Vacation Rentals Blog

Hotels have finally realized that Wi-Fi is a must-have, something that tops the wish list of many potential guests. But the rush to quickly set-up hotel Wi-Fi networks, coupled with the fact that wireless fidelity is still a fairly new technology, means that consistent wireless internet access, pricing, and service, is not a given across hotel brands, small hotel groups or even from the lobby to your room.

These are the conclusions of an article in Hotel Chatter. The article rates the best Wi-Fi hotels, as well as making other observations. It says charging for Wi-Fi gives hotels a bad rap and that offering Wi-Fi no longer makes a hotel stand out from the pack.

Since guests’ expectations of vacation rentals tend to follow their expectation of hotels, vacation rental owners should expect that soon all vacation rentals will be expected to have Wi-Fi or other broadband access. A vacation rental that doesn’t have it will stand out in a negative way

Posted by VRO at 06:33 PM | Permalink

As vacation-home markets cool, would-be buyers should take a sober look at the economics of ownership

This is the conclusion of June Fletcher, writing in Monday’s edition of the Wall Street Journal. She says that in her market of choice, Naples Florida, there are clear signs that the market is changing, “Inventory levels now are four times as high as they were a year ago, local real-estate agents say, largely because nervous investors are trying to cash out their gains before rising mortgage interest rates topple the market.�

The article also has a striking chart that points out the amount of over-valuation of properties in several resort areas. They range from a high of 96.3 % in Naples to a low of 35.3 % in Honolulu. Ms. Fletcher counsels that vacation-home buyers should take heed: “The days when you could flip a beach house or ski place for fun and profit are probably over. That doesn't mean that you should avoid a second home altogether, but it's time to take a serious look at the economic factors that propel vacation markets, and to weigh the financial costs of ownership.�

One of the most interesting items in the article is a quote from the National Association of Realtors that 8 out 10 vacation home owners choose not to rent their properties out. We at VRO believe that is bound to change as over-heated markets cool and as more and more owners turn to renting out their vacation properties to reduce their carrying costs.

Posted by VRO at 05:49 PM | Permalink

The catastrophic hurricanes that tore through the Gulf Cost last summer are wreaking havoc in homeowners’ insurance premiums, even in states far removed from form where the storms hit, according to H.P. McQueen of the Wall Street Journal. Of course many of the prime vacation rentals are located close to coastal areas where insurance coverage will be hardest hit, but the rate increases will not be limited to those areas.

The article by McQueen, reprinted in The Pittsburg Post-Gazette, says, “Still reeling from an estimated $56 billion of hurricane-related losses, major insurers are dropping policies or not writing new ones in coastal areas from Texas to Florida and up the Eastern Seaboard as far north as Massachusetts. Insurers including Allstate Corp. and Nationwide Mutual Insurance Co. say they need to reduce the financial risk that could come with fresh storms as soon as this year. But the moves have left homeowners in a number of states scrambling to find new coverage, often at higher cost.�
The article goes on to point out that, “Problems are most acute in areas that suffered hurricane damage. In Florida, insurers including Allstate, Nationwide Mutual, a unit of Nationwide Financial Services Inc., and Poe Financial Group, southern Florida's second-largest insurer and a major condominium insurer, recently have said they would stop writing new business anywhere in the state. Those moves came after Nationwide Mutual last summer won Florida approval for a 21 percent rate increase.�
The cost of insurance premiums has long been a major concern to many vacation rental owners, such as us. However it is a necessity. There is little that the vacation rental owner can do except shop around, have a large deductible, and avoid filing claims whenever possible. In fact, you should never file maintenance –related losses such as damages from water leaks, because even one claim could cause you to be dropped by an insurer. The article quotes industry experts who “advise consumers to keep a low profile. Self-insure as much as possible by carrying as high a deductible as you can afford to keep premiums low and remain attractive to insurers�.

Posted by VRO at 04:15 PM | Permalink

Benchmark Hospitality International has announced its annual 'Top Ten Hospitality Trends for the Year' as observed by its properties. Some of its top ten are particularly relevant to vacation rentals.

