Vacation Rentals Blog

Rising gas prices are causing considerable angst among American consumers. However, As the New York Times reports in an article by Claudia H. Deutsch, “although that may give pause to anyone planning a long family-driving vacation, it is causing remarkably little angst among the larger hotels, theme parks and other destination spots that rely on drive-in trade.�

The article reports that, “Sure, many of the gas vouchers and discount cards that inns and tourist-dependent towns have been offering every summer are available again now. But there are precious few new incentives to be found. Parks like Disney World and hotel chains like Hilton's Hampton Inns came through the last gas-price spikes unscathed, and they say they are anticipating little fallout now. And, since the destinations and attractions do not expect to share their guests' pain, precious few have plans to ease it.�

An industry analyst at Goldman Sachs is quoted as saying, “The demand for hotel rooms has been so strong, across all price points and locations, that the hotels just don't really need any big promotions.� It appears that the law of supply and demand is on the hospitality industry’s side. The article quotes PricewaterhouseCoopers as saying that the supply of hotel rooms in this country will grow a paltry 1.1 percent this year, and demand for those rooms will go up 2.9 percent. Even more telling, the firm's continuing surveys of would-be travelers keep turning up the same results: Everyone is concerned about high gas prices, but not enough to cancel vacations.

The article does point out that some in the industry, such as Bed & Breakfast Inns and the South Dakota Office of Tourism are offering discounts for gas, but the trend does not seem to be widespread.

Posted by VRO at 05:10 PM | Permalink

There are no reliable statistics available on occupancy and revenue for vacation rentals. However, Smith Travel Research does provide such statistics for the hotel industry that vacation rentals compete with for a share of the market. Since every vacation rental owner needs a benchmark of how it is doing, we are reporting the weekly statistics on the hotel industry as compiled by Smith Travel Research.

For the week ending April 22, hotel industry occupancy was 66.8%, an increase of 1.1% over the same week a year ago. However, the average daily rate was up 5.5% and the revenue per available room was up 6.5% over the same week a year ago.

This information is only a broad benchmark, but it is helpful. It should be used in conjunction with a comparison of your own occupancy and revenue with that of a year ago. As in other businesses, careful record keeping is essential to profitability in vacation rentals. It will help your calibrate your rates and gauge whether your are successful in satisfying your customers. It can help you decide whether you need to spend more or less on advertising.

Posted by VRO at 09:00 PM | Permalink

With higher gas prices, all of us have become more concerned about better gas mileage for our vehicles. Moreover, it behooves all of us to do our part in conservation in this time of energy shortage. Therefore, we wish to share some helpful driving tips that were published in About.com in an article by Mark Kahler.

These tips include 1) turning off your engine when idling for more that 30 seconds, 2) accelerating slowly and evenly, 3) buying the lowest possible grade of gasoline, 4) driving 55 when possible, 5) checking your tire pressure frequently, 6) using cruise control, 7) using air conditioning wisely, 8) getting a brake and transmission check-up, 9) springing for a tune-up, and 10) limiting your shopping to the best price.

Posted by VRO at 01:53 PM | Permalink

What’s new in the luxury hotel industry? Quite a lot according to a LA Times article by Kathy Chin Leong. She describes the rush to high- tech gadgets as follows:
“AFTER an invigorating lap swim, guests at the newly opened Four Seasons Silicon Valley Hotel will soon be able to flip-flop over to a poolside cabana to watch "Oprah" on a wall-mounted, 42-inch plasma TV and use the same screen to check Google's stock price on the hotel's wireless Internet network.�

“At the Peninsula New York, patrons can set alarm clocks or adjust temperature, lighting and TV volume controls by pressing keys on the electronic bedside control panel. If they want to sleep in, they can depress the panel's Do Not Disturb key that activates a light outside the door and silences the doorbell.�

These two paragraphs give a good flavor of the lengths that luxury hotels are going to allow hotel guests to stay connected to their own gadgets and to choose their own entertainment. Vacation rental owners should take note, because these amenities start at the most expensive luxury hotels and then trickle down to budget hotels, many of whom provide free Wi-Fi. Any good vacation rental should have available at least the level of amenities that is available in budget hotels, and preferably much more.

An industry expert, Doug Rice, sums it up well, “Generation Y consumers are well-traveled, and they have lived the good life," Rice said. "This teen generation cannot even conceive of not having Wi-Fi." Baby boomers are almost as dependent. They, too, are tethered to their Palms, BlackBerries and laptops. Chains, independent hotels, even bed and breakfasts have found they need to offer Internet access to compete.�

To the above statement we would only say “amen� and include vacation rentals in the list of accommodations that must offer internet access in order to compete.

