Barefoot Technologies Blog- Vacation Rental Industry News

Barefoot Software

Posted by Adam Zippin on Jan 3, 2012 4:06:00 AM

Will your company be there to capitalize on these trends?  At Barefoot our motto is “Vacation rental software fitted for Visionaries”, and we are curious if you fit this description.  If you would like to be a leader in your market, build a stable cash flow and asset worth to your company, and set the bar that your competition will follow then contact Barefoot Technologies to talk to us about what we can do for your company.


Why your business should do vacation rentals.


 


Do you own a real estate company?  If so what is it worth?  The reason I ask this is simple, does your company have any asset value.  The answer in most cases is no because your real estate company is only as valuable as your last sale.  So what is your exit strategy?  If you plan to retire will you sell your company or live off of savings?


Did you know that last year Wyndham bought two vacation rental companies for 56 and 77 million dollars each? How much per unit? If that number fails to hit home then consider this, roughly 1 in 20 homes in the US are second homes.  In 2009 27% of all homes purchased in the United States were second homes (NAR what-need to say what report). 


Is your market recession proof?  Last year 40% of homes purchased were done so specifically as an investment or as a vacation home.  These are numbers that the housing market struggled to compete with during the recession. 


By now you must be scrambling to get into the vacation rental business.  This is where we come back to the exit strategy.  I need a favor from all of you readers before we go any further.  I need you to think of the last McDonalds restaurant that you went to.  Now that you have pictured that, think to yourself if there was a Burger King nearby, a Wendy’s, or any other fast food company.  The reason I bring this up is simple, these massive acquisitions are not in isolated locations.  Wyndham has set a new standard in the vacation industry.  Previously, a company would buy land and spend millions or more building a hotel.  We at Barefoot believe that the future of the vacation industries will follow this pattern.  Companies will simply buy the local management companies with the most properties as opposed to tearing down and reconstructing what is already there.


 


You need to add that when wyndam buys an agency-they will come in and sales sales are ok, but I am buying you because of rentals.  And by the way-giving you insurance, retirement, marketing and call center.  DO you offer that now.  Are those items important to your sales agents?  I bet Wyndam and Marriot and other large hotel chains will come into real estate sales via rentals and their name denotes service world wide.  What does Coldwell Banker, ERA, Cetury 21, Keller Williams, ReMax and the many other franchise names out there.  I think they don’t have the same brand recongnition as the hotels.


 


Also if Wyndam and Marriot are smart they are buying the local agency and letting them do things your way.  Resort Quest was a great idea, but under funded and they tried to standardized the product.  Hate to say it Rustic in some parts of the world is quant and in others it is not.  AAA tried to do rate program for rentals and that went no where fast.  Which means, as the owner, you get a nice paycheck, profit share and if you know what you are doing, with the parent bank behind you, the opportunity to really do things right, with the best staff. 


But wyndam is not going to buy the biggest, they are going to buy the best, the one that thinks like them. Technology, Niche, customer service, conceirge, social media and loyan owners and tenants. 


You need to add that when wyndam buys an agency-they will come in and sales sales are ok, but I am buying you because of rentals.  And by the way-giving you insurance, retirement, marketing and call center.  DO you offer that now.  Are those items important to your sales agents?  I bet Wyndam and Marriot and other large hotel chains will come into real estate sales via rentals and their name denotes service world wide.  What does Coldwell Banker, ERA, Cetury 21, Keller Williams, ReMax and the many other franchise names out there.  I think they don’t have the same brand recongnition as the hotels.


 


Also if Wyndam and Marriot are smart they are buying the local agency and letting them do things your way.  Resort Quest was a great idea, but under funded and they tried to standardized the product.  Hate to say it Rustic in some parts of the world is quant and in others it is not.  AAA tried to do rate program for rentals and that went no where fast.  Which means, as the owner, you get a nice paycheck, profit share and if you know what you are doing, with the parent bank behind you, the opportunity to really do things right, with the best staff. 


But wyndam is not going to buy the biggest, they are going to buy the best, the one that thinks like them. Technology, Niche, customer service, conceirge, social media and loyan owners and tenants.