posted by orlandovacationhome on Apr 1
Orlando Vacation Homes Go Mainstream – A Force to be Reckoned With?
Hotels in Orlando have gone into shock. In February 2009, hotel revenues were reportedly down dramatically (1).
Orlando vacation homes, although affected by the economic downturn, have some very powerful factors now in their favor.
- Of the 200 +/- hotels in Orlando, there are as few as 400+/- full time sales managers at the property level promoting their product.
- With 30,000 +/- vacation homes in the Orlando market, each owner becomes their properties’ best sales manager. You could argue there is an army of 30,000+/- part time sales managers/owners promoting Orlando vacation homes all over the globe on a daily basis.
- Tour operators are now selling Orlando vacation home product with as much fervor as they do hotels. Such premium accommodations as Emerald Island Resort and Windsor Hills Resort are well know for their quality amenities.
- In Orlando, there are hundreds of vacation home management companies aggressively promoting vacation home rentals for owners. The databases of management companies also include thousands of satisfied consumers who refer potential renters.
- Orlando vacation home rentals have become very competitive in rate, and can often offer a better value proposition than a traditional hotel. Hence, their popularity with travelers.
- Once the domain of Europeans, the domestic American consumer is becoming very educated on vacation homes and the benefits they offer including the ease with which the homes can be booked.
Orlando vacation home marketing has become organically powerful and has so much “hidden” muscle that a significant gain in market share against the hotel industry looks inevitable. The Orlando vacation home idustry segment is now a force to be reckoned with.
Orlando Vacation Homes
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posted by orlandovacationhome on Dec 28
The Daily Telegraph, a major newspaper in in the UK, reported today the UK economy could shrink as much as 10% in 2009 (1). This forecast was not totally dismissed by the Centre for Economics and Business Research also based in the UK who estimated GDP in real terms will decline a more conservative 2.5% (1B) - still a decline of historic proportions.
As we have outlined in a prior post (2), the UK is the largest detached international market feeding the Orlando tourism economy. The impact of a major recession in the UK could wreak havoc on the local short term rental market which includes hotels, vacation homes and timeshare rentals.
The peak travel months for the British to Orlando are June, July and August. The UK is also a big market filler in the early fall when the domestic market for Orlando is relatively slow. Orlando has relied on the British in September to help “fill in the gaps”.
On the bright side, the British and the European Union governments have begun to implement a series of economic stimulus measures on a massive scale (3). The timing and effectiveness of such efforts remains to be seen, but if you live and work in Orlando, the health of the UK economy will most likely effect you.
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posted by orlandovacationhome on Nov 1
We started this blog with this tagline promise “… the inside scoop”. We never thought good news would be this hard to find much less discussed publicly.
Although it’s no large consolation for Orlando villa homeowners who are losing their homes to foreclosure, the recent 50%+ slide in petroleum prices
Gas / Petrol Prices Down
should be a big boon for the Orlando vacation home industry/market. This would include both the domestic and international travel market that is desperate for some good news. This drop in fuel should help bring about firmer occupancy demand for the Orlando vacation home market. We have established in another blog that vacation villas in Orlando can present a great value to consumers in general when purchased at a distressed level from a bank. Those on the ground in Orlando estimate that transient occupancy demand is now off by as much as 15% year over year due to the recession. Disney attendance by all accounts is off as well.
As stated in another area of the blog, one cannot be sure where the bottom is for actual vacation home pricing. There are many factors that come into play in evaluating this. However, one can be sure that lower costs for petro should eventually help turn the travel market in the right direction to the benefit of vacation home owners and consumers. Demand in the vacation home rental consumer market does play a role in the valuation equilibrium which is played out in the form of net rental revenues to the home owner. Let’s hope that will be the case moving into 2009.
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