⭐ What is the benefit of Revenue Management for a short-term owner?
Whether you are a manager of seasonal rental properties or yourself the owner of properties operated on a short-term basis: what is the point of revenue management? what does that change?
What we will share could also help you gain some traction if you have to explain all this to your owners (as a manager).
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Hello and welcome to the J'poster Complet channel, the channel which helps seasonal rental companies, professional sub-renters and seasonal rental concierge services to increase their turnover and become serene and ultra-profitable entrepreneurs. Welcome to the J'poster Complet channel, we do a Live every Tuesday and Thursday at noon, and today, you are on the video of a Live.
Today's Live will deal with the interest of revenue management, the famous methods that we talk about so much on this channel I'm showing Complete: the interest of these methods for an owner who is short-term , who has a house, a chalet or whatever for short-term rental, seasonal rental, and who says to himself: “OK, I see what Élise is telling me, but what is the real interest for me? don't see too much. » This video will be useful to you if you are also a property manager, manager for owners. So either you are a concierge or a real estate agency, and you yourself are convinced by the interest of this, or you have owners, who themselves are not really, they ask themselves: “What is What is the benefit for me of having these practices for my real estate? » So I'm answering that question today. We'll talk about it together. I will bring you all the marbles, to both answer this question yourself, if you ask it, or otherwise provide answers to the owners with whom you deal as part of the property management that you do.
When you arrive, don't hesitate to say hello. It's always a pleasure for me to see you with me on these Lives, and to be able to chat together. That’s really the point of being live. So there you have it, don’t hesitate.
– Hello Maxime. Welcome. Maxime watching us from Facebook. Hello to you.
– “Hello.” Hello to you. I don't see your name, but listen, welcome to you.
Please note that we are now also live on Instagram. I have narrowed down the places where you can see these Lives a little, so you will now only be able to see them from our YouTube channel. So, you have to subscribe and click on the bell to be alerted when I go live, and you will also be able to see them on our Facebook group. This is a group of people who, like you, want to become serene and ultra-profitable seasonal entrepreneurs. So don't hesitate to join, you have the link which is right in the comments, plus a gift when we arrive. Isn’t that great?
– Hello, Jimmy, I hope you are well. Welcome to Live.
- Yes. What did I say? Maxime, you are right to correct me. I don't know what I said, but apparently I completely messed up. So, yes. You're on YouTube with us, thanks for correcting me.
– Hello Najat. Welcome to live.
We're going to get to the heart of the matter. Please forgive me, I have my little notes here, because I wanted to be sure I didn't forget anything to share with you. I have put together 6 reasons for you - I can't even show you with both hands, since I am holding my microphone with the other hand - 6 reasons which are crucial, to really tell you: "Is- What is revenue management for me? » Now, the reality is that if you are a short-term rental owner, the reality on the ground is that we can no longer do without revenue management. This is one of the standards of our profession, and the difficulty, too, is that if you choose today to do without it, the more time passes, the more your competitors will catch up. , and the more your gap will widen with the others.
So the first point on that, moreover, which is an additional point compared to what I noted for you today, the first point, is to start saying to yourself: “OK, it’s is a standard of my profession. It’s as if I were saying to myself: “Do I want to make a pretty decoration or not for my seasonal rental?” We all agree that it's impossible to think like that. Now, if we want to do something that is a hit, you need a decor that is very cool, in keeping with the times, that appeals to as many people as possible, and that has a style. It’s the same for revenue management. This is a standard in our seasonal rental business. Now, we can no longer do without it, and the more you choose to do without it, the more the gap will widen between your performance and that of others, who will be more and more up to date. So that's the first point. Now, if we say concretely: “I am an owner, and I really ask myself the question of knowing in particular whether I should invest in this, if I want to train myself, if I want to entrust this to someone. What will this bring me, concretely, as an owner?”
