Angel Host's Solution for Property Managers

Using next generation technology and a team of experts working around the clock, Angel Host takes care of all your reservations & guest communications.

This way you can focus on what matters most: growing your business and improving your bottom line.

Transcript

1. Increase your bookings Reduce your costs The Reservation & Guest Communication solution for Property Managers Copyright – Angel Host 2018
2. The world is changing You live this every day: increasing costs, uncertain revenues, new technologies, demanding guests and owners expecting higher revenues. This is why it is more important than ever to find ways to stand out from your competitors by being more efficient and to offer improved services.
3. Let us help you increase your reservations and reduce your costs Using next generation technology and a team of experts working around the clock, Angel Host takes care of all your reservations & guest communications. This way you can focus on what matters most: growing your business and improving your bottom line.
4. Our 5-step solution
5. Let our team of editors and photographers produce a mouth watering description that can attract more bookings. Every listing is professionally written in English, Spanish and French. If your photos need to be updated, Angel Host will take care of this for you at no extra cost. Professional listing in multiple languages 1
6. Angel Host ensures that your listings are promoted on all the major travel websites including Airbnb, VRBO, HomeAway, TripAdvisor, Flip Key and Booking.com. It is the only way to ensure your property is exposed to a worldwide market. Promotion on all major websites 2
7. Hotels and airlines do it. We will do it for you. Our team of experts employ the latest rate management technologies to adjust rental prices on a daily basis. We base ourselves on a number of factors including seasonality, booking window, competition, special events, orphan days and weather changes among other factors. Dynamic pricing to ensure maximum revenues 3
8. Our team of multilingual Angel Hosts will take care of all guest reservation inquiries immediately, making sure they convert into confirmed bookings. They are your guests! We will respond to all inquiries under your name and not ours. 24/7 Reservation desk to never miss a booking 4
9. Angel Host will provide each guest with a mobile app containing all the pertinent information about their rental: house rules, things to do, WIFI password, etc., improving their experience and reducing the number of calls you will receive. We can also include any concierge service you want to offer to increase your rental revenues (e.g. tours). Additional guest services 5
10. A low-cost solution to improve your bottom line If you do it Angel Host Time and cost to write a listing $$$ 10% of net revenues (*) Professional photography every 3-5 years $$$ Regular updates of nightly rates to maximize sales $$$ Listing on all channels & synchronizing calendars $$$ Reservation agents to handle requests 24/7 $$$ Mobile application for guests $$$ Most Property Managers bill 20% to 30% per booking. Paying Angel Host 10% means you are still left with 10% to 20% margins, while considerably reducing your fixed costs and increasing your reservations. (*) 10% commission for 20 properties or more. 1 to 9 properties: 12%, 10 to 19: 11%
11. So why partner with Angel Host? • Get more bookings and more revenues thanks to optimized listings, multiple channel exposure, dynamic pricing and 24/7 reservation service. • Convert a fixed cost ($$$) into a variable one (10%). • Focus your efforts on activities that increase your revenues such as concierge services. • Have more time to grow your business.
