White Rose Villas is introducing a new marketing contract and we’ll be approaching all our homeowners over the next few weeks about it. This blog explains the reasons behind this change.
We’re facing very challenging market conditions in what is traditionally a quiet season in the theme parks. We need to step up our game when it comes to marketing, to ensure that we are doing the very best we can to book your home.
To help us do this, we’re going to introduce a new marketing contract that we’ll be asking all our homeowners to complete and sign. This will help us to act faster when it comes to taking bookings – as well as being able to offer enticements to ensure enquiries convert into sales.
What will the new marketing contract include?
Essentially, the new White Rose Villas marketing contract sets out in black and white the lower limits that you’d be willing to accept on a per-night basis. It also establishes the rules around taking a booking for your home.
You’ll be asked to tell us:
- The minimum price that you are prepared for us to accept for your home on a per-night basis
- Any promotions you would be happy to run.
- A number of complimentary nights you would be happy for us to offer on your behalf in order to secure bookings for your home.
Knowing this information in advance, spelled out in black and white, is really important. It will enable us to act quickly. Rather than doublechecking on rates and possibly losing a booking during that delay, we can act fast and secure the booking.
Furthermore, we’ve had a couple of instances recently where we’ve taken a booking, but our homeowner hasn’t wanted to accept it at the slightly lower rate. This creates a bad guest experience and costs us all money.
The importance of getting the quote right first time
The listing sites apply a penalty for cancellations. As well as any financial compensation, they also drop the listing further down their search results. And it doesn’t just do that for the property concerned. It drops every single property that we manage.
This means that a cancelled booking impacts all our homeowners. That’s why it’s so vital that we don’t find ourselves in a position where we’ve taken a booking at a reduced price which we later need to cancel.
Furthermore, because our customer-first business model succeeds in attracting a high number of repeat bookings, we really want to avoid anything that could compromise the guest experience. Not honouring a booking we’ve taken is really upsetting for the guest and there is the potential we could lose their lifetime of future bookings as a result. We obviously work hard to ensure this doesn’t happen, but it is still a risk that impacts all our homeowners.
Signing the new marketing contract
That’s why we’re now introducing a new marketing contract for all homeowners. We’ll be approaching you over the next couple of weeks to discuss your options and ensure that the contracts are all signed and that you are happy with them.
We’ll be asking all our homeowners to sign the new contracts – whether you choose to use the RevMax dynamic pricing platform with us or not.
If you aren’t familiar with dynamic pricing, please check out our earlier blog about this automated system. It uses advanced algorithms to run fluid strategies that enable your property to achieve the highest income during high-demand periods and stay at the top of productivity in the market during low-demand periods. Last quarter, the team behind the system booked 70% more nights than the market average and at rates that were 17% higher than most.
It’s even more important to be really clear about what you’re willing to accept in terms of per-night revenue when working with the RevMax system, because the pricing is automated.
As you’ll know from our previous blog, there is no charge for you to use the dynamic pricing system – that’s a cost borne by us. The only real change you need to make is to be willing to accept different per-night rental rates, based on market conditions.
The offer of free nights
RevMax has told us that one great way to boost revenue is to run offers of a free night when a certain number of nights are booked. They’ve suggested that each homeowner specifies a number of nights per year which you would be happy to allocate free of charge on a promotional basis.
This way, the RevMax team can use the free nights to attract new business and close more bookings more quickly, before the guest can look elsewhere. They’ve told us that they have good results with these tactics and have advised it would be useful for us to test them too.
If you’re happy to do this, then all you need to do is to specify the number of free nights per year that we or the RevMax team can use for your home. You can do this in the marketing contract.
We understand that some homeowners may be reluctant to agree to give away free nights – and that’s fine too.
You’ll receive the new marketing contract from us by email soon.
Please have a think about the rates and promotions you’d be willing to accept. If you’d like to talk this over with a member of our team, please get in touch.
Complete the rates and promotions details, sign the contract and return it to us.
If you have any questions about this, please reach out to us.
N.B. If you aren’t yet using RevMax, but you’d like to start using it, then please drop us an email to the usual email address: email@example.com