The world of Serviced Accommodation has never been more versatile than it is today. When it comes to booking a ‘Staycation’, (a term which has been coined and is very fitting), there is an ocean of opportunities for people to swim in.
Taking that into account, there is a ‘niche’ in the market like never before for savvy property investors wanting to take advantage of the demand. The window of opportunity to create a portfolio that provides them with impressive streams of passive income is wider than ever.
When guests are searching for that all-important dream location, finding the perfect accommodation is at the forefront of their minds. Why? As the world is ever-changing, so is the demand for unique experiences. People, now more than ever, are focused on creating memories that last a lifetime. Holiday apartments make ideal home-away-from-home bases, whether you are holidaying in your favourite city or enjoying a luxury staycation in the many, many beautiful destinations across the country.
Let’s start by looking at the last 12-months, and what the pandemic has done to influence the shift in what people can actually do when they’re looking to take a break.
The lockdown restrictions that Boris and our UK Government have changed more times than the weather have been confusing to say the least! One minute a promise of holidays is on the horizon, the next £5,000 fines are being dished out for travelling without a valid reason. Due to this confusion, many sun-seekers are now turning their attention to what is available in the UK.
Did you know that Staycation.com have announced a 45% increase in searches for Serviced Accommodation not even 24 hours after Boris’ last announcement? We’re now at a point where the demand is outweighing the supply, and this is where it can get very exciting for those property investors who are ready to tap into it!
Just to make that figure even MORE exciting, The Mirror published an article back at the beginning of February with the title: Record staycation summer expected for 2021 as travel firms see huge surge in bookings
Original Cottages also noted a surge of bookings over the last weekend of January, with bookings up by 94% compared to the same time last year - a record-breaking weekend for the brand.
Why the Serviced Accommodation strategy is the way forward?
In order to understand why the Serviced Accommodation strategy is one for any savvy property investor to implement, we’re going to take a look at one of our students turned mentors.
When Scott Weir started his journey with us at Touchstone Education, he was already an owner of a property letting agency that spanned across the west coast of Scotland. After attending one of our events, Scott became a mentee and began to realise his passions lie within the prosperous world of Serviced Accommodation.
Fast forward to today, and Scott is now the proud owner of ‘Pillow Partners’, one of the TOP 3 Serviced Accommodation management companies in the United Kingdom, now also crossing over the pond and launching into the United States of America.
The management company look after over 1,000 units across the country! Some days, the company comes in to £100,000+ worth of bookings for the summer, and their team is busier than ever! With employing new staff, from a management perspective… it is already shaping up to be one crazy summer.
Scott says that “Due to the fact people haven’t had a holiday for over a year, they are going to be absolutely desperate to be out and about and get some fresh air in the UK”.
Other considerations in the market?
Now, we’re not only taking the demand for UK holidays into consideration here. A massive part of the Serviced Accommodation industry falls into the building and infrastructure projects which are starting to come back. Contractor lets are massively busy as well. Pillow Partners as a prime example are currently taking bookings where customers are reserving up to 5 properties on just ONE booking!
Events are starting to take place again from music concerts to networking events and business conferences. As these dates are released, people instantly book and there is room here to double the prices due to the national demand. When concerts arrive in big cities from the A-list stars of the music industry, it’s just another ‘holiday period’ for hotels, Air Bnb’s and properties on booking.com to double their prices. There are more opportunities to build wealth than you can shake a stick at!
To take advantage of this unparalleled demand and premiums on room rates, it could not be more of a recommendation to get the ground running and set up a Serviced Accommodation business.
It’s all about the numbers!
Once upon a time, Abi Hookway, (now the managing director of Touchstone Education) started out in her Serviced Accommodation journey with a gorgeous property on the coast of Whitby. Fast forward to today, and Abi’s portfolio now boasts an impressive cluster of SA units across the country.
Let’s look at Whitby properties, Dreamcatcher Cottage and crunch some numbers. In the month of August last year (even during a lockdown), Abi’s cottage generated £3,335.83 in revenue:
Who brought SA training to the UK market?
With over 7 years of experience in the Serviced Accommodation industry Paul Smith, our founder and owner of Touchstone Education is THE expert on SA! He has been doing it longer, made more money and taught more people than anybody else. Essentially, Paul BROUGHT the training to the UK Market, and he still holds the top-spot today!
A great strategy for success is grabbing those long and mid-stay guests, which is far easier than many folks wanting to get started with this hands-free business model believe.
Long stays in hotels can be extremely hard, so a home-away-from-home setup is much more attractive than the same 4 hotel walls for weeks on end.
But who are these long and mid-stay guests…
...and how do you make sure you secure their bookings, over and over again?
That’s just one of the strategies Paul is getting ready to share with you this Sunday 31st March. Access the blueprint guide: The 2021 UK Summer Property Boom Is Coming! How YOU Can Cash-In On The Post-Chaos & Profit While Others Hesitate!