Are you about starting a cabin rental company? If YES, here is a complete sample cabin rental business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a cabin rental business. We also took it further by analyzing and drafting a sample cabin rental business marketing plan template backed up by actionable guerrilla marketing ideas for cabin rental businesses. So let’s proceed to the business planning section.
Table of Content
- 1 Why Start a Cabin Rental Business?
- 2 Cabin Rental Business Plan – Executive Summary
- 3 Cabin Rental Business Plan – SWOT Analysis
- 4 Cabin Rental Business Plan – Market Analysis
- 5 Cabin Rental Business Plan – Sales and Marketing Plan
- 6 Cabin Rental Business Plan – Publicity and Advertising strategies
- 7 Cabin Rental Business Plan – Financial Projection and Costing
- 8 Cabin Rental Business Plan – Sustainability and Expansion Strategy
Why Start a Cabin Rental Business?
Cabins are simply cheaper, romantic and rustic alternative to expensive accommodations. These unique accommodations are favorites in the woods and on islands and beaches, particularly in tropical countries. A Cabin Rental business is a lucrative business you can decide to retire to, or to pursue for one season out of the year.
The very first thing you will have to consider is the location of your cabins and your office. You need to make sure that the location you choose for your cabin rental business has ample traffic of potential customers.
You will also have to decide either to purchase or lease the property, depending on how much startup capital you can afford, the terms of the lease or mortgage and how long you anticipate holding the property. It’s advisable that you speak with a certified public accountant and a tax attorney before making this decision.
Do not forget to set aside some capital that will cover any necessary repairs, operating costs such as utilities and maintenance, and staffing such as housekeeping and management. It may also be wise to set up a line of credit for emergencies.
You will need to make certain adjustments to your cabins before you start renting them out. If demand at the property location is seasonal, such as at a mountain ski resort or a summer-only vacation destination, allow enough time after purchasing your property to get ready for the season before you begin to rent.
Never underestimate the importance of a good marketing plan. Advertise both directly to consumers and to business customers such as travel agencies, travel and review guides and tour companies. Note that the more positive reviews and ratings you can accumulate both on websites and in print, the better.
It may also help to establish a website with photos, directions, things to do around your location and a scheduling tool that allows customers to book cabins through the website.
A Sample Cabin Rental Business Plan Template
- Industry Overview
The Vacation Rentals industry is made up of private accommodations that are arranged and booked online. Note that this includes private holiday homes and houses, as well as short-term rental of private cabins or flats via portals. Users represent the people who booked the accommodation, independent of the number of guests staying at the accommodation on that booking. Report has it that the global vacation rental market will grow at a CAGR of 6.89% during the period 2018-2022.
Vacation rentals are alternate lodging options comprising short-term rental apartments, farm stays, private homes, cabins, beach houses, villas, cottages, and chalets. Note that the latest trend gaining momentum in the market is the growing preference of consumers for instant bookings.
Online vacation rental sites facilitate real-time booking. Also have it in mind that the availability of instant booking options has heightened the degree of product or service differentiation in the global vacation rental market.
Industry experts believe that one of the key drivers of this market is the growing tourism industry and rising popularity of short-term rental properties. The growth of the tourism industry and an increase in the number of domestic and international travellers has positively impacted the demand for vacation rental properties.
Also note that one of the major factors affecting the growth of this market is the several risks associated with fraudulent vacation rental houses, apartments, and homestays. The increased probability of risks can lead to customers shifting to alternative forms of lodgings such as cabins. This further restrains the growth of the global vacation rental market.
Cabin Rental Business Plan – Executive Summary
Castle Cornelia is a new cabin rental business in Orlando, Florida that will offer temporary lodging for vacationers to get away from the hustle and bustle of everyday life. We at Castle Cornelia plan to specialize in personalized service. We plan to be more than a great lodging and vacationer’s paradise. Our goal is to establish an environment of leisure that surpasses the standard in the industry.
