Daytona, Florida: Home Owner Case Study
This Owner is Outpacing the Regional Revenue Average by 40%!
“I was with another management company for 6 weeks and received only 1 booking in that time period. I decided to switch over to RedAwning. They took beautiful photos of the property, much better than the other photos. Within 24 hours of going ‘live’ I had my first booking. Being ‘live’ for just under a week, they have produced a total of 5 bookings. I look forward to a good year with RedAwning.” - Daytona Beach Home Owner
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THE CHALLENGE
Daytona Beach, with NASCAR, beautiful beaches and in close proximity to most of Florida’s tourism treasures, is a thriving vacation rental market. The area attracted 10.2 million tourists in 2018, the sixth consecutive record year of growth. Overnight visitors spent $6.1 billion dollars and vacation rentals are flourishing, making monthly income in the $1,250 range for one-bedroom units like our partner. Mashvisor, a prime data source for vacation rental investors, Daytona Beach is the top-performing beach destination for vacation rental properties. Investors are seeing a 7.6% cash-on-cash return.
Our homeowner partner, had spent over a year with one of our competitors, with disappointing results. He tried six weeks with another of our competitors before coming to RedAwning because he just wasn’t getting his fair share of a lucrative and growing market. Before RedAwning he was earning slightly less than $250.00 per booking and an average of five bookings per month.
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THE GOAL
To surpass the gross revenue per booking he was achieving in the 14 months with his previous partners, by at least 2X.
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THE SOLUTION
THE SOLUTION
The RedAwning Owner Program offers a complete marketing, distribution and reservations solution for property owners by providing the largest distribution network in the world with full-service reservation and guest support.
Our partner was offered FREE professional photography to improve the conversion rate of his listing and we also recommended more guest-friendly cancellation policies in order to increase impressions and capture higher conversion rates on the major online travel websites.
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THE RESULTS
THE SOLUTION
Our partner hit the ground running with RedAwning. In fact, he got his first booking within 24 hours of going live. In his first two weeks, he had already booked six reservations and saw his gross revenue per booking spike 3X to $763.00. According to AirDNA, one bedroom units in Daytona Beach are generating an average of $26,000 annually. Our partner is on pace to exceed $36,000 in 2020.
| Timeframe | Nights | Bookings | Average Daily Rate | Gross Booking Revenue | |
| REDAWNING PARTNER | 2 Weeks | 51 | 6 | $71 | $763 |
| PREVIOUS PROVIDER | 14 Months | 202 | 60 | $72 | $248 |
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Commentary On This Success
This Daytona partner’s instant success speaks to RedAwning’s industry-leading optimization, marketing, and merchandising strategies. RedAwning’s complete marketing and distribution package meant that our client’s listings had the opportunity to be seen by millions of travelers every day on every major travel booking website. The free professional photography greatly increased the listing’s ranking and conversion.
Our suggested policies for cancellation are more guest friendly, which is leading to higher converting listings and more bookings. We provide ongoing revenue management support, so our data-led revenue and marketing strategies made sure that his listing is displayed with competitive rates to maximize bookings and revenue.
Not to mention our industry-leading distribution network gave his listing the widest possible exposure from a single contract. Since our client didn’t have to do any work to get his listing out on the largest network or manage any of the reservation issues, such as inquiries or payment processing, he had ample time to provide legendary service and create above-average, unforgettable experiences for his guests.
Unforgettable experiences are the foundation for customer loyalty, and this homeowner is likely to see many repeat bookings next year. With occupancy rates increasing in Daytona Beach, he may also be able to increase his rates as 2020 progresses.
Our Florida based property owners are winning big in this highly competitive market, enjoying year over year increases in booking volume of 445% and averaging across all room types $2,668 in gross revenue per booking. This partner is on track to see his business soar in 2020!
