Professional Property Managers vs. Individual Hosts
Up until now, we’ve looked at data from all available reservations. The business models and desired comp sets between professional property managers (PMs) and individual hosts, however, can vary quite drastically.
Over the last six years, fees of professional PMs are on average 21% of fees of individual hosts. Before the pandemic, the percentage had been growing 3-4% per year, while the percentage fees of individual hosts remained relatively flat.
This is primarily due to PMs bringing fee management into their b2b email list revenue management discussion and trying to use fees to not only cover expenses but to actually generate a profit.
Source: Beyond Data
Regardless how you “feel” about using fees, they’re a crucial part of any revenue management strategy. Increasing them might be a good way to pad additional revenue, but could come back to bite you if guests think they’re too high and not justifiable.