Rental Signs

Economic Trends and Vacation Rentals

Will gas prices have a negative effect on tourism this summer? This is the question that has been on everyone’s mind since prices at the pump have been escalating every month. Many hotels and vacation rental managers have helped allay consumer fears by offering $50 or higher gas credits for choosing to book at their property. Others have offered various specials and last-minute discounting policies. Perhaps the real question that the market-savvy homeowner should be asking is, “Are my rental rates too high or just right for this economy?”

Annually your vacation rental manager analyzes rates in our local and statewide market and then suggests weekly and nightly rates to the homeowner. Many factors go into choosing rates, including the number of bedrooms and bathrooms, how well maintained is the rental home, age and style of the furnishings, which amenities are offered, and last but never least, location in relation to the oceanfront or soundfront. Even with this detailed analysis, your vacation rental manager has also had to predict over nine months ago how the state of our economy will be as it correlates to a healthy tourism industry.

Now that we are at the mid-June point in our summer season, if you still have unbooked weeks in July, August or September, do not delay in communicating your willingness to offer special discounts in order to help that last minute vacation bargain shopper make up his or her mind. You really have to ask yourself, do you want to give up 100% of revenue because you stubbornly did not want to receive 80% or 90%?

With many other factors being almost equal, such as number of bedrooms, location and amenities, the bargain vacation shopper will make their decision based solely on price almost every time. We are all nostalgic for the days when rental guests planned and booked their vacations in January or even earlier. We are grateful for the guests that still do! Today it is common for rental guests to book at the last minute after prowling through several online booking Web sites for the very best deal.

What is most important after price is value in relation to the price paid. Americans love the idea of a weeklong stay at a sunny beach with their favorite family and friends, but it has to fit their budget. Listen to your vacation rental manager’s suggestions because they know a happy rental guest will return year after year. Now might be the time to add wireless Internet access, additional porch furniture, or an extra TV or DVD player, all of which are important to today’s vacation family.  If you hear from your housekeeper you need to clean the carpet or get new bed pillows, cheerfully give her the green light to take care of this for you.

What today’s rental guests are really telling us can be summed up in that good old fashioned saying that was a favorite of my Aunt Mildred’s, “I do believe they have champagne tastes on a beer pocketbook.” But that’s no different from you or I … we all want the very best life has to offer, at the very best price we can find.

Julia Batten Wax

Broker/Owner Emerald Isle Realty

Read more articles in the May print edition of Island Review.

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