The holiday home industry and Brexit – How to remain profitable

The holiday home industry and Brexit – How to remain profitable

Whether you’re experienced in the holiday letting market or new to it, you should be aware of the recent changes in the political arena that have resulted in a decline in the purchase of family homes abroad.

Staycation is the new trend for holidays as booking a lodge in Cumbria or renting a flat in Bristol replaces the annual trip to Spain. But combined with increasing competition from owners renting in order to offset mortgage and maintenance costs, getting those bookings has never been so important for the holiday home market.

Retailers of gas cylinders Flogas, give us an insight into the holiday home market and what holiday home owners can do to maximise their profits.

The holiday home market and Brexit.
Since voting to leave the European Union in 2016, attitudes that Britons have towards holidays and purchasing homes abroad are changing.

Homeowners and Brexit
Spain has always been a welcoming country that has always accommodated Brits, and so, it’s always appeared to be a first choice for UK residents, when they decide they want to purchase a holiday home. In 2016, UK buyers made up 19% of home purchases in Spain by non-Spaniards – quite an impressive figure considering how many nationalities holiday there too. However, this figure has almost halved since 2008 when it stood at 38%, but why?

Brits are becoming more reluctant to take risks with relocating abroad with the political and economic uncertainty. More recently, the decline in the pound has meant that people cannot afford to buy the holiday home that they have had their eye on.

Holiday makers and Brexit
Holiday makers have changed their attitudes based on the fall of the pound as well. More Brits are opting to take a holiday within the country in order to save money. Although research showed that they are spending less money on their staycations than what they used to, the income is coming in elsewhere. Tourists from other countries are coming over to take advantage of the lower rate of the pound and boosting the UK economy in that way.

Because of the implications of Brexit that have not been fully covered yet, holidaymakers are unsure in other areas too. As of now, Brits are free to travel throughout the EU without restrictions and with access to healthcare. However, this could all change and it will further affect our holidaying habits.

How to attract visitors to your holiday home?

If you already own a home abroad, you may be experiencing visitor levels slowing. What can you do to encourage visitors to come and stay in your home?

Online Visibility
If you don’t have a website, then you could be losing out on many customers from around the world because they don’t know your site exists. Even a basic website that includes photos, customer reviews and contact information could boost your online presence and revenues.

Social media is another way to show off your holiday home and increase interest. On social media platforms, you can offer competitions to get people ‘sharing’ your post and engaging with the company.

Reviews on Airbnb and Trip Advisor can be the make or break for when a customer is deciding whether to come and stay at your home. Ensure that you are monitoring the comments about your home and replying to any issues with an apology and a resolution. This will make you seem genuine and show that you have taken action to rectify any issues.

Go above and beyond for your customers
First impressions really matter to customers when they enter your holiday home as it’s something that stays with them and that is often mention in online reviews. To improve this; greet guests at the accommodation if you live nearby to provide them with their keys and show them around the area, offer complimentary wine or snacks and provide a map of the local area and any tips for their trip.

Keeping up with maintenance cost
Whether you are weighing up your options for purchasing a holiday letting property or perhaps you are looking to remain profitable. Either way, it is important to be aware of the costs involved with maintaining a holiday home. Of course, utility bills and mortgage payments are considered however there are some that are often forgotten about: cleaning fees can be between £40-£80 per booking, a welcome kit can cost £10-£15, an agency may take around 20-25% of your monthly income and there are window cleaning and gardening costs on top of these too.

It’s recommended that if you’re aspired to own a holiday home, that you invest in a home in the UK, where tourism is on the rise from both foreign tourists and UK residents. For holiday home owners abroad, ensure you are maintaining your online presence and managing your costs as effectively as possible. Hopefully the effects of Brexit will become clearer soon enough and the holiday home Mindustry will know where it stands.