The first is “Hit the Spa�, which it describes as the hottest trend going in hotels. “It doesn't matter if you're a guest at a meeting, staying the night, or just getting away for the weekend, customers want to hit the spa, even if only for an hour or two at the end of the day.� This is important for vacation rental owners to recognize. As we have indicated previously it is important for vacation rental owners to work with local spa owners to develop a spa package wherever possible.

Another of the top ten trends is "Luxury is Back". According to Benchmark, “Travel budgets are healthier and guests are demanding luxury, first-class amenities and added value in return for their dollar. Flat screen televisions, luxurious bath soaps, superior bed and bath linens are benchmarks of quality.� This is a trend that we at VacationRentals.org have been aware of. We have consistently urged our members to add amenities and little luxuries wherever possible to stand out from the competition.

A third top ten trend is that Wi-fi is a necessity. Benchmark says, “It's about convenience. Laptops open everywhere these days and it's expected that a guest can log on and access email or the office at a moment's notice - wherever he or she is. This is no longer a luxury, it is now perceived as a necessity, is expected, and more and more properties are providing it free of charge.� This is another trend that we at VRO have long been aware of. Vacation rentals must have high –speed internet access if they expect to be competitive in today’s market.

The entire list of Benchmark’s too ten trends is available at Hospitality Trends.

Posted by VRO at 09:00 PM | Permalink

Want more space for less money than a hotel on your next trip? Consider renting a vacation apartment or house. Hundreds of vacation-rental agencies — and individual owners — offer everything from city apartments to country villas in Europe, North America and beyond.

This is the conclusion of Kristin Jackson in an article in the Seattle Times. However, the article points out that those vacation renters do need to be independent-minded and flexible. Vacationers need to be reminded that they are renting a house and not a hotel room. While cautioning about things that travelers should be aware of, especially when traveling abroad, the article points out that significant cost savings and other benefits can be realized by those travelers who do their homework.

Ms. Jackson indicates that Europe is the epicenter of vacation rentals, although many North American ski and beach resorts also have condos/houses for vacation rentals, particularly in places such as Hawaii. The Caribbean has many beach rentals, as do some Mexican and Asian resorts.

Posted by VRO at 08:32 PM | Permalink

The Wall Street Journal (subscription only) reports that in a move to help travelers anticipate charges and taxes added onto hotel bills, Marriott International Inc. plans to announce that the price it quotes travelers for its hotel rooms will be the total price -- including all taxes and fees. (The rates don't, however, include room service or minibar bills racked up during the stay.)
The article indicates that the new policy is intended to strike at the online travel giants like Expedia Inc.'s Expedia.com, which have increased their hotel inventories in recent years. Online agencies disclose the rate for each hotel; once a hotel is selected, the room cost and the taxes and fees are broken out and then added together to give the total cost before the traveler clicks to buy. Other hotels, such as Hyatt Hotels and Resorts, plan to launch a total-pricing plan soon.
At VacationRental.org we have always advocated giving the guest a total price and avoiding “nickel and diming� the guests. One thing that irritates guests about hotels is all the extra little charges that are tacked on to the bill, such as resort fees. Many hotels have begun to take out the minibars, a major source of these charges.
At our own vacation rentals, we make it clear that the only extra charges are sales taxes we are required to charge by law, and that charge is added in to the quoted rate when a unit is booked. We don’t charge a cleaning fee as many rentals do, because every guest has the right to expect a clean property upon arrival, and they shouldn’t have to leave the property clean enough for the next guest. The better way to charge the guest is to set a fair rate that includes all the things that you might wish to charge separately for. You will have happier guests.

Posted by VRO at 08:46 PM | Permalink

The Business Travel Monitor released by American Express Business Travel reports that the annual Average Fare Paid for U.S. domestic airfares dropped to a six-year low at the close of 2005. Conversely, domestic and international hotel, as well as international air, and car rental prices reached new six-year highs. This news was reported by an article in Hospitality Trends.

