Slightly Lower Occupancy Rates in US Lodging Industry for 2007 Should Not Hurt the Best Luxury Vacation Rentals
Feb. 11, 2007. The latest weekly report of Smith Travel Research indicates the continuation of a trend we have witnessed in the last months of 2006 and the beginning of 2007—occupancy rates that are below those of the previous year. For the week ending Feb. 3, occupancy was down 2.3%.
We attribute this decline to two factors – 1) the large increase in room rates last year and 2) the continuing efforts by the business sector to cut cost by finding ways to do more business electronically and cut travel costs. As we commented in a previous blog, the growth in future travel is expected to come in vacation travel rather than business travel.
Our view is that luxury vacation rentals in desirable locations that are reasonably priced should continue to see an increase in business in 2007. However, the market may become more competitive in some locations. For more information on how to compete consult our Top Ten Proven Tips to Keep Your Luxury Vacation Rental on Top in 2007--An Owner’s Manual for the Operation of Luxury Vacation
