CH A P T E R 2
Are the interiors of your property different or better than the rest?
• Have you designed and decorated to create guest retention? • Are there special themed rooms, a pool area, a game room, a hot tub, a spa-like bathroom, etc.? • Is the design linked to the guest profile in the area, family vacation, groups, golf, skiing, beach fun?
2.5 Industry Analysis For your VRP to be consistently profitable, you’ll need to be strategic and competitive in your company management plan. Again, do your homework! Dig into the most current industry data and trends for your region or area. Know the industry from a macro perspective, then drill down to the micro. Study other similar businesses to yours, look at and evaluate their strategies. You do not always have to reinvent the wheel. Sometimes the model is out there and you only need to follow an experienced VRP investor’s example. Of course, you’ll want to tweak that example a bit to fit your personal situation. One of the ways to do this is by carrying out an industry analysis. This is basically looking at other businesses in the industry and evaluating them. Doing so will help you craft your own successful business strategy and make sure you’re the owner who comes out on top. Here are some sample questions that will help get your industry analysis started: What is the average daily rate (ADR) of VRP similar to mine in the same location?
• Would you class it as affordable or good value? • Is it low-market, mid-market, or luxury/ultra-luxury? • Think about the figures you come up with in relative terms, weighing the value of what the business is offering against the price they charge. This will help you start to price competitively.
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