Our price is purely based on commission per reservation and no monthly fee is charged. Only 25% from the publish rate.
WHY DO WE CHARGE LIKE THIS ?
Many villa companies charge their client based on net revenue (after agent commission), but we only charge our management fee on the published rate. We have some important reasons for it.
1.It gives us the motivation to achieve the best price - occupancy ratio (RevPAR).
We will be motivated to set a reasonable price, not too high to lose clients, and not too low to damage the level of the villa or diminish revenue. As we work on a commission base, we are eager to sell more room nights at a high price.
2. It gives us the motivation to actively manage our distribution channels.
As opposed to net revenue based commission, our commission modal enables us to selectively focus on channels (especially direct booking) as opposed to agents who charge a high commissions (normally 20 - 30% off publish rate). This is done to make sure the owner gets the most benefits while paying minimal amount of marketing commissions to other marketing agents.
It is important to work with agents to fill up the room during low season, but it’s also important to control their shares of room nights, as their level of commissions is too high.
3. We spent a lot on marketing, advertisement, and administrative expenses all for the maximum returns for the villa.
At Bali Management Villas, we aim to generate the best profits for the owner by minimising expenses ( but not to compromise service quality) and maximising exposures. We want to help the owner achieve their desired IRR and ROI, and getting their investments’ worth.
Therefore, we actively engage in various marketing activities, such online advertisements, and hiring experts in each field to constantly watch and monitor the market trend to set the most competitive pricing strategy for your villa.