MOD006065: TurnKey Vacation Rentals Impact on Hotel Industry

This report provides a comprehensive analysis of TurnKey Vacation Rentals, a company specializing in vacation rental property management. It evaluates TurnKey's success, examining its concept, consumer demographics, and current trends in the accommodation sector, including occupancy and utilization rates. The report also assesses the impact of TurnKey on the hotel industry, highlighting the challenges posed by vacation rental services. Furthermore, it offers strategic recommendations for the hotel industry to mitigate the negative effects of TurnKey, focusing on effective technology adoption and fostering consumer loyalty to maintain competitiveness in the evolving hospitality landscape. The analysis draws on relevant literature and data to support its findings and recommendations.

HOSPITALITY AND
TOURISM ISSUES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Evaluate the success of Turnkey with its impact........................................................................3
Recommendation to hotel industry for strategizing to minimise the impact of TurnKey..........6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality industry is the one which is very wide and broad in providing different
services to the tourist and travellers coming to the place. The services being provided by the
hospitality industry includes food and drink services, lodging, accommodation, transportation,
bars, entertainment, theme parks and many other recreational services being provided to
travellers.
The current report is based on company TurnKey Vacation Rentals which deals in
providing vacation rental property management to luxury and premium vacation rental homes in
top US travel destinations. The company aims at redefining the experience of vacation of the
people travelling to other countries (TurnKey, 2020). The current report will analyse the success
of TurnKey and the impact over the hotel industry and in the end recommendation will be
provided to hotel industry in order to minimize the impact of TurnKey.
Evaluate the success of Turnkey with its impact
Concept of TurnKey
It is the known as one of the three larger vacation rental management companies which
are operating at global level. Thus, it is the property management services which was launched in
2012 by T.J. Clark in order to provide the best facilities to their tourist. It provides fine hotel
experience with a reliable customer services and staff of company also make sure that they
provide best cleanliness and quality service to their customers with an exciting way of traveling.
Moreover, Turnkey Vacant Rental offers property management services to the homeowners who
may use their properties for the vacation rentals. Quotes firm actually manages the request,
booking, schedule, inspection same to a property management firm. Also, TurnKey contracts
with third- party firm for repairing, maintenance and providing other best services to their
customers.
Apart from this, the quoted firm also takes professional photos of the property, field
inquiries from guest and listing of post from HomeAway as well as TripAdvisor. TurnKey
Vacation Rental also provide millions of properties as well as thousands of host to choose from,
provide best home facilities to the travelers for their family and friends. On the other side, the
biggest concern for the hotel industry is such that the owner is worried that their homes would
not receive any exceptional care without paying any indefensible fees (Chavis, 2017). Therefore,
TurnKey Rental vacation is actually launched with an aim is to enhance the live of vacation

owners as well as travellers by offering best vacation rental experience. The team of TurnKey is
also work for developing own technologies in order to provide the high quality guest experience
with superior home care, which in turn generate the sales as well.
Thus, by analysing the need of customers, it provides more than 5 thousand home in 80
different destinations with more than 400 employees who serve nationwide. Apart from this,
TurnKey also get more than 40 thousand 5-star guest reviews which clearly reflect that it
provides best services to the travelers (TurnKey Vacation Rental, 2018). In addition to this, by
2014 onward, TurnKey also expanded its number of properties by 200 and also entered into new
market like California, Park City, Utah etc. In the same time, the company also secured
additional approx. $3 million in seed funding from Silverton Partners, because its main goal is to
expand its property into beach, ski and some other niche markets. Moreover, by continuously
getting 5-star rating form the customers, help company to expand its business at global level by
increasing its financial services too. Thus, by analysing the growth of ICT in market, company
also tries to comply with the advance technologies which in turn assist to attract more customers
towards it.
Consumer Demographics/ tourist type
As per the TurnKey Vacation Rentals, 2019 it is analysed that around 64% of the
travellers are prefer to use vacation rentals to hotels, which reflected that it is raise up to 10%
from 2018 data. As travellers preference is quite different as per age, gender, income and by
keep this point in mind, company also offer different types of facilities as per their age, group
which includes farm house, home for family, friends etc. It mostly prefers high class family who
may afford the price because TurnKey Vacation rentals is a full- service vacation rental property
management company for prime vacation rental homes in some famous destination of US. Thus,
it mainly targets those people who want to stay for some time, it may be businessman, family
and friends (McNeely, Burton and Pennington, 2020). As a top and leading vacation rental
hospitality brand, quoted firm also provide high quality and fine experience to their guest with
high return on investment for vacation rental homeowners.
Being a short term vacation rental, it provides various benefits to the high class people to
book their home and enjoy their holidays in well manner. In the same type, TurnKey Vacation
Rentals also make sure that it provides professional housekeeping with 24*7 local guest support
so that it did not create any wrong impact upon the customers (Dwyer, Forsyth and Dwyer,

