Last week, East Bay Express,  a San Francisco based publication, published a story accusing Yelp – a popular local business review site – of altering review content in exchange for monthly advertising fees.   The article included testimonials of local businesses that claimed they were offered a Yelp advertising program to improve their reviews on Yelp for a fee.

I will refrain on commenting on the merits of the accusations, but instead use the topic of the story to highlight the value of trusted review content.  

The Value of a Review is a Function of its Honesty

The internet has enabled the consumer masses to participate in the product and service marketing process.  We consumers are no longer limited to one-way marketing pitches and information to make our decisions.  Company X may claim they sell the best widget on the market, which may be the case, but unless we can see some verified testimonials and reviews from past widget users it’s just a marketing pitch.   

The challenge becomes making sure the testimonials and reviews we leverage when making our decision are from real ‘unfiltered’ consumers.    This is why the Yelp article mentioned above received so much attention last week.   Yelp attracts over 20M people per month that rely on the site to find and select the best local restaurants, hair salons, etc..   If consumers began to question the honesty of the reviews they find on Yelp, then the value of the site, service and reviews are diminished.

FlipKey’s Commitment to Honest Vacation Homes Reviews

At FlipKey maintaining the trust, verification and honesty of our reviews is paramount to helping ensure travelers find and book the best vacation rentals that meet their needs.  As such, we take great efforts to ensure our reviews are honest and authentic:

 - FlipKey clients can not pay to move, adjust or prioritize reviews 

-  FlipKey only solicits reviews through a closed email invitation process that ensures only confirmed guests are able to leave a review.  FlipKey’s system curbs the instances of competitors leaving false negatives on homes they have never stayed in.

-  The only reviews removed from FlipKey are reviews that violate FlipKey terms of service (e.g. contain profanity, personal attacks, etc.)

-  All FlipKey reviews are applied to FlipKey’s ‘authentication filter’ that identifies false positives (managers reviewing their own homes) and SPAM 

-   FlipKey publishes all reviews in chronological order, no matter if the review is a glowing 5-star review or a critical 2-star review.

Therefore, when you see a review is “Verified by FlipKey” trust that the content is honest and complete.  

Area: Gatlinburg, TN 

Expert: Shawn Spiezio

Years living in Gatlinburg: 8 

Company: Aunt Bug’s Cabin Rentals

Subject: Gatlinburg Cabin Rentals

What makes Gatlinburg a great destination to visit and rent a vacation home? 

Gatlinburg is quaint small town within a short driving distance to most of the Eastern U.S.’s population and is one of the main entrances to the Great Smoky Mountains National Park.  Over the years, the 11 million annual tourists have become accustomed to staying in Gatlinburg vacation rentals up on the mountain ridges, tucked away in the woods, or nestled on the river.  The cabin rentals offer affordability, luxurious amenities, & the comforts of home which are great for a romantic weekend getaway, family reunion, and corporate retreat.  After a long day of hiking, shopping, or nothing, a little relaxing in a hot tub feels very good.  There is something for everyone in Gatlinburg.

What are the top things to do (attractions, activities, events, etc.) in the area?  Are there any hidden gems that people may not be aware of?  

Most tourists enjoy the Smoky Mountain National Park, Ripley’s Aquarium, Dollywood, Dixie Stampede, music theaters, shopping, golfing, hiking, fishing, whitewater rafting, and horseback riding.  Cades Cove is an early pioneer area in the national park that is great for biking, hiking, and sightseeing for bears and deer.  The Herbert Holt park in Gatlinburg is tucked away on the Little Pigeon River with picnic tables and a kid designated trout fishing area.  The Arts & Crafts area is home to beautiful galleries and local artisans honing their craft.

What are the top 5 ‘must-try’ restaurants in the area?  

The Pancake Pantry is a must for breakfast enthusiasts.  For lunch, I would recommend the Pottery Barn Café and the Bullfish Grill.  For dinner, try the Cherokee Grill, The Apple Barn farmhouse, and the Peddler.

What popular entertainment/nightlife options in the area would you recommend?  

If you don’t feel like shooting a game of pool or relaxing in the hot tub at your cabin, Gatlinburg offers a variety of nightlife options.  The Smoky Mountain brewery has live music and lots of tvs(I like their micro-brew Velles Helles.)  Many locals enjoy Hellbenders Grill, Jared’s Grill at the Ship, and TGIFridays.  If you feel like dancing, Blaines restaurant doubles as a club at night.  Also, Gatlinburg is host to the Smoky Mountains Tunes and Tales event in the summer which offers free musical entertainment and storytelling that appeals to all age groups along the streets of Gatlinburg. 