We plan to expand our exposure by leveraging the Internet and introducing our cabins to people that have not yet discovered this year-round paradise which will allow us to maintain a higher than average occupancy rate and above average profits.
We at Castle Cornelia won’t only purchase cabins; we will also offer rentals to families and young couples on loan from existing owners. The business will offer vacationers other services to compete with luxury vacation rental companies all around Orlando.
We at Castle Cornelia believe that our company will become profitable in its second year and quite profitable in its third, as the owner and founder, Precious Castor, expands the offering from eight to fifteen cabins. Rental rates will be on the low end for the market, starting at around $600 for 3 days during the off season.
We plan to focus specifically on families with children and young couples at the lower end of the market. With our plan to restrict our cabins to 3 rooms’ maximum, a couple or family will be very comfortable in these cabins.
Also by avoiding the market for older couples, there is more leeway as to the type of cabin that can be rented and marketing can be more focused. We also believe that by offering only cabins on the smaller side the business, we can better stand out among the options for Cabin rentals in Orlando.
- Our Products and Services
Castle Cornelia is a new cabin rental business in Orlando, Florida that will offer temporary lodging and vacationers get-away. Each of our cabins will be equipped with two double beds or a queen bed, and cabins with a second bedroom or kitchenette are available.
The City of Orlando is nicknamed “The City Beautiful,” and its symbol is the fountain at Lake Eola. Orlando is also known as “The Theme Park Capital of the World” and in 2016 its tourist attractions and events drew more than 72 million visitors.
As one of the world’s most visited tourist destinations, Orlando’s famous attractions form the backbone of its tourism industry. We at Castle Cornelia will provide cabin rentals to families and young couples on loan from existing owners. The business will offer vacationers other services to compete with luxury vacation rental companies all around Orlando.
- Our Vision Statement
Our vision at Castle Cornelia is to become a destination of choice for people searching for a rustic place to relax or recharge.
- Our Mission Statement
Our mission at Castle Cornelia is to offer competitively priced vacation cabin rentals oriented for families and couples. We seek to offer families and couples the balance of relaxation and excitement they seek by providing options for activities to suit both individuals and groups.
- Our Business Structure
Castle Cornelia will be managed by Precious Castor. She will be personally responsible for sales and marketing (working with designers where necessary), provide all copy for ads, the website, and brochures, and the launch of the business. She will also sell additional services to renters who arrive and personally greet them all to find out how she can help them with recommendations.
Precious Castor will also run operations. She will provide renter orientation and support, schedule and supervise cabin cleanings, repair and maintenance. She will establish operations procedures and renter policies and procedures.
We at Castle Cornelia will also employ a well experienced workforce that will help Precious Castor with building Castle Cornelia and achieving all the company’s visions and goals. All our employees will work out of the office at the Orlando which will be equipped with a phone, computer with Internet, cash register, and credit card reader. The personnel needed for Castle Cornelia are the following:
- Chief Executive Officer
- Lodging Manager
- Company Cashier
- Maintenance staff
- Front desk officer
Roles and Responsibilities
Chief Executive Officer
- She will oversee all other executives and staff within the resort.
- Charged with meeting with board of directors and other executives to determine if company is in accordance with goals and policies.
- She should encourage business investment.
- She will be promoting economic development within communities.
- Tasked with directing the resort’s financial goals, objectives, and budgets.
- Responsible for implicating the resort’s guidelines on a day-to-day basis.
- Will preside over quality control.
- Hire, train, and terminate employees.
- In charge of developing and implementing strategies and set the overall direction of a certain area of the resort.
- Charged with providing visionary and strategic leadership for the resort.
- Tasked with collaborating with the board of directors to develop the policies and direction of the resort.
- Will make sure the members of the Board of Directors have the information necessary to perform their fiduciary duties and other governance responsibilities.
- Will provide adequate and timely information to the Board to enable it to effectively execute its oversight role.
