Orlando Vacation Homes Rentals

posted by orlandovacationhome on Nov 23

One of the commercial areas that is expected to improve in 2010 is the international tourism market and the number of direct international flights to the Orlando International airport.

The Orlando travel market is highly dependent on direct to flights that originate from an overseas destination. These convenient direct flights bring in international travelers that on average spend a great deal more than the everyday tourist. This is very important for the local economy.

Some of the upcoming new direct to Orlando international flights include:

• Airtran - Aruba, and Netherland, Antilles Air Travel to Orlando Begins February 2010
• Airtran - Montego Bay, Jamaica Orlando flights Begin February, 2010

Direct international Florida flights also began in 2009 for the following airlines:

• Air Canada - Airline service to Halifax, Nova Scotia
• JetBlue - International service to Bogota, Colombia and Nassau, Bahamas
• Martinair - Amsterdam, Netherlands Flights to Orlando Began October 15th
• Mexicana Airlines - Flights to Florida from Mexico City
• Sunwing Airlines - Airfare to Orlando from Montreal, Ottawa and Toronto Canada
• Taca Airlines - San Salvador, El Salvador Airfare to Orlando Began November 1st
• TAM Airlines - Orlando flights from Sao Paulo-Guarulhos Brazil
• Westjet Airlines - Florida flights from Ontario and Winnipeg Canada

This is also good news for the Orlando villa rentals market. As the number of direct international flights to Orlando rises, so will the number of guests for vacation rentals. One example would be the presence of the UK to Orlando Florida flights with over 3 options daily to London Gatwick alone. It has never been a better time to visit Florida.

Canada is also a hot target with the introduction of the “Orlando for Canadians” tourism promotion. Internationally and especially in Western Europe, vacation villas have a much higher consumer awareness than in the United States, but this is changing.

As we have blogged in the past, short term villa rentals continue to become more accepted and mainstream domestically. Our contention  and mission, as stated on our main page, is the need for more information to bolster consumer confidence in the quality of vacation home accommodations in the area. Our website contains over 80+ reviews of vacation home communities in the Central Florida region.

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posted by orlandovacationhome on Nov 17

At a recent Florida economic summit in Polk County and as reported by TheLedger.com, a top economist made some enlightening predictions for 2010.

Although much of the analysis centered on local conditions for Polk County, much of the presentation dealt with the Florida economy out to 2011. However, Polk County economic information is significant because many vacation homes are located in the county (Davenport).

Some of the Polk County information and Florida conclusions included:

• Florida’s economy will lag behind the national economy in terms of employment and strength of recovery
• Mortgage delinquency rates are still rising and more foreclosures are expected in 2010
• Area unemployment is expected to peak in the 12-13% range
• Although the rapid economic decline appears to be slowing, actual job growth will not take place until 2011.

Over a year ago we blogged about what we felt were opportunities for vacation rentals in the Orlando area. In light of these Florida economic conditions, vacation villa rentals now offer an even greater value over traditional accommodations such as hotels rooms.

Self-catering homes present a great opportunity to save big money on vacation as they can offer 3 to 7 bedrooms, multiple living spaces such as bathrooms and living rooms, your own private pool and garage as well as fully equipped kitchens all for the price of a decent hotel room.

If you are looking for value in a tough Florida economy, check-out vacation home rentals as a viable value-oriented option.

Vacation Homes in Polk County

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posted by orlandovacationhome on Jul 16

Like promoting any hospitality product, having great vacation home video and photography to highlight benefits are a must for any vacation home owner.

However, we always recommend the vacation home rental consumer check several reviews from the vacation home and/or community before they book in addition to reviewing the photography and video available. Today there many review sites on the internet.

It is easy to market Florida with pictures of beautiful blue skies, clear blue pools and great camera angles to make a standard holiday rental in Orlando look palatial. However, you want to make sure that what you see is what you get. Get on-line and check out the rental reviews.

One additional way get some assurance you are booking a great product is to reserve with a credible and reputable vacation home management company. Ask for references and check out their professional memberships and affiliations on their website.

Vacation Home Photos - Check out the Reviews First and Book with A Credible Vacation Home Management Company

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posted by orlandovacationhome on Jul 5

Is September the Best Time to Visit Orlando?

One might ask, when is the best time to visit Orlando, Florida?

As the  best months go, the answer is generally September. There are several reasons for this:

1. School is back in session – The parks are empty.
2. Weather – It will begin to cool down and be more comfortable, but sunny enough to get a tan.
3. Rental rates for vacation homes are low in September. These rates typically offer a lot more value than  hotels.
4. Heavy incentives – When business is as slow as it is in September, renters pull out all the incentive stops to attract tourist dollars (i.e. two for the price of one, kids eat free, early bird specials, etc…)

Therefore, the best time to visit Orlando is September for several reasons. It is the slowest month of the year for tourism, the weather is typically great, and you can save a bundle.

