Consumer Travel Trends in a Recession: Vacation Rental Market Offers Value

jennifer on December 13th, 2008

Beachhouse Vacation Rental Property; Photo Credit: Bookt.com

The government has officially declared the current economic environment a recession and coupled with the volatility of the DOW on a daily basis, the travel industry is facing grim forecasts for 2009. Yet, according to a report released by travel industry supplier Bookt, one niche travel market that is more than $24 billion is poised to grow next year - vacation rental properties.

“Widely considered to be the new hotels in 2009, vacation rental properties offer prices that are more competitive or lower than hotel rates, making them a highly attractive option for cash-strapped travelers and vacationers during these tough times,” as reported in a release by Bookt.

One reason listed as a contributor toward a possible growth for the vacation rental market is the savings travelers can realize compared to a traditional hotel or resort vacation and offset against other transportation costs such as airfare.

Personally, when choosing a rental property for several past vacations, I did so because it resulted in a unique family/group experience, allowed more family/friends to participate due to budget, provided the opportunity to share meals together in a cost-effective and casual environment and offered more privacy. Regardless if the accommodations were in a ski or beach area, the results exceeded expectations!

Bookt’s report details the benefits of vacation rental stays for consumers in 2009, including cost savings, flexibility and convenience.

1. Vacation rentals gain popularity with consumers, offering savings and value
Recent studies show that almost half of vacationers now consider booking a vacation rental when researching their trip plans because they provide increased comfort and flexibility for a considerably lower rate than traditional lodging choices. According to Rob Käll, president of Bookt, “Savings of anywhere from 25 percent to 50 percent from a traditional hotel or resort vacation are not unheard of, and when you offset that against increased airfares, it makes for a much more affordable vacation.”

Also, as vacation rentals offer full kitchen facilities, travelers can save a bundle by shopping and eating-in. Many vacation rentals offer added value and convenience by providing laundry facilities as well. If privacy is a consideration, having multiple rooms or choosing a location off the beaten path is ideal.

2. More properties are available for rent, offering consumers a broader selection
Web sites like www.arubavacationrentals.com and www.gotoparkcity.com provide the necessary tools to efficiently search through and book tens of thousands of vacation homes around the world. Such Web sites allow greater transparency to the consumer, ensuring that what they are booking online will be what they find upon arrival. “There has never been a better time for travelers to consider vacation rental properties; there is an enormous online selection for consumers to choose from even two or three years ago,” Käll says.

3. Consider an exotic vacation rental abroad
Vacation rentals are available in countries where the U.S. dollar has value. Travelers can consider a furnished apartment in the South of Spain; Jumeriah, Dubai; Alajuela Costa Rica; or The Hague in Holland, among many other exotic locales. When choosing a destination city other than the standard tourist destination or by staying outside the major cities, you can drive your costs down even further.

“The added benefits of increased living spaces, the feeling of a home away from home and all the extra amenities not found in most hotel rooms, are making vacation rental holidays the ideal alternative for 2009,” as noted by Bookt’s report. “For consumers, whatever their budget, the recession is no reason to resort to armchair travel and glossy brochures.”

Top U.S. Vacation Rental Destinations in 2008 from Bookt