Posted by VRO at 06:38 PM | Permalink

With gas prices continuing to climb nervous travel companies and drive-to destinations are offering earlier –than-normal incentives to hit the road, from $20 ethanol vouchers in South Dakota to discounts of $10 per car-engine cylinder at bed-and-breakfast inns in Maine, according to an article in USA TODAY by Laura Bly.

The article reports that new surveys showed that Americans have curbed their gas use in apparent response the higher process at the pumps. In a poll done last month by the motorist group AAA, 68% of vacationers said that they would consider reducing the number of driving trips if the average price of unleaded gas topped $2.85 a gallon—with that number climbing to 83% if the price reaches $3.35 a gallon.

Our own view is that it is too early for vacation rentals owners to panic. Certainly, our own experience has not yet reflected any downturn in occupancy this year. Moreover, we have noticed that these price spikes have a way of correcting, If, in fact drivers all over the US do cut consumption as much as three percent, it could have quite a moderating impact on fuel prices.

Moreover, "Fuel costs are still a small part of vacation budgets," says AAA's Mantill Williams, who notes that a family taking a 1,000-mile trip in a car averaging 20 miles a gallon will spend about $150 for gas this spring, an increase of $50 from last year. "For most people, that's not a deal breaker."

In addition the vacation rental industry needs to continue to remind our customers that vacation rentals are the best value for a family vacation. The savings in serving a few more meals at the vacation rental’s kitchen facilities could easily offset any increase in gas prices this year.

Posted by VRO at 01:16 PM | Permalink

Much has been written in the travel and tourism press about the bedding wars, a trend started by Westin with its introduction of its “heavenly beds� in 1999. All the major chains of full service hotels have been forced to enter the competition. Now, the limited service hotels have entered the competition. Holiday Inn Express takes on bedding with the introduction of the Simply Smart(TM) bedding collection. The program is a $53 million investment that is being rolled out to the more than 1,400 North American properties beginning this month
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Holiday Inn Express describes its new bedding as follows: “The essence of Simply Smart bedding is triple sheeting, which creates a softer feeling, more inviting bed for guests. Simply Smart is comprised of a decorative top sheet, a medium-weight duvet blanket and soft 200 thread-count sheets. The duvet blanket is sandwiched between two top sheets for added plushness. In addition, because having the right type of pillow can mean the difference between a good night's rest and a night of tossing and turning, the cozy, new sheets are complemented by four pillows, available in two comfort levels: "Soft" and "Firm."

As we have often written, the full service hotels tend to set standards that eventually have to be met by the rest of the accommodations industry. When budget or limited service motels meet a certain standard for their bedding, vacation rentals owners should reevaluate their own bedding. Guests in luxury vacation rentals will expect at least as good bedding as they can bet in a Holiday Inn Express.

Posted by VRO at 10:03 PM | Permalink

According to the AAA, the cost of taking a summer vacation will be up 5.4 percent over last year, and Hawaii remains the most expensive place to visit, with Washington D.C. is the second most expensive. The top five is rounded out by California, New York, and Florida. The nation’s least expensive states for a summer vacation are North Dakota and Nebraska.

The AAA Annual Vacation Costs Survey released Monday blames fuel costs and rising demand for hotel rooms for the big jump in prices. "Rate increases for lodgings are mostly a result of supply and demand, especially in major markets," says Michael Petrone, director of AAA tourism information development. "For both lodgings and restaurants, rising energy costs as well as salary and benefit costs are certainly having an impact."

The AAA recommends booking ahead after checking for the best rates and looking for lodging with kitchens to cut down on family vacation costs. Both of these tips are consistent with our own advice. Vacation rentals are the best bargain, especially for families that require more than one room. Also the availability of kitchen facilities can greatly reduce the amount that is spent on food.

At vacation destinations across the nation, AAA’s survey shows that a family of two adults and two children can expect to pay an average $261 per day for food and lodging. Lodging rates will average $141 a night, up nearly 9 percent from last year. Meals will cost $120, up nearly 2 percent from 2005. With meals costing almost as much as lodging, the savings that can be achieved at vacation rentals with kitchens are substantial.

Posted by VRO at 03:22 PM | Permalink

One of the fastest growing trends in the accommodations industry is the rapid growth of “limited service hotels�. In an article in the Los Angeles Times, Jane Engle reports, millions of frugal travelers are turning to these so-called limited service brands, “--- modestly priced, predictable and a cut above Motel 6, Super 8 and other economy brands -- have become the fastest-growing trend in hospitality� .

