Source: Hospitality Net
Vacation apartments for rent have become a major competition for the traditional hotel industry, as digital space has developed. The digital tools enable every owner of an available property – apartment or house – to become a hotelier with relative ease. The owner can display his wares to the world, and collect the payment quickly and safely.
Many of the property owners prefer to transfer the operational responsibility, and in fact all the dealings with the guests (the customers), by specialized companies, when in practice there is no direct connection between the owner and the guests.
According to the linked article, these companies rent apartments and vacation homes, there are several other sources of income interesting:
Service charge from guests:
- Insurance expenses from guests
- Credit cards from guests
- Maintenance fee from the owner
- Management fees from the owners
Selected Quote
“Over the years traditional hotels have enjoyed an average Gross Operating Profit (hereafter “GOP”) margin of 32.0%, yet their vacation rental counterparts can realize upwards of 70.0%”
Published on: March 30, 2018
Source language: English