- Direct staff, including business structure, professional development, motivation, performance evaluation, discipline, compensation, personnel policies, and procedures.
- Greet and register guests.
- Answer inquiries pertaining to cabin policies and services, and resolve occupants’ complaints.
- Assign duties to workers, and schedule shifts.
- Coordinate front-office activities of the business and resolve problems.
- Participate in financial activities such as the setting of cabin rates, the establishment of budgets, and the allocation of funds to departments.
- Confer and cooperate with other workers in order to ensure coordination of cabin activities.
- Collect payments, and record data pertaining to funds and expenditures.
- Observe and monitor staff performance in order to ensure efficient operations and adherence to resort policies and procedures.
- Show, rent, or assign accommodations
- Inspect guest cabins, public areas, and grounds for cleanliness and appearance.
- Purchase supplies, and arrange for outside services, such as deliveries, laundry, maintenance and repair, and trash collection.
- Arrange telephone answering services
- Receive and process advance registration payments, send out letters of confirmation, and return checks when registrations cannot be accepted.
- Give responses to all visitors in an effective and prompt manner.
- Give responses to duties involving the groundskeeper.
- Keep all mechanical areas in a neat and orderly condition.
- Carry out inspection on public areas on a daily basis in case of problems arising unexpectedly.
- Offer maintenance and repairs to public areas, cabins and administrators office buildings.
- Guarantee that projects are all promptly accomplished and in line with appropriate specifications.
- Work together with the front office manager and housekeeper, and connects with the manager to discuss any aspect of operations which will involve the maintenance department.
- Engage in flexible work schedules to be able to perform well during emergencies.
- Assist in remodelling and construction of new projects as may be required.
Front office manager
- Operate the cash register and provide accurate change to cash-paying customers
- Greet customers when they walk through the door and ask if they need assistance
- Tasked with monitoring the locations of cabins rented by clients with our tracker software apps
- Makes sure that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Charged with managing administrative duties assigned by the manager in an effective and timely manner
- Cleans corridors, lobbies, stairways, elevators and lounges as well as cabins
- Organize work schedule from the cabin status list
- Distribute linen, towels and cabin supplies using wheeled carts or by hand
- Restock cabin supplies such as drinking glasses, soaps, shampoos, writing supplies, mini bar
- Replace dirty linens with clean items
- Inspect and turn mattresses regularly
- Store all dirty laundry in line with resort policy
- Monitor guest laundry bags
- Replace laundry bags and slips
- Check all appliances in cabins are in working order
- Realign furniture and amenities according to prescribed layout
- Respond to guest queries and requests
- Respond to calls for housekeeping problems such as spills, broken glasses
- Deliver any requested housekeeping items to guest cabins
- Remove cabin service items
- Organize and restock cart at the end of the shift
- Ensure confidentiality and security of guest cabins
- Follow all company safety and security procedures
- Report any maintenance issues or safety hazards
- Observe and report damage of cabin property
Cabin Rental Business Plan – SWOT Analysis
Castle Cornelia will launch with eight cabins and we hope to create a pool of fifteen cabins from current owners interested in renting them out. We plan to build a business that will grow in revenues each year and achieve a 50% retention rate of customers from year 2 to year 3. Below is the summary of our well analysed SWOT Analysis at Castle Cornelia.
Our strength at Castle Cornelia lies in our plans to regularly maintain and ensure the upkeep our cabins. This alone will attract clients due to the neatness of our accommodations. Another strength we possess in this industry is the expertise of our founder. Boasting of over 15 years’ experience in hotel management, Precious Castor comes with a substantial network and the needed knowledge to achieve Castle Cornelia’s visions and goals.
Our weakness in this industry is getting experienced workers who understand the accommodation industry. We will also be faced with the problem of getting our target audience to know where we are and what we offer. We plan to remedy this by establishing and implementing our well designed marketing plan, which is specifically designed to reach our target audience.
