up taking anywhere from five to eight (or more) hours to deep clean (including multiple trips to launder linens and comforters, especially if no on-site laundry facility is available). Pull out a calculator and crunch some numbers to ensure you can pay your cleaner a fair wage for a more laborious job, cover the cost of materials and/or tools used, launder linens, and turn a profit. You are running a business after all.

As more and more guests skip the check-in office and head straight to the property, the cleanliness and appearance of the property are the first impressions those guests have of your company. The first impression is critical and sets the tone for the rest of their stay. It is no secret that a sparkly clean and well-cared-for property is quite simply how a professional property manager stays in business. Guest expectations are at an all-time high, as are your guests’ options for leaving reviews and sharing their experiences in an ever-connected world. Thus, the deep clean should be handled as mission critical. VRM Intel Magazine | Winter 2020

Housekeeping Profitability Making Your Housekeeping Department a Profit Center By Jeremy Clayton, Managing Partner, and Christi Knoll, General Manager, Padre Escapes

irst, here’s a little about our company, Padre Escapes. We are located on North Padre Island in Corpus Christi, Texas. We started Padre Escapes six years ago, and today we manage more than 270 properties, primarily townhomes and condos, due to a local ordinance that does not allow single-family homes to be rented for less than 30 days. Housekeeping has always been a source of pride for us, but it had never been a profit center. Since we opened our doors, we have always used subcontractors for our housekeeping needs. Over the years, the quality fluctuated, but we finally reached a good place with respect to quality, consistency, and communication. After much debate and number crunching, we decided to start our own in-house housekeeping division earlier this year.

In April, we started Padre Escapes’ Housekeeping with approximately 60 properties. Right after Labor Day, we acquired an additional 65 properties due to the desire of one of our subs to downsize. This change made us larger than any of our subs at the time. Although it was intimidating for us to take on that many properties, it was also an opportunity we knew we had to pursue. It was liberating to know that we were no longer at the mercy of a subcontractor; we were in control.

Cutting out the Middleman: When we started Padre Escapes’ Housekeeping, we were simply hoping to be able to cover our costs while gaining more control over quality and operations. It was a pleasant surprise when it ended up being more profitable than we imagined. By eliminating the subs—cutting out the middleman— on approximately half of our properties, we have been able to raise our average profit margin in the department from 23 to 46 percent, making housekeeping a viable revenue source, not only in our peak season but in our off season as well.

VRM Intel Magazine | Winter 2020

Off-Season Income: Although profitability was not the initial driv-

ing factor in the decision to start our own in-house housekeeping company, we quickly realized it was a new way to generate income in those difficult off-season months. Being in a seasonal market, we’ve always looked for additional revenue sources in our off season. We never realized the earning potential our housekeeping department had until the numbers were right in front of us. A major part of this new off-season income revenue is our annual deep cleans. We’ve always done deep cleans and were pleased they helped support our subs through the slow season, but to be able to bring them in-house and generate additional income has been beneficial to our bottom line this time of year. Now that we are doing more than half of our deep cleans in-house, we are bringing in substantial income that is definitely needed in those off-season months. In-house deep cleans have greatly benefited us financially, but they’ve also helped us with our staffing and training.

Reduced Training Cost: One of our bigger issues over the years has

been our ability to prepare and train in time for peak season. Going in-house has given us the ability to keep our core staff on yearround and focus on our training and operations during the slow season. This has also allowed our housekeepers the time to try new techniques, test new products, and sharpen their skills so they can become our trainers and cut down on the time needed by our department heads when peak season rolls around. We know for us, like many vacation rental companies, housekeeping has been one of the hardest departments to get a grip on. But as we are finding out now, it is likely the most important department and a department capable of generating substantial revenue.

Inspections

A Major Key to Housekeeping Success By Sage Viator, Executive Housekeeper, Padre Escapes

ere at Padre Escapes, we currently employ a small team of full-time inspectors year-round. This is not to say that one cannot run a successful vacation rental company without having employees solely dedicated to inspecting units once they are cleaned, but we think inspections are the key to our success. We have opted to add an extra layer of security between housekeeping and guests/owners that are checking in.

Because we are a drive-to destination for neighboring cities such as Houston, Austin, and San Antonio, as well as the Rio Grande Valley and the surrounding areas (all just a few hours away), we allow check-ins on any day of the year (seven days a week/365 days a year), and same-day add-ons are always allowed. This does allow the potential for more revenue to our owners but also limits how far ahead we can schedule cleans or inspections because schedules can change on a regular basis.

