2018 turned out to be a very promising year for us here at Privadia. Our year on year growth has continued, resulting in a shared revenue increase for villa owners who are using Privadia’s services to generate bookings.
This is great news all round considering the challenges faced with the new and increased focus on rental licensing laws, which now limit the number of licenses available on the island. However, since the new law was introduced, we’ve increased our efforts on sourcing new properties that do fit within the government’s more stringent guidelines. This has proven to be very successful for us and we still managed to see a record financial year for the company and our owners.
Both the number of weeks booked and our average rental revenue saw steady growth. As mentioned in our 2018 Annual Roundup, our average booking value increased slightly from €20,000 to €21,000. The overall number of bookings have seen a healthy 10% growth and our highest value booking increasing from €200,000 to €346,000. And promisingly, the value of 2019’s bookings are up on the same period as last year by a staggering 122%.
We contribute this growth to a number of factors, but in particular, we have clearly seen a rise in the number of luxury travellers visiting Ibiza. The Ibiza government has been very proactive in recent years, promoting Ibiza to new markets and we have most certainly seen an increase in family and mixed group visitors. We have also seen some major changes in the makeup of Ibiza’s iconic clubbing and nightlife scene. The main growth areas are in VIP table bookings, daytime beach club bookings and luxury concierge services.
Based on our growth figures within the last 6 weeks and compared to this time last year, we forecast even more growth and interest in Ibiza’s luxury businesses and with Privadia being the go-to agency for Ibiza’s best luxury properties, this should mean continued growth in rentals numbers for our owners who are using our services and platform. Onwards and upwards.
Maximising the rental revenues from your property
There are 1000’s of holiday rental properties for people to choose from in Ibiza so as part of this report, we have taken the time to call on our team’s experience and to offer some tips on how villa owners can maximise their bookings this year, and in the future… We wanted to highlight just some of the ways that you can make your property stand out from the crowd and increase your yearly booking revenues.
1. Accurate availability
Keeping your availability up to date is key. If the agents that you work with don’t have a current and accurate log of your calendar vs someone they do, they are much more likely to push that property over and above yours. So this is the first and most important step of guaranteeing more bookings.
However, we do appreciate the challenges this can bring. What system do you use? How do you keep multiple people updated easily? What is the best way to keep a record of my bookings?
Well, here at Privadia have built a free and simple mobile app that fixes all the above. The app automatically updates Privadia and our network of agency partners but also provides a ‘one tap’ solution to sharing your availability with any third parties, such as the other agencies you may work with, your pool cleaner and family etc.
For more information please visit the Privadia website here
This also leads us nicely onto another growth area. Although a lot of holidaymakers like to know where they’re going weeks or even month in advance, we have seen a significant rise in last minute bookings. This means that up to date availability is more important than ever.
2. Accurate property information
Sometimes a small change can mean a big difference to those people seeking a real ‘home from home’ holiday rental. Maybe you have a new speaker system, a new coffee machine or you have upgraded the air conditioning in your property. Any new information you can provide can really make the difference between securing or losing a booking.
It is also very important to advertise your property as accurately as possible. Expectations are high when guests arrive in your property and the smallest change to a property’s features can create unnecessary stress if it hasn’t been communicated before arrival. Transparency is key here and the more information we have, the better.
3. Perfect house management
Your house manager is usually one of the first points of contact for guests in the event of any problems. The best house managers are proactive and on hand to assist your guests in order to ensure the perfect stay
“A reliable, trustworthy house manager is one of the biggest assets to your property. From providing top quality maintenance to communicating with agents and clients, a professional house manager can quickly identify small problems that inevitably happen with all houses throughout the season, making all the difference to the client and in turn, has a huge impact on repeat bookings”
Sarah Kinniburgh (Privadia Operations Manager)
Guests are usually accustomed to the very best property rentals from around the globe and as we operate in the luxury market, the demand for high standards is always at the forefront of our minds. Pick a house manager that is polite, attentive, well presented and happy to be available. If you would like our recommendations on house managers please contact firstname.lastname@example.org who will be able to introduce you to some of our most trusted and professional on-island partners.
4. Villa Manuals
Professional villa manuals are something that a many owners and agencies overlook but they can save a lot of time, hassle and therefore money, meaning increased margins and overall revenues for owners. A good quality villa manual can provide a ‘one stop shop’ for guests on the main features of your house and can normally answer most questions or queries.
The time invested in documenting step by step guides on the many different features of your house will prove to be well worth it.
5. Accurate Pricing
Having accurate pricing is also key to securing more bookings. Even in the more affluent luxury market, people still want to make sure the properties they are booking are worth the price tags. By being priced fairly all year round, your property will stand out against its competitors and have more chance of being fully booked for the summer season.
We saw a significant number of villa owners slashing prices at the last minute in 2018 which can easily be avoided by making the right decisions earlier in the year. We asked our portfolio manager Sarah Welsh for her view on things, and the effects on bookings/revenues when owners get their pricing right.
“Getting the weekly price of your property just right is crucially important to maximising the sales of your rental weeks as early as possible. It’s always better to have guaranteed money earlier and quicker instead of chasing the last minute deal for less money because the prices were not competitive enough during the period leading up to booking season. Taking into consideration the number of bedrooms, views, other features such as tennis courts, private gyms etc and how luxurious the property is and comparing it to other properties that are in the same league is good research, and therefore you are less likely to overprice.
Overpricing initially, then drastically discounting prices just before the dates of any unsold weeks tends to devalue a property…we do have clients that enquire early in the booking season knowing full well that if they wait until a couple of weeks before they wish to begin their holiday, they will probably get a much better price. Also return clients will remember prices from the year before on options they were originally sent’
Sarah Welsh (Privadia Portfolio Manager)
We are always happy to help with suggestions on pricing based on our knowledge and understanding of the holiday rental market. Please contact our portfolio manager Sarah for more information.
Making sure your property is maintained throughout the season is another way to encourage rental revenue growth from recommendation. We find that perfectly maintained properties are the ones that fill their calendars further and further in advance each year.
To highlight the importance of maintenance, our operations manager Sarah Kinniburgh adds a few key points below which she has found to be important during 2018. She is the person in the Privadia team that is always on hand to deal with guest complaints, issues or feedback so is an expert on all things maintenance and client satisfaction.
‘During a seasonal rental, a house experiences strain on plumbing, electrics and air conditioning. Annual pre-season AC maintenance is imperative for smooth running of the system and avoiding peak season AC failure. Regularly treating calcium build up on showers, plugs and kettles also increases productivity of your appliances throughout the season. Pre-season painting and decorating is also greatly appreciated by clients. Creating a fresh home from home feel’
Sarah Kinniburgh (Privadia Operations Manager)
From the continuous growth we are seeing here at Privadia and by following the steps outlined above, you have every chance of maximising your bookings and revenues. If you’re already an owner working with us, we can’t wait to welcome more guests to your property during summer 2019. If you are reading this and you want to discuss listing your property with us please feel free to email email@example.com who will be able to walk you through the owner signup process.
Thanks for reading and we look forward to hearing from you soon!
Team Privadia x