VRWS 2020 Keynote by Simon Lehmann: profitability vs revenue, the road ahead for new business

by | Oct 11, 2020 | Featured, Pricing

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:

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