The reliability of the business plan depends crucially on the ability of the property to achieve and sustain ranking. Once ranking has been gained and sustained, the business process becomes quite regular and predictable.
The ranking is highly influenced by guest experiences and guest experiences depend on location, amenities, design, and management quality. The ranking is also dependent on the frequency of bookings. If you don’t get a booking for a while, your ranking drops. If you get bookings too fast, it could mean you’re leaving money on the table due to selling for less than what the market will bear.
The most important factor in business plan reliability is your relationship with the management company. If you decide to intervene on prices, change the availability, or interrupt the ranking process with many spurious changes after we begin, then the business plan’s reliability drops.
We’ve never failed to perform according to our commitments as long as owners respect the principal-owner relationship
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