posted by orlandovacationhome on Jun 4
Statistics compiled by the Orlando International Airport (OIA) show that April, 2009 year-over-year air travel to Orlando Fl dropped 7%. An increase of international seat capacity of 10% helped offset this net decline in overall air travel volume.
This is not surprising, but this domestic number is especially weak considering that mid-year 2008 was a period of escalating air travel pricing. The OIA also noted that April, 2009 was a period for air travel volume over three million passengers, the first of that magnitude in nine months.
The next several months should be superficially good year-over-year travel comparisons. The petroleum and jet fuel commodities bubble pricing began in mid-year 2008 with subsequent traffic falling dramatically afterwards.
On this blog, we have been emphasizing the importance of the international market to the Orlando villa rental market from inception. Spending by international travelers is projected to be close to $10 billion annually with resulting tax receipts over $1 billion.
Continued expansion of international air capacity at OIA will undoubtedly help Orlando villa owners and rentals longer term because this group tends to disproportionately patronize these accommodations.
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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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