On July 1st, 2022, Casago announced its acquisition of Mountain Valley Realty in Snowshoe, West Virginia. Mountain Valley Realty was established in 1999 by Debbie Goodwin and is a local leader in the vacation rental and real estate market in Snowshoe.
“We look forward to honoring Debbie’s legacy in Snowshoe and meeting all our new friends and clients,” said Steve Schwab, CEO of Casago. “The acquisition of Mountain Valley Realty builds on our capacity to offer high-quality vacation rentals to Snowshoe visitors that help them feel at home while they’re away from home.”
The acquisition of Mountain Valley Realty expands Casago’s footprint in the Snowshoe market. The Casago Snowshoe branch is now the largest independent property management and vacation rental company in Snowshoe, with a booming portfolio of 170+ vacation homes, chalets, townhomes, and ski-in/ski-out condos.
Casago opened their Snowshoe franchise in October 2020. Despite a virtual opening in the midst of the Covid-19 pandemic, and severe travel restrictions impacting the industry, Casago Snowshoe has since grown 80% in revenue, with all homes increasing close to 60%, many by over 100%. At Casago, we always find the potential to get more bookings, increase profits, earn more money – and spend less time doing it!
The secret to vacation rental success – Revenue Management. There’s nothing new about revenue management. Revenue management strategies date back to the airline industry in the early 1970s. In the 1990s, Marriott International adopted similar strategies in the hotel and hospitality industry increasing their annual revenue by more than $150 million. Revenue management is no small task, it’s a balancing act of capturing the highest ADR, optimizing occupancy, distributing your listings on effective sales channels, understanding the market data and trends, and still reaching your revenue goals. As your business scales and grows, the bigger the balancing act becomes, and a solid revenue management strategy is essential. Ultimately it’s selling the right vacation rental, at the right price, to the right guest, on the right channel, at the right time.
THE RIGHT VACATION RENTAL: Owner-Centric
Not every property is right for your portfolio. Partner with homeowners and homes that align with your company culture, values, and vision, and continue to educate your homeowners on revenue opportunities and improvements to increase the value of their investment.
For a small budget, improvements can be made that have an immediate impact on earnings. Professional photography and virtual tours have a high ROI along with home upgrades and simple interior décor like work stations for business travelers, outdoor comforts to match the destination lifestyle, family-friendly amenities, or Smart home features for the modern tech savvy traveler. Each home is unique but small home improvements can have a big impact on the ADR and bottom line.
Also educate your homeowners on the constraints of revenue potential. Factors to consider include minimum night policy, cancellation policy, booking windows, and blocking off turn days. The more flexibility, the more desirable the rental is to potential guests. If a homeowner’s priority is to increase and maximize the revenue of their vacation rental investment, advise them to steer away from owner blocks on high value dates to maximize profits.
Casago are Owner-Centric™ – without the right homeowners, there are no guests.
THE RIGHT PRICE: Dynamic Pricing
Pricing – every property manager’s pet peeve! Where do we start to determine the highest possible price throughout the year, without reducing occupancy? You cannot make assumptions on pricing, there are simply too many factors involved – the blurred lines of seasonality, weekend and weekday demand, local leisure and corporate events, supply and demand, and staying competitive amidst hundreds, perhaps thousands of other vacation rentals in your market.
Price is a determining factor for many travelers yet is a complex issue for homeowners and property managers. Pricing your homes right is key to revenue growth, but the key is to ensure your homes are priced right every night of the year! Dynamic Pricing takes the guesswork out of pricing and ensures a competitive pricing strategy based on real-time data, destination market trends, and the pricing of your local competitors.
THE RIGHT GUEST: Guest Experience
Gaining a new guest can cost anywhere from five to eight times more than retaining a guest! The vacation rental industry has shifted from offering guests a place to stay to delivering a memorable guest experience beyond a bed. The guest experience you deliver directly impacts your profits and is key to scaling revenue growth.
Acquiring new guests is important but should not be the focus of your entire marketing spend. Repeat guests are a hidden treasure and, the chances are, your database is filled with loyal guests already invested in your brand experience. Nurturing your existing database of loyal, repeat guests allows a higher ROI.
THE RIGHT CHANNEL, AT THE RIGHT TIME: Distribution Management
The first step to solid distribution management is a streamlined and automated property management system with an integrated channel manager to expand the potential booking audience and get your listings in front of potential guests. Aside from eliminating the mundane day to day operations of your business, distribution and channel management optimizes your brand’s online presence, occupancy rates, and ultimately the value of your vacation rentals.
Before distributing your vacation rentals across the OTAs and online platforms, monitor the health of property listings. Are they correctly priced for the current market, well presented with professional images and enticing descriptions, and supported with rave reviews from past guests? Bad reviews are detrimental to the health of your vacation rental business and an important factor when evaluating business and revenue growth for your vacation rental company.
THE RIGHT BUSINESS MODEL: Casago
The Casago franchise model appeals to vacation rental professionals who want to deliver unforgettable service and results to their clients, compete nationally, and win locally! With unprecedented operational support, an industry leading university, and a dedicated and talented Revenue Manager to create a solid revenue management and channel distribution strategy, Casago empowers local property managers to grow faster with less stress. Interested in learning how you can own your own Casago franchise? Schedule a call with our team today!