'Despite rising fuel costs, U.S. domestic airfares for business travel settled at a six-year low in 2005, due in part to the introduction of simplified fares and more low fare competition," said Andy McGraw, Senior Vice President and General Manager of American Express Business Travel North America. 'For 2006, however, the pricing trend lines indicate that corporate travel buyers will face a tough negotiating environment across the board - whether sourcing air, hotel or car-rental inventory. The hotel industry, in particular, is already proving to be a true seller's market.'

The article also reports that domestic air average fares paid Settled at a six-year low, though rates are rising. In the fourth quarter of 2005, the U.S. air domestic Average Fare Paid edged up three percent to $223 one-way compared to $215 one-way for the same period a year ago.

As for hotels, the article reports that Average Booked Rates increased for domestic hotels in the fourth quarter of 2005 when compared to the same period in 2004. The 2005 domestic Booked Rate increased six percent to $144 from $136 the previous year. Although the international Booked Rate decreased slightly from $217 in the third quarter of 2005 to $210 in the fourth quarter, it increased by one percent compared to the $207 rate in the fourth quarter of 2004.

The article also reported that car rental costs are increasing as volume remains strong. The Average Daily Cost per car rental grew by three percent to $67 in the fourth quarter of 2005 when compared to the same period in 2004.

Posted by VRO at 08:38 PM | Permalink

The good news is that the most rewarding travel experiences remain affordable. In other words, it is still possible to travel well on a budget.

This is the conclusion of Alex Halperin in an article in Business Week Online. He gives five travel tips in his article on how to plan a great vacation without breaking the bank.

In his first tip, “Don’t be in such a hurry�, he quotes Pauline Kenny, who runs slowtrav.com, a site that helps people find short-term vacation rentals. The idea is to spend your time growing familiar with a single place, instead of hotel-hopping among various locales. He points out that vacation rentals are a good way to save mone because buying food in grocery stores costs less than eating every meal in a restaurant. “And many a foodie can pass a morning hunting for local ingredients in farmers' markets. No matter your budget, rentals are often cheaper than hotel rooms, and you can save further by sharing a space with friends�.

Halperin’s obsevations are in line with what we have always emphasized about our own vacation rentals. People get to know the area a lot better by using our rentals as a base for day trips to a variety of local attractions, as well as eating at economical local restaurants or preparing meals in the kitchens in our rentals.

Posted by VRO at 07:44 PM | Permalink

In what could fast become trend in the hotel industry, the availability of rooms where guests may smoke is shrinking.

This is the conclusion of an Orlando Sentinel article by Christopher Boyd. He points out that hotels are just the latest flash point in a cultural shift against smoking. Westin led the way with a ban against smoking in all of its 77 properties in the United States Canada and the Caribbean. The article quotes a Westin executive who said they made this move after concluding that only 4 percent of their guests smoked in their rooms.

The article goes on to say that as popular as smoking bans are with some guests, smokers continue to represent a niche. If enough hotels ban smoking, a genre of hotels that cater to smoking might appear.

This trend has obvious implications for vacation rentals. In our own operation, we found it necessary to ban smoking in our cabins years ago. Like most vacation rental owners, we did not have enough units to set some aside for smoking. However, the advantage of vacation rentals, including condos, is that most have an outdoor deck or porch where smokers are free to indulge their habit. Therefore, unlike hotels, vacation rentals can still attract a fair amount of smoking guests.

Complete Smoke Signal article

Posted by VRO at 10:26 AM | Permalink

As years go by, we seem to have less and less time to make a first impression.

This is the conclusion of Scott Ginsberg in an article in 4Hoteliers. He says we should consider these numbers:

• In the 80’s and 90’s, NLP authors like Nicholas Boothman claimed you only had 90 seconds to make a first impression
• By the time the new millennium hit, you only had four seconds, according to hundreds of articles
• In 2005, Malcom Gladwell’s bestselling book Blink explained that people made first impressions in TWO seconds
• This year, an article from The BBC quoted a study which explained that Internet surfers form an impression “in one 20th of a second of viewing a webpage�

While Ginsburg’s article is directed at people in the hotel business, it is equally applicable to the vacation rental business. It is something that vacation rental owners should keep in mind. The first impression is extremely important in everything from your web site, the booking process, to your guest check in. One thing we have always done is try to provide some little extra gift when guests check in. People like to be pleasantly surprised, and it helps them get their vacation off to a good start.

