AJL Atelier’s very own Simon Lehmann was invited to the Vacation Rental World Summit 2020 to deliver a keynote on the right focus for property managers in this pandemic-impacted environment.
His topic: profitability vs revenue, and why profit always takes precedence. Why? Because, fundamentally, the cost structure in vacation and short-term rentals is radically different to that of hotels or airlines, which revenue management techniques we have inherited.
They focus on topline revenue, because their fixed costs are the majority of their overall costs. So maximising revenue does maximise profit. For short-term rentals however, the contrary is true: the majority of costs are variable, depending on the volume of bookings. Watch the keynote below for much more:
Go further into vacation rental profitability
Curious to learn more about profitability in short-term rentals? Read our whitepaper below or discover AJL Profitability, our upcoming all-in-one solution to help property managers manage and price their portfolio based on actual costs, accepting bookings only when it makes sense to do so.
Read the whitepaper
Where we explain how we were helping more and more clients with this very challenge and decided to do something bigger about it