According to research, one of the key driving forces in Orlando’s economy is its tourism industry and the city is one of the leading tourism destinations in the world. Nicknamed the ‘Theme Park Capital of the World’, the Orlando area is home to Walt Disney World Resort, Universal Orlando Resort, SeaWorld Orlando and the Fun Spot America Theme Parks.
Report has it that a record 72 million visitors came to the Orlando region in 2017, making it the top tourist destination in the United States. Our Business location features 7 of the 10 most visited theme parks in North America (5 of the top 10 in the world), as well as the 4 most visited water parks in the U.S.
According to our SWOT analysis, the threat we at Castle Cornelia will be facing is the capital to start our cabin rental business. Also, this business is seasonal but we plan to supplement business income by adding other side businesses as we grow.
Cabin Rental Business Plan – Market Analysis
- Market Trend
According to industry reports, beach destinations are still number one on travellers’ lists for 2018. Property owners in lakeside locations are also fully booked in spring/summer seasons, with lake searches growing 100% compared to other beach destinations last year. Experts believe this is because these rentals have significantly lower rates than traditional beach towns.
Generally, when guests book direct, not only do they get a better deal themselves, but owners also get to pocket a higher percentage of the takings. A lot of properties in modern America have a mark-up on listing sites to counteract the booking commission – but if guests find homes direct and see the cost is a good percentage lower, they’ll be much more likely to convert.
Experts also believe that as increasing number of private owners realize the need for a bookable, optimized website; they’ll steadily be able to work towards achieving listing site independence. Industry reports have it that as well as motivating more owners to list their vacant property as a short-term rental, the recent vacation rental boom has also led to the diversification of offerings available.
Last year, statistics showed a 55% growth in barn bookings, a 40% increase in cabin reservations and a 30% boost in treehouse bookings compared with last two years. Travellers are strongly demonstrating an inclination to book out-of-the-ordinary accommodation and these numbers show no sign of slowing down.
We at Castle Cornelia also know that when booking vacation rentals, guests are very much aware that if you snooze, you lose. For that reason more travellers than ever are searching exclusively for rentals with instant booking. This is because instant booking offers them the confidence of not missing out on a dream rental due to slow response times.
Although 2017 was a wonderful year for vacation rentals, it was a truly devastating year for the thousands of people whose homes and neighbourhoods were destroyed by hurricanes, floods, fires and even terrorist attacks. Meanwhile, big players in the industry have measures in place to help those most in need during these catastrophic situations.
- Our Target Market
Our target market at Castle Cornelia was analysed and discussed based on vacationers to Orlando. However, vacationers who do not travel to Orlando or consider Cabins an option can be converted through exposure to our marketing at Castle Cornelia. Our target market segments for Castle Cornelia are described more fully below:
- Young Couples
These are married individuals’ aged 21 to 39, young couples without children searching for romantic getaways as well as high-energy activities (ski boats, hiking, diving, etc.). While some may be wealthy enough to rent a luxurious cabin with all the extras, others might have to stretch to rent a basic cabin.
These are couples or individuals with children. This target segment may need a mix of relaxation for parents and high-energy activities for children. They may also want creature comforts for the children, such as entertainment centres, which couples can do without on a vacation.
- Our Competitive Advantage
Our competitive advantage at Castle Cornelia lies in in the hospitality experience of our founder and Chief Executive Officer, Precious Castor. She brings the experience of hotel management and substantial business network to Castle Cornelia. This will be manifested in the marketing, sales experience, and operations of the business.
We believe that Castle Cornelia will be known for its high customer retention rate as a result of Precious Castor’s management skills. Customers who think of our cabins as “their” house in Orlando will return to Orlando, allowing marketing and sales efforts to be reduced due to the lower expense of keeping an existing customer than finding new ones. This will build the customer retention rate to 50% from the second to third full years of operation.
