1. BARCELONA VACATION RENTAL STATS (SCROLL DOWN IF THIS IS NOT YOUR MARKET!)
Often labelled the World Capital of Vacation Rentals due to the sharp rise in available properties it experienced from 2011 to 2014 (from 1000 properties to 9000 in 3 years!) , HomeAway shared some very revealing stats about the city:
• 7M tourists came to Barcelona in 2016!
• 66% come for vacations, 24% for professional reasons, 10% personal reasons
• Average number of nights spent in Barcelona: 5
• Average number of people staying: 4/5 people
• Guests book on average 77 days before arrival
• Average spent per stay is €950, per night per person average €69
And who is the HomeAway traveller that comes to Barcelona?
Americans make 25% of the travellers that come to Barcelona via HomeAway,
Followed by French, Germans, Brits, Canadians, Italians, and Spanish travellers
More stats demonstrating how mature and professional the market in Barcelona is:
• HomeAway has 5000 options in Barcelona
• 74% of owners / property managers accept credit cards
• 93% confirm in 24 hours
2. UNDERSTANDING HOMEAWAY: INSTANT BOOKING / PAY-PER-BOOKING / SUBSCRIPTION
The one umbrella model is called Online Booking (HomeAway abbreviates it OLB) which means that the payment is done online.
Beneath that there’s:
⁃ Pay per booking: where the PM pays a commission to HomeAway and the PM has the option to decline the booking (not advisable and affects your ranking)
⁃ Instant Booking: is what makes you rank the highest but this is not given to everyone, you need to prove to HomeAway that you’re very professional and comply with all the Best Match requirements (see below)
⁃ Subscription model: where you get enquiries and you pay a yearly fee as opposed to a commission per booking . High-value properties usually work on subscription.
3. UNDERSTANDING HOMEAWAY COST 2017
Pay-per-Booking / Instant Booking:
€0 subscription, 8% per booking: if HomeAway charges for you, you will get paid 5 days after the check-in
Pay-per-Booking / Instant Booking:
€0 subscription, 5% per booking: if you charge the client yourself you get the amount instantly (depending on your payment provider) and you pay HomeAway 30 days after check-in.
per year €229: you get paid 5 days after accepting the booking
The Guest pays 6% and a max of €329 per booking.
4. INSTANT BENEFITS OF WORKING WITH HOMEAWAY THROUGH RENTALS UNITED
1) It is easier to get the instant booking model: why? because when you come from a channel manager correct availability is guaranteed.
2) Pay less commission: When you work with a channel manager you can receive the credit card details and charge them with your payment provider (or use the Rentals United integrated payment provider) as soon as the booking is made. In this case you will only owe HomeAway 5%, 1 month after the checkout.
Note: Unless you already work with HomeAway.com (as opposed to one of the family sites) you need to get a new account to work with a channel manager, and your reviews will be moved over. Please book a demo with us to find out more.
5. HOW THE NEW BEST MATCH ALGORITHM WORKS
Since HomeAway turned on the new “best match algorithm” based on a scoring system of your properties + the online booking system, they made more profit in the last quarter of 2016 than the whole of 2015! This new algorithm clearly works for guests, here’s how you can make it work for you as an owner / property manager and how to rank high on HomeAway in 2017:
First of all the algorithm looks at relevancy for the traveller and his/her preferences then it ranks your properties according to:
• good reviews (4,7% score average)
• how well you convert enquiries to book
• time that you respond to enquiries
• don’t refuse bookings
• having a calendar up-to-date (use a vacation rental channel manager! be always up-to-date!)
• 6 photos minimum but best to go for the max 24 photos (the max)
• making sure you have all your services listed
• no codes in the title, making the title attractive