One of the most important aspects of control is the quality of work put out by the individual cleaners/subs and their accountability. That in itself is hard to perfect without some sort of inspection process. I have heard of companies implementing certain software systems that “inspect” the clean by having cleaners submit pictures; some companies opt to have their cleaners “self-inspect,” whereas others hire dedicated inspectors to go behind the cleaners as we do. I think all three of the aforementioned systems can work to a certain degree. However, I suppose the million-dollar questions are which one works best, and which one is the most cost-effective? As we all know, it’s not often in life those two criteria coincide. Before we go any further, I am not claiming our system is better or more cost-effective than any other system. I am simply sharing with you all what has proven to work for us in our current market. For as long as I can remember, we have employed inspectors to

check the work of the housekeepers. Personally, I think having a third party dedicated to inspecting the cleaners’ work eliminates any sort of bias one may encounter when having the cleaner “self-inspect.” The picture software seems like it would be useful for ensuring items/décor are neat and orderly. However, as far as cleanliness goes, I don’t think there is a substitute for being there in the flesh to see, smell, and feel the stages of cleanliness. How many times have you received a call about a strange odor in the unit or gritty floors? These things probably wouldn’t be captured in a photo or video. We have had some pretty stellar cleaners in my time here, but we have never tossed around the idea of dispensing with inspections. Because we conduct a thorough inspection after every clean, only a simple walk-through must be conducted on the days leading up to the arrival if the unit has been unoccupied. The walk-through consists of setting the air-conditioner to the desired temperature, checking TV/Wi-Fi, checking for any dead bugs, opening the blinds, and leaving our personalized “Welcome Flyer.” To maximize the productivity of our inspectors when they are not inspecting or doing walk-throughs, they are also responsible for guest service requests, which include technical issues (TV/ Wi-Fi), changing air filters, running items to guests, performing inventories, and vacant-unit checks. Is our program successful? Unequivocally! If you divide our yearto-date reservations by the number of legitimate issues, we come up with a factor of 0.0048, or less than half of 1 percent. That is the value of the inspection process! Is it cost-effective? We include the cost of inspection in our cleaning fee, thus turning the inspection process into a profit center.

VRM Intel Magazine | Winter 2020

Your Statewide Vacation Rental Managers Association The Florida VRMA represents the professional management of vacation homes, condos and resort units throughout the state of Florida. We are your statewide vacation rental management industry association dedicated to supporting and protecting the $31,000,000,000 per year economic impact realized through the Florida vacation rental industry. The new Florida VRMA continues to deliver the educational programs, legislative advocacy and member benefits to help you to grow your segment of the industry throughout the state of Florida and beyond. Explore what our new regional chapters can mean for your business as a professional in the Florida vacation rental industry. The Florida VRMA is the largest statewide association in the US market today supporting property managers with tens of thousands of vacation rental units. From major Florida attractions to local supporting tradesman, the Florida VRMA has various participation levels for all businesses and industry partners.

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Do You Have a Professional Property Care Team? Ensuring housekeeping and maintenance teams are trained in customer service

ot long ago, there was a time when housekeepers were thought of as people who showed up, did their jobs, and went home. Not much thought was put into the training they received or how they performed. Employers expected them to know what to do on their first day of work. They gave them an assignment, told them where to go, and sent them out the door. In todayâ&#x20AC;&#x2122;s business and hospitality environment, this is no longer good enough. I think the podcast Sarah and T said it best in episode four of season one when they said housekeepers and maintenance technicians are the face of a company. I completely agree.

Think about it for a moment: For most guests, the only face-toface interaction they have with your company will be with your back-of-house staff, whether it be for a clogged toilet, a remote control needing new batteries, dropping off extra towels, or a midstay service. The memories of your company that guests will hold onto rest in the hands and attitude of the maintenance technicians and housekeepers who show up at the property. Does this thought make you giddy with glee or strike fear in your heart? If it is the latter, here are some steps you can take:

B)During the hiring process, talk about the customer service levels that are expected. Include several interview questions about their customer service philosophy and how they have handled guests who were unhappy or complained about everything. This will allow you to find those who already have a mind set geared to quality service. C)As part of your onboarding experience, provide a document that outlines the expectations of how they, as company representatives, are to interact with guests, ownersâ&#x20AC;&#x2122; guests, and owners, and even competitorsâ&#x20AC;&#x2122; guests. This document should address items such as how to stand, how to shake hands, what to say when they see someone, and how to answer the phone.