12. Interested? We would love to schedule a call to share more details and discuss how we can help maximize your revenues, reduce your costs and increase your profits. Veronique Lalonde, COO +1 (514) 285-5623 Angel Host Inc. 360 rue St-Jacques Montreal, QC, H2Y1P5
13. Q: How do I get started? A: It’s simple. We sign a short agreement where you allow us to control the listings that you want us to handle. We then assign you an Account Manager (AM) as your main point of contact. This AM will obtain from you all the necessary information to onboard your properties and get you up and running with us in no time. Q: If I start working with Angel Host, what happens with my existing reservations? A: Nothing. You continue to manage them as usual. When we onboard your properties in our system, we make sure to import all your existing reservations and synchronize all calendars. Q: Can I let my existing clients continue to book directly on my website? A: Absolutely! They can continue to book on your website and we will make sure to synchronize via iCal your calendar with our system. Alternatively (preferably), you can record that booking directly on our system. This would eliminate the possibility of a double booking (because iCal does not update in real-time). Q: Where will property owners book their personal stays? A: The same way they had been until now, directly on your system and once again, we will synchronize via iCal. However, if you prefer, we can provide them a direct link to our system for them to reserve their dates. This would ensure real-time synchronization and thus eliminate the possibility of double bookings. Q: I’m a Property Manager and we normally offer concierge services to our clients (e.g. transportation, tours, etc.). Can we continue to do this? A: Absolutely! As soon as the guests confirm their reservation, any messages we send to them will be branded with your company name and will include an invitation to book the services you offer. Also, the App we provide to the guests include links to book your services (e.g. transportation, tours, private chefs, etc.). Frequently Asked Questions
14. Q: How will I get paid? A: When you start working with Angel Host we will ask you to create a Stripe account. Every time a guest makes a payment, Stripe receives the money and distributes it accordingly: it pays Angel Host its commission and remits the rest directly to your bank account. You can sleep well knowing that you are always in control of your funds. Q: Can we choose not to advertise our properties on certain channels, for example Booking.com? A: Yes, although we don’t recommend it. Some owners and Property Managers prefer not to advertise on certain channels due to the high commissions they charge, but we think this only limits the number of reservations. Instead, we work together with you to define different rates for different channels. Booking.com for example doesn’t charge a guest booking fee (Airbnb and VRBO do), which allows us to increase the published rates and reduce the impact of their high commissions. Q: Can I see how Angel Host is responding to reservation inquiries? A: Of course! We are proud of the work we do and we are always open for feedback. We will provide you with a view-only account where you can read all the communications between our Angel Hosts and your guests. Q: How will I know the details of each reservation (e.g. check in/out) to coordinate with the cleaning team? A: Because you will have a view-only account in our system, you will have instant access to all the information related to each reservation. Angel Host will also give you access to a “task assignment” Mobile App that you will be able to share with your personnel to track the status of each assignment, monitor work duration and enable employees to update you with important info by leaving notes next to every assigned task. Whether it’s belongings left behind by guests or a new maintenance issue, your employees can report anything and everything. If you prefer, we can also notify you of check ins and check outs via traditional email. Frequently Asked Questions
15. Q: Does Angel Host use Airbnb’s dynamic pricing tool? A: We don’t. It has been widely publicized that Airbnb’s dynamic pricing tool only looks to maximize bookings and not owner’s revenues. It is not surprising to see Airbnb suggesting a rate of $50 per night for a property that usually rents for $250. Our pricing technology looks to optimize your revenues, not Airbnb’s! Q: Will Angel Host’s dynamic pricing tool end up charging guests a ridiculously low rate? Never. When we onboard your properties, we will agree on what is the acceptable minimum price that the owner is willing to accept. Our tool (and our Revenue Manager) will make sure we never go below that minimum.; Q: How is Angel Host’s commission calculated? A: We calculate our commission on the net booking revenue you receive from the booking channel. This means that if a booking channel charges a 5% commission on a $1000 