How Are Folks Handling Coronavirus???
Greetings Fellow MyVR Peeps;
Hope everyone is healthy and well and staying safe!
I thought I'd reach out to see how people are handling their vacation rental(s) during these troubling times.
Are people seeing a lot of cancellations?
Are people seeing a slow-down in reservations (year-over-year) out more than 30-45 days?
Are people offering discounts/promos/etc to attract reservations for rest of year?
I have read that on a national level vacation rentals are down overall by slightly more than 55% and Google searches for vacation rentals are down more than 50%.
Interested to know how the MyVR community is trying to handle their businesses through this situations.
Thanks & be well,
I thought I'd share a few things we've seen.
The folks at KeyDataDashboard.com are publishing some graphs on what they're seeing industry wide. Look for the "Virus Impact" at the top of their website. E.g. here's their latest graph on bookings in North America vs 2019:
(source is KeyDataDashboard)
Lastly, I'll share that platform-wide we've seen bookings are down almost 70%.
There is also a massive spike in cancellations (10x the normal amount), with the peak cancellation volume coming around 3/16 - 3/17 after Airbnb allowed, and Vrbo encouraged, full refunds.
To put that in perspective, across all properties, we've seen some weeks in March and April hit cancellation rates as high as 80%. Cancellations appear to be focused mostly on travel within the following 30-45 days. Cancellation rates for June-July-August are still under 20% - not significantly higher than cancellation rates from prior years. Hopefully summer travel can be salvaged and we don't see a wave of cancellations for that in the coming weeks and months.
Amy Hinote at VRMIntel held a webinar yesterday that was mostly property managers talking about what they're seeing and how they're responding. Here's a link to the recording, if anyone wants to watch.
I would be interested in hearing what others are seeing and hearing.
What a rough and bumpy ride.
We started the year with $485K in sales for January & February. New all time highs for both months.
Only Five Reservations cancelled after the International Travel Ban was out in effect January 31st.
The Presidents address to the Nation really opened the floodgates. We cancelled 163 reservations totaling $412K.
Our Shelter in Place order allowed us to service Essential Travel , Essential Business and Rentals of 31 or more days.
We pivoted the business, my Missus worked her magic, and we ended April at about $455K in sales YTD. So, we booked $380K in new reservations across March and April.
May was the first month we saw progress. When Pebble Beach announced the Golf Courses were reopening, there came another Tidal Wave.
This month we're on pace for $300k in new sales. Even with the four new properties we've brought on during the past three months, we need more doors, we're running out of room!
In May, we also filed a new corporation, brought on three Realtors (always have a side hustle) . We have a $2.5MM listing and a $2MM sale (we'll be managing as a vacation rental) in escrow. We've always had Real Estate leads from our Guests. But we've always been to busy to work them. Problem solved.
Almost forgot. Received our first payment from AirBnb since March 12th this morning. Looks like we finally paid off our $77k in Cancellations on that Channel.
My sense for the future is put something away for a rainy day. A hard rain.