When a reporter asked Jesse James “Why do you rob banks?” his answer in all its simplistic elegance was “Because that is where the money is.” When we at The Society have been asked “Why did The Society create The Global Bundle?”…

Our answer is more complex based on years of demographic research, statistical analysis, data mining, unique visitor data, response rates and cost-effectiveness for our clients participating in The Global Bundle. OK, the simplistic:

“Because this is where the pre-qualified eyeballs are looking and booking.”

We know our vacation home owners and property/estate managers are successful entrepreneurs and marketers in search of cost-effective marketing opportunities to promote their vacation rentals to a pre-qualified and pre-screened clientele.

While The Global Bundle may seem intimidating at first; we have heard the comments i.e.

• So many portals, is it truly effective?
• Do I have to load data to each portal?
• How can I keep track?

The reality is, we at The Society have made the process as simple as possible allowing our clients to 1) attract qualified eyeballs to their inventory 2) track inquiries and portals used and 3) load data once and let our IT technicians handle the rest.

While The Global Bundle has been designed and facilitated for marketing to an highly educated and affluent clientele including storied names such as The Robb Report, WSJ Online, The DuPont Registry, Luxury Real Estate and others, we have designed the Bundle to cross-market to multiple demographic groups thus enhancing booking opportunities.

One client in particular had an interesting situation. He owns a vacation rental in a community where seasonal rentals are the norm i.e. summer. For a seasonal rental, this owner received multiple inquiries from The DuPont Registry, known for its affluent readership coupled with a younger demographic i.e. average age of 37.

Yet, in the off-season the home generated minimal interest. We suggested pitching the home on the weekly rental market i.e. Sat. to Sat. via Craigslist markets within a 3-hour drive distance. Our hunch was correct as “aspirationals” who may not have the disposable income for a seasonal rental could afford an “off-season” week and live the lifestyle once only envied. In addition, one “weekly” rental client is considering a “seasonal rental” as relayed by the client “I was able to try the house for a week; I enjoyed the home, the location and the on-site amenities. I plan to book the home for the 2010 summer”.

There are many options concerning classified ads, the following is a brief overview:

Online Classifieds i.e. Craigslist: The online world has opened up many opportunities, We believe The Global Bundle with HomeAway and 5 Craigslist markets will get you the most exposure for the least amount of money.

“Guys, thank you for your Craigslist posting. I followed your advice concerning my home in Vail and placed ads in New York, Chicago, Miami, San Francisco and Denver. All those markets have non-stop air service into Eagle and my e-mail has been buzzing with requests. Thank you again.”

Newspaper: Consider ads in your local newspaper (assuming the destination is within “drive-time” and/or in the community where the vacation rental is located (potential vacationers may review the classifieds on-line or will review while vacationing for their next trip)

Magazines: Specialty magazines are excellent opportunity to target an audience. Ski and Skiing magazines are favorites among those with vacation rentals in “snow country”. Be forewarned, for major resort areas, the many ads lead to “clutter on the page”. Spend a few dollars on enhanced borders, highlights, bold and so forth.

Personal E-Mail Advertising: As a witty message to your e-mail signature block about your vacation hoe including a picture and a link. For example: If I am e-mailing, I am not on the slopes of Aspen, thus my vacation home is available for rental, check it out at:_____________________

As vacation home rental managers, we all face a unique set of challenges on a daily basis from the individuality of our inventory to competition from VRBOs to the unprecedented increase in supply and decrease in demand concerning vacation home rentals.

TheSociety.com is proud to be affiliated with VRMA which represents over 600 property management and associate members in the United States, Canada, Mexico, and the Caribbean, representing approximately 150,000 vacation rental homes, condos and villas. VRMA members represent the leading vacation rental management firms in North America.

The 25th Annual Conference is scheduled for later this month in Washington D.C. The annual meeting is one of the most important and educational opportunities you can partake as a property/estate vacation rental manager.

Of particular interest this year are the following seminars most appropriate for today’s challenging marketplace:

• Emerging Lifestyle and Travel Trends: Implications for Marketing Vacation Home Rentals in the Year Ahead.
• Industry Trends for Executives
• Yield/Revenue Management; Enter the Mainstream of Travel
• E-Mail Marketing; From Lead Capture to Conversion
• How to Maximize the Impact and Attractiveness of your Property Listing

The above are just a sampling of the many programs and seminars available to participants.