Best Time to Visit Orlando

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posted by orlandovacationhome on Jun 2

Vacation homes and rental homes in Fl are an important part of travel to Florida.

In a landmark 2008  study commissioned by the Kissimmee Convention and Visitors Bureau, research indicates that vacation home owners and guests spend over $384 million in one county (Osceola) alone.

Vacation home rentals continue to be a more accepted means of accomodations and gain market share, but the industry has no formal organizational means of tracking economic impact statewide.

There are three major vacation homes markets in FL. These markets include Orlando, Miami and Destin/Panama City. There are also two secondary markets for rental homes in FL including Tampa/Clearwater and Jacksonville. It is difficult to extrapolate the total number of vacation home visitors statewide, but based on the report mentioned above, Osceola County drew 1.2 million visitors staying in vacation homes alone.

Although awareness of vacation homes for travel to Florida is on the rise, more consumer and economic data and information is needed. Holiday rentals in Orlando are a great way to enjoy the area.

Vacation Rentals in FL

This website focuses specifically on the Orlando vacation homes market to disseminate that needed consumer information. Over 80 resort communities have been independently rated and profiled which should give consumers a greater sense of trust for what they are booking. These vacation reviews are viewable on the main page of this website. The reviews section includes such premium resort communities as Emerald Island Resort and Windsor Hills Resort. Orlando FL is a great destination for theme parks, golf, restaurants and other attractions.

Rental Homes in FL

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posted by orlandovacationhome on Apr 10

The United States Department of Commerce released figures today on international travel and tourism to the United States for January, 2009. The gross number of international travelers was down 9% while the actual gross amount of spending was down 7% from one year ago.

Four countries (out of the top 20) actually showed increases compared to this same monthly period one year ago. These nations were (with their rate of increase): China (37%), Argentina (19%), Italy (6%) and Brazil (5%). Of special note is the fact that Brazilian tourism to the United States has increased its annual comparative growth rate for 32 straight months.

Western European visitation, of special importance to the Florida villas market, was down 12%. Our blog has expressed concern over this recognized trend several months ago.

To find out more about this International tourism reserach program, please go to:
http://www.tinet.ita.doc.gov/research/programs/i94/index.html

If you would like to subscribe to the monthly international arrivals reports, please go to:
http://www.tinet.ita.doc.gov/research/reports/i94/index.html

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posted by orlandovacationhome on Jan 21

On this post, we develop three scenario forecasts for the Orlando Florida short term rental industry for 2009 compared to 2008. This market includes hotels, vacation homes and timeshare rentals.

As we always indicate, no one can predict the future. If you had listened to economists predictions for Florida over the last two years you would realize that most of them have been stunningly wrong.

Although some Orlando short term rental products will fare better than others, 2009 will most likely be very bad and possibly have longer term systemic consequences than what is generally recognized today.

Best Case:

Occupancy Down 7%

ADR Down 8%

= Total Room Revenue Decline of 14.4%

Expected/Most Likely

Occupancy Down 13%

ADR Down 18%

= Total Room Revenue Decline of 28.6%

Worst Case

Occupancy Down 20%

ADR Down 24%

= Total Room Revenue Decline of 39%

Short term rentals in Orlando will be affected at many levels. Inferior product in inferior locations will be effected the most, while good product in the best locations will be affected the least.

We are advised from professionals in the field that large feeder markets to Orlando such as school groups, conventions and the UK are rapidly evaporating. Gas prices are also sneaking back up and affecting the drive markets. In addition, some theme park ticket prices are now at record highs for single day passes - even as short term rental properties slash their rates.

How we calculate the numbers using an algorithmic statistical regression is not disclosed, so always deem the authors of this blog as incompetent, and read our disclaimer above.

Orlando Tourism 2009

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posted by orlandovacationhome on Dec 23

Five Guys Burgers

1310 W Osceola Pkwy
Kissimmee, FL 34741
(407) 201-3929‎   

Rating: Best Burger in Orlando

When you have been around Orlando Florida long enough, you get to try every burger joint in town. In our opinion, Five Guys is head and shoulders above the rest. They actually use real fresh meat. The burgers are very simple and offered with a selection of toppings. Other menu items include kosher hot dogs and grilled cheese sandwiches. A classic case of less is more.

Five Guys Orlando Kissimmee

Five Guys tell you where their potatoes are from on a daily basis. These are then used for their hand cut fries. The fries are cooked in peanut oil and not the chemical type oils used by many establishments today.  

Burger and fries will run you about $6 a person+/- 

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posted by orlandovacationhome on Dec 6

If the most recent data is to be believed, hotel revenues in Orlando are dropping at possible catastrophic rates, and this could be an indicator of what some may have already felt in the metro Orlando vacation home industry.

Data for Orlando vacation home occupancy and rate is difficult to collect, as the industry is very fragmented. However, as market indicators, we are inclined to consider hotel data trends to help as a mirror to the vacation home industry.