D)Customer service principles and standards are an integral part of the employee training. The training time is a chance for the trainers to reinforce knowledge and for employees to practice company standards. E)Weekly retraining is a necessity to help keep the company standards top of mind. These weekly reminders do not need to take long; five minutes is enough to remind everyone of the training they have received. F)When the staff arrives at the property, do they look professional? Do they have clean and tidy uniforms? Are the tools they are carrying organized and displayed in an orderly fashion? The answer to all these questions must be yes. You are a professional property manager, and you hire professionals to do their work assignments.

G)Does the staff have professional tools? It is one thing for a housekeeper to have a toothbrush to clean a tough-to-reach spot on a bathroom faucet; it is another to expect the housekeeper to use the same tool to clean a sliding glass door track. The tools the staff uses must reflect the professionalism that you expect them to provide. You are hiring professionals to work with you. Taking the time to plan and prepare for the professionals to provide the best guest service and work will provide dividends and have a positive impact on your business that will be reflected in your guest comment cards, owner comments, and ultimately, your bottom line. By Durk V. Johnson, Industry Consultant and Executive Director,VRHP

VRM Intel Magazine | Winter 2020

 Continued FROM page 71 This slight variation in experiences leads me to believe that Google Travel is still figuring out how to dedupe properties that may be in multiple integration partner feeds and choose the one ideal for driving conversion. Rentals United

Rentals United had a unique experience: a landing page opens up after a consumer clicks “Book Now” for one of its listings on Google Travel. Instead of providing a Rentals United–branded landing page, the tab opens a property details page with the arrival/departure param-

eters prefilled, pricing that matches that shown on Google Travel, the individual property manager brand in the upper-right corner, and messaging that the booking page is powered by Rentals United at the bottom. This is clearly a win for the property manager because the actual hospitality company brand is hidden on Airbnb and VRBO listings throughout the entire journey. Consumers can finalize their booking or review more details on the Rentals United–powered property details page.

In this example of a potential consumer journey, the traffic from the original Google query never reaches an individual property manager’s website, but there is brand attribution and a clear path for the consumer to finalize booking.

Rentals United and other channel managers taking a similar approach have yet to determine a pricing or commission structure for these bookings, and, as of now, they are free. But because they control the booking experience, it will be interesting to see when and if these bookings are made subject to a commission like other marketing channels. NextPax, BookingPal, & Other Direct Integrations

The next version of the consumer journey and booking experience was similar for distribution clients of NextPax and BookingPal. NextPax and BookingPal are opaque partners on Google Travel, meaning the individual property manager brand shows on Google Travel throughout the experience instead of NextPax or BookingPal. Those channel managers are just powering the technology to feed the inventory but are not portraying themselves as consumer brands (in contrast to Red Awning). This is an ideal setup for most property managers who want their brands front and center. The example I used for NextPax in this article was for the query “Denmark Vacation Rentals,” and NextPax client Novasol was front and center in the Google Travel search results.

NextPax does not provide an intermediary, cobranded landing page and sends the traffic from Google Travel via “Book Now” to the property details page with the dates and prices prefilled on the property manager’s individual brand website. I can hear everyone cheering for this type of integration, but there were some challenges I did not experience during the previously outlined customer journeys.

For example, Google Travel knew I was in the United States and spoke English, and it used American dollars to display pricing, even though I was using incognito browsing for this research. Once NextPax passed me to the Novasol booking engine, I was brought to a page in German with pricing in Euros that did not match the page.

Because both BookingPal and NextPax rely on the technology of the individual property manager websites, they cannot ensure a seamless experience once the consumer is on the brand website. This responsibility falls to the individual property manager, so this experience is best for those who have invested in modern booking engines. Tracking conversions on individual property manager websites and attributing revenue to Google Travel and your channel manager may be challenging under this model, and conversion rates will vary significantly based on the design and modernization of the individual property manager websites.

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Cancellations, Booking Changes, and Issues A model that charges commission per booking means there must be a path forward to address cancellations, changes, refunds, and other issues. As we all know, this is one of the most challenging aspects when using any channel management strategy. A great deal of manual work goes into cancelling bookings in your property management system (PMS) and on the channel to ensure refunds are processed. Ultimately, guests who are booking through Google Travel must cancel with the property manager or OTA directly because Google is just sending traffic. Rest assured that it is unlikely Google wants to get into the hospitality customer service business any time soon, which leaves that fun up to the pros, who are likely exploring a pay-per-click model that would allow for a much simpler path forward for everyone.