2020). That is why, it makes itself different from other official website such that HomeAway,
Airbnb and TripAdivsor. Quoted firm also make deal at different location in order to convert the
property into a successful vacation rental by using complete information of the tourist.
Therefore, it is clearly examining that It attract range of customers on the basis of age and
income that assist to enjoy the facility provided by the company.
Current trend in accommodation sector
In the era of digitalization, each and every industry uses the best and effective methods of
technology that assist to save time and increase cost as well. In the same way, most of the
company prefer to use online application that assist or encourage potential customers so that they
may easily perform the action (Kostková, 2020). For instance, for accommodation there are bulk
of online website which provide 100% hotel booking for their customers as per their choice.
Thus, it is considering one of the ongoing trend that affect accommodation sector in positive
manner. Not only this, user may also compare the rates with another website and then take
decision. Thus, this hotel mobile application promotes properties and amenities in such a unique
and engaging way, which assist to attract customers towards it. In the same way, the company
also tries to engage the customers by providing the online booking facilities which in turn help to
creates positive impact.
On the other side, different and advance technology are also installed which in turn assist
to provide better experience to their customers. For instance, in accommodation sector most of
the hotel may installed property management system in order to manage the day to day of hotel
operations and may also develop distribution management tools as well, which assist to increase
the same. This creates positive impact upon TurnKey because it also uses the same in order to
attract the wide range of customers. Apart from this, instant message for direct communication is
another trend that also affect the accommodation sector in positive manner. It is so because
frequent response enhances the customer experience and also assist to solve any query as well
(Fang, 2020). In the same way, TurnKey Vacation rental also have range of employees who
frequently solve the query of customers through message or any other mode. This in turn assist
to promote customers and increase customer satisfaction and that is why, quoted firm have 5-star
rating from more than 40 thousand customers. Therefore, it clearly reflects that it creates positive
impact upon TurnKey and also grab attention of many customers towards it.
Occupancy and utilization rate

This is also having a good impact over the working and success of TurnKey and
improves the business of rental vacation. The occupancy rate is defined as the number of
occupied rental units which are given for a time period as compared to total number of rental
units available (Law, Chan and Wang, 2018). This is a good measure of success for TurnKey
because the occupancy rate of TurnKey is high as almost all the rooms available are sold to the
consumer. This rate reveals the fact that the consumer like the services being provided by
TurnKey and prefer this over other hotel and accommodation providers.
Also, this is a good metrics used by the company in order to calculate the revenue of the
company. This is majorly because of the reason that the number of rooms booked will outline the
fact that this much number of rooms are sold and money has been earned over those rooms.
Thus, in order to attract more of the consumers, the company must focus on increasing the
occupancy rate as this will build a goodwill in the industry. This is majorly because of the reason
that high occupancy rate states that company has good services and because of this the rooms are
full anytime and occupancy rate is high.
Recommendation to hotel industry for strategizing to minimise the impact of TurnKey
The impact of TurnKey overt the hotel industry of the country is very high and this
decreases the working and effectiveness of hospitality industry all over the country. Thus, for
being in the competition and for becoming successful it is very important for the hotel industry to
effectively take some measures for improving the working of the industry (Kandampully,
Bilgihan and Zhang, 2016). After analysing the impact of TurnKey over the hotel industry
following strategies are recommended to hotel industry for its improvement. These strategies
will help the hotel industry to grow and develop and face the competition ineffective way. The
strategies are as follows-
Effective use of technology
This is the major strategy which the hotel industry need to consider majorly. It is so
because of the fact that in technological sector there are many changes and development taking
place on continuous basis. It is very necessary for the hotel industry to adapt to all these changes
in effective and efficient manner. This is majorly because of the reason that the use of
technology will reduce the human effort and technology will ensure that the working is going on
in proper manner.

