HomeAway Vacation Rental Marketplace Report Fourth Quarter February 16, Page 1 of 7.
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1 HomeAway Vacation Rental Marketplace Report Fourth Quarter 2009 February 16, Page 1 of 7
2 Fourth Quarter 2009 Contents 2 Outlook for Remainder of Vacation Rentals Provide More Room for Less Cost 4 Vacation Rentals Popular for Spring Break Getaways 5 Vacation Rental Growth Markets 6 Private Pools are Important for Travelers 7 Page 2 of 7
3 Outlook for Remainder of 2010 The most recent HomeAway report continues to show strong traveler interest in vacation rentals. More than nine in 10 travelers (93 percent) who looked into the availability of vacation rentals in the past say they expect to stay in one at some point in And despite the tough economy, 17 percent say their travel budget will increase this year, while 68 percent say it will stay the same. When travelers were asked what would prompt them to travel more in percent say they would travel more this year if they had more vacation time 43 percent say they would travel more if they received a salary increase 33 percent say they would be prompted to travel more this year if it was a once-in-a-lifetime opportunity 25 percent say they would travel more if they felt more confident in the economy 9 percent of travelers said nothing could prompt them to travel more in percent say they would travel more if they had a new job Travel Planning: In Search of a Deal When it Comes to Accommodations In planning their vacations, 72 percent of those surveyed say it s most important to find deals on accommodations. Fifteen percent say finding a deal on transportation to their destination, such as airline or train tickets, is most important, while only 4 percent of travelers say it s important to find a deal on a rental car. Five percent say deals on entertainment and attractions are most important, while 4 percent cite deals on food and restaurants. Page 3 of 7
4 Vacation Rentals Provide More Room for Less Cost Page 4 of 7
5 Vacation Rentals Popular for Spring Break Getaways More than 65 percent of travelers who looked into the availability of vacation rentals in the past plan to stay in a property sometime between March and May. While most (66 percent) will use a vacation rental for a family vacation, approximately one in three travelers surveyed (30 percent) say they plan to stay in a vacation home for a getaway with friends. According to the HomeAway report, the following hot spots ranked among the most popular Spring Break destinations this year, based on traveler inquiries about stays in March and April 2010: 1. Orlando, Fla. 2. Miami, Fla. 3. Panama City, Fla. 4. New York, N.Y. 5. Fort Lauderdale, Fla. 6. Destin. Fla. 7. Daytona Beach, Fla. 8. Fort Myers, Fla. 9. Marco Island, Fla. 10. Clearwater, Fla. Travelers attracted to the value of vacation rentals compared with hotels may find even more value in the deals some vacation rental owners are offering this spring. According to the report, approximately 34 percent of owners say they will offer some type of special deal or incentive to attract renters during the Spring Break season. Of those: 38 percent plan to offer a percentage off the rental rate 34 percent plan to offer a specific dollar amount off the rental rate 31 percent plan to offer a free night with the purchase of a specific number of nights 21 percent do not plan to require a minimum-night stay 20 percent plan to offer free cleaning services 17 percent plan to offer complimentary products or services, such as free tickets to a theme park Page 5 of 7
6 Vacation Rental Growth Markets Fastest-Growing Destinations Among Travelers For the second consecutive quarter, New Orleans ranks as the top emerging market. Top 10 Destinations with the Largest Percentage Increase in Traveler Interest from Q to Q New Orleans, La. 183% 2. Marina del Rey, Calif. 183% 3. Galveston, Texas 130% 4. Lake Ozark, Mo. 128% 5. Napa, Calif. 123% 6. St. George, Utah 118% 7. Bridgehampton, N.Y. 93% 8. Hiawassee, Ga. 89% 9. Jay Peak, Vt. 83% 10. Lake Norman, N.C. 74% For most popular cities based on total inquiries accumulated during the fourth quarter, Orlando ranks first. Fastest-Growing Destinations Among Owners Vancouver and Whistler emerge on the top 10 list for new listing growth during the fourth quarter. This is likely attributed to owners capitalizing on an increase in travelers visiting the area for the Winter Olympics. Top 10 Destinations with the Largest Percentage Increase in New Vacation Home Listings from Q to Q Sunset Beach, N.C. 206% 2. Telluride, Colo. 178% 3. Carnelian Bay, Calif. 150% 4. Beverly Hills, Calif. 100% 5. New Orleans, La. 90% 6. Vancouver, BC 87% 7. Lanikai, Hawaii 87% 8. Austin, Texas 75% 9. Luray, Va. 74% 10. Whistler, BC* 73% *Sevierville, Tenn and Truckee, Calif also had 73% in property growth Top 10 Most-Popular Travel Destinations on HomeAway.com 1. Orlando, Fla. 2. Pocono Mountains, Pa. 3. Miami, Fla. 4. New York, N.Y. 5. Cape Cod, Mass. 6. Fort Lauderdale, Fla. 7. Myrtle Beach, S.C. 8. Lake Tahoe, Nev. 9. Panama City Beach, Fla. 10. Los Angeles, Calif. For those who rent out their second homes during the fourth quarter, approximately 67 percent say their bookings for the month of October, November and December are about the same or higher compared with last year. Based in total travel inquiries between November 2009 and January 2010 Page 6 of 7
7 Private Pools are Important for Travelers When asked what services or amenities are most important for travelers to have the option in adding on, pools and hot tubs scored the highest. If you could customize your vacation rental experience, which services/amenities are important for you to have the option to add-on? 60% 53% 50% 43% 40% 30% 20% 28% 22% 19% 10% 10% 7% 5% 0% Private pool Hot tub Daily housekeeping Game room Eco-friendly Spa treatments Concierge Private chefs About the Data for the was collected via surveys that poll travelers and homeowners on vacation rental-related issues. Based on HomeAway, Inc. internal customer satisfaction research, traveler results are based on 2,387 responses collected between January 14 and January 28, Owner results are based on 306 responses between January 14 and February 4, Market trends were based on a combination of in-depth research of supplier and consumer markets from the HomeAway, Inc. database. Smith Travel Research was also utilized for hotel data about specific markets. Average daily rates for HomeAway vacation rentals were calculated based on a random sampling of properties for each respective city using rates posted in the fourth quarter. About HomeAway, Inc. HomeAway, Inc., based in Austin, Texas, is the worldwide leader in online vacation rentals, representing nearly 430,000 paid vacation rental home listings throughout 120 countries. HomeAway offers an extensive selection of vacation homes that provide travelers with benefits, including more room to relax and added privacy for less than the cost of traditional hotel accommodations, as well as full kitchens and extra amenities such as private pools. In addition, the company makes it easy for owners of vacation rental properties to advertise their rental properties and manage their bookings online. The HomeAway portfolio includes the leading vacation rental websites HomeAway.com, VRBO.com and VacationRentals.com in the United States; HomeAway.co.uk and OwnersDirect.co.uk in the United Kingdom; HomeAway.de in Germany; Abritel.fr and Homelidays.com in France; and HomeAway.es in Spain. For more information, please visit Page 7 of 7
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