To read this Investor 2.0 podcast, here is the link: investors40.com/022
Text by Paco Debonnaire on the podcast
In the short-term rental market, there will be a BEFORE and an AFTER covid.
While the last years before covid saw an influx of investors focusing on the short-term rental activity out of opportunism but without really having a structure, method or experience, well the covid crisis has reduced cards and is seriously cleaning up the market. Exit the amateurs, and make way for the professionals.
As a result, for investors who remain in this segment, it becomes essential to structure themselves and professionalize themselves to adapt to a more volatile and uncertain booking demand. A tool that allows this to be done is Revenue Management, a specialty practiced for a long time by hotel and tourism groups but until now very little known or used by individual investors.
To talk about it with you today I invite you to have a conversation with Elise Ripoche, who spent more than 10 years in the Revenue Management (or RM) departments of multinationals in the display advertising, hotel and travel sectors. tourism, before setting out on his own to support independent hoteliers, concierge services, and, naturally, seasonal rental companies to maximize their turnover.
The episode is divided into 2 parts:
In the first part we talk about Elise's journey, her promising career, her evolution in the company through positions with ever more responsibility... and then the awareness of the absurdity of this headlong rush, until the decision, at the time, frightening for Elise, to leave everything and dive into entrepreneurship, while managing a first maternity ward.
In the second part of the episode, and once the context has been established, we will discuss with Elise the specificities of revenue management from the investor's point of view:
the lessons you can learn from hotel groups (of which Elise was a part),
the essential tools you need to adopt to get started,
the changes in mentality to make to perform better (and why focusing on the occupancy rate can mislead you)
the levers other than price that you can activate to boost your sales
If you are an investor in LCD this episode should obviously interest you since we discuss practical advice and thoughts on how to perform better.
If this is not your case, but you are interested in entrepreneurship (real estate or not), then you will find in this episode a great source of motivation and inspiration, especially when listening to the circumstances that led Elise to take the plunge and transition from her job to entrepreneurship.
Often, there are cases of people who have a filling who say to themselves: “Ugh, will this really benefit me? » And yet, it is often in these circumstances that we manage to find the best growth, because sometimes, if the calendar is so full, it is because we are much too low, in fact, in terms of prices, and that we have the possibility of drastically increasing average prices. I realized that ultimately, our needs only come from the level of money we have. Uniquely. And it's quite interesting to realize that. I realized it too, because obviously, it changed my lifestyle and my standard of living at least temporarily. But at the beginning, it's normal, you have to accept it, I realized that I had lots of false needs. I had lots of false needs. And so, I worried about things that had no basis.