The challenge of managing short-term rental properties is undeniable, but with a suitable strategy, revenues can be completely turned around, shooting up profits. In this success case from AndBnB in Andorra, we want to show you how, with our innovative and methodical approach, we transformed an average situation into a resounding financial triumph.
Here's a concrete example: a property in Andorra, until the end of 2021, was managed by one of the largest tourist rental companies in Andorra. Despite its reputation, the revenues and profits that the property generated were only moderate. In early 2022, AndBnB had the opportunity to take over the management of this property, and the results we achieved exceeded all expectations.
Once AndBnB took over, we began implementing a comprehensive action plan designed to maximize the property's potential. Here are the key steps we took:
Aesthetic renovation: We created an attractive and welcoming environment for guests, renewing the decoration and updating the furniture as necessary.
High-quality photographs: We coordinated our team of professional photographers to capture the beauty and uniqueness of the property. The images highlighted both the interior and exterior spaces, with each detail cared for to attract potential tenants.
Price optimization: We implemented a dynamic pricing strategy, using advanced algorithms and artificial intelligence to analyze factors such as market demand, the season, and local events. This data-driven approach allowed us to set competitive prices that maximized both occupancy and revenues.
Property descriptions improvement: We rewrote the property descriptions to highlight their features and attractions, ensuring they were SEO-friendly for better positioning in search engines.
Distribution on vacation rental platforms: We ensured the property's visibility on the main vacation rental platforms, including Airbnb, VRBO, Booking, TripAdvisor, and Expedia.
Once AndBnB took control, the occupancy rate skyrocketed to reach an impressive 80.3%, and the average price increased to 134 €.
AndBnB's improvements in property management had a significant and measurable impact on the results. In 2021, despite the property being managed by one of the largest tourist rental companies in Andorra, the average occupancy stayed at 46%, and the average price was €102.6, generating a monthly income of €1,415.88.
However, once AndBnB took control in 2022, the landscape changed drastically. The occupancy rate skyrocketed to reach an impressive 80.3%, and the average price increased to €134. This translated into a substantial increase in monthly income, which rose to €3,225.6.
These results show that, despite being a younger company in the market, AndBnB is able to generate superior results to the largest tourist rental companies in Andorra. With our optimization strategy and personalized approach, we managed to turn an average situation into a resounding success, maximizing property profitability.
But at AndBnB, we do not limit ourselves to increasing revenues; we are also committed to optimizing expenses to maximize profits. It is important to understand that net profit is calculated by subtracting management expenses (such as booking platform commissions or OTA), operating expenses (such as cleaning and maintenance), equipment (soap or coffee, for example) and supplies (water, light, electricity) from total income. With this formula in mind, at the end of 2021, the property generated a net profit of €5,952.
Once we took control in 2022, we implemented various strategies to keep expenses at bay. Among others, we centralized supply and equipment operations (OS&E), automated the check-in process, and employed home automation systems for temperature control. These actions allowed us to reduce operating costs and, in combination with increased income, led to a significant increase in profits.
At the end of 2022, thanks to these improvements in management and cost optimization, the property's annual net profit increased to €16,852, almost tripling the figure from the previous year. This case shows that with AndBnB not only more income is generated, but also effective control of expenses is achieved, thus maximizing the net return on your investment.
And as expected, the property owner shared his enthusiasm for the results obtained:
The transformation has been amazing. AndBnB has not only tripled my profits, but has managed to raise the occupancy rate and average rental price to levels I never imagined. Their management approach and attention to detail clearly make a difference.
And now, we invite you to be the protagonist of our next success story. If you are ready to maximize the benefits of your short-term rental property in Andorra, we would love to hear from you. At AndBnB, we are dedicated to providing efficient and profitable property management that exceeds expectations. Together, we can reach and exceed your financial goals. Contact us today and start the journey towards maximizing your investment.