The first point, and you will see, I am not immediately talking about money, but the first point, in any case of maximizing turnover, the first point is that it will have the effect of smooth out the instability of income you have in the year. I noticed that for a certain number of cities, when the owners do not do revenue management or are accompanied by a manager who does not do revenue management, we have enormous instability in revenue. That is to say that when periods are periods of low demand, we have huge dips in occupancy and financial performance. On the other hand, it increases during periods of high demand. When we do our revenue management well - obviously, there are always periods of slack, I mean that we remain in a seasonal profession with its impacts - despite everything, when revenue management is done well, when we manage to achieve good results. adapting our prices in advance and anticipating the weakest periods, we still manage to achieve a decent level of filling during periods of low demand, even if, as a result, demand is not very present. And this is what allows you, as an owner, to have greater smoothing of income, and to avoid having these huge gaps, in fact, between strong periods and weak periods. Because all the actions we have put in place have made it possible to improve performance during periods of low demand. So from an owner's point of view, it's really very important to say that this “seasonal” effect of our job and the exercise we do is smoothed out and is less impactful when we are good. in revenue management.
The second point is that we therefore have greater visibility on market trends and future wars. In fact, when we do revenue management, we have tools that will help us see things clearly: tools like AIRDNA, market statistical tools. And we ourselves also have tools to monitor the performance of our properties in the short term: financial performance, with indicators such as the occupancy rate, the average price, the revpar too. These two parts of tools, therefore the market tools, so as not to only look at “our navel”, and the tools on our own performance are tools which will give enormous visibility. And this visibility is the door to better understanding, an ability to react, and therefore serenity. And it’s true that in seasonal rentals, there are still many opportunities to lose your peace of mind. We have to say it to each other, we are among ourselves, we can say it to each other. Profitability is very good in this activity, but we know why: because there are a lot of things, there is still a certain mental load, and whether you manage alone or whether it is a manager who manages for you, that's still a lot of things that can be sources of concern. Having good visibility on the future is essential, because it also gives you the peace of mind of being able to either anticipate or see in advance that things will go well.
I'm making a parallel for you, because it also gives full meaning to what I usually say at the start of the video. I always say: become a serene and ultra-profitable seasonal entrepreneur. Well, this is where we get to the heart of the “entrepreneur” part. Even if, perhaps, by having apartments, you are the owner of a house, an apartment, a gîte, you perhaps did not particularly want to become a business manager, but it is It is true that mechanically, you are at the head of a commercial activity. And imagine any business manager who doesn't have a management tool, and who, as a result, it's November, he doesn't know if in November he made a lot of sales, he don't know if in December he made a lot of sales. It's impossible. So that's why this anxiety, this lack of serenity about the performance to come, is not abnormal, it is sometimes simply linked to a lack of tools. And getting up to speed on revenue management gives you these tools, and therefore, peace of mind. This is the second point which is really important.
The third point is that we also work, when we do revenue management, on the length of stay in the apartment, and therefore the length of travelers' stays in the apartment. That's interesting. This will have the effect of improving the fill rate, because as a result, we have less Gruyère in the calendar, and as a result, it improves the fill rate. But there is a second effect which can be induced and which is quite positive. This means that we also reduce the turnover rate in the apartment. And that's good, because it's certain that the longevity of an apartment can also be associated with the reduction in the turnover rate. The longevity of the furniture, too. So it is certain that if you operate an apartment in one night, all year round, for ten years and an apartment in which we have managed to stay for three or four nights, perhaps even more over the periods of very high demand, that makes all the difference. It's certain that the wear and tear of the furniture... we could even talk about mental load, because that means fewer arrivals, fewer departures. There are also fewer problems in general. But just the wear and tear of the property, the wear and tear of the furniture, it is reduced, necessarily, mechanically. So that's also important as an owner to say to yourself that good management of the price of length of stay can bring this kind of induced benefit, which is not obvious at first glance, but which, in the end, really matters.
Another point. I spoke to you about six points. I gave you 3. I'll watch if you have any questions for me, I'm halfway through the video. Do not hesitate to tell me, by the way, if you have any questions along the way, with great pleasure. I look on Instagram.
I have Sandra who tells me:
– “Hello Élise.” Welcome, Sandra, I hope you are doing great.
– Thank you, Sébastien, for following the video. It's a pleasure. Sébastien, who gives me his hands in the air like that. Thank you Sébastien.
I have no questions at this stage, so I continue to share all the marbles with you. Please feel free to rate. Obviously, you can watch the video again on replay. But especially if you yourself are a manager for other owners, don't hesitate to note down all these little arguments which, perhaps, over the phone, will help you to emphasize the importance of what you do, particularly on revenue management with owners.
Sandra tells me:
– “I’m fine, thank you, Élise.” Oh yes, I'm happy.
So we saw three arguments. Now I'm going to share a fourth with you. Revenue management, and I only say it in fourth position because it’s the prejudice we always have: “Revenue management will increase prices.” Sometimes, people even have this idea of saying to themselves: “Ah! They are obsessed with expensive prices.” That's not it, but we can have this prejudice, and I understand it. In any case, it's true that during periods of high demand, we try to increase prices, because we know that we will sell out. The fact of always trying to have our prices as high as possible, this intellectual approach, and this dynamic of testing prices, is also positive. There is an induced positive aspect which is also linked to the customers who will frequent the apartment. It's true that we can, at lower prices, this is obviously not the absolute truth. We all have examples in mind where we had priced the thing at 135 euros per night, and we still had a party or we still had a person who came to prostitute themselves, etc. So we agree, you and I know, there are always exceptions. This is not the absolute truth. But the reality, nonetheless, is that the higher our prices are, the more we foresee, nevertheless, a certain number of problems like that, or people who might not be very careful. So, having this approach of pushing prices upwards will also be beneficial for the customers you welcome: customers who are used to paying expensive prices, who are also, probably, perhaps , a connoisseur of high-end hotels, who will already be very happy with what you offer, and who will be respectful of the place. So that's the fourth positive point when you're an owner and you ask yourself: "Is it worth it or not for me to do revenue management?" » So the fourth positive point that revenue management brings.
The fifth point is precisely having a keen eye on performance. We are better prepared for the unexpected. For example, when we do revenue management, we have the tools to know if our cancellation conditions are adapted to our tendencies. And that allows us to adjust them if we see that, for example, we have a riot of cancellations, and that creates a post on the performance. What I notice is that when we are not equipped or when we do not monitor performance in a quantified way, we can have the impression of saying to ourselves: “I have cancellations. Do I need to change? » But we remain in doubt. Whereas if we refer to the figures, we can absolutely say to ourselves: “OK, here, my cancellation conditions are not suitable, I am going to tighten them a little, or conversely, I am going to lighten them. » So we protect ourselves with good cancellation conditions, we protect ourselves from unforeseen events, and even if we subsequently have cancellations, in revenue management, we have the tools, precisely, to know how to react in these circumstances. , and knowing how to put the best levers in place to achieve good results despite this unforeseen event. So that’s interesting.
I have another example, too. These are tools to deal with days on which we cannot welcome travelers or we cannot do housekeeping, and therefore, we cannot have two traveler outings. In these cases, the system, if I give the example of Beds24, for example, allows us to block arrivals or departures, but not necessarily the stay. That is to say, we can have someone in the premises, but we cannot, as I have just said, welcome or do the cleaning. It's the same. One might think that revenue management is a completely irrelevant subject. And actually, no, not at all. Revenue management supports you in these situations, because what are we going to say to each other? We're going to say: “OK, I can't have someone coming, I can't have someone leaving. » What type of day is it? Is this a day on which there is a lot of potential for two-day or three-day stays? And what we are going to do is put all the settings in place: the right price and the right length of stay, to ensure that we will have someone in the premises, but who arrives before or who arrives later, and we can still obtain turnover from that day, even if it is true, she leaves with a bit of a handicap. So, in all these unforeseen situations, cancellations, managing the cancellation conditions, this kind of constraints, also, operational, on arrivals, cleaning, revenue management, it is a support to have, despite everything, a good financial performance. So it's really important.
The sixth, which I left for the end, because I think it's the one you were thinking about from the beginning, and obviously it makes perfect sense, revenue management, for an owner, is quite simply the opportunity to increase your turnover. This ultimately remains, obviously, the number one mission of all of these methods. You will have noticed that I did not say: “increase the filling of your calendar”, because sometimes, we gain more financially by filling a little less, but more expensively, rather than wanting to force filling to 100%, so that in fact, it is not the guarantee of the best financial performance.
