Here’s a great example of what happens with a Wolf Property.
Property A was onboarded in early August 2019 and went live two weeks later. We had a lot of rental history from the prior owners, because their management company had marketed this home for at least four years and charged a fee of 15%. In 2018 the property:
- Grossed $28,405 for the entire 12 months for rent plus sales tax
- After the management fee, the owners were paid $24,144
- The owners still had to pay a sales tax of 10.77%, or $3,059
- The owners were left with a net profit of $21,087
- They booked 184 nights, for an occupancy of about 50%
- Their average rate per night was $154
For the last 12 months ending July 1, 2022:
- Grossed $112,656 in total revenue
- Nearly all sales tax and platform commissions had already been paid.
- The owners’ net profit after The Wolf’s management fee was $72,058
- The occupancy was 99.45% (4 empty nights)
- Had an average rate per night of $313
How do we do it?
Below is a screen grab of some of our property metrics – specifically visibility in the AirBnB search engine for queries for a stay between Jan 1 and March 31, 2020. What you see is the number of times our properties showed up compared to the number of times the average competitor property (ie, similar size and amenities) showed up. The first home on the list, for example, gets seen more than ten times as often as its competition. One property gets seen nearly 150 times as often (and unsurprisingly, it’s our best performer).
Why does this matter? The more people see a property, the more people will book it. And the high visibility we have achieved is the simple result of making guests happy. Happy guests do things that directly impact the bottom line. They leave good reviews, they tell their friends about your property, and they book you again in the future.
We strive to provide a top notch guest experience from start to finish. We answer booking inquiries within a few minutes, send guests confirmation emails promptly, check in with them during their stay, and provide a ton of great local advice. Simply put, we take care of them.
Our homes encourage family time.
Our homes are romantic.
Our homes are sparkly clean.
Our homes look good.
Our homes are relaxing.
Our homes are unique.
Our homes are a good value.
As a result, our homes are popular. As guests experience this difference, their continued positive feedback pushes our listings to the top of the heap.
Eyes on the listings aren’t the only thing that matters, however. We need people to click through to our listings and ultimately book them. As a result of our pricing strategy, listing optimization, and amenity investments, our properties are consistently filled, and booked at a higher nightly rate than our competitors. We believe our Wolf Dens are unique homes and good values.
Here are two screen shots from AirBnB showing our occupancy rates and average nightly rates for our entire portfolio during the first half of the slow season: mid-August 2019 to mid-January 2020. We chose this because it shows off-season performance, since it’s pretty easy to get homes filled in the summer when the majority of Estes Park’s 5 million visitors come.
There are two important things to note here.
First, the occupancy rate is more than triple the competition (an average of comparable properties of similar sizes and with similar amenities). The market average is 26% while our occupancy rate for this period of time was 92%. Indeed, some of our homes didn’t even have a vacant night.
Second, our average nightly rate was only slightly higher than the competition. We believe our homes are worth that small price bump — and so do our guests. Our homes are well kept, well cleaned, and well stocked, and very well reviewed.
Nobody wants to risk an entire vacation by staying in a home that is falling apart or is noisy. But clearly guests feel confident that our properties are going to meet their needs, and are willing to pay a very small premium to ensure that. As a result, our homes remain a fantastic value to vacationers.
While looking at these metrics, it’s clear that not only are our homes earning as much or more per night as our competitors, but they do so three times as often.
And this is a big part of what sets The Wolf apart from the rest of the management pack.