The article goes on to say that, “Overall, the limited-service category this year will add 33,208 rooms in the United States, far more than any other type of lodging, according to projections by Lodging Econometrics, a research and consulting firm in Portsmouth, N.H., that tracks industry construction trends.�

These statistics reflect the fact that the majority of Americans cannot afford to vacation in the high priced luxury hotels, with their rapidly escalating rates and extra charges for everything possible. The challenge of the vacation rental industry is to help fill the need for affordable family vacations with much more luxurious accommodations than the Holiday Inn Express.

Vacation Rentals are by definition “limited service� “accommodations. Without room service, daily maid service, and all of the other overhead of first class hotels, they can beat hotels on the price for luxury every time. We can’t compete on price for a room at the Holiday Inn Express, but the ability to cook some of their own meals and the added space and amenities should make a stay at a vacation rental well worth the money for most families.

Featured Vacation Rental Area. For bargain accomodations in Orlando check the area's many vacation rentals, many of which are less expensive for an entire home than the cost of one room at a full service hotel. A good place to start is our Orlando Listings on VRO.

Posted by VRO at 10:01 PM | Permalink

Hotels are ripping out tubs in order to give guests roomier showers and tidier, modern bathrooms. The trend toward shower-only rooms comes as hotels increasingly see a bath as a dated ritual and tubs as an unused and inconvenient amenity.

This trend is reported in a Miami Herald article by Douglas Hanks III. He reports that Marriott has designed shower-only rooms for its new Marriott and Renaissance hotels. It is also being done by trendy new luxury hotels.

Hanks reports that the business-traveler mind-set looms large in these calculations. However, perhaps the more important factor is the “ick factor�. Research shows that many women won’t take a bath in a hotel because of concerns about cleanliness.

In any event, the shower is where the emphasis is being placed in residential design today, with bigger showers that have multiple shower heads and seats in them. Since vacation rentals should be in tune with the latest trends in home design, any vacation rental owners now building or renovating should consider more emphasis on nicer showers and less bathtubs.

Featured Vacation Rental Area. Now is a great time to visit the white sand beaches that are available in Destin and the rest of the Florida Panhandle. A good place to find a luxury vacation rental is our Destin Area Vacation Rentals on VRO.

Posted by VRO at 09:15 PM | Permalink

“Fueled by baby boomers at the peak of their earning power, investors or those wanting a second or vacation house bought four out of every 10 homes sold last year, the National Association of Realtors reported yesterday�

This was reported in the San Diego Union-Tribune, which examines the impact of investor purchases of second homes in the San Diego area, one of the highest price housing markets in the nation.

The article quotes David Lereah, chief economist of the National Association of Realtors, as saying that baby boomers account for the surge in purchases of second homes. “To begin with, the baby-boom generation is driving second-home sales. They're at the optimum point in life when people become interested in second homes,� he said. “They're at the peak of their earnings, interest rates remain historically low, and boomers want to diversify investments.�

From the perspective of vacation rentals owners, this trend means that there are thousands of additional vacation rentals that will soon hit the markets. As the housing boom fades, many speculators will find it necessary to hold on to their properties for a long period of time rather than flip them for a quick gain.

The more financially astute among them will decide that the best way to hold on to properties in a desirable vacation area is to turn them into vacation rentals. This means that in many areas existing vacation rentals owners will face more competition. They will have to more aggressively market and promote their properties in ways that are explained in our Vacation Rentals Newsletter.

Featured Vacation Rental Area For a fine election of ocean-front poperties, visit VRO's lisitngs in San Diego.

Posted by VRO at 09:27 PM | Permalink

As hotel rooms in major cities have become harder to book and increasingly over-priced, more and more travelers are turning to vacation rentals as an alternative. We have commented in earlier editions of Vacation Rentals Blog that the sharp increase in prices in cities such as New York will make vacation rentals more attractive for vacationers and even business travelers. These prices are forcing travelers to consider whether they can do without some of the service amenities that come with hotels—along with high hotel prices.

In an article in Canada.com, Susan Heinrich describes her experience in renting a loft apartment in Midtown New York. Despite some early trepidations and doubts, she and her friends found the experience to be magical. She reports that, “spending the weekend with a real home as our backdrop made us feel like New Yorkers.�

The greatest fears that many vacationers and busy travelers might have in renting an apartment in a large city might be concerns about safety and convenience. However, with the advantage of Google local maps and the other maps that are available on the internet, this should be easy to check out. It is easy to determine not only whether a rental appears to be in a safe neighborhood, but also its convenience to good restaurants, convenience stores, drugstores and public transportation. The internet makes possible an entire new segment of alternative accommodations in large cities.

