Generating bookings for a holiday let property can be done one of two ways; through a marketing agency or taking the bookings yourself. The functions carried out by an agency typically cover:

• Promoting the property via online and offline channels.
• Answering booking enquiries.
• Taking bookings.
• Taking payment – deposits and balances.
• Arranging paperwork for the booking and dealing with issues or complaints.
• Sometimes arranging cleaning and other property management.

So with this in mind we can explore the benefits and disadvantages of using a holiday lettings agency versus doing it yourself.

The Advantages

Saving time.

Running a holiday let can be very time consuming in areas such as answering telephone and email enquiries, monitoring and updating availability, and dealing with email and posted correspondence around payment. An agency will perform all of these tasks.

Taking payments and chasing payments.

Most guests will choose to pay their deposit and balance by credit card or debit card which can be handled by the letting agency who have the facilities to process card payments. They will also have systems in place to chase late or missing payments with guests.

Marketing expertise.

A holiday letting agency is essentially the marketing agency for the property. By being part of their portfolio, your property will have access to expertise in all areas of marketing such as PR, Search Engine Optimisation, website design and direct mail.

A broader reach.

Being part of a large portfolio means being part of a larger marketing campaign which in turn leads to wider exposure to more potential guests.

Access to a customer database.

When part of an agency’s portfolio, you will be marketed to their customer database of past guests who have previously booked.

Complaints and problems.

Occasionally problems may arise with guests, such as damage to the property, late payments or guest complaints. Wherever the problem of fault lies, an agency will have policies and resources to resolve problems in a professional and fair way.

Legal and Legislation.

A letting agent can advise on the required regulations for holiday letting. This includes the likes of gas and electricity certificates, insurance requirements and in particular the booking terms and conditions. The booking terms and conditions are a key document the guest will sign while booking the property and sets out the terms of the holiday rental, such as damage, the tenancy and each party’s responsibilities and liabilities.

Expert advice.

A holiday letting agency will be able to provide advice to improve bookings and income, drawing upon their expertise and learnings with their portfolio as a whole, and the market. This might include advice on taking pets, furnishings and decor, pricing and photography.

More income.

This depends on the ability of the agency of course, but a well organised, effective agency will be able to generate 25+ bookings per annum and therefore more income, even after their commission.

Read our article about the disadvantages of using a holiday lettings agency.