Getting Ready to Participate Here are four key things to start thinking about as the Google Travel/vacation rental platform continues to evolve: B Organizationally, it has never been more important for your e-commerce/digital marketing and revenue management/ channel management teams to be on the same page. In the near future, I predict they will work together to optimize listing placements on Google Travel.

C Do you have a pay-per-click budget? How do you recognize those costs versus channel costs? Many property managers pay commissions to OTAs and intermediary channel managers before they split revenue with the owners, but they often eat the cost of their pay-per-click budget. With this channel likely to drive a tremendous amount of web traffic and revenue for eager participants, start working on a strategy to handle this with your finance team. D Do you have a team member who is up to speed on the latest pay-per-click strategies? If not, then you must start interviewing potential professional partners or candidates for an internal search engine marketing specialist.

E There has never been a better time to make sure your property images are high resolution, professional, and in the right order. Nothing jumps out like a bad photo on the first page of Google search results. If the predictions come true and Google Travel ends up using a pay-per-click model, the opportunities are endless to use this channel to boost new and struggling properties and minimize costs on high-performing rentals. You will need to be dynamic on this channel and not just with your pricing. It will not be â&#x20AC;&#x153;set it and forget itâ&#x20AC;? like other OTAs that charge a flat commission per booking (at least not if you are smart and capitalize on the opportunity).

Getting Listed on Google Travel You have probably already seen some of your rentals on Google Travel via VRBO or Airbnb, but if you are eager to list your rentals directly, there are a handful of channel managers that are partnering with Google, most of which I have detailed above.

Rentals United, NextPax, Red Awning, and BookingPal all have integration with Google Travel, but all of them are at different stages in the partnership. Most of them have stated they are testing a few key markets with key clients before they onboard new clients.

Rentals United was the only company I spoke with that openly agreed to onboard new clients to Google Travel.

It is worth speaking to each one about its Google Travel program and understanding costs, the consumer experience it plans to offer (directing traffic to your website versus an intermediary booking page), and its timeline before you make any final decisions.

It is likely that PMS platforms will also start building integrations to Google Travel shortly, including PMS systems with integrated, direct channel manager modules such as MyVR, Guesty, Streamline, and Direct.io. Google is already on the third version of the Google Travel API and is clearly investing in the short-term/alternative accommodations space. It is trying to optimize its revenue potential while delivering rich, relevant search results to consumers.

There is still much to learn for the Google Travel team, and it will continue to iterate to optimize conversion. I believe each of the potential guest journeys on Google Travel has merit, and it is in the best interest of consumers/travelers to know what brand will be checking them in, hosting their stays, and addressing issues that arise. The only way this will be the evolution of Google Travel is if individual property managers invest in their brand websites, optimize the mobile booking experience, and iterate on their booking engines to maximize conversion. Now is the time to invest in your people and partnerships and reorganize your teams for the future by breaking down internal silos and ensuring you have one revenue-generating team that is on the same page, makes decisions based on consistent data, and optimizes all of your channels.

To take a deeper dive into how Google Travel is shaking up the marketing funnel. Amber will be speaking on this topic at the upcoming VRM Intel Live events in Destin (January 23) and Gatlinburg (Feb 26).

Amber Leto Carpenter has been part of the vacation rental industry since 2003. With an early start in the operations and owner relations side of the business, she has spent most of her career on the technology side of the industry. In the last decade, Amber built and sold a web marketing company to Instant Software (now HomeAway Software), she was the VP of eCommerce for Wyndham Vacation Rentals, the Chief Marketing Officer of The St. Joe Company, and most recently was the VP of Product for NAVIS before transitioning back to consulting with global hospitality software teams and tech-enabled vacation rental companies in early 2019.

VRM Intel Magazine | Winter 2020

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VRM Intel Set to Launch Ornacor.com to Fund a Widespread PR Initiative for the Vacation Rental Industry

t VRM Intel, we’ve been working behind the scenes for months to build Ornacor.com. Although the website is still a work in progress, I want to share its mission and ask you to help support a widespread media relations effort to educate travelers, homeowners, and the investment community about the many benefits of professionally managed vacation rentals. With this objective in mind, below are answers to the who-whatwhen-where-why-how much questions about this initiative to reach mainstream media outlets with a new narrative demonstrating the value of professionally managed vacation rentals.

Origin of Ornacor In Latin, orna means “to honor, adorn, build up, or equip”; and cor refers to the “heart, intellect/judgment, or mind/soul/spirit.”

Based upon these definitions, Ornacor’s mission is to honor, build up, and equip the heart and soul of the professional vacation rental industry.

