Maximizing Revenue vs. Minimizing Availability
Every homeowner has objectives ~ And each one is unique
“First off, it’s important to recognize that not every owner has revenue as their primary goal when it comes time to rent their home,” says Owen Miller, Head of Revenue Management. This mentality is just one of many mindsets that makes InvitedHome so unique. While the philosophy itself may not be a new one, seeing it actually implemented into a property management model certainly is.
Armed with years of experience maximizing revenue for the airline industry, Owen’s goal is to consistently improve revenue for InvitedHome’s homeowners with customizable solutions based on their individual needs and objectives. And whether that means setting up custom guidelines for their home or simply focusing on generating the most revenue possible to reinvest in the home itself, well, that’s entirely up to the owners.
“Our HomeCraft™ product ensures that an owner’s goals are at the forefront of how we manage their home,” says Owen. From there, how the rest of their revenue-driving strategy develops is direct, but malleable. But truth be told, there are myriad ways to add value to any high-end residence. Owen shared with us some of his favorite tips and techniques, and how he encourages imagination when it comes to both revenue - and the enjoyment of - your vacation home.
I. Upgrades and Updates
It should come as no surprise that many of InvitedHome's homeowners have expressed the desire to preserve the unforgettable memories from their vacation home by passing it down to the next generation in their family. One of Owen’s favorite examples of this is a homeowner who was determined to take some of the proceeds from renting their home and let those profits ride in order to consistently update and upgrade it.
“He’d turn tile counters into marble and granite one day, and then turn older appliances into a chef-worthy kitchen the next,” Owen says with a smile. “Then he’d add a hot tub and fire pit to an already great patio. And now, not only is their family enjoying their vacation home more than ever, it’s more attractive to prospective guests and he’s earning more revenue. It’s a win-win situation.”
II. Peak Performance Availability
The pleasure your vacation home brings you and your family is, of course, paramount. But ultimately, the added value an InvitedHome partnership delivers is keeping you aware of the little nuances that can make a big difference in the long run. “Be conscious of when you’re choosing to use your home,” Owen advises. “And when possible, look for dates that don’t overlap with the highest demand periods for incoming guests.”
“Some owners strategically wait until after most bookings have come in for a given season,” he continues. “And then fill in the gaps accordingly.”
III. Off-Season Rate Flexibility
Like any successful partnership, having some flexibility with your vision can only help to optimize your ROI. Owen believes the more authority owners can give his team to precisely set rates and minimum stays throughout the year, the more they are able to refine and retune profitability streams.
“One of the best ways we typically affect guest revenue is by increasing occupancy in the non-peak seasons,” Owen affirms. “And that sometimes means lower nightly rates.”
But that does not necessarily mean lower returns. By advantageously combining some of these simple tricks of the trade, any perceived decrease in home-driven income can easily be supplemented on the back end during holidays and other peak seasons in your luxury home’s destination.
“Our job is to meet your goals and generate the most from your home throughout the year, not just during the peak seasons," says” says Owen. “Our most successful owners have confidently allowed us to do just that.”
For additional information, please contact a Homeowner Experience team member at (855) 666-8064.
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