So there you have it for the six elements that are really interesting when you own an apartment, a house or a short-term gîte and you say to yourself: “Is revenue management In my opinion ? » So you see, it really has all these benefits. For me, it's really important to have that in mind. And if you are, as I told you, a short-term asset manager, these are all arguments that you can share with your owners to show them how important it is and it is a standard of our profession today which we can no longer do without.
So. I hope this is more helpful to you, that it might have helped. It's a question I'm often asked: "What can I say to my owners to explain to them the point of all this?" » And so, I hope that can help.
– Mélanie says to me: “Hello Élise”. Welcome, Mélanie, I hope you are well.
– Maxime tells me: “How to train in revenue management? »
How to train in revenue management? I know, I don't know if you know, but I know a company that is very good for training in revenue management, called J'poster Complet. I'm kidding you, but it's actually true. We are one of the only ones to train seasonal rental companies in revenue management. It’s part of our missions. In fact, we have two missions at J'annonce Complet: we train the rental companies, therefore the owners, or the rental companies who have a few properties, therefore 1 to 2 – 3 properties; the managers of lodges, too, or guest houses. We train to assimilate these methods in order to be able to be autonomous afterwards, and benefit from them, over 10 years, over 15 years, and have a 10 times return on investment. That's our number one mission. And our number two mission is, I think I had the opportunity to talk about it quite a bit on the channel, it is to support property managers by taking care of this part for them , by joining their team, in fact, and taking care of that part for them. But it's true that we really have two parts, because obviously, when we have a gîte, when we have an apartment or a house, it's not necessarily sufficient or relevant to subcontract that part to I display Complete. So in this situation, what we are going to do is that we are going to come and train with us instead. We learn exactly the same methods that we put in place for our property management clients, so there is no speed, there is no method. It's really the same thing that we pass on to allow everyone to be autonomous with these tools and to have the peace of mind and the money they deserve.
– Mélanie tells me: “I completely agree, the price automatically allows the sorting of customers. »
It's true, eh, it's true. There is still a mechanical effect on that.
– “Thank you, Élise, for these points.” Please !
– Mélanie said to me: “Thank you for these super interesting Lives. » Thank you.
Thank you, in fact, for being with me. There are always a lot of you, it's really a pleasure, I must say. It's really a pleasure.
– On Instagram: “Thank you Élise. It really corresponds to what I think too. » Top!
– “In Martinique, things are picking up a little, it feels good. » Ah, great, great.
It's true that in the West Indies, I saw that there is a recovery there, and it's really great. It makes me really happy. And besides, for the Antilles, there is also a resumption of international flights which will, I think and I hope, re-drain a population that will come from the United States, Canada and even Europe. So that too will help boost activity in the Antilles, so that’s super cool.
– Hello to you, how are you? I hope you're well. Can you also tell me if you have seen a recovery in Martinique?
– Philippe said to me: “Do you take the rights to training? »
We are currently in the process of training. This is a question I am often asked. Claire, in our team, is in the process of training, precisely, to be able to get us to join all these administrations, CPF, right to training. As of today, I cannot say yes to you, because that is not the case yet. We ourselves are in the process of training to put it in place, for our training I display Complete. So here it is in relation to that. This will probably be the case during 2022, because I know it takes a little time. The procedures are quite complicated, so we're on topic. It won't be right away, but we're on the subject, because it's true that we're being asked.
– “Hello from Guadeloupe. » Great, great. THANKS.
Listen, if we don't have any more questions today, I thank you for being with me. It really is a sincere pleasure. It also gives me the strength to continue the Lives, I must admit, to be able to get together, to be able to talk to each other, it's a real motivation so thank you to you. If you have topics that you want me to discuss in these Lives, do not hesitate to share them with me. Do not hesitate to continue to ask your questions in the comments of the video on YouTube, on our Facebook group, or on Instagram. I make sure to come back to make sure I answer all the questions, even those that were asked after the fact. So there you have it, don’t hesitate. I thank you warmly, and I will see you on Sunday for a video on the YouTube channel: a really very interesting interview, you will see. I find that they are always interesting, I think I have to say that every time, but frankly, each time, there are different subjects, it's really fascinating. Otherwise, I'll see you Tuesday at noon for the next Live. Take care of yourself, have a good weekend, and then see you next week.