holidayhomeinformation.co.uk

Use a Holiday Agency or do your own marketing

Before making a decision on appointing a Holiday Agency or going it alone you should have an idea of what is involved in marketing your holiday home.  Here is a brief outline. The following information covers the marketing and bookings process and does not cover property maintenance or changeovers (see our articles on property management for more information on this).

Description of the property:    The quality of both the description and the photographs are very important in order to promote the unique advantages of your property. The description need to be precise, well worded and should describe fully the property; situation, unique features, layout, furniture, décor and equipment.  This is not just a one off exercise but should be reviewed annually to reflect any changes made during the year.  If the information is accurate then disputes about the description are less likely to arise.  Holiday agencies will carry out this work as part of their service.
Ratings:  The English Tourism Council (Visit Britain) has a rating scheme for self catering properties (www.qualityintourism.com).  In order to be rated you will need to be a member.  Fees vary according to number of properties.  For details on the standard membership fee and the annual ratings charge visit http://www.qualityintourism.com/content/pdfs/Fees/Self-Catering%20Fees%20&%20Benefits.pdf.  These days it may not be enough for you to say that you are good. Potential visitors may want reassurance that their precious holiday time and money are going to be well spent. An independent stamp of approval may give them this confidence. Many of the regional guides now insist that the properties are rated before allowing you to advertise.  Holiday Agencies usually provide some advice on ratings and may be able to provide a discount on the standard rates charged by Visit Britain.

Prices:  You will need to decide a realistic tariff that accurately reflects the local market conditions in which you operate at different times of the year.  Don't worry if you don't get it spot on first time around.  But make sure you are monitoring the situation andcan react quickly if you if you are under booked or overbooked.  Bear in mind that under booking may be due to lack of exposure and may not necessarily be as a result of an incorrect pricing.  This should not be a one off exercise but reviewed annually to reflect volume of bookings.  Holiday Agencies carry out this work as part of their service.
Terms and conditions:  Included in your terms and conditions you will need a policy on payment, cancellations, breakages and deposits.  You could use an existing set of terms and conditions as a guideline and tailor it for your particular circumstances. The terms and conditions should be reviewed annually to take into consideration any difficulties you may have had during the year. Holiday Agencies carry out this work as part of their service.
Marketing:  You will need to plan and cost a marketing plan for on-line and print media. Remember you are competing with everyone else who is trying to sell a holiday in the UK.  Setting up a website may be a core part of the marketing plan. The cost of setting up a website can vary from hundreds of pounds to a few thousand depending on what you require and what company you use to carry out the work. The website needs to be search engine friendly and ideally should have some form of on-line availability and on-line booking. Ongoing promotion of the web site will be essential. This can be achieved through natural rankings which can take time - 6 months upwards.  High rankings can be instantly achieved through pay per click or through promoting your website with print advertising.

As an alternative to setting up your own website or as an additional marketing tool you can add your property to one or more property websites such as http://www.holidaylettings.co.uk   These websites are professionally managed and can be good value for money.  You pay a flat fee to advertise your property for the year. Some of these sites offer additional services such as on-line availability and booking.  Remember that only one calendar should be used and close management of this is essential to avoid double booking. 

Print advertising is expensive.  A good sized simple text ad in a national paper will cost between £80 and £150.  A small box ad will cost somewhere between £200-£400. Preparing, placing and monitoring adverts will take time.  The response rate from newspapers can be disappointing.  Free editorial is the most effective and most economical way of promoting your property however you will be competing with everyone else for the limited editorial opportunities. Holiday Agencies carry out this work as part of their service.
Enquiries and Bookings: Once the marketing plan is in place you will hopefully begin to receive enquiries and taking bookings.  You should be available 6-7 days a week to at least 6pm to answer calls.  If you don't respond they won't call back.  You will also need to ensure that there is a back up in place if you are away. Holiday Agencies carry out this work as part of their service.
Administration: A deposit of at least 20% should be taken once a booking is made and should be provisional until the deposit is received. All payments should be receipted.  On receipt of full payment the property details including directions should be sent to the guest. Accurate records must be kept of all transactions. Most payments should arrive in the form of a cheque as it is unlikely that you will be able to accept debit or credit card payments.  You must remember to ensure that the payment is cleared before the booking is allowed to proceed.  Holiday Agencies carry out this work as part of their service.
Complaints and dispute resolution:  Regardless of how good your property and service is you should expect some complaints.  You should at all times remain objective.  Do not take the complaint personally. Take the full details of the complaint and take time to reflect.  The guest has taken time to make a complaint you should always make some sort of gesture however small to validate the feelings of the guest. Holiday agencies normally carry out an arbitration role as part of their service.
  
Overall Advantages of going it alone

• By managing your own lettings you remain in control of the property and have the final say in terms of who stays there
• Savings on costs in region of 20% of market value of bookings.  Most agencies vary between 20-23% commissions
• You should build up repeat business over the years thereby reducing the marketing spend year by year
• You have full control on pricing and special offers
• You will get paid straight away thereby improving your cash flow
• You should have a good knowledge of your property, the area and local attractions
• Feed back from guests will come directly to you and if things go wrong you will be in control of the situation
• Gives you the option to be flexible with your letting periods.  With most agencies you will be allocated a specific amount of weeks

Disadvantages of going it alone

• Regardless of what you spend on marketing you will not be guaranteed the level of bookings you need
• You could spend in excess of what you might pay an agent in marketing particularly if you do not have experience in this area
• Agent costs can be set against income from the property to reduce your tax bill, your time can't
• Available to answer calls 6-7 days a week
• Assuming your guests are happy with the standard of accommodation it will take time to build up a loyal repeat business eg 3-5 years
• You will be involved in every complaint

Advantages of using an Agency

• Usually companies employ experienced marketing managers / digital marketing consultants and PR expertise.  More and more advertising is online and this technology is moving quickly.  A good marketing company will find it easier to keep up with this changing market
• Good professional Photographs and Descriptions are taken care of by the agents.  The onus will be on agency to resolve any disputes if these details are not correct
• Marketing companies will have benefits of scale and purchasing power and therefore have a much better return on advertising spend.  Agencies will reclaim VAT on any media spend
• The payment to an agent is purely success based.  You only pay the agent for bookings achieved
• The agent handles all the calls.  Good agents will be open 6-7 days a week.  They will have on-line availability and on-line booking capability
• The Agent handles all the payment and administration and will at any stage be able to give you a list of past stays, future bookings and a statement of account
• An agent will have a next day delivery of a brochure and booking documents the systems are fully computerised and linked to the internet
• Agency costs can be set against income from the property to reduce your tax bill

Disadvantages of using an Agency

• Different agencies will have different policies on owner stays.  Generally owner stays will be limited to just a few weeks in the peak periods.  Many agencies are flexible about owner stays during off peak periods and in particular if the property isn't booked
• If the agent is not performing it is difficult to change until the following year due to the brochure schedules. Many agencies have penalties for early exits from contracts
• Agencies are generally not that flexible on offers and special deals for individual owners as they will be marketing on behalf of hundreds of owners

Holiday Home Information, October 2007