Cabin Rental Business Plan – Sales and Marketing Plan
- Marketing and Sales strategy
Our marketing at Castle Cornelia will focus on the target markets of families and young couples. We plan to create materials that will show families and couples having fun together, both together and in separate activities (water-skiing, fishing, slides, hiking, camping, swimming, using the spa, etc.).
Also after we must have launched, images will be provided by the manufacturers of the Cabins and other sources, as they will not yet be photos of actual customers using Castle Cornelia. Our core Marketing strategies include:
- Local advertising in Florida vacation and travel magazines
- Website creation and promotion
- Direct mail to travel agents across the U.S. and Orlando tourism
- Partnerships with travel agents
Cabin Rental Business Plan – Publicity and Advertising strategies
Our basic advertising strategy at Castle Cornelia is to target families and young couples interested in small, private cabins on the inexpensive side of Orlando. We at Castle Cornelia plan to offer additional activities and recommendations, but will be perfect for vacationers who can do without some creature comforts as they enjoy Orlando, Florida. The key elements of our publicity strategy implementation include:
- Website advertising
- Awareness of and relationships with travel agents who will be offered discounted rates to bundle with packages for their clients
- Reaching cabin owners whose cabins are not in use 90% of the time.
Sources of Income
Castle Cornelia will generate revenue and profits by offering temporary lodging and vacationers get-away from all of the hustle and bustle of everyday life. Each of our cabins will be equipped with two double beds or a queen bed, and cabins with a second bedroom or kitchenette are available. We will charge clients for creating an environment of leisure that surpasses the standard in the industry for them.
We plan to expand our exposure by leveraging the Internet and introducing our cabins to people that have not yet discovered this year-round paradise which will allow us to maintain a higher than average occupancy rate and above average profits. We at Castle Cornelia will not only purchase cabins, we will also offer rentals to families and young couples on loan from existing owners
- Sales Forecast
Castle Cornelia will launch in October, to allow a full winter to promote the upcoming summer rental period. We believe that in our first year of operation, the average price for a week-long summer rental will be $1650, $1400, for a spring/fall rental, and $1100 for an off season rental.
Rentals for fewer days are available at a lower price. Additional fees and services purchased are estimated to average $400 for summer rentals, $300 for spring/fall and $200 for off-season.
Have it in mind that these additional fees include boat rentals, convenience store purchases, and added fees to bring pets on-board. The prices listed reflect these totals and will be increased roughly with inflation in future years. Our direct cost of sales at Castle Cornelia includes post-rental cleaning (generally $50 per cabin) and basic amenities (shampoo, soap, tissue paper, etc.) to stock the boats for each rental ($30 per rental).
Note that these costs are expected to grow with inflation as well. Other costs of sales include gas and ice which is anticipated to cost 6% of sales as each rental will start with a Cabin fully stocked with both. It’s also important to state that an additional 20% of sales will be payment to the cabin owners. This cost of sales would be higher, but cabin owners will benefit from free moorage, maintenance, and discounted services.
- Our Pricing Strategy
Our plan at Castle Cornelia is to provide our clients with unique and different lodging experience that cannot be found in any of the area’s hotels and lodges. We hope to get the confidence of customers and create our business to be acknowledged for providing superior customer service. Our pricing system at Castle Cornelia will be based on what we know and believe is obtainable in the industry.
Rental rates will be on the low end for the market, starting at around $600 for 3 days during an off season to $1650 for summer work rentals. We at Castle Cornelia plan to focus specifically on families with children and young couples at the lower end of the market.
With our plan to restrict our cabins to 3 rooms, a couple or family will be very comfortable in these cabins. Also by avoiding the market for older couples, there is more leeway as to the type of cabin that can be rented and marketing can be more focused.
- Payment Options
We at Castle Cornelia plan to bring payment options that will make the payment for the service we offer very easy for our customers. We have partnered with a renowned bank in the country and we hope to make use of that relationship. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for clients to make payments when necessary.