booking, the net revenue would be $950. Angel Host’s commission is charged on the $950 and not the $1000 (more details in the Commissions and fees section); Q: My properties are not well suited for large groups of young people and we do not accept parties, will Angel Host screen guests to make sure we only serve the right type of client? A: When we onboard your properties we will be asking you this type of question. If your guests have to meet certain requirements, we will do our best to ensure these requirements are met (as well as you could do this yourself). While we do have all our properties on instant-booking (it maximizes revenues), we follow the same type of process you would follow to ensure guests meet your criteria. Q: What if I’m not happy with your service? A: At Angel Host we believe that actions speak louder than contracts. If at any time you are not satisfied with our services, you can cancel at any time. No strings attached. You would just be responsible for serving the bookings Angel Host brought to you and to pay our corresponding commission. That’s all. Frequently Asked Questions
16. Contract rate: The baseline rate that was agreed with the Owner (e.g. $100). This is typically the rate that shows up on your Property Management website. It is not necessarily the price per night shown on Airbnb, Booking.com, etc. nor the final price per night that the guest pays. More than anything, it is a point of reference; Published rate: It is the rate per night that the Guests see on the booking platform. It could be the same as the contract rate (e.g. $100) but will most likely be different to account for dynamic pricing adjustments or to offset the booking platforms commissions (e.g. $100 on Airbnb, $105 on HomeAway and $120 on Booking.com); Paid rate: It is the actual rate per night paid by the guest. It is usually equal to the published rate, unless the guest negotiated a special discount; Gross Booking Revenue (GBR): It is the paid rate per night multiplied by the total number of nights excluding cleaning fees, security deposits or booking fees charged to the guests by the Booking Channel; Rates, fees, gross revenue and net revenue Ex: 2-bedroom Dream Condo Airbnb HomeAway Booking Direct Contract rate per night $100 $100 $100 $100 Published rate per night $100 $105 $110 $100 Paid rate per night $100 $105 $110 $95 Number of nights 1 1 1 1 Gross Booking Revenue (GBR) $100 $105 $110 $95 In the example above, we assume a condo that has a contract rate of $100 but that is increased for the channels that charge higher commissions or fees. In this example we also assumed that the Direct booking was offered at 5% discount. To keep things simple we assume a one-night booking.
17. Channel booking fee: The commission charged by the booking channel: Airbnb 3%, Trip Advisor/ Flip Key 3%, HomeAway 5% and Booking.com 15%; Channel credit card fee: The credit card fee charged by the booking channel: Airbnb 0%, TripAdvisor/Flip Key 0%, HomeAway 3%, Booking.com 3% (or lower depending on your processor). Please note that Credit Card fees are not only charged for reservations but also for security deposits; Net Booking Revenue (NBR): It is the Gross Booking Revenue minus any Channel costs (i.e. booking & credit card fees). Ex: 2-bedroom Dream Condo Airbnb HomeAway Booking Direct Gross Booking Revenue (GBR) $100 $105 $110 $95 Channel Booking (%) 3% 5% 15% 0% Channel CC fees (%) 0% 3%* 3%* 3%* Channel Booking & Credit Card fees ($) $3 $8 $20 $3 Net Booking Revenue $97 $97 $90 $92 Rates, fees, gross revenue and net revenue * Assumes a 3% CC Fee, but could be lower depending on your agreement with your Payment Processor
18. Referrer commission: The commissions charged by an individual or third party for bringing a guest reservation. Typically, these are other Property Managers or Property promoters that contact you with a potential guests and asks you for a commission (e.g. 10%); Angel Host fee: It is the fee that Angel Host charges for handling all reservations and guest communications tasks. The Angel Host fee starts at 12% of the NBR and goes down to 10% of the NBR (20 properties or more); Property Manager commission: It is the commission charged to owners for promoting their property and for handling all reservation requests. Traditionally this fees varies between 20% and 35%. This commission can be calculated on the Gross Booking Revenue but is most commonly charged on the Net Booking revenue. Rates, fees, gross revenue and net revenue Ex: 2-bedroom Dream Condo Airbnb HomeAway Booking Direct Net Booking Revenue $97.00 $97.00 $90.00 $92.00 Referred commission (10%) $0.00 $0.00 $0.00 $9.50 Angel Host fee (10%) $9.70 $9.70 $9.00 $0.00 Property Manager commission (10%) $9.70 $9.70 $9.00 $9.50 Net to Owner (80%) $77.60 $77.60 $72.00 $73.60 Conclusion: If a Property Manager charged a 20% commission to the owner, 10% would be shared either with the referrer or with Angel Host (never with both) and it would net the other 10% (80% paid to owner).