Cost cutting vacationers flock to home rental sites

Vacation rentals are hot. So hot that the $25 billion industry is competing with hotels for the first time, according to a PhoCusWright survey. Inventory is up, prices are down and it’s easier than ever to book a home or condominium for your next holiday.

Why now? A number of factors. The economic boom of the 1990s saw developers eager to build on virtually any piece of usable land at ski areas, beach resorts and across Europe. Boomers could buy in cheap, fulfilling the American dream of owning that second home. You know what happened next. The economy tanked, causing a convergence of two forces: travelers mindful of the bottom line, and people who use their vacation homes for 30 days at most, or can’t sell out, but still have 365 days of “ownership” (translation: stuck with paying taxes, maintenance, assessments, etc.).

How to get them together? Until recently, reserving a vacation property meant calling a resort’s 800-number and, like a suitor negotiating with a matchmaker, trying to find a decent mate. Now it’s like Internet dating, as you scroll through photos, videos, reviews and comments to screen any number of potential matches — age, style, attributes and if they prefer the champagne-and-caviar crowd or beer-and-nachos type — and fall in love on your own.

Owners win, too. Websites such as HomeAway or FlipKey (essentially online classifieds sites that introduce owner to renter and let them take it from there) means they can avoid giving a substantial cut to a property manager and instead pay a flat fee to list a unit, then pocket the entire rental fee.

So if vacation rentals are a win-win, why isn’t everyone diving into the rental pool? Vacationers fear scams, high-pressure sales pitches upon arrival or outdated, ill-kept accommodations with shag carpet and avocado-color appliances. But we’re here to tell you to take a second look.

Here’s why. More space for less. “On a nightly basis, vacation rentals deliver exceptional value, especially if you travel with friends or a group,” says Brian Sharples, CEO of HomeAway. “The space you get relative to the price you pay is tremendous."

Source: Dallas Morning News