Following on from our last communication, we wanted to provide a further update regarding current business operations and owner payments.
At present, the issue surrounding Booking.com payments and commission processing remains unresolved. To ensure continuity and support for our owners, the owner of Reliance Managed Services personally contributed funds to cover owner payouts for December and January. This was done to minimise disruption and uphold our commitment to you.
However, a combination of factors over the past few weeks has placed additional strain on cash flow. Most notably, we have managed two significant on-site incidents. While both situations were handled promptly and professionally, they required considerable resource and support. We want to reassure you that these were rare, one-off events and not indicative of ongoing issues.
In addition, we are currently carrying approximately £6,000 in outstanding guest balances due to a system error which allowed some bookings to proceed without full payment. Despite this, Reliance Retreats honoured owner payouts against this debt to ensure fairness and consistency.
There are also some broader operational factors impacting the business:
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A reduction in the number of properties under management
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An increase in owner bookings, which reduces availability for guest bookings
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Fixed overheads that remain largely unchanged from when we managed 21 properties
We have made some adjustments to improve efficiency, including ending our reception contract and replacing it with an IVR system that connects directly to our team. Alongside this, we have invested in a new letter marketing tool, allowing us to re-engage past guests from Devon Holidays and Lodge Nine to help drive future bookings.
Looking ahead, we are encouraged by strong forward bookings later in the year and ongoing marketing efforts to fill remaining availability. As many bookings are made through third-party platforms such as Booking.com, Airbnb, Sykes Cottages, and Visit South Devon, payment timings can affect cash flow. Typically, funds are received around 14 days after departure, or for Sykes bookings, on the 26th of the following month. This differs from direct bookings, where deposits are received upfront.
As a result of these combined pressures, February owner payments will be delayed and rolled into the following month’s payout.
We want to emphasise that these challenges are short term. Our focus is on navigating the next few months while continuing to strengthen the business. We sincerely thank you for your patience and understanding during this period and want to reassure you that the outlook ahead is positive.
Finally, Jason will be meeting with the Area Director of Booking.com next week during their visit to Finlake. We hope this will help move the current payment issues toward resolution.
Thank you again for your continued support.
— Reliance Managed Services