- Payment by via bank transfer
- Payment via POS machine
- Payment via online bank transfer
- Payment via mobile money
- Payment with cash
Cabin Rental Business Plan – Financial Projection and Costing
Our mission at Castle Cornelia is to offer competitively priced vacation cabin rentals oriented for families and couples. We seek to offer families and couples the balance of relaxation and excitement they seek by providing options for activities to suit both individuals and groups.
We at Castle Cornelia believe that our company will become profitable in its second year and quite profitable in its third, as the owner and founder, Precious Castor, expands the offering from eight to fifteen cabins. We have analysed the market and have decided on how we plan to spend our startup fund.
- The Total Fee for Registering the Business in the United States – $750.
- Legal expenses for obtaining licenses and permits – $4,000
- Marketing promotion budget- $500,000
- Cost for hiring Business Consultant – $20,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $250,000
- Cost of accounting software, tracker software apps, CRM software and Payroll Software – $6,000
- Cost for leasing and purchasing cabins- $1,000,000.
- Cost for facility remodelling- $70,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, fuelling, maintenance, payments of bills et al) – $250, 000
- The cost for Start-up inventory – $15,000
- Cost for store equipment (cash register, security, ventilation, signage) – $27,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Credit card machine, POS, tables and lodging equipment et al): $270,000.
- The cost of Launching an official website: $600
- The cost for our grand opening party: $50,000
- Miscellaneous: $10,000
From our detailed analysis above, we will need an estimated $3,000,000 to start Castle Cornelia successfully.
Generating Funding/Start up capital for Castle Cornelia
Castle Cornelia will be managed by Precious Castor. She will be personally responsible for sales and marketing, provide all copy for ads, the website, and brochures, and the launch of the business. She will also sell additional services to renters who arrive and personally greet them all to find out how she can help them with recommendations.
She will also fund this business while also acquiring a huge chunk of the startup capital from our bank as a business loan that will be serviced in three years. These are the areas we intend generating our startup capital;
- Generate part of the startup capital from personal savings
- Generate part of the startup capital from friends and other extended family members
- Generate funding from getting a business loan from our bank
Note: We at Castle Cornelia have been able to raise $2,000,000 from the personal savings and family soft loans. We are at the final stages of acquiring a substantial $1,000,000 from our bank, and we believe that aside from our services that will generate fund, we will be attracting investors in no time.
Cabin Rental Business Plan – Sustainability and Expansion Strategy
Castle Cornelia will be managed effectively by Precious Castor and her workforce. She will receive reservation requests from interested customers, approve them by email, respond by phone to answer specific questions raised, and pursue business through partnerships with travel agents. Note that this includes offering a discount to travel agents so they can bundle the rentals with travel packages to their customers.
Our business website will give customers a great deal of information so they are better informed before reserving. Also Precious Castor will contact cabin owners directly to advertise the services of Castle Cornelia to these “suppliers.” We believe this work will begin well before the business’s launch in order to have a roster of at least three cabins to rent for the first year.
Our company website at Castle Cornelia will offer a great deal of information both for potential renters/vacationers and for cabin owners interested in supplying their cabin to the company. Our website will inform these parties about the offering of Castle Cornelia and availability of cabins and allow them to move forward by using a simple reservation form to make reservations online.
We at Castle Cornelia plan to use our website to target young couples and families interested in Orlando vacations and current cabin owners in Orlando, Florida. The site will be marketed through the following tactics:
- Banner ads on travel-related websites
- Google AdWords text ads
- Listing in cabin rental databases for Florida
- Search engine optimization undertaken by the initial Web developer and an ongoing SEO firm
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Leasing, renovating and equipping our facility: Completed
- Generating part of the startup capital from the founder: Completed
- Applications for Loan from our Bankers: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed software applications, furniture, office equipment, electronic appliances and facility facelift: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business (Business PR): In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with banks, financial lending institutions, vendors and key players in the industry: In Progress
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