Vacation Rentals Blog

May 13, 2008. Author Malcolm Gladwell popularized the sociological term "tipping point" as that moment when a phenomenom hits a certain threshold. Could we be hitting a tipping point in air travel, especially with the effect it will have on the luxury vacation rental industry, business travel, and overall tourism this summer?
Every week, more news stories and columns examine a new angle on this story. As the economy bottoms out, hurting the summer travel season, the One-Two Punch might be just what it takes.
As Joe Brancatelli noted in Conde Nast's Portfolio.com, there are compelling arguments on both sides of the aisle as to how bumpy the ride will be this summer. Pessimists point out rising costs all around, from airfares to extra fees, marching in lockstep with increasing delays and cancellations. Optimists could say the recent mergers will alleviate some of the sky-high congestion, and all this pessimism might scare the airlines into dropping prices.
Either way, something needs to be done.
The new book "Terminal Chaos: Why U.S. Air Travel Is Broken and How to Fix It," offers a few solutions. To begin with, airlines should have to bid for a limited number of slots at America's busiest airports, a move that could force them to increase efficiency and end wasteful cancellations and delays. It's an interesting start to a tough problem.

Posted by Mark Vanderhoff at 10:02 PM | Permalink

April 30, 2008. Rising food costs might not just be a concern at home. Many people traveling this summer may notice higher prices at restaurants, too, as those establishments pass the cost of increases on to their patrons.
This could be a boon to the luxury vacation rental industry, as travelers seek to pare down their food bill by eating in. But it might also spell trouble for the restaurant industry, especially in seasonal tourist towns where profit margins are already small.
A recent article in the Arizona Republic told the stories of restauranteurs in Scottsdale-Phoenix, a major destination. Many agonized over the decision of whether to raise prices, fearing it would hurt their business. In that area, less expensive restaurants such as Denny's and establishments without waiters - and hence no tipping - began to fare well as patrons looked for cheaper solutions.
Rental owners may find that advertising their kitchen amenities could earn them some extra reservations this summer. Meanwhile, travelers may want to consider eating out just a little less, and paying a little more attention to prices when they do treat themselves.

Posted by Mark Vanderhoff at 09:48 PM | Permalink

April 28, 2008. With summer right around the corner, the nation's leading business magazine has turned its microscope on the tourism industry. Specifically, the Wall Street Journal looked at how luxury vacation rentals, tourist attractions and other travel-related sectors will fare. Recession fears, high gas prices and negative media attention on the airline industry will no doubt have an impact.
The article identified a few trends:
Staying close to home. Many vacationers report they will be staying close to home, which will benefit regional destinations and theme parks. Although fewer Americans will travel abroad, many Europeans will come to America to take advantage of the weak dollar.
Cutting back. In one survey, respondents said they would eat at less expensive restaurants. Travel agents reported shorter trips and cheaper lodging choices. Others are scanning the Internet more closely for bargains.
Customer incentives - sometimes. Vacation rental owners have had to offer discounts in some regions to make sure their condos and beachfront homes are booked for the summer. In the case of some destinations, such as one theme park company, discounts will become more rare because people are staying close to home.
Hopefully, the influx of European travelers and tendency for Americans to stay home will outweight the negative effects of a potential "travel recession." Only time will tell.

Posted by Mark Vanderhoff at 09:20 PM | Permalink