Recently SMITH TRAVEL RESEARCH, a provider of hotel industry data, reported that revenue per available room tumbled 13.2 percent nationally during the week Nov. 9-15, 2008 compared to a year earlier. Revenue per available room, or RevPar as it is termed, is a key gauge of a hotel’s revenue performance.

At the local level, metro Orlando has begun to see the largest drops in both rate and occupancy across the board for the hotel industry since 2001. For the week ending November 15^th, 2008 hotel Rev PAR dropped by a whopping 27.3 % according to the ORLANDO CVB records .

So what are the ramifications for the Orlando vacation home market? Hotel data now tells us that a short term combination of rate and occupancy are in a state of significant decline. Not a surprise given the current economic environment, but the level and rate of the decline is much more devastating than what is being reported on some media outlets. It remains to be seen if these short term indicators become longer term trends for the Orlando market and can provide some basis for an Orlando tourism forecast.

Possible ramifications in the vacation home industry could include:

1.     Rev PAH (Revenue per available home), is going to most likely drop significantly, as occupancies decline and some owners and home managers alike, quickly drop their rental rates.

2.     This could impact vacation home prices due to the fact that vacation homes would have a lessened ability to generate income, which would logically be reflected in the underlying home sales prices.

3.     Like any business, those homeowners that are best positioned to “hunker down” will be the ones that survive. Such factors could include: limited levels of debt, high rental occupancies, good locations and marketing strategies, excellent maintenance, and the overall experience of a good vacation home management company.

The good news for families, and even some event type groups seeking economic alternatives to hotel rooms, is that they may now logically consider the benefit of vacation homes. This helps the vacation home option become more mainstream. Please see our other posts detailing the economic viability of renting Orlando vacation homes and the value they provide to consumers. In addition, the best run vacation home management companies will most likely survive and the services they provide will become more essential.

In conclusion, there is no sugar coating the data. The drop in both rate and occupancy appears to have come so quickly and deeply that major media, and even many in the tourism industry, do not yet recognize. Expect possible systemic failures in Orlando’s tourism industry if these trends continue. Unfortunately, no one can preidict the future including us.

As always, our blog tries to inform you objectively, so subscribe.  Check the ORLANDO CVB data here.

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posted by orlandovacationhome on Nov 20

Let’s be clear, no one can predict the future. If we could, we wouldn’t be writing a blog. This post is  just an opinion. DISCLAIMER. As with any economic opinion, take it with a grain of salt. The authors of this blog are not professionals and do not give out professional advice.

The Orlando vacation house market has been hit hard, especially for many buyers who purchased vacation homes around the years 2005-2006. Prices have dropped in some vacation home subdivisions over 30% from their peak 2 to 3 years ago. For the metro Orlando area as whole, prices appear to have dropped. Click HERE STATISTICS(1).

There are arguments that prices will continue to DROP(2):

Vacation homes are much harder to finance than primary homes, and in the current market even primary homes are now hard to finance (2A).

Foreclosures are piling up. As people struggle with their primary home mortgage, they may give up their second homes.(2B)

There are large inventories (2C).

A few vacation home subdivisions struggle with upkeep of resident exterior areas. Vacation home managment struggles to keep this under aesthetic control for vacationers.(2D)

Banks will begin to compete against each other to sell foreclosed homes, and this could negatively effect vacation home pricing (2E)

Tourists are cutting back big time on Orlando (2F).  Thus, the demand for vacation rentals is also dropping. This means that owners have less income to pay the current mortgage which increases the risk of foreclosure.

In a depressed economy, the last thing people often want to do is buy a vacation home, but the first thing they may want to do is sell if they own one (2G).

Homeowners unable to refinance their vacation homes (they may owe more than the home is now worth) might let the home foreclose if they are unable to modify the loan terms (2G1)

When the world is facing an economic crisis (2I), discretionary items such as vacation homes are no longer in demand. If the USA enters a severe recession, the demand for some vacation home products could dry up.

There are arguments that prices will STABILIZE(3):

It would appear that the rate of price decline in some subdivisions is SLOWING(4) down, but prices are still dropping.

Some subdivisions are making the transition from primarily a short term rental market to subdivisions that cater to full-time owner occupiers as the prices drop, and the vacation homes become affordable relative to regular homes.

The government is reacting on a massive scale to solve the problem(4A).

There are some SIGNS(5) that the number of home sales has been increasing.

In conclusion, vacation homes in the Orlando and Kissimmee area face a unique set of circumstances that has allowed for significant price drops from their peak prices over the last 2 to 3 years. Forecasting the future with absolute certainty is an impossibility.

Subscribe to our blog for in depth graphical analysis and forecasts scheduled to be released next month. Click here to subscribe.

As always, please consider the people writing this post/bog to be unprofessional and incompetent at all times. Due to your own due diligence at all times.

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