Value

Value

There is some really great and encouraging information in this recent article from TripAdvisor regarding the 2015 travel season. According to the article, more travelers are planning on staying in vacation rentals this year due to an abundance of information about them being available online in the form of reviews and photos.

Speaking of photos, having photo captions can greatly increase the number of inquiries a unit gets. Here is a really informative article about how to write great photo captions for your units.

Reviews are also extremely valuable to you. Not only do they give your prospective guests confidence in booking with you, they can also tell you where your blind spots are. I also know vacation rental managers who use reviews to get their owners to upgrade furniture, amenities, or the unit itself. If you aren’t reading your reviews to learn how you can better serve your guests, you are missing out a big opportunity.

One of the biggest things that jumped out at me in this article was how much value is a determining factor in a traveler’s decision.

For instance, 49% plan on booking a vacation rental after having read about or discovered the value and/or amenities that it offers over other forms of lodging. It goes on to say that 62% cited vacation rentals offering lower rates than hotels as their motivation for staying in a vacation rental in the future.

I think something that often gets overlooked, but is worth clarifying, is that value doesn’t necessarily mean the lowest price. It just means that the customer wants to feel like they got more for their dollar than they would have with a different option.

Let me share a quick story about value that I saw firsthand a few years back. Our local ice cream shop was under new ownership and the new owner was intent on making a profit like any good business person. What ended up happening though is that the servings became a lot smaller than they were under the previous owners, which upset many of the customers. I remember watching one disgruntled customer asking to talk to the owner, and then explaining how it was unacceptable that he paid $5 for the little bit of ice cream that he received. The new owner tried to explain that the previous owners were too generous with the serving size which reduced their profits to the point of having to sell the business. The angry customer didn’t care what the rationale was though. Then he said something that I’ll never forget. He was referring to the taco place across the street and he said, “When I take my family to eat over there, I get a free meal after I purchase 6 meals. That makes me feel good. I feel like I’m getting some value for my dollar.” (Emphasis mine)

What I learned that day was that how a customer feels about the transaction is waaaaaay more important than the actual details of said transaction. Let’s just look at the facts for a minute.
When this customer took his family of 4 to the taco place, he likely spent ~$10 per person, at least. A taco or burrito, plus a drink came out to roughly $10 after tax was included. From a strictly economic standpoint, this is a terrible deal for him. He has to spend $60 in order to get $10. Granted, you could argue that it was money he was going to spend anyway, but that doesn’t matter. What matters most is that he felt like he was getting value. Now I’m not suggesting that it’s ok to deceive customers and make them think that they are getting something for nothing. The point I’m trying to make is that how a customer feels about the transaction, based on their perception of the value they are receiving, is what matters most to them.

Here is some more interesting information from the article about value. The highest percentage (26%) cited a kitchen as the most important amenity. It then goes on to say that 72% cite this as their main cost savings measure. If travelers want to cut costs by preparing at least some of their own meals and eating in, one way to accommodate this and provide value would be to offer (for a small fee) a grocery package that could be purchased so that when they arrive some of the basics (milk, eggs, bread, peanut butter, etc.) are already there in the unit, thus saving them a trip to the store and allowing them to get right into their vacation. Or leaving a $10 Trader Joe’s gift card (or whichever local grocery store you like) along with a handwritten “Thanks for staying with us!” card on the kitchen counter for those guests that are spending more than $X with you. I guarantee that will make a positive impression, and that $10 you spend on the card has the potential to bring you way more in word of mouth referrals.

The last thing I thought was noteworthy is that nearly half (48%) cited free parking as a motivator for staying in a vacation rental.

Now these are all folks that “get it” when it comes to vacation rentals. But what about those that don’t get it yet? One of the best things that you can do is to educate your prospective guests on the value they are receiving by staying with you over the other alternatives. Help them understand through your website, correspondence, phone conversations, etc. that they get more square footage for their dollar with a vacation rental, not to mention more privacy, solo use of the amenities and features, etc. Adding details such as “A 5 minute walk to the beach” or “15 minutes from downtown” into your unit descriptions and photo captions will help the guest understand they aren’t losing anything by staying with you instead of a hotel. (Most hotels are closer to things like movie theaters, restaurants, stores, beaches, etc.) Call out “Free Parking” as a selling point in your unit descriptions and/or photo captions as well.

Remember, how a customer feels about the transaction, based on their perception of the value they are receiving, is what matters most to them. Calling out all of the ways that your unit(s) offer value to the customers can be a powerful motivator in getting them to stay with you and tell their friends and family about it.