Economy Posed To Motivate Second Homes Owners to Rent Their Vacation Homes More Frequently According to PhocusWright study and FlipKey.com

Citing a PhocusWright study, FlipKey highlights over 350K second home owners queued to begin offering their vacation homes to travelers more frequently

January 15th Boston, MA:  With the vacation rental market estimated at $24B, the growing and popular lodging sector motivated PhocusWright – a leading travel research firm – to conduct the industry’s first ever dedicated market study.  Co-sponsored by 14 industry players including FlipKey.com – a leading vacation rental site featuring the industry’s largest collection of verified guest reviews – the study estimates 1.26M second homes are available for rent in the U.S. for families looking for an alternative to hotels and other lodging options.

The study identified that 56% of the vacation rental market is represented by rent-by-owners with the remaining 44% of vacation rental homes managed by professional property managers.  Encouraging for the growth of the industry, the study highlights 50% of rent-by-owners are casual renters, offering their units primarily to friends, family and through word-of-mouth.  As the economy continues to place additional financial burdens on second homes owners, FlipKey expects more of these casual renters to become increasingly active, working independently or through a property manager to offer their home more frequently and to travelers beyond family and friends.

 for_rent “Although there are 1.26M vacation homes that have been rented, it doesn’t mean they were made available to the general traveler,” stated TJ Mahony, CEO of FlipKey.com. “When we pealed back the layers of the study we estimated there are 350K casual renters that don’t necessarily make their home available beyond their immediate friend and family network.  It’s reasonable to assume the current economic environment will help motivate many casual vacation rental owners to become more active.”

FlipKey defined an ‘active’ renter as an owner that markets their home to travelers beyond their family and friends network.  Mahony summarized, “if an owner actively markets their property online and rents their unit to two or more people completely outside their personal network each year we consider them active.”

When renting a vacation home its imperative vacationers feel comfortable and confident in the home and manager/owner of the property.  Vacation homes overseen by property managers and active owners often provide strong customer support, clear check-in / check-out processes and other support services consumers value.   Mahony concluded, “Given the economy and growing support and marketing services available, there is a clear opportunity for more of these casual participants to become more active, renting their homes more often, yielding increased rental income.”

About FlipKey

FlipKey is a leading vacation rental service featuring the world’s largest collection of verified vacation rental guest reviews. FlipKey believes reputation, trust and feedback from past guests are the best resources to ensure consumers find the ideal vacation home. FlipKey currently features more than 60,000 vacation homes offering vacationers the unique advantages of more personal space, superior amenities and ideal locations throughout the United States, the Caribbean, Canada and Mexico. FlipKey is majority owned by TripAdvisor, LLC, and is a member of the TripAdvisor Media Network, attracting more than 32 million unique monthly visitors* across 12 popular travel brands. FlipKey is available at http://www.flipkey.com

*Source: comScore Media Metrix, May 2008

© 2008 TripAdvisor LLC. All rights reserved.

10 COMMENTS

  1. Some people thing that why we should hire property mangers to manage our properties like homes, apartment, duplex, commercial space, multiplex, etc. If you have large properties and not enough time to manage and maintain them, surly you will have to suffer with loss. If you need to rent your properties, where you will search tenants? How you will choose a right renter. If you have rented your properties then also some tiresome and boring tasks like rent collection, maintenance, etc. If you use a right property manager, all your worries vanish and you have a satisfactory solution to your properties management needs. Most experienced property investors or landlords often use property managers to manage their valuable properties, because property managers make money for them by offering comprehensive rental management services.

  2. Your onion peeling shows that the managed portion of the market is the largest segment... larger than VRBO. I wonder if the RBO have the same occupancy rates as the professionally managed homes.

    Those 50% RBOs who are casual renters could really impact the supply if they start advertising and renting. TJ, do you think that this economy is going to bring out more inventory ?

  3. What's interesting is we are seeing a growing number of people donating time at their vacation rentals/vacation homes for charity fundraising events. Some are motivated because of the marketing/exposure that they get at the charity event but most are just doing a greater good with unoccupied time.

    It's going to be interesting to see how 2009 pans out for all second home owners...

    If you are interested in donating time for charity visit us at http://VacationHomesForCharity.org. We have over 1000 events for 2009.

  4. This study shows the great potential the Vacation Rental industry has for growth. Homeowners can realize great benefits by having their vacation homes managed by a property management company.

    · No need to market and book reservations. Property management companies specialize is marketing to and offering great customer service for guests.

    The owner may not be local to the home, but the property management company is down the street and ready to help.
    Maintenance and upkeep is a major issue for homeowners (especially absentee owners), and property management companies can help alleviate this burden.
    Cleaning and linens. Seaside Vacations offers a “Clean House Guarantee” and free linens and towels for every guest.
    Perks that individual homeowners may not be able to afford. Seaside Vacations offers a free guest membership to a Health and Racquet Club for all of our guests.
    Management and upkeep of pools and spas.
    No need to manage a variety of vendors when a property management company can manage all areas of concern.
    Taxation and accounting. Property management companies ensure that State and Federal guidelines are met.

  5. My edits:

    This study shows the great potential the Vacation Rental industry has for growth. Homeowners can realize great benefits by having their vacation homes managed by a property management company.

    · No need to market and book reservations. Property management companies specialize is marketing to and offering great customer service for guests.

    The owner may not be local to the home, but the property management company is down the street and ready to help.
    Maintenance and upkeep is a major issue for homeowners (especially absentee owners), and property management companies can help alleviate this burden.
    Cleaning and linens. Seaside Vacations offers a “Clean House Guarantee” and free linens and towels for every guest.
    Perks that individual homeowners may not be able to afford. Seaside Vacations offers a free guest membership to a Health and Racquet Club for all of our guests.
    Management and upkeep of pools and spas.
    No need to manage a variety of vendors when a property management company can manage all areas of concern.
    Taxation and accounting. Property management companies ensure that State and Federal guidelines are met.

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