You rent homes to hundreds of guests each year….so you must have a funny story or two about people that visit Gatlinburg?  

I’ve got a few.  Originally called White Oak Flats, there are many stories as to how Gatlinburg got its name, all involving a controversial figure who settled here in 1854. Radford C. Gatlin opened the town’s second general store and when the post office was established in his store, in 1856, the town name changed to Gatlinburg.  Legend has it that if he left town for good, he could keep his life and the town would bear his name. 

Many people that come on vacation are looking for a little R&R.  Instead of following directions or a map,  people have become spoiled by their GPS devices.  One of our homeowners who was from Alabama and has been here a million times programmed his GPS for Gatlinburg TN.  At a stop, he hit a button on his GPS and followed its directions.  Several hours later, he realized he was in Missouri!!   

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

January 15^th 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. 

“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. 

Press Release

Struggling Economy Driving Consumers to Alter Ski trips, But not Cancel Them

Boston, MA, January 6, 2009- Travel industry reports forecast a dark winter for the travel industry, but FlipKey.com, a leading vacation rental website, indicates this doesn’t necessarily spell a down season for the whole ski industry. FlipKey – www.flipkey.com – which markets over 60,000 vacation rentals throughout the United States, has found that consumer interest in many ski areas remains strong and has actually increased from 2008.  In fact, an informal survey of vacation rental managers in areas that draw from a more local traveling population reports year-over-year increases. Vacation rental managers are also seeing an increased interest in vacation rental properties rather than other lodging options.

According to Jeremy Gall, Chief Operating Officer of FlipKey, “Destination ski areas, such as Aspen, CO, that require consumers to travel long distances will struggle this season; however, we are seeing a boost in interest to more local ski resorts. For instance, Loon Mountain, a local draw within the New England market cited 9% year-over-year increase in pre season ticket sales.”

Similarly, Cort Roussel of Franconia Notch Vacations, servicing the White Mountain region of NH, added, “Cannon Mountain has seen a 40% increase in the volume of season’s passes sold over last year.”

Those benefiting from current traveler trends tend to be located in areas that cater to local interest and/or offer alternative lodging accommodations. Specifically, consumer interest in vacation home rentals has been bolstered by the current economy, as more people seek more affordable vacation options that do not require excessive travel. 

“We are seeing increased interest in our larger vacation homes as families are traveling in groups, taking advantage of the shared weekly rent and comfortable space afforded by our vacation homes,” said Joanne of New England Vacation Rentals.

Nick Lanza of Big Bear Vacations (Big Bear Lake, CA) cites, “Out-of-state skiers are relatively absent this year, but we are seeing a surge in interest from southern California.”

The decrease in destination ski travel is mostly a function of the economic downturn, but can also be placed on new airline policies. The introduction of baggage fees across the airline industry places further burdens on the long distance ski traveler. A family of four flying from the east Coast to the Rockies can incur more than $300 in additional fees for simply checking in their skis and boots. 

The emerging formula for this years ski family is to stay local, drive a few hours and book a vacation home rental that affords the family extra space to discuss how bad the economy is.

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

About FlipKey

*Source: comScore Media Metrix, May 2008

© 2008 TripAdvisor LLC. All rights reserved  

We were excited to see a new client testimonial posted about the FlipKey service in a recent Instant Software industry newsletter by Lahaina Island Accommodations.   

Who is Lahaina? 

Lahaina Island Accommodations is located in Fort Myers Beach, FL and offers more than 165 privately owned vacation rental homes and condos just north of Lover’s Key and Bonita Beach, Florida. Lahaina began using FlipKey in September and has collected over 150 guest reviews through FlipKey’s guest review service.

What did Lahaina have to say about FlipKey?

*As featured in the Instant Software Newsletter*

“I believe that guest testimonials on my website are far more convincing than anything that I could say about my own company or properties in the same space. Working with Bryan at FlipKey is such a pleasure! He convinced me to send FlipKey requests to our previous year’s guests. We were nervous! But I followed his advice and it was a great success! Thanks, Bryan!” Barb further stated “We receive inquiry requests daily through FlipKey. Some people who inquire are so sure that they will enjoy their stay based on reading past testimonials that securing the booking is almost easy!”

