Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

The Secret of Running a Successful Serviced Accommodation Business. Doctor explains

12 Mar 2024 · 0 min

Watch on YouTube

0:18

A short conversational clip from a YouTube video by Ndubuisi 'Andy' Egwim (uploaded March 12, 2024) discussing economics of running a serviced accommodation business. Speakers state that platforms like Airbnb and Booking.com take large commissions (reported as 20–25% of turnover, not profit) and recommend using those platforms primarily as marketing channels while relying on longer-stay worker demand in the area.

Take so much in commission? I mean. Yeah, they take. They take between 20 and 25% off your top line.
Wow.
From your turnover. So it's worse than having a franchise.
That's a lot.
It takes 10%.
Sorry, 20, 25% of your turnover. Not the profits, the turnover. They take 20%.
Correct. Yeah.
That is massive. How do they expect you to actually survive in the business? Doesn't make any sense.
Yeah, exactly. Yeah. It's very hard. It's very difficult. So the trick to the service accommodation game is that you use Airbnb and booking.com as your marketing platforms, because they have such big reach. And you get. In our area, we have so many workers that are coming to the area and they're here for months and months and months.