How one owner went from losing £1k per month to making money every month

This serviced accommodation case study shows how we helped one serviced accommodation operator go from significant loss to monthly profit.

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The owner of this 2-bedroom apartment located in central Bedford was losing money every month before hiring us. We won’t just tell you we fixed it, but actually in this serviced accommodation case study show you the steps we took and how we did it.

Property: 2-bedroom apartment, central Bedford

Although this beautiful looking apartment was previously the show apartment and came fully furnished, it was managed by another company. One of the most superior apartments in the town for short term rent, it was losing between £500 – 1,000 every month on running costs.

In a single year, nearly £10,000 was lost, without any set-up costs!

After we helped, the owner is getting consistent profit every month.

Here are the 3 steps we took to improve serviced accommodation bookings:

Not knowing your ideal customer profile leaves you blind

Step 1 – understand the priority guest type and build your product for them

As you can see in the pictures, before our services, the apartment was beautiful, but the amenities and decoration were focused on leisure.

The appearance resembled a show home, with flowers, floral patterns and feminine colours. Full rooms with big feature decoration leaving little space, and double beds targeted at couples. The usual bookings conditions in leisure peak season would be okay, but the apartment was often vacant during the rest of the year.

Bedford is a non-tourist town, and the majority of demand in the area is contractors. Given we started working with the owner around the time of COVID-19 lockdown, legally only allowed key workers would be our priority guests. So, we needed to market to these.

So, we chose single beds, instead of doubles, and less fancy décor (removing dressing table with mirror). The rooms needed space, so we invested in smaller wardrobes, and a smaller chest of drawers. In general, we only spent £350 on soft and small furnishing, in addition to updating bed arrangement.

You need to create the right product for your target audience

Step 2 – market to this guest type

After choosing the most profitable guest type, we came up with a marketing strategy. This is all about creating the right product for your target audience.

Decoration and colours are crucial, so we updated the layout and colour scheme, adding more sober colours and reducing pink and pastel tones. In practice, we added dark blue and black details to balance it. Preventing empty-looking rooms is another relevant aspect. For that, we added green plants and features on the wall.

Before

What we changed

The lounge reverse pictures, for example, demonstrate most of what we’ve discussed. Besides adding blueish details on the sofa and a new clock on the wall, the angle favours the room.

After

We have taken a picture from a glass surface, which reflects the environment and makes it look wider.

Updating the bed from a double to two singles and also removing furniture to create a lot more space.

Again, removing large furniture that doesn’t get used often in short stay apartments, especially not from our ideal guests. This created more space and allowed a more flexible bed arrangement.

Adding a few bits of colour and showcasing how large the bathroom is was a great win with the new marketing photos.

Product. Pricing. Promotion.

Step 3 – direct relationships and bookings

Although we couldn’t list the property online due to the transition of agent that took over a month, we booked every week.

How? You may ask. 

Because of our direct relationships with companies and key workers during the lockdown. Even with no online visibility, the owner could still profit in a way they wouldn’t be able to do with a new agent or self-managing.

Now, imagine taking regular bookings online from the target audience. The chances of being booked long term with direct repeat bookings will become even higher, and the profits will be much more consistent!

How can we help you?

Hopefully this serviced accommodation case study shows what we bring to the table. We are a great serviced accommodation management company that knows the market, the guest type, how to set-up and maximise profit.

So, if you are a landlord or serviced accommodation operator interested in getting results like this, contact us anytime!

 

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