To Register:

http://www.vrma.com/resource/resmgr/Annual_Conference/WashingtonVRMRegForm3LateReg.pdf

If you are not a member of VRMA, please consider joining by contacting:

Rick Fisher
Membership & Strategic Development
1-800-557-0135 or (203) 461-9176
Rick.Fisher@DiscoverVacationHomes.com

The following will be on-going series concerning insights if and when you desire to rent your vacation home. Some vacation homeowners rent just during high-season, others consider their vacation residence an investment which should yield capital when possible. No matter your motivation, the following tips will be most beneficial:

The written agreement or rental agreement is literally a contract between you and the renter. The document can be as short as one paragraph (usually address of home, dates of occupancy and rate) or as long as multiple pages of legalese. We usually suggest a “happy-medium”.

The written agreement is truly a symbiotic document benefiting and protecting both parties. Once you have an acceptable version, you may wish to use it as “boiler-plate” for future renters (leaving room for additions/revisions on a case-by-case basis). Consider the document a confirmation which should include the following information, compliments of VRBO:

1. Work out the terms of the rental verbally with the renter until you come to an agreement that is acceptable to both parties.
2. Fax the renter the written agreement, including everything you discussed.
3. Tell the renter that they have seven days to send you the signed agreement and the deposit for the rental.
4. Hold the renter’s dates for a seven-day period (or period of your choosing) after you have faxed the agreement to the renter. The rental is not yet confirmed, but you will not make any other lease agreement for that time frame during the seven-day “HOLD” period. If another renter is interested in those dates during the seven-day period, let the renter know that you have a hold for a potential renter for those dates, but you will contact them on [a specific date] if your property is available.
5. If you receive a signed agreement and funds, the reservation is confirmed and subject to the cancellation policy spelled out in the agreement. If you do not receive the agreement in the seven-day period, you can take other rentals.

If you accept credit card payments, you can do everything electronically and virtually eliminate the “HOLD” period. (Credit card payments will be reviewed in the future)

1. Fax or email the agreement to the renter.
2. Take the renter’s credit card information for the deposit
3. Have the renter fax the signed agreement back to you AND mail you the hard copy.

Whether you are working with The Society, consulting an owner listing on VRBO or answering an advertisement on Craigslist, here are a few tips post-reservation to make your vacation home rental experience worry-free:

Estimated Time of Arrival: Be sure to advise your host i.e. owner, manager, managing agent the approximate time of your arrival. Your host will be most appreciative knowing what time to turn over the home. Even if you may be arriving early morning (not uncommon in Europe from North America), request an early check-in if available. Many estate agents will allow an early check-in gratis versus many hotels which will require the prior evening be booked. Same with late arrival as prior notification will allow the agent to have lights on when you arrive and as many of our managing agents have been known to provide, a welcoming meal service from a local chef.

Estimated Time of Departure: Yes, it’s not something you wish to think about. A client in the Hamptons mentioned a 5:00PM airline departure from the NYC area and based on Mapquest, advised the managing agent they would leave the residence at 1:30PM for the 2-hour drive and be at the airport with 1.5 hours to spare. The managing agent correctly advised they should depart at Noon due to the heavy westbound traffic from Eastern Long Island to New York City. The managing agent’s advice saved the family from 1) missing their flight, 2) being stranded overnight in Queens, New York and 3) provided sanity and the option for the family to stop en-route for an excellent “clam-roll” on the Montauk Highway.

Special Needs: We recently worked with a client who mentioned they were traveling with a family member with special needs and they were concerned about the open access to the pool area with the home they had chosen. We were able to discuss the issue with the estate manager who suggested a similar home with a pool which was gated and could be secured to prevent unsupervised access. The client was thrilled and we were glad we were able to facilitate the client and their vacation needs.

Note: Not every vacation home is correct for every client. While property/estate managers should be asking questions, many do not. We suggest, as clients and travel agents, that you take the initiative and open the discussion; it is your vacation, make it the most enjoyable it can be.

In a recent Wall Street Journal article, buyers of condo-hotel properties are heading to court across the country arguing that developers who sold such units violated securities laws. Of interest, the court filings began as the real estate bubble started to deflate. For many buyers, condo-hotels seemed like a great idea. Hotel developers could offset construction costs by selling rooms to individuals then share the rental income with the owners every time a room was booked. However, instead of the lucrative venture some buyers claim they were promised by developers, condo-hotels have turned out to be one of the worst investments in decades. What is an owner to do?

Each condo-hotel development is unique and one must review their condominium by-laws, specifically concerning rental and management programs. Some may prohibit an owner from soliciting rentals on their own i.e. all rental and management must go through the managing agent to more liberal policies allowing owners to procure renters and just pay cleaning charges.

The following are a few options to consider if 1) you own a condo-hotel unit and 2) are looking for opportunities to increase rental activity and income generation.

