Vacation Rentals Blog

Oct. 31, 2006. According to the New York Times there is a boom in building opulent new properties in the Caribbean.

The article by Cindy Price reports, "If you’re in the mood to mix, the big resorts are expanding with multimillion-dollar renovations. Need something in between? The Caribbean islands have been courting classic hotel brands like Marriott, Westin and Radisson. And wherever you aim to drop your bags this winter, the airlines are making it easier to get there."

While describing the opulent and expensive new resorts being built in places like Chub Cay and the Turks and Caicos and the renovations being made at other better know islands, the article does not mention the best value for vacationing in the Caribbean—vacation rentals. There is a vacation rental to fit most any budget, from a one-bedroom condo on the oceanfront to luxurious estates overlooking a picturesque harbor. Many of these can be found on VacationRental.org.

Posted by VRO at 09:23 PM | Permalink

Oct. 29, 2006. With this year’s leaf season winding down, it is not too early to starting planning a trip for next year’s peak season. In our own vacation rental resort in the mountains of Western North Carolina, October is our busiest month, with many guests booking ahead for the next season before they check out. In fact, one group of friends has reserved a cabin for the same week for the next ten years!

As an article in The Free Lance-Star attests, the same is true in the Shenandoah National Park. The article goes on to suggest that travelers should try to go during the week, when the roads leading to the Park are relatively crowd-free. The article recommends two motel-like accommodations on Skyline Drive, the scenic road through the Park. We agree with the recommendation about trying to schedule a visit during the week.

However, we have a better recommendation for a place to stay. There are many luxury vacation rentals that will make your visit more enjoyable than staying in a motel, and many of them may be found on the VacationRental.org web site.

Posted by VacationRental.org at 08:35 PM | Permalink

Oct. 25, 2006. Hotel occupancy was down 1.3% in September compared with the same month last year, according to Smith Travel Research. For the last three months, occupancy was down 0.7% over the same period last year. However hotel revenues remained higher by 6 % for the last three months of this year than in 2005, because of higher room rates.

It appears that hotels have raised their room rates to a level that has impacted occupancy. Earlier this year, occupancy showed growth over the previous year, but the traveling public seems to be balking at the rates charged in major cities and the pricier resort destinations. For the US as a whole the average room rate climbed to $97.66 in September.

These higher rates continue to provide an opportunity for luxury vacation rental owners who are willing to provide value for moderate prices. Vacation rentals in desirable locations still provide the best value for families who need more than one room, and don’t want to pay hotel prices for meals and the other conveniences of hotels.

Our own occupancy rate continues to improve this year despite high gas prices. We try to provide many luxuries and amenities that are not in hotels without getting into the food service business. There are so many family and gourmet restaurants nearly, as well as fully equipped kitchens, that families have the opportunity to adjust their dining plans to fit any family budget.

Posted by VRO at 08:38 PM | Permalink

Oct. 24, 2006. An article in the New York Times confirms what many frequent flyers have known---airplanes have been getting dirtier as airlines have cut back on expenses and services. The article by Jeff Bailey reports, “---the modern airliner, an untidy tube hurtling through the sky full of passengers who cannot wait to land and go wash their hands with disinfectant soap. Cleanliness may be next to godliness, but in the airline industry it has taken a back seat to financial survival.�

The article also quotes Linda Hirneise who heads the travel practice at J.D. Power & Associates as saying, “There's still a long ways they have to go.� Her company surveys passengers about airline cleanliness, and this year the top-ranked carrier - JetBlue - received an 8.49 on a 10-point scale. But in Hirneise's opinion, "anything below a nine is flunking."

When you add the findings about airplane filth to the fact that you are breathing recirculated air, you have a built-in recipe to get sick, especially in the upcoming cold months when colds and flu are most virulent. That is the last thing you want to happen on your vacation. Recently, my wife had the misfortune to be seated next to a woman who was coughing and sneezing throughout the trip. What we had planned as a nice weekend after a business meeting turned out to be a weekend in bed trying to get well.

Last winter, at a time that I was flying on a trip every week, I fell victim to frequent colds and flu, and was able to break the cycle only after resorting to massive dosages of Vitamin C. This was very distressing since I am the kind of person who almost never misses a way of work because of illness. I concluded that my problem was my frequent flights. As a result, I have developed a number of tips that minimize the likelihood or airline infections.

Carry hand sanitizers and use them frequently. You can use antibacterial toweletts, but little bottle of liquids are once again permissible as long as you show them to security in a see-through baggy. Avoid contact with handrails, bathroom door handles and other such surfaces as much as possible. One of the dirtiest surfaces is the fold down tray that is used to serve your food and beverages. Either avoid contact or give the tray an antibacterial wipe down. Take a dose of your favorite remedy, such as Airborne or Emer’gen-C, before and after your trip. If it is a particularly long trip, you might add an in-flight dose.

And I almost forgot, if you happen to be seated next to someone who is sneezing and coughing, request the flight attendant to move you to a different seat, any seat.

Posted by VRO at 08:54 PM | Permalink

Oct. 23, 2006. According to an article in USA TODAY, Airfares have risen for this Thanksgiving holiday by 15%. The follows an increase of 15% for last year, 2005. The article is based on an analysis by consulting firm Sabre Airline Solutions, which also suggests that this year’s travel season will be a busy one. This means that luxury vacation rentals should do very well during the holiday season as more travelers opt to drive.

The analysis suggests that higher fares aren't deterring travelers. Sabre says that early bookings are 42% ahead of last year. However, I suspect that these higher rates will prompt many holiday travelers to opt to drive to their destinations, just as we did. My family decided to drive on a destination we usually fly to, after finding that our airline had increased rates by at least a third during the holiday period---much greater that the increase cited in the Sabre analysis.

Since most guests of vacation rentals drive rather than fly, this Thanksgiving season should mean full occupancy for well managed luxury vacation rentals.

Posted by VRO at 04:12 PM | Permalink

Oct. 18, 2006. Hotel rates are expected to rise 6.5% next year despite a slowdown in the economy, according to the travel industry's main trade group, as reported in the South Florida Sun Sentinel.

Dr. Suzanne Cook, vice president for research at the Travel Industry Association of America, says that hotels will continue to raise rates aggressively, as demand for rooms exceeds supply.

Cook said that nationwide tourism expenditures are expected to grow 7.5 percent this year to $702.5 billion before moderating next year to 5.3 percent, reaching $739.6 billion. Those figures are not adjusted to account for inflation. She added that, "Over the next few years we expect growth in spending to slow, but still to have positive growth in spending."

Cook indicated that she expects no growth in the number of business trips this year and only 1 to 2 percent growth next year. However, she had a more optimistic view of the outlook for leisure travel, projecting growth of 2 percent this year and 1 to 2 percent next year.

Ms. Cook’s forecasts are favorable to luxury vacation rentals on two counts. First, the continuing move of hotels to hike their rates up will encourage more people to consider luxury vacation rentals as an alternative. Second, the fact that leisure travel is likely to grow more than business travel favors vacation rentals

Posted by VRO at 06:28 PM | Permalink

Oct. 16, 2006. The latest report from Smith Travel Research indicates that occupancy rates for the U. S. Lodging industry continue to be lower than for the same period a year ago.

The recent decline in gasoline prices has not increased occupancy, just as the higher prices this summer did not seem to have hurt occupancy, as many had expected. Total revenue is still higher that that of a year ago because of higher room rates, but these lower occupancy rates are signaling that hotels will have to moderate their rates or potentially lose business during the coming year. Luxury vacation rentals who have not hiked their rates too high this year should do fine in the coming year.

Posted by VRO at 08:25 PM | Permalink

Oct. 15, 2006. During the past week we have been away on a business and vacation trip and stayed in the Hyatt Regency Hill Country Resort in San Antonio, Texas. We always try to learn something of value to vacation rentals during our travels.

The Hyatt Regency Hill Country Resort was certainly nice enough, though not as luxurious as some hotels we have visited. What really made the hotel stand out was the friendliest and most helpful and courteous staff I ever experienced. Everyone we dealt with, from the concierge to the cleaning staff, went out of their way to make us feel welcome. For example the waitress at our favorite hotel restaurant soon knew us by name and carried on a lively conversation with us at each meal. The entire staff was both genuinely warm and friendly, and anxious to help make our stay more enjoyable in any way they could.

At our own vacation rental development, we are very friendly and helpful to our guests. However, at recent stay at San Antonio left us with an even greater appreciation of the importance of making our guests feel welcome.

Posted by VRO at 09:07 PM | Permalink

Oct. 7, 2007. Prices of gasoline have already fallen to a level closer to two dollars that three dollars, as we had quoted an analyst as predicting would happen by Thanksgiving in our Aug. 31 blog.The higher prices that vacationers experienced earlier in the year never did have the impact of vacation travel that some alarmists predicted. It was as though Americans were determined not to give up their cherished summer vacations.

As we go through a period that is the off-season for most vacation rentals, the question is how much lower gasoline prices will go, and how much of an impact it will have on fall, winter, and spring tourism. In some areas, gasoline can already be purchased for two dollars or less. As reported this week by the Wall Street Journal (Subscription only), “Gasoline prices have dropped more than 20% in the past two months, providing relief to consumers and potentially propping up an economy that is showing signs of slowing. Industry experts say further price declines are likely.�

The article by Steve Levine and Christopher Conkey goes on to report that, “The retreat in energy prices cuts across the entire sector. Along with oil and gas, heating-oil-futures prices on the New York Mercantile Exchange are 17% lower than a year ago and natural-gas futures are down 58% in the past year. Crude oil has dropped 5.4% and gasoline futures have fallen 21% over that same period.�

As the article says, gasoline prices are volatile and a number of factors could put them on an upward march again. However, we agree with the industry experts who say that further declines are likely.

For the luxury vacation rental industry, this means that you should plan and market for a strong season. There will be an added incentive for couples and families to take short getaway trips in the fall season. This is the time of the year when romance packages and other packages should be promoted.

Posted by VRO at 03:17 PM | Permalink

Oct. 4, 2006. A combination of a large increase in visitors to the Caribbean from the US and lower operating costs have combined to create robust profit margins for hotels and greater opportunity for luxury vacation rentals.

An article in Hotel Interactive reports a 22.9 percent profit margin for Caribbean hotels, which is greater than in the United States. The article by Scott Smith says, “A substantial portion of this profitability can be credited to the tremendous growth in Caribbean travel. Over a three-year period, from 2003 through 2005, the number of visitors to the Caribbean has grown by a total of 19 percent. Overall, the strong United States economy has meant good fortune for Caribbean hotel managers. Hotels there have profited from strong increases in demand, which has produced substantial gains in RevPAR. The region has benefited from an increasingly competitive airline market, as well as increased airlift to and from both traditional and emerging destinations.�

While comparable statistics are not available for vacation rentals, we know of some friends who have done well by investing in vacation rentals and condos in the islands. Moreover, in the new era of Caribbean tourism, the bar has been raised for vacation rentals as well as hotels, with demands for ever higher standards of leisure and luxury. Therefore, we recommend that vacation rental owners strive to meet and exceed guest desires for luxury accommodations with all the amenities, including high speed internet access.

For a sample of the kind of luxury that is available, check out the listings of VacationRental.org in the U. S. Virgin Islands.

Posted by VRO at 02:55 PM | Permalink

Oct. 3, 2006. The rising hotel rates in New York have started keeping visitors away, leaving experts to worry whether the city's tourism boom will grind to a halt, according to an article in Crain’s New York Business. Owners of luxury vacation rentals should learn from the New York experience.

The article by Lisa Fickenscher reports, “For the first seven months of this year, hotel occupancy fell 1.2% to 83.8%, compared with the same period in 2005. At the same time, the price for a room has soared. The average cost of a hotel room in the city rose 11% to $241, according to PKF Consulting. This fall, the average room rate is approaching $300.�

These statistics conform to a national pattern of lower occupancy rates in other areas. As we have watched the weekly reports of Smith Travel Research, we have noticed a decline in occupancy rates in recent weeks. In most cases, hotels have been able to achieve higher revenues with higher rates. However, the period when visitors will accept continued higher rates may be at an end.

The Crain’s article goes on to report that much of the price resistance is occurring at budget and middle-market properties. “Hotels that appeal to price-conscious travelers -- those that charge anywhere between $125 and $175 a night -- have had the biggest room rate increase. Rates at such properties rose 15.5% during the first seven months of this year, according to PKF Consulting.�

As we saw hotel rates in New York and other prime destinations soar this year, we have often commented that eventually there would be resistance and a great opportunity for moderately-priced luxury vacation rentals. This seems to be already happening.

Posted by VRO at 03:12 PM | Permalink

Oct. 2, 2006. We always encouraged owners of luxury vacation rentals to have their own web sites. However, it is important that the website be a quality site that reflects the attributes of the property that it is advertising. In addition, it should be user-friendly and advertise the property honestly, with plenty of photos.

Indeed, many online travel companies don’t do a very good job, according to an article in Hotel Tech Resource “Online travel companies are missing out on bookings and actively encouraging users to visit rival websites, according to web usability consultancy Webcredible. A study of over 25 travel websites reveals that hidden charges, cumbersome search functions and booking forms that are hard to find are among the top mistakes made by some of the UK's biggest online travel agencies.�

The article goes on to quote Trenton Moss, director of Webcredible as saying , “'The travel sector experiences one of the highest levels of comparison shopping online, with a massive one in four visits to travel websites coming from another site in the same category. Users are unlikely to hang around for long if they can't find what they're looking for, but by making a number of easy-to-implement changes online travel companies can significantly improve the satisfaction of their website visitors, ultimately leading to increased bookings�

Posted by VRO at 11:51 AM | Permalink