Featured Rental Area At this time of the year, the prime months of summer are being quickly booked up for desirable mountain cabins. For many cabins in beautiful mountains, check out our Smoky Mountain Cabins.

Posted by VRO at 11:09 AM | Permalink

According to the Travel Association Industry of America (TIA), a substantial majority (81%) of Americans who are planning to travel this summer have already started making plans for their longest summer trip. A TIA survey indicates that 21% of those planning to travel this summer have already arranged for their lodging. You can read more about the survey in an article in eMarketer
This is consistent with our experience, because our own vacation rentals are heavily booked through the first week of August. Travelers who want a real choice of their summer accommodations should book by now or as soon as possible, Vacation rental owners with attractive lodging in popular destinations should have the majority of their vacancies booked by now. Those who don’t should evaluate their marketing plans. In our Vacation Rentals Newsletter, we offer several tips on building an effective marketing plan for vacation rentals.

Posted by VRO at 09:15 PM | Permalink

One travel industry leader says the mushrooming growth of condo hotels could turn out not to be the boon many think it will, according to an article in the Orlando Business Journal by Bob Mervine. The article quotes Abe Pizam, dean of the Rosen College of Hospitality at the University of Central Florida, who points out a number of potential problems if the sales of large numbers of new condo hotels in the area are not successful.

Mr. Pizam notes that at the end of 2005 there were 108 condo hotels -- with 37,150 units -- under construction nationally. He says that while developers like these projects for their high rates of return—often 30%--operators may have a more difficult time. Moreover, investors who purchase these units tend to expect that the value of the unit will appreciate at least as fast as residential real estate, which may not happen. If it does not happen, the result could be a massive sell-off similar to the sell-off of time-share units in the 1970s and 1980s, he says.

We agree with the words of caution of Dean Pizam. At this point, condo-hotels are an unproven investment. Traditional individual vacation homes are a safer investment. Most important, if you own your property, you have the right to manage it or change the management you hire. Thus, you have a greater chance of making a profitable investment.

Posted by VRO at 09:48 PM | Permalink

“So many hotels are so much the same that picking one usually comes down to some notable amenity--some froufrou toiletries in the bathroom, say. The next amenity everyone will be fighting over? High ceilings. Loft-style hotels are the new trend in the hotel business.�

This is the finding of an article in Fast Company, which reports that Starwood’s Aloft concept (9-foot ceilings) and a startup called NYLO (11-foot ceilings) are both set to debut in 2007.

Tall ceilings have long been a feature of mountain cabins and chalets, as well as many luxury beach houses and villas. This is one feature of vacation rentals that hotels have not tried to replicate until now. It is good to see that hotels have recognized that vacationers want the spacious feeling of high ceilings rather than the cramped feeling of low ceilings.

Posted by VRO at 09:08 PM | Permalink

Discounting doesn’t work as a strategy for hotels that are trying to earn more revenue than the other hotels in their immediate competitive set.

This is the conclusion of a new study from the Cornell Center for Hospitality Research which revisited the question of whether discounting works to bring in more money, compared to direct competitors. As reported by 4Hoteliers, the study by Cornell professors Canina and Enz concludes that, “What this means is that regardless of the economic situation, the way to achieve stronger revenue than competitors is to charge more than those competitors do.�

While this is a study of hotels, it is perfectly consistent with our own philosophy of operating vacation rentals. We have always stressed in our Vacation Rentals Newsletter that the best way to compete is to offer more amenities and better value to customers and charge a premium for your superior quality. As we have often said, there will always be someone willing to rent their vacation home for a lower price than you.

Posted by VRO at 10:08 PM | Permalink

This New York Times article provides a diverse selection of weekend getaway ideas for those who have been cooped up all winter and need a break. The choices range from a quick trip to London or the Virgin Islands to nearby diversions such as hiking the Catskills or driving a Hummer in the Nemacolin Resort in Western Pennsylvania.

The article provides helpful tips on how to get to the more distant vacation spots, as well as suggestions on where to stay and dine in the recommended destinations. One thing that we like about the suggested destinations is the abundance of good vacation rentals with off-peak rates at many of them. Also, this is the time of the year to get a great bargain on destinations that are not on a tropical island.

Posted by VRO at 10:11 PM | Permalink