For me, “Ornacor” has additional significance. I used to rent a home on Ornacor Avenue in the Bear Point area of Orange Beach, Alabama. As a result of recent regulations, short-term rental activity is now prohibited for new home buyers on Ornacor Avenue. Bear Point is located on one of Orange Beach’s back bays, where fishing and boating vacations have been popular for over a century. As early as the 1920s, vacationers were taking fishing excursions out of this area. Decades before thousands of high-rise beachfront condos were built, Bear Point was the foundation of summer vacations in the area. The fact that Orange Beach, a town built solely on vacation rental tourism, made short-term rentals illegal on Ornacor Avenue is both shocking and disappointing. Combining the literal Latin meaning with our personal passion for vacation rentals, we easily settled on “Ornacor” as the name for this endeavor.

Who, What, When, and Where is Ornacor? Created by VRM Intel, Ornacor.com is an online directory of businesses that provide products and services for the vacation rental industry. The site is set to launch in early February.

Why Ornacor? The Need for Vacation Rental Industry PR Currently, Airbnb, VC-funded startups, and urban short-term rental providers are driving the narrative in the media. Consequently, even though we have an established industry that realizes consistent year-over-year, decade-over-decade growth and provides enormous value for travelers and destinations, the leisure vacation rental industry is getting lost amidst the noise. The vacation rental industry desperately needs a strong public re104

VRM Intel Magazine | Winter 2020

lations initiative to generate positive media attention and educate travelers, homeowners, and investment communities about the value and benefits of vacation rentals. Who is going to tell our story if we don’t?

How Much? Crowdfunding Widespread PR Campaigns The problem has been that that this type of PR initiative is costly, and we haven’t had a way to come together as an industry to support comprehensive media campaigns. Solution: We are essentially crowdfunding the PR effort by selling business listings on Ornacor.com to vacation rental industry service providers.

How it works: Vacation rental professionals can purchase and upgrade listings on Ornacor.com, and the website will be marketed primarily to homeowners looking for local managers and service providers in a Yellow-Pages-meets-Angie’s-List-meets-Capterra format (without the Angie’s List multi-click lead-generation model).

Ornacor’s listing fees vary depending on the number of markets you want to reach, and the cost per listing starts at $40 per month. Proceeds generated from listings on the site will fund a widespread media relations campaign using articles in mainstream media outlets, videos, ads, research, and consumer studies to educate travelers, homeowners, and the business world about the value of professionally managed vacation rentals. Key Data is also contributing to the initiative by providing aggregated performance data. The more vacation rental professionals that participate, the more we can accomplish with PR campaigns.

Additional Benefits: Ornacor’s homeowner marketing strategy helps you reach more potential owners with your property management company’s value proposition via your company listings. In addition to vacation rental management companies, we are also adding listings for other industry stakeholders (i.e., technology providers, real estate companies, and local service providers) that benefit from positive media. As a result, we will be able to build a more comprehensive database of industry stakeholders to combat detrimental regulations as they arise.

We Need Your Help For far too long, funded startups have been providing media outlets, homeowners, and consumers with inaccurate information about the vacation rental industry. We feel strongly that now is the time to come together as an industry to tell our story and begin driving a more favorable and widespread narrative in the media. We have added Connie Carlisle to the Ornacor team to lead our listing-participation efforts, and you can contact her directly at connie.carlisle@ornacor.com to join this effort, secure top-tier placement for your company, and help us tell our industry’s remarkable story.

Coming March 2020 Ornacor.com and Second Home Report

It’s time to level the playing field. Vacation rental providers—both managers and homeowners—have been witnessing the industry fundamentally change before our eyes. While many changes have been positive, disruption is causing chaos for managers and misinformation for homeowners and guests. We believe it is time to come together as the powerful vacation rental ecosystem that we are and use our collective voice to address industry changes and provide education for guests and homeowners. Second Home Report and Ornacor.com are being built to: Educate homeowners about asset management, guests expectations, and best practices. Create a comprehensive vacation rental ecosystem directory to help everyone in the industry find professionals who provide services, technology, and products specific to the vacation rental industry. Provide much-needed PR initiatives to educate guests about how to find and select vacation rentals and educate the investor community about the reality of our industry. Aggregate the supply side of the vacation rental industry to bring all stakeholders together to battle nonsensical regulations and push back on major policy changes at OTAs. Let’s join hands to secure the vacation rental industry for generations to come.

ornacor.com | secondhomereport.com VRM Intel Magazine | Fall 2020 2019 VRM Intel Magazine | Winter

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