Primo Destinations - Industry Q & A

Provide an overview/ description of your industry.  Include reasons why it’s a great industry to start a business in today.  

The vacation rental industry was created by individuals and investors buying second homes that they rent short term as investments. Many individuals marketed their own homes initially via VRBO but a large industry has sprung up with experienced property management companies.  This industry is fragmented and mostly dominated by local suppliers.  A unique opportunity exists to create and be part of a national vacation rental brand.

How has your industry changed in the last 10 years?  20 years?  

Technology is changing all industries including the vacation rental business.  The ability to do web-based marketing utilizing multiple marketing channels such as VRBO, HomeAway, Airbnb and other has increased the sophistication and is a critical success factor in running a local vacation rental business.  

What trends do you see in your industry over the next 5 years?  Next 10 years?  

We believe that the industry which is comprised of mostly small and local operators will consolidate and be serviced by national brands with higher quality standards.

What is the biggest concern about your industry that a franchisee candidate should be aware of and investigate?  

The vacation renal market in some areas can be cyclical and effected by the economy; developing a portfolio of multiple owners is a way to lower business risk.

Why do you think your company stands out in the industry?  

To my knowledge we currently are the only vacation rental franchise business in the nation that provides centralized technology, property marketing and turnkey reservation management for a franchise owner.

What makes your franchise/ business opportunity more attractive than your competitor’s?  

We lower the risk of for new franchisee by having a low cost of entry and very little overhead allowing a successful operator to become profitable more quickly

Describe the ideal candidate.  Do you think your requirements are any different than your competitor’s?  

We are seeking to award franchises to individuals who can meet our quality standards and who processes the organization and communication skills required to handle luxury properties and high end consumer clients.  Our competitors have not been able to replicate our quality satisfaction levels on systems. 

What’s the strongest skill you require in a candidate?   

That is a tough one!  Organizational skills are critical as is the ability to sell new owner agreements.

Describe the working environment of your franchisees.  Is your environment typical of other companies in your industry?  

Most franchisees start with a home office with the majority of their time spent on-site serving the properties they manage.

Why has your company been successful?  

Our business has grown based on our reputation for exceeding our owner’s expectations for financial performance, property and guest management.

What advice would you give someone interested in buying a franchise in your industry?  

The highest level of profitability can be attained by having the capability to serve the luxury segment.

How much experience in this industry should a franchisee candidate have should they consider buying a franchise in your industry?  

3-5 years’ experience with hands on property management equips potential franchisees with the skills they need to handle the dynamic nature of managing short term rental properties.