Today we received a copy of the official Reunion Resort and Club Vacation Rental Program proposal in our mail.
Reading through the very kind offer to manage our luxury home on Reunion, we couldn’t help think that Reunion may have overlooked the simple fact that they ‘haven’t exactly won us over’ as a potential partner during the last few years.
Customer care should never be selective, and sometimes it is quite difficult to comprehend that we are in fact, Reunion Resort members, despite faithfully promoting the resort’s amenities and restaurants to all of our guests.
(Reunion appears to have made it harder for private home guests to use the resort amenities, and various services such as ‘in room dining’ and the ‘resort shuttle bus’, have been withdrawn for our guests)
Quite ‘what on earth’ Reunion could offer us to switch from using our independent property manager is beyond us, especially now that we’ve built a trusting relationship.
With regards to reservation performance, we fail to see any mind blowing occupancy rates on the existing Officially managed Reunion properties, and nor do we feel that our privately managed home’s occupancy is lacking, (despite the increasing difficulty in offering our guests access to the resort’s amenities).
When it comes to profitability, sure, saving a couple hundred dollars a month on membership with the new Official program sounds appealing, but no way does that make sense to us, when you consider the 30% booking commission that Reunion is applying to reservations.
We’re glad we list our home with an independent property management company, but most importantly that we can reach the owners of the business personally, any day of the year.
We’ve just compared the P&L for our own particular 5 Bedroom Estate home and using the latest offer from Reunion our calculations, we would be over $12kpa* worse off if we switched to Reunion Resort’s Official Rental Program.
(This would be even worse, by the time you add in costs to re-equip the home for rental with Reunion)
- Comparison to one of Reunion’s private management companies
- Identical night rates
- Owner pays cleaning costs for bookings over 7 days (50% of bookings)
- Utilities the same
- 50% off Social membership from Reunion
- 70% rental income from Reunion
- 60% occupancy (as we currently attain)
- No management fee from Reunion
Please note, that we must point out that every home will understandably differ, and utility costs, occupancy levels etc will vary between homes, but we think that our own situation shows a realistic comparison between our chosen independent property manager and our current understanding of the Official Reunion Resort Rental program.