During these challenging times we realize more than ever, that profitability is a key success factor of our industry. Without any reserves, it will be challenging to survive and a tough lesson for many. The leisure business will be less affected than the urban short term rental businesses but it will hit us all very hard and it is unprecedented. We have gone through crisis in the past but unfortunately not if this magnitude. One thing we can say, vacation rental is one of the travel verticals that will recover the fastest and it will be very much domestic focused in the near future. We are a great alternative to any other hospitality verticals, that provides exactly what people are looking for after a long 'stay' at home.
Now is time to reduce your operational costs to the max, try to delay any payment you can and make sure you do anything to retain your key staff, with some pay cuts or deferrals. Anybody coming out of this storm will be stronger than ever. Relationships with owners is now paramount and they are in the boat with us. Keep the owners well informed and ask them to share the burden with you, also for future contracts. Use the time to analyze your business, try to understand all your key cost, revenue and profit drivers. Now it is time to put your business on a solid footing in all aspects, so you are ready when it will pick up again. Try to understand what makes your business profitable and focus on those components going forward. It is needless to say, that we need a reserve of six months to go through this.
We at AJL Consulting wish you a lot of strength and focus. Don't hesitate to contact us for some 'free' advice.