Running a holiday cottage company comes with its ups and downs.
For the pros, you probably dream of having a side income while simultaneously owning a destination property that you can holiday in regularly. As for the negatives, you also have probably seen that this is easier said than done.
As of 2019, the UK holiday rental market consists of around 168,000 properties and generated £2.1bn that year. The Office of National Statistics estimates that 40% of 35 to 44-year olds in Britain used a homestay type accommodation booking service in 2017 such as Airbnb, Booking.com, Homeaway etc. That figure has since skyrocketed, thanks to the 2020 ban on international travel and subsequent travel difficulties, so there has rarely been a more promising time to run your own holiday cottage company.
But whether it is Airbnb hosting or another website, you may find a holiday let management to be a challenge.
So, what can you do? What are the secrets to success?
This is some of our best advice.
One of the top things that you can do for your guests is to provide exceptional customer service. This will leave them more likely to leave you positive reviews, which increases your ratings as a host overall.
So, how does customer service play into this? It makes your guests feel heard and feel like all of their needs are being taken care of.
Clear details and answers to any questions are important here. Customers appreciate clarity, even if the answer is not always what they want to hear.
Also, promptness to any questions your guests might have is important too. The average response time to customer service inquiries is generally around 12 hours.
However, some businesses take over 24 hours to get back to customers at times, while other businesses do not respond at all. Customers want to be heard, preferably as soon as possible. In a perfect world, they would like you to respond within the hour that they send in a question.
Understandably, this may be a lot to do all by yourself. But, there is the holiday let agency option that provides services such as 24/7 check-in and guest support.
With the right customer service, it can make your guests feel excited and taken care of before they even arrive on your property.
This ties in with good customer service because here, the little things can truly make a difference. You can offer little amenities that other hosts may either be too cheap or too lazy to offer or just lack the foresight to think of it.
One example could be some brochures of some local attractions. Say your holiday cottage is an apartment in Devon. You can put out brochures with information on popular nearby such as the Woodlands Family Theme Park, Dartmoor National Park and Blackpool Sands.
Then, there could be things in the room your guests need like shampoo for the shower. Not all guests have these on them because of air travel, and hotels generally provide this for them, so they may not think of it.
So, you have the opportunity to make your guests truly feel more at home with a little item like shampoo being stocked in your shower. Then, you can offer extra luxury amenities such as a coffee machine, bottle of wine or locally sourced nibbles.
Most importantly, you are going to need a good cleaning service in order to keep your amenities well-stocked and your property clean. This can make the difference between being able to have another guest come in the same day, and having the room be delayed by a few days to get it ready.
People will remember the amenities, and it can be another note in positive reviews of your holiday cottage.
Organisation will make your life a lot easier when running a holiday let company. You need to be up to date on every aspect of your holiday space, and everything it takes to keep it operational.
Did you take dates off of other booking sites that somebody already booked? What are your costs of operating the holiday cottage versus the revenue that you get? Did you tell your cleaning service the right day to come and clean your holiday space?
These are just a few of the questions that you need to have answers to on a regular basis when it comes to running a holiday let company.
If you are not organised, then your entire process can get out of control. For example, if it costs £3,000 per month to keep your space up and running, but you only have two weeks per month booked most of the year at £100 per night, you are not charging enough to keep it sustainable.
If you forget to tell the cleaning service to come on 28th September when the next guest has the place booked that day, that is the type of thing that can ruin any chance at a positive review.
Organisation is the key to keeping your business operating smoothly while still making a profit.
Finally, you have to show your place off. People need to see what you have to offer because they could be from the other side of the world deciding what place they might stay in your city for several weeks.
It DOES make a difference to have high-quality photos posted for your holiday space, preferably by a professional photographer. Why is this?
Because properties with professional photos have 40% more earnings than if they didn't. On top of that, only 43% of holiday rental owners use professional photos for their property.
You need to have photos of your property that will capture the attention of your potential guests, and having professional photos will make you appear like a more professional host.
Owning a holiday cottage company can be a rewarding and profitable experience. But, do you want to know another way that you can increase business?
With the right holiday cottage management. If you need help with your management, come and discover us and see if we are the right fit for you!