Houses on the Lake provides rentals of family sized vacation houseboats. The houseboat rental business plan proposes using privately owned houseboats on Lake Shasta, providing rental income to the houseboats' owners. Starting with three boats and eventually expanding to eight, the company owner projects profitability in the second year and significant increases in the third. In this houseboat rental sample business plan, pricing will be set toward the low end of the spectrum, attracting families who need to budget carefully for vacations. Boats will be maintained in excellent condition to assure luxurious comfort. Customers will also be provided with ideas and suggestions for maximum enjoyment of their vacation time on the lake. Offseason rates will be $600 for three days, while seasonal rates will be higher.
Houses On The Lake will create a competitive business model for vacation houseboat rental on Lake Shasta in Northern California. Rather than purchasing houseboats, the business will offer rentals to families and young couples of small (up to 6 persons) houseboats on loan from existing owners. The business will offer vacationers other services to compete with luxury vacation houseboat companies and moorage and revenue sharing for existing owners. The business must acquire loans to launch.
The business will become profitable in its second year and quite profitable in its third, as the owner and founder, Robert Hopkins, expands the offering from three to eight houseboats. Rental rates will be on the low end for the market, starting at around $600 for 3 days during an off season.
Houses On The Lake will launch its business with three vacation houseboats. Over the first three years, Houses On The Lake has the following objectives:
Rent land for marina and marina facilities
Create a pool of eight houseboats from current owners interested in renting them out
Steadily increase revenues each year
Achieve a 50% retention rate of customers from year 2 to year 3
Houses On The Lake will offer competitively priced vacation houseboat rentals oriented for families and couples to enjoy Lake Shasta, California. The business will 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.
Keys to Success
Keys to success in the vacation houseboat business include:
Impeccable upkeep of the rental boats to maintain the luxury of the accommodations
A wide variety of activities and services to promote and suggest to families
Seasonal pricing to encourage year-round utilization of the boats
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