The Vacation Rental Industry
Vacation Rentals are fully furnished individually-owned investment properties (condos, villas and homes) that are rented to travelers, their friends and families in destinations of all types, including ski areas, beaches, theme parks, mountains, national parks, locales off the beaten path, and many other desired vacation experiences.
When renting from a professional management company, guests experience the benefits of a traditional hotel stay with additional amenities, services and an inherent value that remain unmatched.
There are 7.7 million 2nd homes in the United States and 7% of the households in the US own one. Vacation Rental Property Managers mange these properties under contract from the property owner to care for the unit and find rentals to generate income. Property Managers then generally receive a percentage of the rental which typically ranges from 20-40% depending on services provided and the location.
The industry is served by the Vacation Rental Managers Association (www.vrma.com) which provides the following stats. SkyRun is a member of VRMA so that locations have full access to the membership and privileges.
- 22% of leisure travelers have stayed in a vacation home rental as an alternative to a traditional hotel or resort during the past two years, and 24% have stayed in a condominium resort. This is an increase in the incidence of vacation rental travel compared to 2010, which reported 20% and 22%, respectively. Similar studies with differing methodologies also point to growth growth - For example, the Ypartnership / Yankelovich, Inc. 2009 National Leisure Travel MONITOR (SM) reported that 14% of leisure travelers had stayed in a vacation home or condominium that they owned or rented during the previous 12 months, which was up from 11% in 2008. (Ypartnership/Harrison Group 2011 Portrait of American TravelersSM)
- 49% of leisure travelers are interested in staying in a vacation home rental as an alternative to a traditional hotel or resort during the next two years, and 50% are interested in staying at a condominium resort. This shows a statistically significant difference from 2010, which reported interest from 44% and 46%, respectively. (Ypartnership/Harrison Group 2011 Portrait of American Travelers)
- Fully one out of four (24%) family travelers has stayed in a vacation home or condominium rental as an alternative to conventional hotel/resort lodging on a vacation last year. (Ypartnership/Harrison Group 2010 Portrait of American Travelers)
- The emergence of "Celebration Vacations” has boosted the growth of the vacation rental category, as well, with 70% of leisure travelers having taken a vacation to celebrate a special occasion. These trips are ideal for staying in a vacation rental, as there are more people in the average traveling party. (Ypartnership/Harrison Group 2011 Portrait of American Travelers)
- Today, companies are making it easier to find and book vacation rentals online - according to VRMA's recent industry survey, approximately 60% of companies agree that more than 20% of their bookings came from the Web, with nearly 93% of all companies now offering the capability to book online.
- Year over year, trips taken with children, extended family and friends represent one of the only consistently rising types of leisure travel. What’s more, approximately one-quarter of leisure travelers are grandparents, and nearly one-third have traveled with their grandchildren on one or more leisure trips during the past 12 months. As this "togethering” trend increases in popularity, especially during tough economic times, travelers are selecting vacation rental homes for a sense of privacy and comfort under one roof, rather than the hassle of requesting multiple and/or adjoining rooms. (Ypartnership/Harrison Group Portrait of American Travelers)
- As the economy has declined, so have the lead times for booking travel – Our research indicates that travelers are booking closer to their travel dates. A 2010 report showed that nearly 4 in 10 vacation rental travelers had purchased last-minute travel in the past year. A great trend for those seeking value, as they can find many last-minute specials through vacation rental companies nationwide. (Ypartnership/Harrison Group 2010 Portrait of American Travelers)
- Americans continue to seek out more value for what they pay in 2011, which is one of the many reasons vacation rentals are growing as an attractive option. Vacation rentals often provide huge values - More than nine in 10 leisure travelers rate "value for the price" as the primary motivation to rent a vacation home as an alternative to staying in a traditional hotel or resort. You can also take advantage of vacation rental business’ relationships with activity providers, shops, restaurants, tour companies and more - Usually, they’ll offer upgrades, coupons or other specials, including free perks, in some cases. (Ypartnership/Harrison Group 2011 Portrait of American Travelers)
- Family reunions have seen huge growth in recent years, with 23 percent of leisure travelers having named it as the primary reason for taking one or more trips during 2009, up a remarkable 13 percentage points since 2008. As reunions increase in popularity, families are selecting vacation rental homes - In fact, 2.45 million family reunion travelers who took an overnight trip of at least 75 miles from home in 2008 indicated staying in a vacation rental they rented or owned during the past year. (Ypartnership/Yankelovich, Inc. 2009 National Travel MONITOR)
- 26% of affluent leisure travelers (income of $125K+) have stayed in a vacation home rental as an alternative to a traditional hotel or resort during the past two years. This is a statistically significant difference compared to the $50,000 - $124,999 income bracket, 20% of which indicate having stayed in a vacation rental home. 53% of affluent leisure travelers (income of $125K+) are interested in staying in a vacation home rental as an alternative to a traditional hotel or resort during the next two years, compared with 48% of those in the $50,000 - $124,999 income bracket – another statistically significant difference. (Ypartnership/Harrison Group 2011 Portrait of American Travelers)