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Rolling Out The Vacation Rental Red Carpet
by Broderick Perkins
Gearing up for what could be a tough year-end season, the vacation home travel industry didn't wait for summer to end when it released tips to help property owners tune up marketing efforts to keep properties full this fall and winter. Total domestic travel expenditures by U.S. tourists is expected to rise at a rate of only 4.1 percent this year, compared to nearly twice that much, 7.5 percent last year, according to the Travel Industry Association of America.. TIA reported expenditures for domestic tourism by U.S. travelers dropped by 1.1 percent in 2002, the year after the day of infamy when terrorists turned commercial jetliners into missiles used in three U.S. cities. In 2003, 2004 and 2005, those same expenditures rose 3.7 percent, 6.8 percent and 7.5 percent, respectively with 2005 revealing the highest growth rate since 9/11. TIA forecasts expenditure growth will dwindle further in 2007 growing by 3.7 percent and in 2008, growing only 2.7 percent. In December of 2005, the TIA's Traveler Sentiment Index hit an all time low and by it's summer 2006 forecast the industry said, "Historically high fuel prices are expected to have a negative impact on summer travel and (fuel prices) are accompanied by broader economic concerns for many Americans." The industry also forecast summer travel would grow this year only by 1 percent over last year. While the vacation rental sector says it's weathering the slowed growth better than the overall industry, vacation home rentals are not immune to economic conditions. The industry also faces increased competition as record numbers of Americans purchased second homes in recent years. Many purchased them as investment properties, including vacation rental. "For many second home owners, vacation rental income is crucial for paying the mortgage. But with interest rates and other costs rising, it is difficult to boost rental prices since there are so many properties now on the market. It's brutal out there," said Yardley, PA-based Alfred Glossbrenner, who along with his wife, Emily, self-published "How To Make Your Vacation Property Work For You", a guide book and CD-ROM for vacation home landlords. But some of the same conditions forcing travelers to alter vacation plans and related spending could cause them to beat a path to vacation home rentals. "The good news is there are vacation homes within a two-hour drive from most metropolitan areas," says Christine Karpinski, director of Owner Community for HomeAway.com a network of vacation rental listing websites. "Americans pinched by high gas prices can still enjoy a getaway close to home by staying at a vacation rental for a fraction of the cost of a hotel room," said Karpinski, also author of "How To Rent Vacation Properties By Owner" (Kinney Pollack Press, $26). That's provided the marketing fundamentals are applied. Karpinski and HomeAway.com offer the following tips for vacation home renters looking to reel in travelers.
Published: September 13, 2006 Use of this article without permission is a violation of federal copyright laws. Related Articles:
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