Click here to read the entire article…

Vacation rentals have often promoted themselves as a more economical and personal lodging option compared to hotels. Often these claims are backed by hard daily rate data and thus it’s not a stretch to conclude the current economic climate may have less of an impact on the vacation rental market compared to more standard travel and lodging categories. In general I would agree that vacation rentals are more insulated from the economy compared to hotels, but like most things in life “it depends.”

Aspen Feeling the Effects 

I was able to attend an educational session held by Liza Hogan of Resort Rating Specialists at last week’s Annual VRMA Conference. Liza helps VR managers institute rating programs that help accurately market vacation rental units, but also provide structure and guidance to help owners invest appropriately in upgrading/maintaining their properties. As such, Liza is a recognized expert in the space and has collected data points and case studies across the country. During her presentation Liza mentioned Aspen, CO was preparing for a “down” season and was only at 50% occupancy for the holiday season as of mid-October. Typically, premier ski destinations, such as Aspen, are nearly completely booked for the holiday by the end of October. 

With most Colorado ski resorts within a 2 hour drive of Denver, Aspen’s western location (4 hours from Denver) doesn’t play well to the regional market.  Instead Aspen is a magnetic for the out-of-state family…. Thus, tack on a plane ticket, extra baggage charges (over $100 if you bring your gear on most airlines) and a car rental and suddenly you have a pretty expensive trip, vacation rental or no vacation rental.  Destination markets like Aspen are inherently vulnerable during these times.

Regional Markets Seeing an Increase in Bookings

In contrast, I had a separate conversation with a reservation manager in the White Mountain region of New Hampshire who indicated they had seen a year-to-date 9% increase in bookings. Apparently, many of the folks in Boston and New York are still planning on going skiing, they just aren’t going to fly anywhere to do it. As such, ski areas like Loon, with its proximity to several large cities, is yielding an increase in vacation rental demand.

Ultimately, vacation rentals, in general, will fare better than most travel categories in the current economic environment.  However, for every two markets that are benefiting from a change in travel plans/preferences there is likely another market struggling.

We are excited to announce that FlipKey will be a featured speaker at this year’s VRMA Annual Conference & Showcase next week in Phoenix, AZ.

 
Each year the VRMA Conference and Showcase seeks to unite those involved in the vacation rental industry by providing cutting-edge information to its attendees, as well as the opportunity to network and share ideas. The Conference draws light to the evolving industry and has proven to be a valuable resource for those actively participating in the industry.

 To see some pictures of last year’s show click here.

At this year’s VRMA Conference and Showcase, TJ Mahony, CEO of FlipKey.com will offer insight on “How Guest Reviews Can Boost Business,” and  “Social Strategies to Convert Prospects & Motivate Owners,” ultimately sharing experiences and highlighting new services and strategies that are available in the market.

Throughout the five-day conference, there are a number of interesting topics scheduled for discussion including:

All Things Not Google

Travel Insurance for The Vacation Rental Industry

Vacation Rental Managers Media Preparation Workshop

Reservation Phone Calls: Best Practices That Build Revenue

Google Advertising for Vacation Rental Managers

And More! We hope to see you there.

A few months ago my friends and I were planning a trip to Las Vegas. Being in the Vacation Rental industry, I decided to float a crazy idea out there about where we should stay – in a vacation rental! The reaction from the group was consistent and discouraging, “Renting a house in Vegas? Not staying on The Strip? Blasphemy!”. I had inadvertently touched a nerve that exemplifies one of the industry’s major challenges – how do we educate people to understand that vacation rentals are a preferable option to hotels?

Armed with a bevy of insider facts and figures I diligently went to work at swaying the group. I found a few great housing options and explained the benefits.

My home for the weekend 

Cost

Eight of us were going on the trip. For five nights we were looking at four hotel rooms at about $200/night on The Strip. Total cost = $4000.

The house I found was about $1500 for five nights. It contained ten separate beds across 6 bedrooms. Total cost = $1500.

Food & Beverage

My chosen house had a full kitchen and a 6-foot long grill out back. A quick trip to Costco on the first day and we’d be eating an assortment of breakfasts, lunches, dinners, and late night snacks at the house. Compared to the Strip’s exorbitant food prices and $7+ drinks, this was another significant area for savings.

Socialization

The reason we were going to Vegas in the first place was a reunion of sorts. We all went to college in Virginia together and have become scattered across the country over the last 10 years. Thus, it’s rare that we all get together and this trip was an opportunity for us to catch up. The rental house offered ample space for relaxation and entertainment. It included a beautiful pool, hot tub, pool table, poker table, big screen tv, and a patio with a gorgeous gazebo out back.

