Caribbean Hotel Profits Rise, Creating Opportunies for Vacation Rentals
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.
