Venturing into the travel industry is always exciting because of the huge potential it offers for business owners. According to Statista, the vacation rentals segment is growing at a rate of 3.7% per year and it is expected to get to a market volume of US$97,010m by 2023. The above numbers clearly shows that this is the right time to get into this market segment as it can fetch good returns over the next few years.
That said, here are some tips for a profitable business.
Set your objectives right
As with any business, the first step towards becoming successful in the holiday homes and apartment business is to set clear objectives. Why are you in this business in the first place? To make money obviously. But besides that, what are your other objectives? Do you want a holiday cottage that you can use for your family during the holidays and rent it out other times or do you want to stay in it and run it throughout the year? Answers to these questions will give you the much-needed clarity on what your goals are and how you want to run it.
Choosing the right location is the key to a lucrative business. If you want your holiday home to be full all through the year, you should choose a popular tourist destination to set up your business. While doing so, make sure to check out your competitors and their offerings, so you can offer something unique that is not available in that location.
Once you decide on the objective and location, the next step is to look for the right property and furnish it well to attract guests. But before doing that, you should know your target audience so you can choose a suitable property. Do you plan to rent it out for bachelors and beach parties or do you want to give it out for families alone? Determining the target audience will help you to choose the appropriate property and furnish it accordingly.
This is probably the biggest challenge you'll face while setting up a profitable holiday home business. Remember, this is a competitive market where you have to tell your potential visitors that what you're offering is unique and significantly better than your competitors’. One good way to showcase your property is to tie up with sites like Interhome.co.uk that provide the right platform to connect you with potential customers.
Besides these platforms, you can also come up with your own marketing and discount strategies to woo customers to your place. Online advertising with organic and paid search can also boost your property's visibility to customers.
Match it up with service
Setting up your business and marketing it alone is not enough. You should ensure that you offer top service to customers, so they will come back often and will also refer you to their friends and relatives. Such word-of-mouth marketing is the most inexpensive way to popularize your holiday home, so make sure you go that extra mile to satisfy your customers in the best way possible.
Thus, these are some of the tips for starting a profitable holiday home and apartment business.