Posted by VRO at 06:35 AM | Permalink

Another impression we receiived when staying in the new Hilton Hotel described in our March 9 blog was how friendly and helpful the hotel staff were. All of the staff went out of their way to be helpful even if we were asking something that was not their job. We arrived late in the afternoon after the lunch closing time of the hotel restaurant. However, the restaurant manger offered to have the cook prepare us something, which she did. They staff was happy to point out that some things we expected to pay for were free.

We wondered why everyone was so nice. Then it hit us. The staff was obviously very proud of their brand new hotel. They seemed to be proud to be working in such a nice place, and it showed. Then we thought why can’t every vacation rental owner try to adopt the same attitude?

Now obviously, it is not possible to have a new vacation rental property every year. However, as we pointed out in the last few issues of our Vacation Rentals Newsletter, property owners should take advantage of their off-season to put their property in fresh, like-new condition. In our own property, we try to add some new features or landscaping every year, and do any redecorating that is needed. Therefore, we are newly proud of our property each year, and we hope it shows. If you and your staff feel proud of your first-class luxury vacation rental, it should be obvious to your guests as well.

Posted by VRO at 09:44 PM | Permalink

Gardening is one of America’s most popular hobbies, enjoyed by millions of serious gardeners. About this time of year, those gardeners begin to look for the first evidence that the barren winter months are over, and spring is here. Vacation rentals from New England to Southern California can take advantage of this fact by advertising their proximity to a beautiful garden, indoor as well as outdoor. Vacation rental owners can even design package deals around garden events.

An article in CNN.com provides a partial listing of some beautiful gardens around the country that could provide the perfect incentive for a visit to a nearby vacation rental. However, this listing is far from complete. For Example, it doesn’t mention the gorgeous Longwood Gardens in Kennett Square, Pennsylvania or the Biltmore Estate Festival of Flowers in Asheville, NC. Both gardens have a number of events scheduled over the next month.

In addition, there are several events that we know to be scheduled each year in gardens around the Washington DC area. Vacation property owners should check the gardening events in their own locations. Gardeners tend to be some of the most ideal guests, and there are millions of them

Posted by VRO at 10:18 PM | Permalink

We frequently write about things that hotels do that set the pace for what vacation rentals will need to do. It is a pleasure to write that in at least one case, hotels are beginning to be more like vacation rentals. They are getting rid of their super expensive minibars and leaving a small refrigerator.

“The hotel minibar, repository of the $5 Coke and the $12 jar of nuts, has long been an object of scorn among value-conscious travelers. In a 2005 hotel guest-satisfaction study, the marketing information firm J.D. Power and Associates found that an in-room refrigerator ranked third among the desired amenities (after free continental breakfast and an in-room coffeemaker). And even as some lodgings spice up the standard drinks-and-snacks minibar fare (Kama Sutra products, anyone?), some hoteliers are heeding the message, particularly when it affects their bottom line�, reports the USATODAY in an article by Michael A. Schwarz.

The article points out that for many hotels it is a pure business decision, as hotels are finding that the costs of labor required to service the minibars were balanced against the revenue, the costs outweighed the revenue. Even though this makes hotels more like vacation rentals, we are happy to see the hotel industry bow to their guest preferences in this case.

Posted by VRO at 02:30 PM | Permalink

Foreign visitors spent more than ever in the USA last year despite their numbers continuing to be held down partly by the war on terror, according to an article in USATODAY

The article by Barbara De Lollis cites government figures out Wednesday that show people from other countries spent a record $104.8 billion on lodging, meals, entertainment and other travel expenses, up 12% from 2004. The number of foreign visitors — 49.4 million — was up 7% from 2004, according to the U.S. Commerce Department. However, the number of foreign visitors continues to lag behind the recent peak of 51.2 million in 2000.

The USA has been losing its share of international travelers for several years, especially after the security requirements imposed after 9/11. Therefore, the U.S. travel industry has become increasingly aggressive in pushing the government for help.

