How To Increase Your Vacation Rental Profits By Targeting The Right Audience
The vacation rental industry is undoubtedly vibrant due to tourists’ constant need for short-term accommodation alternatives to hotels. The industry’s revenue declined in 2020 due to the pandemic. However, America’s 23,000 vacation rental companies are set to recoup their losses because many Americans have travel plans this year. You will enjoy immense success by finding the niche audience for your properties if you run a vacation rental business. This success will happen whether you are the owner or property manager. Here’s how to make your vacation rental business more profitable by finding the right audience.
- Rethink your ideal target audience
There is no denying that audience segmentation has become very vital in the vacation rental industry. Indeed, the best vacation rental companies are skilled at identifying their ideal guest and catering to their unique needs. Consequently, you must also rethink your ideal guest profile to enjoy immense success in this industry. Age, hobbies, gender, and income are some of the demographic factors you may have to reconsider. Then, update your real estate business plan with these new demographics to give your company a fresh sense of direction.
You can make huge profits by marketing your rental properties to a more suitable audience. For instance, let’s assume you own or manage cabins close to stunning mountain ranges. You are better off marketing to clients interested in hiking, nature, and city escapes than families with small children. Similarly, your small or medium-sized apartments in urban neighborhoods will be more suitable for young couples and small friend groups. You can also market your villas with pools to large friend groups or affluent families instead of targeting everyone. Rethinking your ideal target audience will make your market segmentation and marketing efforts more effective. This way, you can continually attract the right lodgers, reducing vacancy rates.
- “Niche-ify” your properties
After accurately identifying your audience, the next best thing is to turn your properties into what they seek. Your furnishings are a great way to achieve this. For instance, functional and child-friendly furniture pieces are ideal if you are targeting families. Likewise, finishing touches like detachable grab rails in bathrooms and portable ramps are non-negotiable if seniors are your audience. The channels you use to list your properties also matter, as does your tone of voice when writing listings. Even the guests’ house manuals also play a part in making your properties fit for the right audience. As such, use the right tone of voice and aesthetic design when creating house manuals.
- Connect with your audience
Your niche audience must know about your company’s services to consider you an option in the first place. Therefore, investing in connecting with them through various effective means. An effective way of doing so is by creating content for your brand’s website and social media platforms. This content should address common concerns potential visitors will have when searching for a vacation rental. A whopping 96% of marketing decision-makers say content marketing works for their brand, so it is definitely worth trying. Email newsletters and campaigns, influencer promotions, and social media ads are other ways to connect with your audience.