As a proponent of the vacation home rental niche, I am intrigued as this segment of the leisure travel market continues to grow exponentially. I came across the following on the blog of TheSociety.com which attributes the following to PhoCusWright, a leader in the field of hospitality research:
- Since 2005, Venture capitalists have poured more than $500 million into the industry.
- The vacation rental industry was a $24 billion market the U.S. in 2008, equaling the revenues of the cruise industry that year.
- During the past two years, vacation home rentals welcomed 21.5 million guests.
- Customer satisfaction ratings are at 99% i.e. just 1% came home unhappy)
- 33%+ of vacation residence rental guests are in the $100K+ income bracket.
- Of the above, 90% take two or more vacations per year.
- Vacation home rentals benefit from the “drive-time” market
Of personal interest is the “customer satisfaction rating” which is quite high. I called a peer in the vacation home rental industry. Mike McFadden is the co-founder of The Society for Leisure Enthusiasts, a marketing entity based in Colorado with an inventory of 5,000+ vacation home rentals. His comments follow:
“For past generations vacation home rentals were viewed as a value alternative to hotels/motels and were usually rented directly by their owners via classified advertisements, word of mouth and bulletin boards in resort communities. During the last 10 years with the increase of vacation home ownership coupled with the desire for revenue generation, owners have increasingly upgraded their vacation home rentals due to increased visibility provided by the Internet and competition from neighboring vacation home owners, property management firms and transient lodging properties.”
Mike McFadden continued “At The Society we have vacation homes which rival the finest resort lodging options worldwide. Even in our own backyard of Colorado in Beaver Creek we offer on behalf of Peak Properties Vail the Former Home of President and Mrs. Gerald R. Ford, a true ski-in/out house with private indoor pool adjacent to the slopes of Beaver Creek. The home rivals the finest “Presidential Suites” throughout the Vail Valley.”
“Concerning the high level of satisfaction, while I believe vacation home rentals have generally upgraded their offerings due to increased competition, the high satisfaction ratings may come from historically low expectations concerning vacation rentals. There is a whole generation who remember the threadbare furnishings and worn bedding of years past from Orlando to the ski resorts where it was common for ski condos to have shag carpeting in need of a mower. Now, resort communities have embraced upgrading vacation rentals. In Vail, the Lodging Quality Assurance program [administered by the Vail Valley Partnership] assigns a grade of Bronze, Silver, Gold and Platinum and a score to those units it has inspected and reviewed insuring a quality standard once only associated with hotel chains. The ratings and inspections insure a quality lodging experience for the guest and an incentive to upgrade and increase the owner’s return on investment.”
Let's hope the days of SNAD {significantly not as described} are behind us.
Comments
Great info and interesting. One of the ways to avoid SNAD, at least if you are traveling to Orlando and renting a vacation home is to consult www.orlando-vacationhomerental.com. They post ratings and reviews to help one make an informed choice.
For peace of mind rent from owner sites that show more than one unit,a one unit owner often will leave you stranded if something goes wrong such as foreclosure ,the local contact will not be able to do anything as you would have paid direct ,other than put you in another home and charge you ,large sites such as vrbo only list a home theres no check or comeback if it goes wrong
trywww.disneysvacationvillarentals.com
Traveling families are beginning to discover that one, luxurious vacation rental can be significantly less expensive than several cramped hotel rooms. Also, the definition of 'amenity' has changed and now peopel are looking for real value-added features when they rent like free golf rounds, free deep sea fishing, free water park tickets and much more as a complimentary part of their stay. They are finding this at www.GetMoreVacations.com . There they can choose from over 10,000 vacation rental properties around the US that provide free activities (that you actually WANT to do) with your vacation rental stay. Vacation rentals are the way to go and sites like this one are the reason why.
Hi Joseph, I'm so glad I subscribed to your articles as I really enjoy reading them! My husband and I have owned a vacation rental booking agency for luxury homes near Disney World for the past 6 years. We proudly belong to the Central Florida Better Business Bureau and VRMA (Vacation Rental Management Association) which I believe gives our guests some piece of mind when renting a vacation property from our company. We have a perfect reputation of providing spotless, well maintained vacation homes to our guests with excellent customer service which is reflected by our perfect standing with the Central Florida BBB and VRMA. I am also a Realtor who specialized in selling these vacation homes, and I agree that a vacationer should seek information about exactly who they are renting from, such as an affiliation with the Better Business Bureau, to insure a quality experience with their vacation rental and to avoid renting a home that has gone into foreclosure.
Kindest Regards, Nancy
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