For instance, the hotel industry must adapt to the latest technology of recognition. This is
a technology which includes recognising the face or fingertips and then only allowing the person
to enter within the hotel premises (Bowen, 2017). This is a good technology as this will restrict
people who are not related with the working of the hotel. Another technology is the use of robots
for catering to the needs of consumers within the hotel.
If the hotel industry will adapt to these latest technologies, then the consumer will not be
much attracted towards the rental vacation services provided TurnKey. This is majorly because
of the reoasn that use of technology will attract consumer and this will increase the business of
hotel industry and their profitability and productivity will increase.
Consumer loyalty
This is another strategy on which the hotel industry must focus majorly because of the
reason that consumer is the only basis of success for the company. The consumers are treated as
king for any business and in hospitality this is true because if the consumers will not be satisfied
with the services of hotel then they will not come again. Also, the competition is very high in
hospitality industry and because of this there are many options for consumer to switch. Thus, in
this case for becoming successful it is necessary for hotel to keep the consumer satisfied so that
they are loyal with the hotel (Benckendorff, Xiang and Sheldon, 2019).
Thus, in order to minimise the impact of TurnKey it is necessary for hotel industry to
keep the consumer loyal towards them so that they do not get attracted towards the rental
vacation provided by TurnKey. Thus, for this hotel industry must critically know their
consumers. This is pertaining to the fact that there are frequent changes in the taste and
preferences of the consumers and this need to be considered by the hotel industry. This is
necessary because if the hotel will not cater to the needs of consumer then they will not come to
the place.
Thus, for keeping the consumer loyal towards the hotel it is necessary for the hotel to
understand each and every need of the consumer so that they are satisfied with the services of
hotel and switch to others (Ladsawut and Nunkoo, 2017). Another strategy is to give discounts
and other benefits to the consumer along with superior quality of food and other services to the
consumers. This will make the consumer feel happy and will keep the consumers loyal to the
hotel only.

Hence if the hotel industry will take measures in catering and satisfying the needs and
preferences of the consumer in effective manner then they will be loyal to the hotel industry to a
great extent.
CONCLUSION
From the above study it is summarised that hospitality is a wide industry and provides
variety of services catering to different needs and preferences of consumers. Also, it was outlined
that the competition is very high in the hospitality industry and because of this the TurnKey has a
crucial impact over the working of whole hospitality industry. With the study the major impact
of TurnKey over the hotel industry was discussed as consumer demographics, current trend in
the accommodation sector and many other impact. In the end it was outlined that there is high
need for hospitality industry to use some strategies for minimising the impact of TunrKey’s
success. The strategy used by hotel industry are adapting to latest technology and fulfilling all
the needs of consumers so that they are loyal towards hotel.

REFERENCES
Books and Journals
Benckendorff, P.J., Xiang, Z. and Sheldon, P.J., 2019. Tourism information technology. Cabi.
Bowen, J., 2017. Consumer loyalty trends in the hotel industry. In The Routledge Handbook of
Consumer Behaviour in Hospitality and Tourism (pp. 297-304). Routledge.
Chavis, B. M., 2017. Buy It, Rent It, Profit!(Updated Edition): Make Money as a Landlord in
ANY Real Estate Market. Simon and Schuster.
Dwyer, L., Forsyth, P. and Dwyer, W., 2020. Tourism economics and policy. Channel View
Publications.
Fang, W. T., 2020. Mass Tourism. In Tourism in Emerging Economies (pp. 45-73). Springer,
Singapore.
Kandampully, J., Bilgihan, A. and Zhang, T.C., 2016. Developing a people-technology hybrids
model to unleash innovation and creativity: The new hospitality frontier. Journal of
Hospitality and Tourism Management. 29. pp.154-164.
Kostková, M., 2020. Shared accommodation as a globalization trend in tourism. In SHS Web of
Conferences(Vol. 74, p. 03002). EDP Sciences.
Ladsawut, J. and Nunkoo, R., 2017. Developing a consumer loyalty model. In The Routledge
Handbook of Consumer Behaviour in Hospitality and Tourism (pp. 277-285).
Routledge.
Law, R., Chan, I.C.C. and Wang, L., 2018. A comprehensive review of mobile technology use in
hospitality and tourism. Journal of Hospitality Marketing & Management. 27(6).
pp.626-648.
McNeely, L. E., Burton, J. L. and Pennington, J. R., 2020. Emotional and Cognitive Drivers of
Customer Satisfaction in Adventure Travel. Tourism Review International.23(3-4).
pp.133-147.
Online
TurnKey Vacation Rental. 2018. [Online]. Available through:
<https://www.turnkeyvr.com/aboutus/the-turnkey-story>
TurnKey. 2020. [Online]. Available through: <https://www.turnkeyvr.com/aboutus>