In order to generate and convert enough new customers in the most profitable ways, businesses must first not take any new leads for granted. As the pandemic started to wane and revenge travel raged, it was easy to overlook the value of new customer calls. Some felt their phone’s nonstop ringing was a nuisance and even wished it would stop. Boy, have times changed!

How your company answers new customer phone calls plays a key role in battling this lull. Therefore, employing an adept, well-trained phone team is one of the most beneficial things you can do to boost your revenues, but it doesn’t stop there…

Once your phone team is in place, you need effective marketing to drive leads to your phone lines. Channeling your marketing dollars in the right places can be a challenge, but it’s a critical part of drawing new customers. And once you’ve attracted and converted your customers, they need to be profitable. Most pet care facilities don’t evaluate their prices often enough, especially against inflation. Now is a great time to look closely at your pricing—but be cautious; pricing is a delicate matter that requires the right balance.

Unfortunately, increased consumer costs have reduced travel demand—and thus, demand for overnight pet care. The Bureau of Labor Statistics reported more than a 5% increase in hospitality costs between December 2023 and January 2024 alone, and an increase of 17% over 2020 prices.² While flight prices have finally started to decrease in 2024, they’re still high, and travel spending has only recovered to 89% of pre-pandemic levels.³

All this means fewer vacations for pet parents, and fewer times they’ll need overnight pet care. So, what can be done about it?

When travel is down, it’s important to maximize revenue from the lodging clients you do get—especially during a rush season like summer. But how do you know if you’re priced appropriately? One way is to track your Revenue per Pet per Night (RPN). This calculates the revenue of each pet per night by combining the cost of their accommodations, activities, any bathing/grooming while lodging, special treats and any other add-ons, divided by the total number of pet nights.

Unfortunately, many pet care companies operate with an all-inclusive pricing model, meaning the pet’s activities and enrichment are bundled in their nightly fee under a single price point. Not only does this choke your RPN, but it also caters only to a narrow selection of customers—those with group-friendly dogs who aren’t willing to pay more for a customized experience for their pet. The key is to positively promote a selection of profitable add-on services. Doing so helps increase revenue, but also creates the best experience possible for the pet, which is equally important. If you run an all-inclusive price model, it may be time to consider a switch.

The pandemic saw a meteoric rise in work-from-home and hybrid positions, and it turns out, many people love it. According to The Wall Street Journal, 20% of U.S. office space was vacant at the end of 2023—the highest since 1979.⁴ And it seems remote work isn’t going away, even despite return-to-office initiatives: a 2023 Forbes study revealed that 98% of employees want to work at least partially remotely for the rest of their careers.⁵ Yes, that means more pet parents are at home with their pets…which could be a blessing in disguise for forward-thinking pet care businesses.

More people may be at home, but that doesn’t necessarily mean they’re always available to give their dogs the exercise and attention they need. In fact, pet parents who work from home may have an increased desire to keep their pet entertained during the day. Many owners who work from home with their dogs have a keener awareness of their pet’s needs and wellbeing. This can urge pet parents to invest in quality dog daycare to keep their dogs enriched and exercised while they work.

If you’re not already offering dog daycare, consider adding a high-quality version to your services in order to appeal to working pet parents, whether they’re at home or not. If you already offer dog daycare, assess how it can be improved. This could mean offering solo play options for less social dogs, better daycare promotion, upgraded amenities and other opportunities.

According to a 2023 study by Barlow Research Associates, 46% of surveyed personal services providers, including pet care providers, rated seasonality as the biggest cash-flow stress for their business. At certain times of the year, like during the summer or winter holidays, most pet care facilities can expect to be at full occupancy (or nearly). But for the rest of the year, lodging demand can be slow or unpredictable. However, other pet care services—like dog daycare, dog spa services and dog training—are increasingly popular.

In January of 2024, Forbes reported that around 33% of pet owners were millennials.⁶ Millennials are also the age group that spends the most on their pets, with higher humanization of their pets and a desire for higher-quality pet care services. This means many pet owners are ready and eager to spend money on their furry friends, but not necessarily just overnight care.

As you know, overnight lodging services are susceptible to seasonal demand swings. To compensate, top-performing pet care companies implement more “evergreen” services to pick up slack in the off season. In addition to dog daycare, consider offering dog training, particularly stay-and-train-type programs which utilize your expensive building and enclosures. Dogs and puppies adopted during the pandemic still need training—especially since more people are working from home and need their dogs to be well-behaved.

Grooming and spa services are another area of opportunity. With the explosive rise of hypoallergenic mixed breeds like doodles, full-service dog spas are even more relevant. Doodles require frequent haircuts, contributing to a sustainable revenue stream in grooming. And with the increasing humanization of pets, luxury dog spa services have risen in popularity. Pet parents are willing and eager to spend money to pamper their dogs with special treatments, even canine massage. Ultimately, customers who use your grooming or training services are very likely to use your other services, too.

As summer approaches, pet care businesses face unprecedented challenges amidst a changing economic landscape. However, opportunities abound for those willing to embrace change and adjust course. By focusing on increased revenues and additional profitable services, your business can weather the storms of uncertainty and emerge stronger than ever.

References:

1. Small Business Economic Trends. (2024, February). National Federation of Independent Business. https://strgnfibcom.blob.core.windows.net/nfibcom/SBET-Feb-2024.pdf
2. Industries at a Glance: Leisure and Hospitality. (2024, March). U.S. Bureau of Labor Statistics. https://www.bls.gov/IAG/TGS/iag70.htm
3. Travel Forecast. (2024, January). U.S. Travel Association. https://www.ustravel.org/research/travel-forecasts
4. Offices Around America Hit a New Vacancy Record. (2024, January). The Wall Street Journal. https://www.wsj.com/real-estate/commercial/offices-around-america-hit-a-new-vacancy-record-166d98a5
5. Leading In The Age Of Remote Work: Key Factors For Corporate Success. (2023, September). Forbes. https://www.forbes.com/sites/forbestechcouncil/2023/09/14/leading-in-the-age-of-remote-work-key-factors-for-corporate-success/?sh=5f867b3f14a5
6. Pet Ownership Statistics 2024. (2024, January). Forbes Advisor. https://www.forbes.com/advisor/pet-insurance/pet-ownership-statistics/

Laura Laaman is president of Outstanding Pet Care. If you’re interested in growing your revenues, any of the strategies in this article, or any of our other proven and guaranteed services, schedule a consultation by calling 1-888-735-5667 or visiting www.OutstandingPetCare.com/contact