Vacation Rentals Blog

Sept.1, 2006. A study by Price Waterhouse Coopers documenting the highest international travel increase since 1996 is good news for luxury vacation rentals. As reported in HotelMotel.com, the Price Waterhouse study shows that international travelers to the U.S increased by 6.7 percent in 2005. During 2004 and 2005 international travelers to the U.S. increased by 20.3 percent, the largest two-year increase since 1996, but below 2000 and 2001 levels.

The Study indicates that following 10 quarter-over-prior-year quarter declines beginning the first quarter of 2001, international travelers increased during the fourth quarter of 2003 and have achieved robust gains since then. A number of factors, including lingering travel concerns, a global economic slowdown and more strict visa and immigration procedures contributed to the declines in international travelers. Conversely, a number of factors such as strong global economic performance and the weakness of the dollar relative to most currencies have contributed to the rebound.

This resurgence in foreign travel is important to the travel and tourism industry, including vacation rentals. "The return of international travelers is especially important - international travelers have longer lengths of stay, pay higher room rates and spend more in other hotel departments including restaurants, business centers, retail outlets, communication, laundry and valet," adds Bjorn Hanson, Ph.D., a principal with the Hospitality & Leisure practice at PricewaterhouseCoopers LLP.

Since vacationers to European cities such as London, Paris, and Rome are more accustomed that American vacationers to renting villas and flats as an alternative to hotel lodging, the luxury vacation rental owner who is located in a desirable destination is well positioned to take advantage in this resurgence in foreign travel. The increasing reliance on the internet for travel arrangements by people of all countries makes vacation rentals much more accessible that in the past.