How did we get here? The history of revenue management in vacation rentals
Revenue management is a business strategy that has gained significant importance over the last few decades, especially in the tourism sector. But, did you know that this technique can also be applied to vacation rental managers and tourist apartments?
The history tells us that the origins of revenue management can be traced back to the airlines of the United States in the 1980s, where they began to use different techniques to sell more seats on their flights. Over time, hotels encountered the same problem, so, seeing how the planes did it, they adopted their methodology and they weren’t wrong, it works wonders for them. So, why not with tourist apartments and vacation rentals?
Just like airlines and hotels, vacation rental and tourist apartment managers have a limited number of properties to rent and, therefore, must manage their capacity and prices efficiently to avoid losing revenue.
Thanks to revenue management, property managers can segment the market, analyze demand, and control the availability of their properties to adjust prices in real-time and maximize their income, or in other words, make more money with each apartment. Who wouldn’t want to have the superpower to make their properties invoice double or triple?
In summary, revenue management was born as an essential part of marketing strategies, but it evolved with technological tools like Turbosuite, which takes a holistic approach by considering external and internal factors, reservations, and market prices. Also, a significant role is given to the strategic implementation by experts and in customer segmentation to sell at the best price, through the best channel, and at the right time.
Do you want to learn more about how to apply revenue management in the vacation rental and apartment sector? Download our introductory ebook and discover how this technique can help you increase the profitability of your properties. Download it now!