A new Short Rental Property Management business model
Why do we exist?
In a first look, as real estate investors, it seems like the short rental management market in Portugal does not need on more management company. This market is already filled with many small companies, offering the regular basis operational short rental quality.
However, after an in-depth study of the indicators that have straight impact on the short rental performance (analytics) from the most mature markets and top managers of Airbnb besides our critique, as investors, of the compensation model current practiced…
... We decided to found a DIFFERENT company, not just one more!
Strategic & data driven marketing professional specialized in customer behavior analysis with 20 years of experience in major multinationals and
SHORT RENTAL REAL ESTATE INVESTOR
Professional with over 20 years of experience in the real estate industry, participating from the process of investment analysis, trading, asset management and
SHORT RENTAL REAL ESTATE INVESTOR
Who is Qualquer Destino?
Why hire Qualquer Destino?
We are compensated for net operating income and not for revenue. This means that we are committed to maximizing revenue while minimizing costs.
We understand that the name of the game of this business is called PAGE RANK and the rule of the game is called BOOKABILITY. Hospitality is only the way and not the end.
All additional revenues from services such as breakfast, transfer, tours, etc are considered as owner's billing. We do not agree to generate “outside” revenue when the investor who owns the business risk is our client, the property owner.
Why pay for net operating income?
60% of expenses are related to cleaning, laundry and supplies
The more properties, the lower the cost per property.
Shared economies of
Economies of scale for managers only not shared with property owners
30% of expenses are related to energy, water and communications bills.
Mutual interest in
There is no management of these expenses
10% of expenses are related to unexpected maintenance
Cost-benefit assessment and interest in securing the best budgets
No cost commitment just for the fastest solution possible
The Short Rental business
BETTER KNOW AS AIRBNB BUSINESS
THE NAME OF THE GAME:
The vast majority of guests view ads up to the 3rd search page.
The more likely the ad is to convert in booking, the better positioned it appears in searches.
To play this game, you must understand the rules that the Airbnb algorithm uses to place an ad.
THE RULE OF THE GAME: BOOKABILITY
Amount of ratings is as or more important than the rating grade.
100% occupancy rate is not ideal!
Being SuperHost is important, but there are less obvious things even more important.
THE IMPORTANCE OF THE FIRST 30 DAYS
In order for new ads to compete in this page rank game, within the first 30 days of a new ad, Airbnb “turns off” the algorithm and “forces” this new ad to appear on the first pages.
+ 2 MONTHS
If this ad performs well in the first 30 days, Airbnb will continue to "support" the ad for the next 2 months.
Until the ad performs to compete naturally.
Our Value Proposal
Performance Strategy - Channels
When the name of the game is PAGE RANK, , the more concentrated the better!
AirBnb - Creator of this new business model
accounted for ~ 70% -80% of the world’s short rental booking revenue
Booking – Important use for the European market that allows guest comparison with other hotel segments
Other platforms only represent effort dilution with low revenue representation, which can even hurt performance on the channels that matter!
Performance Strategy - Price
• Business days vs. weekends vs. holidays
• Special events
• Anticipation vs. occupation
Performance Strategy - Experience
THE BASIC WELL DONE
Fast and efficient interaction
Self check-in option (eliminate 1st friction and reduce cost line - payback in less than 6 months)
Impeccable cleaning and maintenance
Positive guest rating after checkout (this is the most efficient way to receive review)
WOW THAT “FORCES” REVIEW
Special welcome kit especial (ex. vegan chocolate for a vegan guest)
Personalized experiences (ex. wedding anniversary celebrations)
Differentiated and striking recommendations (ex. kayaking tour of the Douro at sunset)
Creation of new revenue lines (ex. breakfast delivery)
MOST IMPORTANT: Everything has to be turned to stimulate the review. For example: Instead of entering your wifi password “enjoyporto”, why not “GiveUsA5starReview”? Have you ever thought about that?
Performance Strategy - Expenses
• Utilities’ billings
• Non emergency maintenance
• General services
ECONOMY OF SCALE
• General suppliers
There are no commission or additional fees under the services provided by third parties (available receipts)
We are a young company and we already have a lot to tell…
We are already among the top 10% in revenue from ads in the historic center of Porto.
Our ads appear 150% more on the first page of Airbnb than the market median.
70% of our guests leave ratings and we have a rating of 4.9.
And yes, we are superhosts.