To ensure revenue management strategies are successful, property managers need to build owner communications around critical data. Data can be used to establish trust with them and gain their approval for additional initiatives or upgrades.
When building out a strategy for owner relations, it’s essential to understand the data you have available. This includes the performance of individual units and any industry or marketplace trends affecting your business.
In this guide, we'll cover the types of data you should look at and how to use that information to inform your strategies. We'll also discuss the importance of translating this data into effective owner communications.
Using Data Points to Communicate with Owners
Data points need to be presented in a way that is easy to understand and conveys why specific changes are necessary. For example, when proposing pricing changes, you could use occupancy rate data from your market analysis to explain the reasoning behind your choice. Some of the most important KPIs to track when communicating with owners include:
● Occupancy rates - Show how your strategies affect occupancy rates and compare them to the local market.
● Average daily rate (ADR) - Track the average daily rate of your property in comparison to competitors.
● RevPAR - Measure revenue per available room by comparing it against other rental properties in the area.
● Average booking window - See how far in advance guests are booking their stay.
● Average length of stay - Compare how long guests are planning to stay to help build a complete picture.
This will help you to understand how your strategies are performing in the long term. By tracking and analyzing relevant metrics, you can demonstrate the results of your efforts in a clear, understandable way.
The Importance of Clear Owner Communication
Dense data points and complex strategies can often be challenging to explain in simple terms. That’s why it’s essential to develop clear owner communication around your strategy. Make sure you use language that is easy to understand and conveys the message of why specific changes are necessary. It’s also a good idea to involve owners in decision-making and explain why proposed changes are necessary.
By showing evidence of market trends, occupancy rate data, and competitor prices, you can demonstrate the value of a particular strategy. This ensures everyone is on the same page and focused on developing a successful strategy.
What to Include in Effective Owner Communication
As with your revenue strategy, your owner communications can be tailored to the specific needs of your rental property. However, there are some key elements to include:
● Explain the market conditions - Explain the current market conditions and how they affect your pricing strategy. Highlight any potential opportunities or threats in the local area.
● Outline your strategy - Clearly explain the strategy you’re proposing and the reasons behind it. Demonstrate how the strategy will help reach your overall aim of increasing revenue or optimizing occupancy rates.
● Highlight customization - Show how you’ve tailored the strategy to your specific rental property. This should show performance from their specific unit.
● Emphasize data points - Present relevant data in an easy-to-understand way and highlight any changes in occupancy rates, average daily rate, and RevPAR.
● Explain the comparative landscape - Show how your rental property performs compared to competitors.
● Ask for feedback - Encourage owners to give feedback and ask questions. This allows them to get involved in the decision-making process and helps ensure they are fully aware of any changes you make.
How Key Data Dashboard Can Be Your Secret Weapon
As the leading lodging market data platform, Key Data Dashboard provides you with the data and insights you need to make informed decisions. The platform gives you access to detailed market data, such as competitor rates and occupancy trends, to develop strategies tailored specifically for your rental property.
Key Data Dashboard gives property managers access to robust analytics and reporting tools, including historical metrics and year-over-year comparisons. This gives you an in-depth look at your portfolio and each individual unit’s performance to gain valuable insights into the local market with over 40 KPIs.
Key Data Dashboard allows you to make decisions based on the in-depth data from your local area. So, you can target guests and new homeowners with a data-driven approach.
Your intuitive dashboard allows you to quickly access data points and present them in an easy-to-understand format. This makes it easier to explain your strategies to owners and demonstrate the value of changes you make. Plus, you can automate reports to send to homeowners on a scheduled basis.
Boost Your Bottom Line With Data-Driven Revenue Strategies
Agility and adaptability are essential for rental property success in today’s ever-changing market. You can develop effective strategies that increase occupancy rates and revenue by leveraging the available data. By tracking key metrics and analyzing local trends with the help of the Key Data Dashboard, you can make strategic choices in response to market changes.
With the help of the Key Data Dashboard, you can increase homeowner communication with ease to boost retention and help grow your inventory. Want to learn more? Request a demo today to learn more about how the Key Data Dashboard can help you develop data-driven strategies for your rental property. We're here to help you start your journey toward increased occupancy rates and revenue optimization.