2.8 Operations Plan

CHAPTER 2

How much are my competitors charging per night? If you are at $250 per night, look for similar comparables. • Competitor 1—$225 • Competitor 2—$250 • Competitor 3—$300

Using this information, you may decide to drop your prices below $250 to become the cheapest option amongst your competitors and increase your booking rates.

Do they offer airport transfers/pick-up service? • No • Yes, but for a very high price • Yes, and for a reasonable price

Do they offer a wide range of amenities in the house? • No, most don’t even off er Wi-Fi • Yes, some off er basic things like a washing machine and television • Yes, all off er basic amenities and some even include luxury amenities (like a swimming pool or gym)

2.8 Operations Plan

The operations plan is a detailed summary of how you are going to run your new business on a day-to-day basis. It will take into consideration things like whether you will be hiring any staff , what standards and policies you will set, how you will keep track of inventory, and other administrative duties. This is going to be one of the most straightforward parts of your business plan, as chances are good you already have most of this planned in your head.

Here are just a few helpful prompts and examples in case you get stuck:

WEALTH AS A VACATION

Am I going to hire any staff? • No, I’m only renting out one room in my home, which I can handle myself. • Yes, I’m renting out several large apartments and I have a separate, full-time job. • No, my partner and I will do the work together.

Who is going to clean the rentals between guests? • A cleaning agency • Myself • A neighbor • A family member

Do I need to hire an accountant to help me handle the fi nances and taxes associated with my business? • No, I’m comfortable dealing with all of those things. • Yes, I don’t know the fi rst place to start when dealing with taxes or business records.

Who will deal with bookings and customer complaints? • Me. With only one home, it will be very manageable. • I will hire an assistant to help with all of this administration stuff ; I won’t have time. • My daughter/son. It will be a good part-time job for them and give them an allowance. • To keep things simple, I will use software: a vacation rental booking system and channel manager tool like the one at lodgify.com.

2.9 Marketing Plan

Present (to yourself) the vacation rental marketing strategies you will be deploying. Think about both online and offl ine marketing, as well as any campaigns or promotions you plan to run externally.