VAT for VR
Value Adding Technologies for Vacation Rentals

Eric Bordier


Recent Posts

Is Madeira island best in the world for Covid testing of visitors?

Oct 20, 2020 3:19:26 PM / by Eric Bordier posted in vacationrentals, yieldmanagement, revenuemanagement, anislandapart

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30 minutes from landing and we got out with a free PCR test. One day later, we could fully enjoy the island. 

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Property Management Softwares and languages

Sep 3, 2020 4:41:04 PM / by Eric Bordier posted in vacationrentals

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This is a work in progress article on language capacities of property management softwares for short-term rental companies.
This effort is tied to our presentation at the Book Direct Show: https://conference.bookdirect.show/talks/understand-how-to-add-languages-and-international-marketing-including-yield-management-to-your-direct-website/

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How long? - Tip 3 for your short-term rentals in Coronavirus times

Mar 13, 2020 10:16:43 AM / by Eric Bordier posted in vacationrentals, yieldmanagement, shorttermrentals, airbnb, coronavirus

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Now that the coronavirus hits the fan, the crucial question for affected companies is "How long will it last?".  It drives decisions on what solutions you propose to your guests, how you revise prices and revenue management policies, which expenses you must cut, and whom in your team you must fire. 😓
"Prediction is hard, especially when it is about the future".  After the battle, everyone will be a general (Czech saying). And we have no crystal ball...but here are  data that we gathered on the Net, and a few assumptions that we identified that can guide us. Obviously, your feedback and thoughts using the form at the end will be useful to put all minds and information together. 



1. When the first cases are reported, it is only the tip of the iceberg, and it takes at least 8 weeks to unfold:

 

Best data and analysis I found is on https://medium.com/@tomaspueyo/coronavirus-act-today-or-people-will-die-f4d3d9cd99ca 

I found this graph most revealing : taking into account the incubation period before symptoms, you can time the epidemic in countries that have experience:


And see some forecasts:


2. Then it seems like the evolution of the epidemic and the measures affecting travel and business depend on your country's politicians and preparedness:

 

We have all seen that graph relating treatment capacity, containment measures and fatalities:
flattening-the-coronavirus-curve

Source: https://informationisbeautiful.net/visualizations/covid-19-coronavirus-infographic-datapack/ and Google News 

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Tip 2 for your short term rentals in Coronavirus times: pivot to more medium term rentals

Mar 11, 2020 7:24:24 AM / by Eric Bordier posted in vacationrentals, yieldmanagement, shorttermrentals, airbnb, coronavirus

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Remember that quote about crisis meaning transformation? Often demand does not evaporate, it changes. If the motto becomes tutti a casa, many are going to need a home away from home. 

That is where demand should meet your supply - as a vacation rental manager who suddenly gets less short-term bookings. But how do you price medium term rentals and adapt your policies and rate rules, across all channels?

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10 tips to save your Airbnb in Coronavirus times

Mar 10, 2020 6:16:19 PM / by Eric Bordier posted in vacationrentals, yieldmanagement, shorttermrentals, airbnb, coronavirus

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Sometimes, the only thing we have to fear is fear itself- but when the world around you goes crazy, you must adapt- and help as you can. If you are not a doctor saving lives, but a vacation rental manager, you will try to save your margins to save your company, and save the jobs that depend on you. 

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Why you cannot do good yield management in Vacation Rentals today- REVPAR is not enough

Jul 25, 2019 3:14:35 PM / by Eric Bordier posted in vacationrentals, data, yieldmanagement, shorttermrentals, revenuemanagement

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Yield management is crucial for vacation rentals - it is one of the few remaining levers that have an impact on a vacation rental company's bottom line. And today, it is a lever that is damn hard to use- which is why it is also an opportunity to for each company to  differenciate, and for our whole industry to improve. 

Let's start with a quick reminder of the stakes. 
Pricing is an essential lever for any company - this McKinsey article https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-power-of-pricing  shows a price increase of 1% often typically increases profits by 8%.
That importance is even higher in vacation rentals, because our inventory is perishable - holes in grids are direct losses. 
And pricing is one of the few powerful levers left for short term rental companies. The growth of OTA's, who represent 70% of bookings in Europe and 50% in the U.S. has reduced the degrees of freedom in marketing. Increased competition and the spread of operational know-how mean most players get good reviews.  Inventory growth- adding- properties- is still a powerful lever, but regulations slow it or limit it in many destinations. So when you look at your vacation rental company's Profit and Loss account, yield management is one of the most powerful actionable levers.

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Vacation Rentals: the pitfalls in going Global

Feb 6, 2019 6:28:50 AM / by Eric Bordier

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The global Vacation Rental Market's 150 billion dollars in value are tempting. But what are the pitfalls when a company wants to go Global? Coming soon...

 

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