In 2014 we began working with a new partner who already had a mature and established rentals portfolio of 23 luxury lodges. The owners were happy with the performance they’d seen, but wanted to reach a new, more affluent audience and achieve a higher rental tariff for a premium product.
Their resort was already a successful one, so the need to deliver from the outset with no slow in booking volumes was absolutely essential.
Here’s how that business looked before we got involved:
• Rentals turnover of £437,721*
• Number of bookings – 869*
• Average duration – 4.8 nights*
• Average booking value – £563*
8 months in to our first year of trading together, here’s what that same rentals business looks like now:
• Rentals turnover of £507,424* (+£69,703)
• Number of bookings – 737*
• Average duration – 5.4 nights* (+.5 nights per booking)
• Average booking value – £688* (+£125 per booking)
With a 16% increase in revenue and a 22.5% increase in average booking value, we’ve been able to deliver a higher return with fewer bookings. This has meant an increase in the average guest stay duration, which in turn has reduced operating costs for the owner substantially.
With less discounting, we’ve improved the general perception of the development and begun to create a forward booking culture among consumers who value the
experience enough to pay the full price in advance. As a result of this, prices have been increased as much as 18% in areas on select accommodation classes for the 2016 season.
“We came to Blue Chip because we needed a partner who understood our needs and those of our owners, and who, by successfully delivering a luxury product to a luxury consumer, could help enhance the investment returns achievable through lodge ownership. We already had a mature rental program managed by another holiday agency, so switching presented a big risk to our business and to our private lodge owners too. I can honestly say that Blue Chip are meeting our expectations, and providing a quality service to all parties involved. We’re pleased with our decision to switch, and look forward to a prosperous future.”
Edward Rowlandson, Owner, Charteroak Estates
*Figures show a like for like 8 month trading period in 2014