The ABCs of Villa Sales

This is the first of two stories on villa sales

Travel agents have been overlooking a lucrative market: selling villas.

That’s the message from Steve Lassman, vice president and general manager of Villas of Distinction.

“Travel agents who are not selling villas are definitely missing the boat,” according to Lassman. “It is one of the hottest markets and with the average selling price over $15,000 [for a one-week rental], at a 10% commission it is a very lucrative product.”

Of course, Lassman is in the business of selling villas but travel agents who spoke with Travel Market Report agreed.

Lisa Freeburg, owner of Travel a la Carte in Omaha, an Ensemble agency, said, “Villas are one of my favorite products to sell because they’re so individualized and available anywhere in the world.”

At the Tzell Travel Group in New York, Gina Gabbard, vice president of leisure sales, said, “A villa is perfect for clients who want privacy and all the conveniences of a home.”

“In addition, a villa vacation can satisfy the desire of a traveler who wants to experience a destination by ‘living as a local.’”

Why a villa?
Although $15,000 might sound like a lot of money, villas offers tremendous value, according to both Lassman and agents.

“Let’s say you get four or five couples who want a Caribbean resort,” said Lassman. “It’s such a greater value booking a five-bedroom villa.

“Everybody has their own bedroom and bath for the same cost as a hotel room,” he said. “Plus you have a private pool, your own kitchen and usually a media room. And our villas are either partially or fully staffed. In Jamaica every villa has a chef, butler, housekeeper and laundress.”

Getting comfortable with villas
Lassman believes that a lot of agents are wary of villas because they’re not familiar with them.

“A villa is not like a hotel where you know what you’re getting because of the brand,” Lassman said. “There is no brand equity in villas and we have 1,600 villas in our directory.”

When agents call to inquire, his company asks them many questions including how many adults and children are in the party; the approximate budget; any special amenities desired, like a Jacuzzi or a crib; the location; the level of staffing; special requirements like accessibility or dietary restrictions.

“We get the client’s name from the agent and we can either call them directly or go on a conference call with the agent,” he said. “Sometimes we can even negotiate the rate down, especially if it’s off season. And sometimes a last minute booking will get a great deal.”

Lasser said a full-service concierge puts together the complete villa experience including transportation, food, shopping, entertainment, and activities.

“Some customers want everything planned ahead of time; others like to be looser. We have someone on call 24/7 in case there are issues.,” he noted.

A lucrative sale
Villas can rent for hundreds of thousands of dollars for a rental of multiple weeks but even a one-week rental can be very lucrative, Lassman said.

“In addition to the 10% commission on what is usually a hefty sale we have a bonus program where an agent can earn an additional $750 per rental in bonus commission,” he added.

Freeburg called villa rentals, “a wonderful way to get a great commission without doing a ton of work.”

And there can be negotiations. If the budget is not quite there, then the Villas of Distinction team will work with the villa owners, noted Lassman.

“Or we might be able to negotiate a 14-night minimum stay down to a shorter stay,” he added. “Repeat business is tremendous. Once clients book a villa they are hooked. Sometimes they book the same one for the following year.”

Different products
Consumers have become comfortable with using services like VRBO, HomeAway and even Airbnb to rent villas and Lassman recognizes this trend.

However, he said, “Those are different products that are only about connecting the consumer with a homeowner.”

“When we work with agents the goal is to create a remarkable experience and to get repeat business,” he said. “We enjoy 25% repeat business after the first villa booking and 50% after the second. Once you stay in a villa, you become a villa snob.”

Clients are not just renting a house; they’re creating a vacation, he added.

“We can provide a private driver, cooking classes, sommelier, massages, excursions, anything the client wants. so it’s important for agents to know which clients should rent which villas – and it is our job to help them with that.”

A word of caution
Like all travel products, there are things to watch out for when renting a villa, Lassman admitted.

“You don’t want any unnecessary expenses,” he said. “You wouldn’t want a chef every day if you’re in St. Martin and have all those great restaurants.”

Next time: tips from agents who sell villas