Homes Away From Home

Even with the economic recovery under way, families will be looking for value in their summer vacations this year, and that could lead them to choose a vacation rental over a standard hotel stay, according to Alex Risser, president of the Vacation Rental Managers Association (VRMA). 

Vacation home rentals are one of the fastest-growing lodging options for families. // © 2010 Seabrook Cottage Rentals (Seabrook, WA)

“Even during these tough economic times, there has been a growing trend toward ‘togethering’ by families as we place more importance on making quality time for each other, reconnecting and on slowing down to enjoy fun, meaningful travel experiences together,” said Risser. “Parents and grandparents are selecting vacation rental homes to get that same sense of togethering under one roof, with more privacy and comfort, rather than the hassle of requesting multiple or adjoining rooms, as is often the case with other lodging options.”

In fact, research shows that vacation rentals are a significant trend among all travelers, with vacation rental bookings for 2010 expected to rise almost 11 percent over last year (according to a study by NAVIS Research, LLC), and rental sales are projected to double to $4.6 billion by 2010 alone (according to a 2009 study by PhoCusWright). Vacation rentals also have a very high customer-satisfaction factor, with 89 percent of vacation rental guests intending to rent again within three years and 87 percent saying they would recommend a vacation rental to friends (PhoCusWright).

“Vacation home, condo and villa rentals are becoming one of the fastest-growing hospitality categories in North America,” said Risser.

Families, in particular, appreciate the flexibility of the rentals because they can feel more like a home — they offer shared space for meals and other family activities, but also privacy for grown-ups, including grandparents. In addition, beyond giving families the ability to live like a local, rental companies often offer upgrades, coupons or other specials exclusively to guests, including free tickets, in some cases.

“Some provide concierge-type services, including grocery delivery, personal chefs, in-home massages and spa treatments, to name a few,” Risser said.

In order to make sure families are not being taken advantage of by renting from unscrupulous individuals or companies — especially when booking internationally — Risser suggests using a reputable owner or management company, such as a VRMA member.

“VRMA members are asked to subscribe to a Code of Ethics and Practices in the management and renting of vacation properties,” he said.

Risser also suggests that families and individuals look for third-party endorsements on the Web sites of rental management companies, including approval from AAA; request past guest reviews, testimonials and references; check to see if there is an accessible customer service number for 24/7 emergency needs and requests; and inquire about whether or not a security deposit is required to make a reservation, when it’s returned and when it’s due.

For travel agents, vacation rentals can be a great source of revenue. The vast majority of VRMA members, for instance, works with agents, and commissions range from 10 to 15 percent on average.

“Vacation rentals represent a great area of opportunity for travel agents, as the category remains one of America’s best-kept lodging secrets. It’s also one of the fastest-growing lodging segments,” said Risser. “What’s more, vacation rental guests are passionate about their lodging experiences, and this translates into a great potential for repeat clientele and word-of-mouth referrals to family and friends.”

Resources
A great tool for agents is DiscoverVacationHomes.com. This Web site was launched last year by the VRMA to help raise awareness of the benefits associated with renting vacation homes versus other lodging options. The site also includes resources for agents to learn more about the vacation rental category in general
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Agents can connect with vacation owners through social media as well, including Facebook (www.facebook.com/DiscoverVacationHomes) and Twitter (@GoVacationHomes).