The coronavirus lockdown has had a significant impact on the hospitality industry.
Understandably, on March 23rd our clients expressed immediate concerns regarding future income and occupancy at their properties.
Property Keeper had to remain proactive during this period and ensure the temporary closure of Booking.com and Airbnb had a minimal impact on our performance.
For a revenue manager and machine learning specialist this is just one of the many stories that unfold in our areas.
The occupancy rates shown are from 23rd March 2020 – 22rd May 2020.
Comparative figures are based on 23rd February – 22nd March 2020
We secured housing agreements with 3 NHS trusts. This enabled us to house key workers and supporting key workers involved with the fight against coronavirus.
Occupancy rate: 92% (Increase of 7%)
Property Keeper has been working with a relocation agency to house foreign families who were unable to return to China. The majority of our houses are now housing long term guests from China, Italy and India.
Occupancy rate: 96% (Increase of 9%)
Unfortunately, seaside properties in our portfolio were negatively affected.
Property Keeper has been providing financial support to clients with rent 2 rent seaside properties. In addition, we have ensured that our clients have taken the steps required to secure the government coronavirus bounce back loan.Property Keeper provided us with a life line, their guidance ensured we received the coronavirus bounce back loan. Jay Hall - Cornish Retreats. Click To Tweet
Occupancy rate: 41% (Decrease of 36%)
Property Keeper Coronavirus Support
Property Keeper issued credits and cash payments to its clients between 30th March – 18th May 2020. In addition, £1,805 was donated to guests deemed in a vulnerable situation due to the coronavirus restrictions.
Coronavirus Lockdown Strategies:
Matrix analyses individual serviced accommodation operators. Unlike off the shelf pricing algorithms, matrix mines the pricing behaviour of every single listed competitor property in our target area.
Each individual property is given a pricing personality. This enables booking brain to predict competitors behaviour.
Actors in the market have a fast thinking and slow thinking personality. Fast thinking traits are knee jerk reactions to crisis situations such as coronavirus announcements. Slow thinking reactions are studies a competitor has made based on their own long term research and experience.
What we have found is traits that can be quantified as actionable data.
Hedge The Hedge
Hedge the hedge is a 3D pricing strategy that leverages the market strength of apartments within the Property Keeper portfolio.
In Milton Keynes our reach enables us to influence off the shelf pricing software used by our competitors.
By driving competitors prices out of their properties percentile we are able to increase the probability of securing 4 day bookings. 4 day bookings were important as they captured the shift patterns of a large support company providing services for the NHS.
A Property Keeper revenue manager contacted the contractor to find out their accommodation budget and used this as a weight to build the model.
Hedge The Hedge is loosely based on a basket martingale strategy, however the basket sizes are weighted on whale activity in the area.
In house lingo explainer…
We define whales as a large company that is seeking multiple bookings for a large number of guests at multiple properties. Whales effect supply and demand enough to cause a reaction from revenue managers and dynamic pricing algorithms.
Booking Brain Guest Analytics
Everybody is unique, but mostly predictable. Understanding demography and socioeconomic status of guests allows us to pinpoint with precision where advertising should be targeted and to whom. This data has been fundamental in targeting facebook ads during the coronavirus lockdown.
Sentinel successfully intercepted and declined 100% of all attempted house party bookings in Milton Keynes.
Due to the closure of pubs and clubs there was a significant upsurge in young people from the local area trying to book apartments for this purpose. A large majority of these bookings were attempted in the Hub and Oldbrook.
The data gathered by Sentinel from social media during lockdown has been game changing. We are using this data to build a model for deployment in other coverage areas.
Sentinel will ultimately free our human staff of this labour intensive administrative task.
Property Keeper Investment
Property Keeper is keen to work with innovative serviced accommodation upstarts. If you have a business idea that requires funding, please get in touch.