Coming off the summer 2009 vacation season, there were glimmers of hope on the horizon. The term “staycation”, popular amid the depths of the economic downturn during the first quarter of 2009 seemed to slowly be eradicated from the popular press. Hotels and resorts lured clients by offering $99/night rates with value-added amenities thrown in (children eat free at Ritz-Carlton). Gas prices stabilized with a national average of $2.49/gallon a 37% decrease when compared to July 2008. Better economic news was the catalyst to spur travelers to consider at minimum a short vacation within their drive-time markets. Those opting for air travel were surprised by higher air-fares (due to reduction in capacity) and an increase in over-sold flights.

The following White Paper recognizes the changing outlook concerning vacation culture.

• The acceptance of “last-minute bookings” as the new normal
• Reduced rates/REVPAR (Revenue Per Available Room Night) for the foreseeable future
• Increase in incentive/corporate travel as businesses exit the recession
• The value orientation proposition

Even during the past two quarters of economic uncertainty, the growing popularity of vacation home rentals continues. Although supply has exceeded demand at present, future growth coupled with a diversity of supply worldwide may provide a healthy balance in the marketplace.

Click here to download the PDF.

If you have any questions or would like some assistance in marketing your luxury vacation rentals please contact The Society team.