• VRBO: Vacation Rental By Owner is one of the largest sites for owners and managers looking to rent their vacation or similar properties. We would suggest as much detail as possible including location, amenities, rate, pictures and always negotiable (see below for description and text).
• Craigslist: This free on-line bulletin board is an excellent option to capture local/regional traffic as well as national/international viewers. Best to mention condo building identity and address in headline to capture a click-through.
• Global Bundle: For deluxe and luxury vacation properties, The Global Bundle is an excellent option to harness the power of the internet while target marketing to the affluent traveler. Offering placements on WSJ.com, LuxuryRealEstate.com, The Robb Report, HomeAway and other sites. The Global Bundle can be tailored to match prospective travelers with your vacation residence. Costs associated with marketing may be tax-deductible, please consult with your tax advisor.
• Local Tourism Bureau or Reservations Service: Many major tourism destinations will have a “central reservations” office or similar associated with their Chamber of Commerce or Tourism Bureau. Contact directly to see if your vacation rental can be posted on their site(s).

All seasoned hospitality and travel professionals know, a vacation is an emotional decision. While one may argue cut-rate room pricing may influence one’s choices concerning lodging, it rarely sway’s the decision process concerning choice of destination of genre of vacation i.e. beach, ski, sun, culture and so forth. Yet, realistically we as property/estate managers and vacation homeowners are now battling for the vacationer’s attention against hotels and resorts which have drastically cut rates which will be in effect for the foreseeable future.

The following is from a VRBO listing on Hilton Head:

“Living room, dining room, eat-in kitchen, 3 bedrooms, 3.5 bathrooms, screened in patio, pool, hot tub, grill water-view, 2,750 SF, wi-fi and satellite television”.

The above description does provide the facts and during the era of limited word-counts to save on print advertising it makes perfect sense. However, the Internet is not limited by word counts. Especially for deluxe and luxury offerings, copy is quite important. Consider the above description re-written by the staff of The Society.

“Located on a charming water-view lot, this expansive Hilton Head beach home of 2,750 SF/ 255 M² retains the charm of a past era of serenity yet offering its guests all modern conveniences. Guests enter the home and are immediately drawn to the living room with its floor to ceiling windows framing an unobstructed view of the majestic Atlantic Ocean beyond. The adjacent dining room seats 8 in comfort, however from our guests comments, most meals will probably be taken al-fresco on the screened-in patio while cooking on the built-in gas grill. After dinner, enjoy a soak in the 6-person hot tub while star-gazing the same skies as did the colonists on ships from England.

Upstairs, three (3) guest suites, all with en-suite bathrooms are designed with dual exposures to allow the evening cross-currents off the ocean to naturally cool the rooms. The wireless high-speed internet provides computer access in all rooms. Satellite television is available in all bedrooms as well as a large plasma screen in the living room for those movie nights after a day playing on the beach. “

For many Hilton Head is a destination for multi-generational families and groups of friends to come together and relax, unwind and enjoy each other’s company. The luxury of a day on the beach can only be rivaled by evenings within this wonderful beach home.

Big news in the vacation rental industry. Yesterday Home Away announced another large round of financing. They raised an additional $250M. Techcrunch released a blog entitled “Monster Round For HomeAway: $250 Million, At An Absurd Valuation“. Below is the post, please click through to read the comments.

Austin, Texas based HomeAway, a vacation home rental service, has raised a $250 million round of financing. This comes on top of $209 million previously raised over two rounds.

The new financing was led by Technology Crossover Ventures, with existing investors IVP and Redpoint Ventures participating as well. The financing is the largest minority investment of a U.S. Internet company in the last eight years, according to Venture Source.

The pre-money valuation was around $1.15 billion, say a couple of sources, and at least $50 million of the round went off the table to earlier investors. The company was founded in 2005 and has grown primarily through acquisitions: They’ve acquired at least eleven vacation home rental sites, including VRBO, VacationRentals.com, Abritel.fr and OwnersDirect.co.uk.

The company has revenues of around $150 million and $50 million in ebitda. In addition to cashing out some of the investors, our guess is that the additional funding will likely be used for further acquisitions.

It’s also clear that the round was seriously overvalued. Ebay was rumored to have mulled over an acquisition earlier this year at $1.5 billion, but it never came through with a firm offer. It’s not clear who else could be a buyer at this valuation. Also, since HomeAway has acquired just about everyone in the market, there’s little room for
additional growth via acquisitions. 20x ebitda is a public company valuation for a company with real growth potential. Our guess is these new investors may take a bath.

What does this mean to the industry? Time will tell but my guess is they have a few things in mind:

1. Online booking tool/service for RBOs (Rent by owners). Either they will build it (or it’s built) or they will buy someone that is doing it well.

2. Make a bigger push into the property management segment of the industry.

3. Rollout premium services for existing clients, one of which might include an advertising engine for RBOs that currently just post their property profiles.