Traditionally, the vacation rental industry has not been aggressive in appealing to foreign travelers. Yet this sector of the tourism industry is too large for serious vacation rental owners to ignore. The market tourism market rebound could grow much larger in light of favorable currency-exchange rates and fast-growing international travel around the world. There are some special things that vacation property owners can do to appeal to foreign visitors. We will address these issues in the March edition of VacationRental.org’s Vacation Rentals Newsletter.

Posted by VRO at 10:25 PM | Permalink

Recently, we have written a lot about the amenities that luxury hotels are offering their guests. We do this because we have learned that vacation rental guests come to expect these amenities at vacation rentals. Recently, we had the opportunity to stay at a new hotel in the small South Georgia city of Albany. This hotel, the Hilton Garden Inn, has only been open a few months.

We thought it would be interesting to carefully check out what one of the nation’s oldest successful hotel chains is putting in heir newly-constructed hotels. Not so many years ago, the Hilton chain, would put a complementary copy of the biography of the chain’s founder, Conrad Hilton, in its hotel rooms, so we were familiar with the proud history of Hilton Hotels. If anyone should know what is the successful formala for hotels of the future, it should be the Hilton chain.

Moreover, we felt that Hilton would apply its knowledge of best practices and trends when building a new hotel. While Hilton or any other chains might be slow to make renovations to some already successful properties, surely they would apply the best practices and allow for the latest trends when given the opportunity to build a brand new facility.

We were not disappointed. While this is a mid-price business hotel in a location that is definitely not a resort destination, we were impressed with both the amenities and the service. Some of the amenities were 1) free high speed internet access, both in the rooms and throughout the facility, 2) refrigerator, microwave oven and coffeemaker, 3 nice workout facilities, pool and whirlpool, 4) very comfortable luxury bedding without the fluff of excessive pillows, and 5) even the use of workout kits for in-room exercise.

In the common areas, there were flat- screen TVs. The guest rooms had tube TVs, but the absence of the traditional large armoire indicated that Hilton has flat screens in mind for the future when prices decline further. The bathrooms were nicely done with shower massage shower heads and granite vanity tops. Granite was also used for other areas wherever possible. This is a good idea for both the look of look of luxury and for durability. It was obvious that Hilton had built with the future in mind.

Posted by VRO at 09:50 PM | Permalink

It is hard to read the travel sections of major newspapers and travel web sites without being enticed by ads promoting special travel deals for the .spring period. This is not by accident. Travel industry professionals know that spring is a period when many people focus on what they are doing for their summer vacation, rather than planning a spring getaway. Hence we get the bargain airfares to Hawaii, Europe, and other distant locations, as well as the bargain cruises. The travel industry knows it must make special deals and bargain packages in order to keep their resources and personnel employed in a slow period.

Vacation rental owners should be no different. Unless your vacation rental is in a Caribbean island or other prime destination for this time of the year, you will need to be especially creative in keeping your property booked. You will have to offer special discounted rates and bargain packages, just as the rest of the travel and tourism industry does.

Moreover, there are some advantages for vacation rentals near large population centers. Many people are too busy to take more than a few days off during the spring. Therefore, a vacation rental package deal for a few days is attractive. Many times vacation rentals will be located near a popular spring attraction, such as the 100th anniversary of the Longwood Gardens in Pennsylvania, described in CNN.com. An event such as this is a great thing to build a special package around.

Posted by VRO at 10:13 PM | Permalink

At a time when Americans are taking shorter vacations, including shorter stays in the big mountain ski resorts in the West, something funny is happening—skiers are staying longer this year. This is the conclusion of an article in USA Today by Gene Sloan. He reports that, for example, the average stay in Deer valley, Utah is 4.8 days vs. three days last year. Similar experiences are reported at such resort areas as Sun Valley, Idaho and at Vail, Aspen, and Telluride.

While there is disagreement about the reasons of the longer stays, like the great snow this year, one to the most plausible explanations is the is availability of internet technology which allows skiers to stay connected at work while at the slopes. A Deer Valley official notes that most properties there added wireless connections last year, and he thinks this is a big selling point in persuading busy executives to extend trips.

