I've organized the traits into categories so you can go through like a checklist. And if you would like any further information, please just jump into the thread on VRMB Communities here.
Note: Profitability does not discriminate. Whether you own one property or manage 1,000, these should all apply to you.
This list is not complete, it's only what I came up with over the last few days.
If you have any questions about how to execute or traits you'd like to add, please jump in below!
Note: Profitability does not discriminate. Whether you own one property or manage 1,000, these should all apply to you.
Pricing
The most profitable VR pros know their value and have a clearly-defined pricing strategy that ebbs and flows based on supply/demand.- Refuse to dip below a certain price per night (because they know it's a slippery slope to the commodity bottom)
- Increase prices as high as demand permits in order to maximize profit (treating repeats/referrals to VIP discounts)
- Know when to accept/promote extended stays for cashflow
- Download reports from market data companies to keep a pulse on supply/demand
- Charge non-refundable damage deposits
Technology
The most profitable VR pros take advantage of the tech at their fingertips to automate specialty or redundant jobs.- Use a property management software to accept direct online bookings
- Familiarize themselves with new technology and are willing to demo new tools and ask "stupid" questions
- Refuse to automate some things (for which manual is more profitable) but also realize when they're just being stubborn/resistant to change
- Enlist technology to get OTA guest's contact information for re-marketing (post-departure)
- Hand-make their own technology (love these people!)
Advertising & Marketing
The most profitable VR pros have a marketing budget and cohesive strategy to convert paid advertising (OTAs, PPC) into bookings and bookings into repeat / referral guests.- Obsess over the ratio of direct bookings to OTA bookings
- Use email marketing to regularly communicate with their email list
- Build their email list slowly but surely (quality over quantity)
- Use some element of talking-head video in the booking process to convey trust and respect
- Use some element of video in a paid advertising campaign (paid video is the cheapest traffic channel)
- Are constantly on the look-out for new niches (ex. farm-friendly, eco-friendly, pet-friendly) and new niche listing sites
- Know approximately how much it costs to acquire one booking (making the decision to test new lead channels fairly black & white)
- Do A/B testing to increase conversions in each step of the customer journey
Employees
The most profitable VR pros pay their team really well so that turnover (new training costs) stays low and review counts high.- Have standard operating procedures and communications systems in place so that if an all-star employee leaves, someone new can fill the role
- Reward their team financially with positive reviews (this leads to employee satisfaction and less turnover)
- Treat their team like family (ex. giving freedom/flexibility/unnecessary days off, making numbers transparent, bundling bonuses with growth)
- Communicate well with their team using photos, videos, text, phone, and in-person love
- Personally the most profitable activities (ex. reservations, marketing) and outsource or delegate everything that others can do better
Success
The most profitable VR pros have a clear definition of what success means to them in the form of short- and long-term goals for the business.- Have "upper boundaries" or limits to good growth (in order to maintain quality of life)
- Know their numbers: can lift up the hood and make adjustments when costs/income goes up/down (don't know your numbers? Time for an audit)
- Are especially focused on metrics like booking revenue/profit, ratio of direct bookings (to OTAs), quality/quantity of reviews, property count (for VRMs), revenue per property (also only for VRMs)
Pandemic Response
The most profitable VR pros know that if you don't give back to your community, eventually it will destroy your business.- Donate $/night to local causes or buy credit at small businesses in community
- Send guests to local businesses (and have arrangements so that those guests are treated like VIPs) helping communities recover
- Participates in their local STR alliance (showing up to advocate is directly correlated with long-term profits)
- Have their home(s) inspected for safety hazards (a quick way to be unprofitable)
- Clearly convey safety, cleanliness, & travel updates to ensure safe stays
This list is not complete, it's only what I came up with over the last few days.
If you have any questions about how to execute or traits you'd like to add, please jump in below!
Last edited: