If you are considering investing in a holiday rental, converting your home into tourist accommodation or if you have one already, you should not overlook the importance of having a good business plan.
Establishing clear goals, anticipating possible problems and managing them easily are all much simpler when you have a well thought-out business plan from the beginning.
Eight Key Points for Your Vacation Rental Business Plan
In this article, we provide a step-by-step guide of what to include in a business plan for a holiday rental or short-term rental home.
1. Prepare an executive summary of your holiday rental business
The first step in any holiday rental business plan is to have a clear and concise vision of what you want to achieve. In other words, you need to create a good executive summary.
What is your unique value proposition? Why should guests choose your property over others? Make sure you have a clear answer to questions like these.
In your executive summary, list your property's strengths and the type of experience you want to offer your guests.. For example, if your holiday rental is in a prime location or offers specific amenities, you should emphasise this from the start.
2. Establish your target audience
To make a proper business plan, you need to know who you are aiming it at. Do you want to attract families, couples, business travellers or young people? Each group has different needs and expectations, and your property must be equipped to meet them.
In addition, determining your market sector will also help you make strategic decisions about your property's amenities, services and even pricing. By tailoring your messages and descriptions to your ideal customer, you can position yourself better on rental platforms, such as Booking.com or Airbnb.
3. Analyse the market and competition
To succeed in the holiday rental sector, you have to study your competition thoroughly. Research similar properties to yours in the same area and examine their rates, guest reviews and selling points.
Market analysis will help you tailor your prices and make potential improvements to your property. Remember, in this sector, standing out means offering the customer added value: for example, the possibility of self-check-in or an optimal level of security and convenience.
4. Set your rates and calculate costs
One of the objectives of any holiday rental business plan is, of course, to make a profit. That's why this step is so important.
To find the most suitable prices, you have to consider factors such as seasonality, competition and your target audience profile.
You should also include a breakdown of the costs associated with managing your property. What are they? Some examples are maintenance and cleaning costs and online platform fees.
5. Take care of your marketing strategy and online presence
To attract guests, you should take responsibility for your accommodation's online presence as much as possible. In fact, without a good marketing strategy, you will hardly be able to attract attention from potential customers.
Here are some effective tips:
- Use high quality images and videos that capture the true essence of your property.
- Include relevant keywords in your listing descriptions to boost search visibility.
- Encourage satisfied guests to leave positive reviews to build your reputation.
6. Go for the best access management solution
Another thing you have to consider in your holiday rental business plan is that guests increasingly value flexibility.
For example, a self-check-in is almost a must for short-term rentals. So you should offer your guests this possibility of checking in at any time without having to see them in person.
There are some very effective solutions that can greatly enhance access management for your property and help improve the experience of guests, such as Omnitec’s Rent&Pass system.
This software lets owners manage access to the apartment remotely, sending an electronic key to each guest with a fixed validity period for their reservation.
The best thing is that it is compatible with several of our electronic locks and many more products, as well as bringing the convenience, security and flexibility that many guests come to expect.
7. Have a good cancellation policy
Speaking of flexibility: when designing your business plan, you should make sure you have a flexible cancellation policy.
Offering penalty-free cancellation for a certain period can make your property much more attractive to guests.
8. Decide your financial objectives and growth plan
Last but not least, establish clear financial objectives for your holiday rental business. How much do you expect to earn in the first year? What are your medium and long-term goals?
Keep your business growing with Omnitec
As your business grows and your objectives are met, take advantage of the opportunity to reinvest in features such as security and technology, which can provide farther success in the future.
Don't forget, at Omnitec Systems, we can help you make your property more attractive to the public, as well as help in its management. We have a wide range of products aimed specifically at the holiday home sector and can provide a comprehensive solution tailored to your needs.
Ready to learn more or have questions about our products? Please contact us! We’re here to help.