How SPM’s revenue management techniques optimize vacation rentals for timeshare resorts.

Truthfully, it is easy for timeshare resorts to create listings on the online travel agent websites like Expedia,, and Priceline. Considering their significant presence, it is a given that a resort that wants to generate revenue via vacation rentals needs to be active on these websites. Simply having a presence on those websites without an overall revenue management strategy will not generate significant income for timeshare resorts competing with large branded hotels and resorts, as they have strong relationships with the online travel agencies and revenue managers monitoring activity and adjusting pricing daily.

What makes SPM’s Revenue Management Program Different?

Maximizing revenue is a complicated process, and SPM’s revenue management team’s approach to generating revenue sets us apart from our competitors and allows us to generate more revenue for the resorts we manage than they could generate on their own.

Tom Saver, Revenue Manager,┬ásummarizes, “In a nutshell, our corporate revenue management team optimizes the use of available inventory with our customized software, prices it to be competitive with the destination’s marketplace, and boosts online visibility through our distribution partners to generate revenue for the resorts we manage.”

Analyzing occupancy trends and yielding rates is a key component to the revenue management strategy, which is monitored daily and pricing is adjusted to fit the market. In addition, anticipating high and low occupancy based on the resort’s history gives further insight into pricing adjustments that can optimize the available inventory to maximize revenue for the resorts we manage. Our custom software pushes out pricing and availability to all distribution partners to ensure consistency and parity, a contractual obligation to provide uniformity in pricing.

Online travel agencies have complicated algorithms to determine which resort’s listings will be at the top, which include availability, pricing, star rating, quantity of units available, and commission. Due to SPM’s collective volume of listings and relationships we have built with the online travel agents, our resorts are ranked higher with more visibility to potential vacationers than those listed by individual resorts or property management companies with a weak revenue management department.

Timeshare Vacation Rental Success Stories

In 2010, we were hired as the management company for a larger resort that had previously managed their rental program in-house. We took their rental program from $40,000 in 2010 to $370,000 in 2014.

  • 2010 (year hired): Generated $40,000
  • 2011: Generated $140,000
  • 2012: Generated $292,000
  • 2014: Generated $370,000

The dramatic increase has generated significant income for this resort, enabling them to continue to enhance the resort for owners and guests. Each year that resorts are in our program, we are able to grow the vacation rental program due to a mix of repeat business, great online reviews, and top rankings on online travel agent websites.

One smaller resort in the mountains of North Carolina, a very seasonal destination, also managed to generate significant income through our program. The resort saw a year-over-year increase north of 280% in just 11 months, significantly improving their prior years maintenance fee collections and providing much needed influx of capital to address the resort’s needs.

Our revenue management team works to devise strategies that incorporate the specific circumstances of a property. Be it a quick boost of revenues, increasing foot traffic for sales leads, or working within the constraints of staffing limitations, our staff excels at creating a plan to suit the goals of the board’s vision for the resort.

Things to consider about your timeshare rental program

If you are researching various companies, here are some questions to ask about the revenue management program to serve as a good guideline so you can compare how each company handles a vacation rental program:

  • What kinds of options do your owners have to rent their units, and how easy is it for them to put their unit into a rental program?
  • How often is available inventory distributed to online channels?
  • How often is the destination market researched to ensure optimized pricing?
  • How quickly are price adjustments made to online distribution channels like Expedia and
  • How do the employees handle online customer reviews and social media?
  • What kind of marketing support is provided to the resort?
  • How are rental funds dispersed to owners and to the Association?
  • Who prepares all state, county & city tax returns?
  • What kind of reporting is provided?

A revenue management program can be very complicated to understand, and if you represent a timeshare resort looking for a professional timeshare management company that can boost your resort’s revenue through vacation rentals, we would love to help you and provide information about our company.

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