Least represents the lowest monthly revenue your property is likely to earn in the next 12 months.
Average is the average monthly revenue your property is likely to earn in the next 12 months.
Fixed Expenses: These are expenses that remain constant no matter what the occupancy. These include:
- Staff salaries management
- Base utilities: internet, trash collection, pest control, community fee
- Baseline electricity & water: garden, pool pumps, fridges
Average Variable Expenses: Expenses that rise/fall due to more guests or greater occupancy. These include:
- Marketing and management fees
- Guest consumption: water, electricity, laundry
The reliability of your business plan hinges on the property’s ability to achieve and maintain a strong ranking. Once this ranking is established and sustained, business operations become more consistent and predictable. Ranking is heavily influenced by guest experiences, which are shaped by factors such as location, amenities, design, and management quality. Booking frequency also plays a critical role; a lapse in bookings can cause your ranking to drop, while an excessive rate of bookings might indicate missed revenue opportunities due to pricing below market demand.