Location

This was the final barrier to entry for everybody (self included). The house was about three miles off The Strip. However, we decided that the rest of the benefits outweighed the location, and we took the plunge. Having just returned from the trip, I can now safely say that the location was not as big of an issue as we thought. We rented a van for about $300, and it was only about an 8-minute drive to The Strip. When the occasional taxi was needed it was a reasonable $20 trip. The van even paid for itself with all the airport pickups and drop-offs that would have otherwise required taxis.

Ultimately, we ended up spending more time at the house than anywhere else and everybody felt it was their best trip to Vegas ever. Vegas can be a grind of long hours with minimal sleep, but the vacation house offers a much-needed respite from the indulgences of The Strip.

While heading to the airport on our last day, my friend said it best: “You know, in a year I’m not going to remember the hundred bucks I won or lost at the blackjack table. But I will never forget how much fun we had at that house.”

The following is an excerpt from a recent Instant Software client newsletter.  To read the full article click here.

——————- ISI Insider Newsletter—————–

ISI Clients are Increasing Booking Conversions with New Integrated Guest Review Service Powered by FlipKey

Instant Software and FlipKey launched an integrated seamless guest review service during RezFest 2008. In less than three weeks since launching, 35 property management companies have successfully begun integrating guest reviews through ISILink. Over 4000 reviews have already posted on 1500 properties with an average rating of 4.32 out of 5. Getting started with guest reviews is quick and easy…and it’s also FREE.

WHY COMPANIES ARE USING FLIPKEY / ISI GUEST REVIEWS

Research shows that recommendations from prior guests have a dramatic effect on booking conversions. According to Compete, Inc., 78% of vacationers say they are significantly more likely to book a vacation home if they can read reviews from past guests. TripAdvisor notes that hotel websites have doubled their conversion rates after incorporating guest reviews into their websites. Why? Because they remove the uncertainty and unpredictability often associated with a potential accommodation.

Not only will guest reviews likely increase your booking conversions, but through FlipKey, you will also increase your marketing distribution. In 2009, TripAdvisor will begin promoting vacation rentals that feature FlipKey reviews, giving you the opportunity to promote your properties to more than 24 million visitors per month.

MANAGE YOUR REPUTATION – NO REVIEW IS A BAD REVIEW

Some property management companies have expressed concern about potentially negative ratings. However, 81% of guest reviews are positive to very positive with an average rating for ISI clients of 4.32 out of 5. In fact, only 4% of guest reviews are negative and these minor cases are critical in establishing the credibility of all your positive reviews. Research has shown products featuring at least a few critical reviews convert better than products featuring only positive reviews. 

To read more click here.

In the past few weeks there has been growing discourse over the proposed bi-laws of VRMA and the future direction of the organization.

FlipKey has invested heavily in the promotion of the vacation rental industry and supports multiple organizations (VRMA, Discover Vacation Homes, CFVRMA, etc.) to further the collective interests of our industry.

To that effect, we felt it was prudent to make our readers aware of Alex Risser’s (President, Outer Beaches Realty) Save VRMA campaign.   Although this is not an endorsement of any particular party, we do feel it’s important our readers are aware of the emerging issues that are being addressed at this years annual VRMA Board Meeting.

This information is taken from www.savevrma.com where you can find additional information on the current issues, what Alex is proposing and your options as a VRMA member.

If you are a VRMA member you should have received meeting notes from last years annual board meeting, Restated By Laws of VRMA and a proxy vote form.  Please consult these materials to understand all aspects of this year’s voting issues, topics and positions.

————Taken from SaveVRMA.com————–

We, the undersigned, collectively urge Vacation Rental Managers Association members to give their general proxy to VRMA Board Member Alex Risser so that he will have the voting power to bring about some urgently needed changes in VRMA’s management and direction.

We believe that VRMA is our best hope of addressing urgent technology, political and economic trends that are threatening our industry.

We have reluctantly concluded that VRMA’s current management, while having done a good job coordinating conferences for our members, has done too little in expanding VRMA’s membership and participation in issues that are too large for any individual member, including:

• National promotion of vacation rental homes to hotel customers;
• Educating renters to differentiate managed from self-managed rental homes;
• Community restrictions on vacation rentals;
• The lack of a central industry website to compete with rent-by-owner sites;
• Legislative initiatives that would make flood insurance more expensive or unavailable.