Why holiday letting companies are losing 57% of their customers
Earlier this month, we learnt from Google that a staggering 57% of holiday let bookings drop off because the customer cannot see that their additional needs can be met (1).
Ultimately, this means that holiday letting companies are missing out on a large portion of their potential revenue. Simply because their guests can’t be sure that the property is the right fit for them, so they go elsewhere.
And there isn’t a lack of other options. Globally there are over 115,000 holiday letting businesses (2). This is a highly fractured market, with only 10% of businesses managing over 100 properties, whilst 70% have less than 19 properties.
So, in this highly fractured market, how do you stand out?
With minimal time to convince potential bookers, and a fiercely competitive environment with plenty of alternative booking options it is key to show that you can meet all their needs upfront.
Airbnb know this, and alongside their accommodation, they are offering experiences and adventures.
This is not to say that Airbnb’s revenue model is changing drastically. The vast amount of their revenue is still from the accommodation. Nevertheless, by wrapping experiences around their accommodation offering they create a platform that attracts, and converts, more customers looking for accommodation.
Wrap around experiences and services have always been seen as secondary to the accommodation itself. But that’s changing.
These experiences and services are now a critical factor in booking accommodation, instead of a “nice to have”.
In fact, most businesses know this already. The challenge isn’t knowing what to offer (as shown in the graph below (3)), its offering it without a massive effort and cost investment upfront.
Some of these are easy to offer such as late check / out early check in, and take little management, however some of these are more complex; such as tours and activities, or a private chef.
To make this potentially costly transition smooth and cost effective, we believe the answer lies in partnerships. That is, to partner with companies that provide everything that your guests need, but without taking focus off the primary business of accommodation.
At Tobooka, we cover three of the more complex items in this list;
- Spa / massage services
- Private chefs.
Our focus is on larger groups of 8 or more, and we only work in the holiday letting market. This gives us the knowledge and focus to provide the best possible offering for our partners.
We work with letting companies of all sizes to enable them to offer these services in just a few steps, and work with them to create a tailored solution that works for them.
Our aim is to enable you to convert the 57% of customers that are currently booking with your competitors, that should be booking with you.
If you’d like to know more, please get in touch with our Head of Partnerships, Alex at:
1 - Shaun Aukland, Head of Global Travel, Google, HOST Event, November 2019
2 - Global Segmentation and Software Spend Among VR Companies, VRMA, http://arrival.vrma.org/blog/global-segmentation-and-software-spend-among-vr-companies
3 - Vacation Rental Insights & Hospitality Trends, Hostfully, March 2019, https://www.hostfully.com/blog/new-vacation-rental-study-highlights-hospitality-industry-trends-2-2/