Villa Management in Marbella and Puerto Banús Key Metrics
In our previous article, we analyzed the power of metrics applied by the tourist villa management company in Marbella and how it helps owners achieve high annual profits. In that first part, we focused on the prospecting of the management system and the dynamic pricing system through which the villa rental agency in Marbella generates competitive advantages and maximizes owner profits.
In this second article, we will examine the most important trend of today, sustainability, and then dive straight into the mentioned metrics. Let’s get started!
Villa Management in Marbella and Puerto Banús Key Metrics
Sustainability in Villa Management in Marbella and Vacation Homes
Sustainability is no longer just a trend; it’s a reality. Offering sustainable properties aligns with and responds to the growing demand from conscious travelers and contributes to environmental care. Furthermore, we cannot overlook the fact that doing so enhances the visibility and positioning of these properties on Online Travel Agencies (OTAs). Working on properties to make them sustainable helps showcase the vacation rental agency’s commitment and sustainable initiatives, gaining an edge in an ultra-competitive market and attracting tourists seeking eco-friendly accommodations.
Therefore, a tourist villa management agency that prioritizes this objective will achieve better annual results and greater benefits for the owner.
Vacation Rental Company Key Performance Indicators (KPIs):
Vacation villa managers in Marbella must work with various Key Performance Indicators (KPIs) crucial for optimizing their business strategy. Property management KPIs are essential for continuously measuring activity and assessing future scenarios in a highly volatile market. KPIs provide valuable insights into property performance and assist in making data-driven decisions for the future.
Vacation Rental Agency Fundamental KPIs
Occupancy Rate
The occupancy rate significantly aids in trend analysis and comparing property performance with similar ones in the market. After conducting this analysis, adjustments can be made to prices and marketing strategies. Analyzing the occupancy rate provides the property management company with a clear picture of each property’s demand level, allowing them to establish or modify parameters such as minimum and maximum stay durations, for example.
Sales and Booking Profit Margin
These margins indicate the profitability of the property by comparing income and expenses.
Number of Bookings
The number of bookings is a basic yet critical KPI for analysis and subsequent decision-making. This KPI enables the evaluation of the property management company’s conversion rate.
Return on Revenue (ROR)
This KPI indicates which customers have booked with the agency for the second time and how much revenue they have generated for the company in total. If the agency has a low ROR, it should consider improving guest experiences and building relationships to enhance their return rate.
Guest Turnover Costs
Efficiently managing the check-out and check-in of new guests is essential for minimizing costs and maximizing profitability. A robust management system, discussed in the previous article, simplifies turnover processes by automating tasks, saving effort and time, and minimizing potential income losses between guests.
Of course, considering cleaning expenses, maintenance, and downtime between guest stays (commonly known as gaps) is crucial. If the turnover rate is high, it will negatively impact the company’s final results.
Reducing Turnover Costs
To optimize turnover costs, we have three potential strategies or commercial tools that we will develop.
Discounts for Extended Stays
Creating a marketing strategy where the property becomes desirable and suitable for remote workers or retirees from Northern Europe. Designing a comfortable and attractive space to encourage longer stays.
Average Short-Term Booking Time
Analyzing and comparing the time it takes to rent out the property with market averages. This KPI helps identify whether it’s necessary to improve the booking process to reduce abandoned carts.
Repair and Maintenance Fees
Perhaps one of the most underestimated KPIs but also one of the most important. In a comprehensive vacation rental management service, we cannot underestimate the maintenance costs for each and every property. Thoroughly tracking and budgeting maintenance costs, both planned and reactive, is essential to ensure gratifying guest experiences and maintain the financial health of the management company.
Having a high volume of guests and high turnover leads to wear and tear on the property, its facilities, appliances, and furniture. To minimize the possibility of breakages and deficiencies, regular and planned maintenance is necessary.
Villa Management in Marbella Key Metrics Conclusion
With this article – you can find the other article here Success in the Management of Touristic Villas in Marbella – we conclude a series of posts aimed at sharing professional information with villa and apartment owners in Marbella. A well-informed owner who has access to quality information about the vacation rental sector and its management will make the best decision when choosing the optimal vacation rental agency, thereby maximizing their future benefits. And of course, Marbella Banús Suites is among those options. Here are a few other articles that you might find useful:
