Vacation Rentals Blog

Smith Travel Research reports that this year, the 50th Anniversary of the Interstate Highway System will kick off a record Fourth of July holiday weekend. The article quotes AAA estimates that 40.7 million Americans will travel 50 miles or more from home this holiday, a 1.2 percent increase from the 40.2 million who traveled last year. Of those travelers, about 85 percent will travel by car on our national interstate and local road way system this weekend.

This weekend approximately 34.3 million travelers expect to go by motor vehicle, a 1.3 percent increase from the 33.8 million who drove a year ago. Another 4.6 million plan to travel by airplane, the same number flying last Fourth of July.

The article says that ocean and beach vacations top the list of preferred destinations this holiday with 22 percent of travelers saying they will be taking a water-based vacation. Small towns and rural areas was the next popular destination, with 21 percent and cities were third at 19 percent. Ten percent of travelers will head to the lake areas, and 5 percent to the mountains.

In addition to higher gas prices, AAA's Leisure Travel Index shows other vacation costs up somewhat from Fourth of July 2005. Hotel rates are up slightly, averaging 10 percent higher for AAA-Rated Three Diamond hotels for the 20 top destinations used in the comparison. Two Diamond properties will show a 6 percent increase in prices. Airfares are up 7 percent and car rental rates are up 5 percent.

Research for holiday travel is based on a survey of 1,500 adults by the Travel Industry Association, which conducts special research for AAA. The survey was conducted in May 2006.

AAA’s findings for the Fourth of July are good news for owners of vacation rentals, whether they are beach houses, lakefront vacation homes, or mountain cabins. In spite of dire predictions that were in the press, there has not yet been a slow down of business this year for luxury vacation rentals in desirable locations. This has been borne in our own experience, where we have had an increase in occupancy, as well as our knowledge of other vacation rentals.

Posted by VRO at 01:36 AM | Permalink

There has been so much written about crowded airlines and rising ticket prices, it is good to read a report that summer air travel has been smoother than expected, despite record crowding. Scott McCarthy reports in the Wall Street Journal that, “so far this summer, there are at least a couple of bright spots for fliers: There are fewer airline delays and cancellations than last year.�

McCarthy quotes FlightStats Inc., which tracks airline flight performance, which reports that between May 25 and June 15, 22.7% of all flights at the 10 biggest airlines have been late, better than the 25% late rate last year on the same days. . FlightStats also reports that with flights fully booked, airlines have fought to avoid cancellations and keep people moving, knowing there are few empty seats available to accommodate stranded travelers. In the first three weeks of the summer period, only 0.7% of flights were canceled, compared with 1% a year earlier.

The article also comments on delays in the waiting times in the TSA security lines, but the USA Today article quoted in our June 24 blog is the most informative I have seen on waiting times in the 100 busiest airports in the nation. In any event it is good news for vacation home rentals as well as the travel industry in general.

Posted by VRO at 01:13 AM | Permalink

Hotel room inventory has slipped by 5% in Hawaii, according to an article in the Pacific Business News (Honolulu). However, this decline in hotel rooms hase been made up by a shift to condo/hotel properties and other alternative accommodations. The share of units held by hotels has fallen below the two-thirds mark: 63 percent of visitor accommodations are hotel rooms and suites, followed by 20.7 percent for condo/hotel properties, 9.6 percent for time shares, 3.3 percent for individual vacation units, and less than 1 percent apiece for bed and breakfasts and hostels.

The article by Howard Dicus reports that there also was a shift toward better-appointed and more expensive accommodations. Units classified as "luxury" increased 2.2 percent, while "standard" units decreased 3.5 percent. The latest Hawaii accommodations inventory by the state counts 72,889 visitor accommodation units, including hotel rooms, rentable condos, timeshares, bed-and-breakfasts and hostels.

Our own survey of listings in VacaationRental.org, as well as other directories indicates that there are plenty of luxury vacation rentals in spectacular locations in Maui, Oahu, and Kauai.

Posted by VRO at 01:21 AM | Permalink

The scent of apple cinnamon pie is the latest development in Starwood Hotel & Resorts' sensory marketing strategy, which has assigned signature scents for Westin (White Tea) and Sheraton (Welcoming Warmth with fig, bargamot, jasmine and freesin). According to an article by Mike Beirne in BrandWeek, the scent of America's favorite pie will be wafting into the lobbies of Four Points by Sheraton hotels.

Apparently the decision to use the apple pies scent was made after an online survey which indicated that 47% of participants said the thought of pie conjures the word "comforting" and 39% said the smell of pie produces happy memories. . Apple pie was the favorite for 17% of adults surveyed followed by pecan pie (11%).

We will watch the results of the Starwood marketing strategy closely. Perhaps vacation rental owners can learn from it. We always try to keep our vacation cabins smelling fresh. We have used citrus room deodorizers because they have a more natural, fresher scent. However, it might be a good thing to have each cabin smell like apple cinnamon pie when new guests check in our vacation rentals.

Posted by VRO at 11:56 AM | Permalink

June 24, 2006. It is an established fact that most guests of vacation rental homes, cottages, cabins, and condos drive to their destinations. However, this is not the case for those who vacation in such places as the VacationRental.org listings in Maui, the Caribbean, or Mexico. For them air travel is the only option.

For those who fly a recent article in USA Today by Thomas Frank is a keeper. He points out the wide disparity in waiting times among US airports. For example, passengers at Kahului Airport in Maui, Hawaii, breezed through some of the fastest security lines in the nation last year, while Orlando travelers stood in lines that exceeded federal waiting-time goals every day. On three days in April 2005, waits were more than 50 minutes.

Among the findings of a USA TODAY analysis of TSA data from 80 major airports are the following:
“• Passengers moved through security lines in 10 minutes — the TSA's goal — 92% of the time in a 19-week period from Dec. 15, 2005, through April 30. But that is slightly worse than the same period a year earlier.
• Morning rush hours are less efficient. Airports met the 10-minute goal only 83% of the time, slightly down from the year before, and only 74% of the time at 6:30 a.m. Monday, the busiest period.
• Waits on security lines continue to vary widely from airport to airport and within airports from checkpoint to checkpoint.
Passengers at major airports such as Atlanta, Denver and Newark, N.J., regularly wait in line 20 minutes or more.�

The feature of this article that you may wish to keep is a graphic that shows the security wating times at the 100 busiest airports in the US. With this in hand, you are better prepared to plan any vacation that includes flying.

Posted by VRO at 11:28 AM | Permalink

The latest data published by Smith Travel Research indicates good new for the lodging industry, including owners of vacation homes and other vacation rental properties. For May, occupancy rates are up 2.4% over the same month a year ago, an occupancy rate of 64.8%. For the five-month period of January through May, the occupancy rate is up 2.3%

Other measures of lodging profitability are even stronger. The average daily rate is up 6.7% for May and 6.6% for the year to date. The revenue per available room is up 9.2% for May and 9% for the year to date.

While these statistics reflect the hotel industry, we have found that they correlate strongly with the vacation rentals industry. Our own vacation rental cabins and cottages as well as the information we have received for the owners of other vacation rental homes indicate that the occupancy numbers are at least as strong as those reported for the hotel industry. Also, the revenue numbers for hotels are quite useful to vacation rentals owners in setting rates that are a bargain compared to hotels.

Posted by VRO at 01:48 PM | Permalink

In an article tilted “The Summer of Discontent: Hotels Are Packed and Pricier� Avery Johnson reports for the Wall Street Journal (subscription required) that renovations and rising demand are pushing up resort rates by 15%.

The article quotes a new study to be released today by PricewaterhouseCoopers that predicts that room rates at high-end resorts will rise as much as 15% this summer -- and that they will be more packed than usual with vacationers. According to Pricewaterhouse, the U.S. industry will hit a record number of 3.277 million occupied rooms a night during the season.

The heftier price tags don’t seem to be hurting occupancy, as the summer average occupancy (Memorial Day weekend through Labor Day weekend) at U.S. hotels is expected to be the highest since 2000. Occupancy rates are projected to be up 2% this summer to a level of 71.5%.

The article points out that there are still bargains to found in certain destinations such as Hawaii and San Francisco. We would suggest that vacationers check bargains in vacation rentals listed in VacationRental.org for such locations as the Florida Gulf Coast, the Puget Sound area of Washington, and in Hawaii. With resort hotels pricing themselves out of the market for the more budget conscious traveler, vacation rental owners have a great opportunity to demonstrate what a bargain they deliver.

Posted by VRO at 11:13 AM | Permalink

The City of Encinitas will fight rowdy vacation-home renters with a two-pronged approach, the City Council decided unanimously Wednesday night, according to an article by Angela Lau of the San Diego Union -Tribune

The article reports that one tactic is to introduce an ordinance June 28 that would hold owners of homes they rent out for 30 days or less – short-term vacation rentals – responsible for their renters' behavior.
Vacation rental owners would be required to curb noise, traffic, illegal parking, trash, and drug and alcohol use at their properties. Repeated violations over a 24-month period could cost homeowners up to $1,000. They also could temporarily lose the right to lease their homes.

The City Council is expected to adopt the ordinance July 12. However, there is a second tactic being considered ---to have the city consider a proposed ban on future vacation rentals. That ordinance was shelved earlier this year when staff planners at the California Coastal Commission objected to it. They had reasoned that restricting the number of vacation rentals would be equivalent to limiting the public's ability to enjoy the beaches.

At the time, city officials did not want to be turned down by the Coastal Commission, so they withdrew their application for approval of the proposed ban. It would have exempted bed-and-breakfast operations and vacation-rental owners who could prove they had already leased their homes.

This kind of news is always distubing for those of us who are in the vacation rentals industry. As responsible property owners , we have a responsibilty to make sure that our renters do not become a problem for the neighborhood in which our property is located. If we don't, the Encinitas situation is a good example what can happen.

Posted by VRO at 01:31 AM | Permalink

According to an article in the Honolulu Star Bulletin, seventeen percent of adults polled by the Gallup Organization from May 22 to 24 said that if money were no object, Hawaii would be their dream destination. Moreover, no other destination is even close. Europe (11 percent) Australia (6 percent), Italy (5 percent) and Alaska (4 percent) rounded out the top five destinations -- although none of them came close to Hawaii's lead.

The poll, which surveyed more than 1,000 households, used an open-ended format allowing those surveyed to name any place their heart desired. The margin of error was plus or minus 3 percentage points.

Although bookings for the summer season have been strong, the article points out that there is a wide array of specials being offered by hotels to keep the travelers coming.. Since there is no question that there is still plenty of demand for Hawaii as a destination, offering specials could be a way for properties to help guests adjust to Hawaii's increasing room rates or entice them to book earlier.

A decline in available hotel inventory and air seats has had a tremendous impact on the Hawaii market, accoding to Chris Kam, director of market trends for the Hawaii Visitors and Convention Bureau.

The stock of available hotel rooms has declined because of condo conversions and there is a substantial decline in budget lodging. However, a perusal of the listings for vacation rentals in VacationRental.org and other directories suggests that there are a number of luxury vacation rentals in Hawaii that remain available

Posted by VRO at 01:21 AM | Permalink

Despite higher gas prices, people are still visiting Utah, according to an article in the Daily Herald. According to AAA of Utah, the average price of a gallon of gas in Utah is $2.91, and the national average is $2.88 a gallon. Last June a gallon of gas cost $2.11, according to the Energy Information Administration.

The good news is that a survey of Utah hotels, campgrounds and RV retailers across the state by the Deseret Morning News found little if any decrease in traveler spending. Moreover, the Utah Office of Tourism reports that visits to the state's national parks were up 2.3 percent and visits at state parks were up 22.3 percent in April.

Another item of interest for vacation rental owners is the Daily Herald’s report that the American vacation has been changing for the past 20 or 30 years. Now travelers go on long weekend getaways rather than the one- to two-week family vacations. Cathy Keefe, spokeswoman for the Travel Industry Association is quoted as saying that the average vacation is now four days.

This encouraging report of the travel industry in Utah is consistent with what we are hearing from other desirable vacation destinations. There are plenty of luxury vacation rentals in Utah, and some of them may be found at the Utah pages of VacationRental.org.

Posted by VRO at 10:31 AM | Permalink

Oahu, renowned for white sand beaches, great nightlife and fine restaurants, has vacancies this summer. As a press release published by OPENPRESS points out, some recent bad press earlier this year encouraged visitors to go to other islands, such as Kauai, Maui and the Big Island. Traditionally, summer bookings of vacation rentals on Oahu have been closed by January due to the heavy demand. This year, there are still wonderful, beach front vacation home rentals available for the summer.

The press release goes on to report that, with the recent increases in Oahu hotel rates, a vacation home rental on Kailua Beach, right on the ocean, will usually now cost less per person than an inland hotel in Waikiki. Additional savings can be realized by utilizing the kitchen that comes with the vacation rental home. By cooking their own breakfast and lunch, visitors can splurge at one of Oahu's many fabulous restaurants for dinner and still come out ahead.

For a good selection of luxury vacation rentals, on Oahu, check our listings at VacationRental.org.

Posted by VRO at 01:45 AM | Permalink

Yes gas prices have gone up, but here is the reality, according to a report by USA TODAY “Even with gas prices around $3 a gallon, vacationing by car is still far, far less expensive than by air for the typical family — even for long, cross-country trips in low-mileage vehicles that will burn dozens of gallons.

In an article by Gene Sloan, USA TODAY compared the cost for a family of four to drive or fly between major cities and dozens of top U.S. destinations this summer and found that in just about every case, it's still far cheaper to drive.

The article concludes that, “Despite all the hubbub about rising gas prices, fuel remains one of the smaller line items in the typical vacation budget, behind lodging and meals.� The Travel Industry Association projected last month that rising gas prices would add $30 to $50 in cost to the typical trip this summer. That's about 3% to 5% of the average trip budget of $1,033.

This is good news for vacation rentals, because most travelers who use them travel by car. In fact most vacationers of all kinds travel by car, according to The Travel Industry Association who forecasts that Americans will log a record 325.6 million trips this summer, up nearly 1% from 2005. And a heavy-as-ever 88% will be by car

Posted by VRO at 11:40 AM | Permalink

Rentals are a way to cut city vacation costs, according to a Chicago Tribune article by Ed Perkins., who says, “If you think that a "vacation rental" means a condo on Maui, a cottage in Wisconsin, a "villa" in the Caribbean or a farmhouse in Tuscany, think again. A short-term apartment rental can be a very attractive alternative to a hotel when you want to stay in the center of a big city.�

Perkins points out some advantages that rentals have over conventional hotels, which include extra space and comfort, lower per-person cost, and lower meal costs.

This has been a favorite theme of VacationRentals.org for some time. With big city hotels pushing up their rates to exorbitant levels, vacation rentals have become the choice of not only vacation travelers but businessmen and others who find it necessary to a spend a week in the city.

In addition to the benefits pointed out in the Chicago Tribune article there are others. You can get a better feel of the city you are visiting in a luxury vacation rental than in a fancy hotel. The most enjoyable trip we ever had to San Francisco was a trip many years ago during a national political convention. Because the convention had all the rooms in the major hotels locked up, we rented an apartment in the Fisherman’s Wharf area. We got to know the area in a way that would not have been possible in one of the fancy hotels and enjoyed our stay more than any trip we have ever had to San Francisco.

Posted by VRO at 01:40 AM | Permalink

The latest weekly lodging report by Smith Travel Research shows continued strong increases in average daily rates for rooms (ADR) and in revenue per available room (RevPAR). For the week ending June 3, 2006, ADR was up 6.3% from the same week a year ago and RevPAR was up 6.8%. Occupancy rates were up only slightly, an increase of 0.5%.

These strong numbers bode well for the lodging industry in general, and vacation rentals specifically. Our experience and reports from others indicate that vacation rental occupancy is stronger than that of hotels as the summer season begins. The occupancy rate for hotels was only 61.3% for this week, while our own rentals and other luxury rentals in desirable destinations were almost completely booked. This has not always been the case. In some years the first week or two in June were slow to book up. Early indications are that this summer vacation season should be one of the most successful ever for the vacation rental business

If your own experience is not consistent with ours, you should carefully evaluate the advice we provide in our Vacation Rentals Newsletter

Posted by VRO at 09:07 PM | Permalink

The Associated Press reports that Steve Case, who co-founded America Online, has purchased a company that is growing rapidly by offering a menu of luxury-vacation options as part of a club that requires members to pay $200,000 or more to access its $750 million portfolio of vacation properties throughout North America, the Caribbean and Europe.

The article explains that this is how the company, called Exclusive Resorts, operates. Members pay a one-time upfront fee ranging from $195,000 to $395,000, which gets them between 15 and 45 days at any of the club's destinations, including the Virgin Islands, Costa Rica, Lake Tahoe, the French Alps and Tuscany. They also pay annual dues ranging from $9,500 to $25,000. When a member leaves the club, he gets back 80 percent of his membership fee.

For vacation rental owners, one of the most interesting things is what gave Case the idea of his new venture. The Associated Press reports, “Case said his own experiences convinced him of the market for such a product. He recalled renting a vacation home in Hawaii for his family. He was chagrined to find out on arrival that the bedrooms for the children were essentially isolated from the rest of the house and required people to go outside and down a flight of steps.�

This kind of experience was also one of the motivating factors for the establishment of VacationRental.org (VRO). Our own experience with vacation rentals that did not live up to expectations and our experience in building a successful vacation rental business that tries to exceed expectations led us to found VRO. We felt a need to try to establish industry standards and encourage advertising that provides a full and accurate description of vacation rental properties. Thus VRO only accepts listings from owners who pledge to meet our standards of quality. Our newsletters and blog constantly urge VRO members to exceed those standards and make their properties unique.

We don’t believe that people should have to be millionaires in order to be assured of good luxury vacation rental choices

Posted by VRO at 01:25 AM | Permalink

An article in South Florida Sun-Sentinel reports that the typical U.S. hotel should see profits rise 14.9 percent this year, according to a new market study. The article by Tom Stieghorst quotes PKF Consulting of Atlanta as forecasting continued growth in per-room revenue this year, with rates in the top 52 markets rising an average of 4.7 percent and average occupancy rising 1.5 percent.

Thomas E. Callahan head of the PKF San Francisco office says, “Full-service hotels with restaurants, meeting facilities and amenities are most in demand because barriers to build them are high. That translates into higher profits over longer periods. Well-branded, full-service hotels in good condition located in major metropolitan or resort locations get the undivided attention of investors.�

This forecast also bodes well for the well maintained and luxurious vacation rentals which are in prime locations near good restaurants. As the luxury hotels continue to push up their prices and still enjoy high occupancy the need for less expensive alternatives increases. That is what VacationRental.org is all about. By consistently meeting the higher standards we advocate, vacation rental owners can enjoy the increasing profits that luxury hotels are enjoying

Posted by VRO at 01:40 AM | Permalink