Wall Street and the big money guys have taken notice of the growing  public acceptance of vacation homes. Two of the hottest public traded and private brand names in travel and tourism – Air BNB and HomeAway® continue to make waves. As word spreads about the positive attributes of vacation rentals, consumer demand will continue to grow and build awareness for the industry.

HomeAway and Air BNB – Rentals By Owner Websites

HomeAway and Air BNB both sport hefty market capitalizations in the neighborhood of $2.5 to $3.0 billion. Although difficult to truly assess for Air BNB, insiders indicate that these are accurate financial estimates. Air BNB tends to focus on rentals in urban markets while HomeAway finds its niche in vacation rental communities.

Both behemoths find their brand presence more in the area of technology than in actually managing or operating vacation homes. Listings from owners are placed on the Air BNB and HomeAway websites and are the companies’ core sources of revenue. Latest available figures pin roughly 700,000 worldwide listings for HomeAway and about 250,000 for Air BNB.

Both companies specialize in “rental by owner” listings that have a high degree of visibility on many websites. Air BNB has uniquely developed a brand cachet that pushes up its perceived value despite its private status. The national advertising campaigns implemented by these companies (i.e Super Bowl for HomeAway) have lifted industry awareness in a dramatic way.

Growth Trends for Vacation Home Rentals

According to industry research, annual demand for vacation rentals is growing at a rate of 20%+.  Some additional interesting facts:

  • The domestic vacation rental market is about 1/3rd of the hotel market ($90 billion vs. $280 billion)
  • Kitchen and laundry facilities are typically the most often cited advantages of vacation rentals
  • The ability to cook meals in one’s own rental home is a major benefit of rental homes
  • Adequate space for family and friends as compared to hotel accommodations is a major reason for renting a vacation home.

In terms of overall growth potential, vacation home rentals are still only 20% of the travel accommodations/leisure market according to consumer travel research. There is plenty of opportunity to penetrate the American market and grow business incrementally.

Growth in Vacation Home Management Company Rentals

Although typically fragmented in the various destination markets, rental growth and inquiries for home rentals at various management companies is also growing. It is very likely that the large vacation rental by owner websites (i.e Air BNB and HomeAway) are actually lifting demand for the management company rentals as well.

These awareness figures are especially pronounced when the trends of the last 2-3 years are examined in closer detail. The bottom line for consumers is that vacation homes are being considered by more and more travelers every day for leisure travel.

Orlando Vacation Home Rental Growth

Demand for vacation homes in Central Florida continues to be robust. The opening of new attractions at various parks and an expansion of global travel to Orlando are fueling demand for vacation home rentals.

To learn more about all that vacation home accommodations in Orlando have to offer, give the knowledgeable team at OVH 360 a call (407-966-4144). Orlando Vacation Homes 360 screens all of its rentals for quality and resort amenities. Only the best vacation rentals make it into the company’s reservations portfolio.

 

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