Vacation Rental Market Growing
Carrie Hill | 30 October 2008 | 34 Comments »
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I read about a new PhoCusWright study today over at HotelMarketing.com that outlines a dramatic growth in the vacation rental market.
The study, “Vacation Rental Marketplace: Poised for Change” (purchased report) reveals that the current 2.8 billion in online booking of vacation rentals is 12% of overall vacation rental revenue - and is expected to grow by 17% by 2010.
As someone who prefers vacation rentals, the amenities to cost benefits are astounding and it’s apparent more of the market is catching on. I love having a kitchen and a washer and dryer when we’re on vacation. I have kids - both are messy and picky - so when I can make them breakfast or lunch they’ll eat - and keep them in clean clothes without packing two weeks worth - it’s completely worth not having an elevator or on-site restaurant.
“12% of vacation rentals were booked online in 2007 compared to over half of all leisure travel that was booked online, so there’s a tremendous long-term upside to this market, many consumers are frustrated by the difficulty of finding the right property, overcoming issues like a minimum required length of stay, and booking through a company they can trust. Companies that can help consumers overcome these issues will be best positioned to capture this opportunity”
Douglas Quinby, Senior Director, Research, PhoCusWright
Play up the benefits of a vacation rental over a plain hotel room in your marketing efforts:
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Emphasize per-night pricing even if you have a minimum stay
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Consider making your minimum stays as short as possible. The article indicates that 60 percent of vacation-rental stays are for fewer than seven nights!
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Play up the convenience of the kitchen and the laundry
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Multiple bathrooms are a huge deal when you’re traveling with teens

Offering great deals with vacation rental benefits can help bring more converts to the industry. People dont perceive a “deal” as getting something cheaper, they want VALUE for their dollar. So beyond offering all of the great amenities of a vacation rental - add something small but beneficial onto their stay.
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Gas cards for those driving to your destination - many people are choosing to vacation closer to home with the current economy - and a kickback on the gas it takes to get there is always welcome
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Grocery store gift cards are neat for getting the fridge stocked with staples and goodies for their stay
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A comprehensive in-unit list of restaurants, activities & attractins in the area. I stayed in a condo in Orlando and they had some Disney brochures right in the room for us when we checked-in. We were able to plan the next day that evening without having to go find info on how to get there, when they opened or what to bring.
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Stock some staples in the units if they’re used enough. I would love to check in and see coffee, filters, laundry detergent, fabric softener, dish detergent and soaps in the unit so I dont have to get that first thing after I walk in the door - or remember to do it after a long day of sight-seeing the next day
Let folks find the same information they’re looking for when booking a hotel. Reviews are key to this step.
The online vacation rental market is growing - there is room for expansion on almost every level. Making sure you’re playing the game and growing your competitive market share should be your primary objective right now. Blizzard is poised to help you wether the economic storm and come out on the other site ahead of the competitor that cuts marketing. Give us a call if you’re ready to take the next step!
Sunset image courtesy Eldar_









questions keep coming up. We’ve written many articles on the subject and you can expect many more. But I wanted to address the top 5 questions I receive.