This trend is obviously a healthy one for vacation rentals owners with properties at ski resorts, as well as a strong incentive to install broadband internet connections if they have not already done so.

Among the most plausible reasons given for the extended stays is the ability of busy executives to stay connected to work while at the slopes—both a healthy sign for vacation rental owners and a strong incentive to have Wi-Fi connections available.

Posted by VRO at 02:48 PM | Permalink

A sudden boom in the demand for summer rentals in the Martha’s Vineyard area is an encouraging sign for the vacation rentals business in Northeastern beaches. It is also a welcome change from the cold wet spring of 2005, in which the vacation rentals market was depressed.

An article in the Vineyard Gazette Online by Max Hart reports that Island real estate brokers indicate that the demand for summer rentals has suddenly exploded. One broker reports that bookings are up 62 percent over this time last year. This early surge in interest comes after several years of an up-and – down summer rentals market, where inventory generally outpaced demand.

Another broker warns that this increase in bookings may not extend to the entire Cape and Nantucket. However, such a surge in rentals in the Vineyard market must be considered a highly encouraging indicator of the rental market for Northeastern beaches.

Posted by VRO at 02:07 PM | Permalink

For many years, Americans have been buying vacation or retirement homes on well-know Caribbean islands such as St, Thomas, Barbados, and St. Croix. But the latest wave of building is taking place on islands that most people have never heard of—islands with names like Great Exuma, Roatan and Scrub—and is geared toward everyone from small-time investors looking for a bargain to wealthy executives seeking a tax haven, according to a Wall Street Journal article by June Fletcher.

The Wall Street Journal article reports that, “The development boom is part of a broader movement of Americans buying homes overseas in pursuit of a better climate, a cheaper cost of living, tax breaks or other incentives another country may offer. Some are simply looking for lower-cost waterfront housing without having to compromise certain standards. Although no reliable current statistics exist on how many Americans live abroad, or in the 7,000 islands in or bordering the Caribbean Sea, a growing scarcity of prime waterfront property on better-known islands is causing builders to turn to more isolated places.�

Our own experience in VacationRentals.org as well as a perusal of other vacation rental directories indicates that there are a number of fine vacation rentals that have been built in the “out islands� of the Caribbean as we have referred to them in a previous article. As long as investors in these properties do a good job of marketing and maintaining these properties, this will be beneficial both to vacations and investors.

Posted by VRO at 09:15 PM | Permalink

While one of the brightest spots in the travel industry has been the enormous growth of the $15 billion cruise industry, it has caused traffic jams in some Caribbean islands, according to the Wall Street Journal. The article by Reed Albergotti and Candace Jackson provides a good guide to which islands have the most and the least cruise ship traffic, as well as some tips on how to avoid the traffic on islands that do have heavy cruise traffic

One of the advantages of renting a vacation villa on one of the islands is that they tend to be out of the flow of traffic from cruise ship crowds. Many are located on islands or areas of islands never frequented by cruise ship passengers. For vacation rental owners with Caribbean properties, this should be a good selling point for attracting guests.

Posted by VRO at 09:13 PM | Permalink

An article in Seacoast online by Gina Carbone describes the problems of families who feel the need to take a vacation when schools have their spring breaks. Many families don’t want to spend the big bucks or endure the crowds at some of the more popular destinations. Therefore some families opt for staying at home.

Vacation rentals offer a good compromise as well as a great marketing opportunity for vacation rental owners. Of course, if your vacation rental is in a prime ski resort, a Caribbean island, or near Disney World, this is a peak season for you. However, if you are located in the Mid-Atlantic Coast or southern mountain areas, you are within driving distance of many families, and you can offer families a very good deal this time of year. For those in the Western United States, many people enjoy the quiet beauty and moderate temperatures of the Oregon Coast.

We in the vacation rental business tend to think of spring break periods as a time when everyone wants to head south. Instead, we should think of this time of the year as an opportunity for aggressive marketing and special deals to maximize our rentals in an off-peak period.

Posted by VRO at 08:31 PM | Permalink