Comments on: Quality of Guest Inquiries - The Good, the Bad, and the Un-Spam http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/ Expanding the Vacation Rental Market Through Insight and Community Wed, 20 Aug 2008 06:49:10 +0000 http://wordpress.org/?v=2.6 By: Cheap Rates Hotel http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/#comment-832 Cheap Rates Hotel Thu, 07 Feb 2008 03:00:39 +0000 http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/#comment-832 That is a great thought.. I wasn\'t thinking in that direction. That is a great thought.. I wasn\’t thinking in that direction.

]]> By: Steve Trover http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/#comment-81 Steve Trover Thu, 20 Sep 2007 04:41:10 +0000 http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/#comment-81 I agree with Steve on existing demand but believe that the current supply would be far more utilized if demand were increased due to a substantial increase in product awareness. I contend that only a small percentage of domestic travelers have ever stayed in a vacation home rental because they have little or no knowledge of the product. The lack of major brands or any apparent standards has a lot to do with this. I feel the lack of product awareness is the biggest issue affecting the vacation rental industry today. This will change over time. I believe demand will far outstrip supply if it happens sooner than later. I agree with Steve on existing demand but believe that the current supply would be far more utilized if demand were increased due to a substantial increase in product awareness.

I contend that only a small percentage of domestic travelers have ever stayed in a vacation home rental because they have little or no knowledge of the product. The lack of major brands or any apparent standards has a lot to do with this.

I feel the lack of product awareness is the biggest issue affecting the vacation rental industry today. This will change over time. I believe demand will far outstrip supply if it happens sooner than later.

]]> By: Steve Murch http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/#comment-42 Steve Murch Wed, 15 Aug 2007 22:02:56 +0000 http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/#comment-42 PS: I'd add that another thing holding back consumer demand is yield-based pricing, which also requires (at least for professional property managers) more sophisticated software than has been available... so far, at this writing :-) PS: I’d add that another thing holding back consumer demand is yield-based pricing, which also requires (at least for professional property managers) more sophisticated software than has been available… so far, at this writing :-)

]]> By: Steve Murch http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/#comment-41 Steve Murch Wed, 15 Aug 2007 22:01:34 +0000 http://blog.flipkey.com/2007/07/17/quality-of-guest-inquiries-the-good-the-bad-and-the-un-spam/#comment-41 I guess I'd disagree here that demand for vacation rentals exceeds supply. I think it's the reverse. Vacation home and condo supply is ample -- evidenced by the fact that we've had historically low interest rates, record second home ownership, and extremely low annual occupancy rates in vacation properties (the typical vacation home is only rented out about 8-11 weeks out of the year in most destinations, which is a paltry 15% occupancy rate for the average home, compared with a typical occupancy of 80% or more for the average hotel). Rather, I'd say the "consumer-surfaced supply" or the "easily searchable supply" is exceeded by consumer demand, which is perhaps what you meant. The available homes and condos are definitely out there to be rented -- and in numbers that would fully satisfy existing demand, but the electronic connection between the consumer and where most of the inventory is managed (in the case of professionally managed homes) is not yet fully built out in a way that makes shopping for vacation homes as easy as hotels. And this, in turn, keeps demand lower than it naturally should be, given that vacation homes and condos offer far better overall value and amenities (generally) for families and couples. At Escapia Inc., we're trying to solve this imbalanced for the professionally-managed segment, by building world-class property management software, then connecting it in to various points of demand. I guess I’d disagree here that demand for vacation rentals exceeds supply. I think it’s the reverse. Vacation home and condo supply is ample — evidenced by the fact that we’ve had historically low interest rates, record second home ownership, and extremely low annual occupancy rates in vacation properties (the typical vacation home is only rented out about 8-11 weeks out of the year in most destinations, which is a paltry 15% occupancy rate for the average home, compared with a typical occupancy of 80% or more for the average hotel).

Rather, I’d say the “consumer-surfaced supply” or the “easily searchable supply” is exceeded by consumer demand, which is perhaps what you meant.

The available homes and condos are definitely out there to be rented — and in numbers that would fully satisfy existing demand, but the electronic connection between the consumer and where most of the inventory is managed (in the case of professionally managed homes) is not yet fully built out in a way that makes shopping for vacation homes as easy as hotels. And this, in turn, keeps demand lower than it naturally should be, given that vacation homes and condos offer far better overall value and amenities (generally) for families and couples. At Escapia Inc., we’re trying to solve this imbalanced for the professionally-managed segment, by building world-class property management software, then connecting it in to various points of demand.

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