As the NBA Finals get set to kick off tonight in Boston between the Celtics and the Lakers the cost for a hotel room in the city has soared. Planning on spending the weekend in Boston for Games 1 and 2? Staying at the Marriott on Long Wharf near the TD Banknorth Garden would cost close to $1,800 if you checked in today and left on Monday morning.

Four nights would run you close to $1,800 and that’s before you buy the tickets

Or, you could rent your own vacation home on Cape Cod. Yes, you would lose the convenience of walking out your hotel lobby and joining the sea of green shirts headed to the Garden, but you would be able to enjoy the comforts of your very own home on Cape Cod for a long weekend.

I just got off the phone with Cape Cod Vacation Rentals and they informed me that this home: http://www.flipkey.com/properties/view/994/ could be rented for $150 / night. That $1,200 in savings might be enough to get you into the Garden and close to the famous parquet. Plus, you can always retreat to the Cape in between games.

Now, if we could just get the games to start a little earlier. . . Go Celts!!!

Guest Author: Discover Vacation Homes

When Discover Vacation Homes was formed in 2006, founding members agreed that the level of consumer awareness and confidence in the vacation rental category is only going to grow if we, as an industry, come together as a united front of colleagues rather than competitors. Steve Trover, Discover Vacation Homes’ President, explains that awareness is our industry’s greatest obstacle and greatest opportunity. “Only a small percentage of Americans have stayed in vacation homes, and most don’t even know the option is available. Together, we can change that.”

Discover Vacation Homes, the name which is a call to action in itself, is currently an alliance of the most well-established vacation rental management companies in the Orlando area. During the past two years, we have worked side-by-side to develop the Discover Vacation Homes objective, brand, key messages, press materials, website, and more, sparking a growing momentum for the good of the vacation rental industry nationwide.

Our goal is unanimous: To raise awareness of vacation rentals as a viable lodging option to travelers, and importantly, as one of the hospitality industry’s fastest-growing categories. Nearly all of the association’s funds are dedicated to public relations efforts, including presence at local and national trade shows, and we have enlisted an internationally recognized PR firm, Y Partnership (www.ypartnership.com), to handle publicity and media relations for the consumer-driven campaign.

Dan Kline, Amanda Patric and, Brian Brannigan – Founding Members of DVH

Why public relations? We recognize that consumers are increasingly looking online for credible third party recommendations about everything from retail goods to accommodations. By combining the traditional practice of PR with new media strategies, Discover Vacation Homes seeks to elevate the awareness level of the entire industry through editorial coverage and social networking.

The more involved the industry becomes, the louder the message, and as awareness grows, so goes the association. A mantra of sorts, this belief is key to the cause as Discover Vacation Homes poises to expand membership on a national scale in 2009. With national representation and support from industry partners, the organization will exponentially grow the awareness (and, in turn, bookings) of vacation rentals in locations across North America, and potentially worldwide.

Association membership includes a commitment to uphold Discover Vacation Homes’ code of ethics and business practices, as well as required membership with long-standing professional association, VRMA – the Vacation Rental Managers Association (www.vrma.org), and encouraged affiliations with local and regional groups, CVBs, the Better Business Bureau, and AAA, among others.

To get involved, join the discussion, or learn more about the association and its efforts, feel free to:

• Visit www.DiscoverVacationHomes.com
• Email JoinIn@DiscoverVacationHomes.com
• Call directly at 1-800-557-0135

Keep an eye out for an upcoming submission form on the Discover Vacation Homes website for companies interested in association membership, as well as the latest vacation rental news and editorial coverage.

Interviewing consumers about their experience in a vacation home at the Vacation Home Expo in Altanta, GA

An interesting article came across my desk today highlighting the growing vacation rental market in San Francisco.

Here is an excerpt of the article:

San Francisco has been a mecca for tourists and business travelers for more than a century, and to meet the demand a vital hospitality industry has sprung up. Scores of high-end hotels and corporate apartments, hostels and bed and breakfasts all compete to attract the city’s yearly 16 million visitors and get a portion of the over $7 billion they spend. But in the past few years, with the rise of the Internet’s free market enterprise, the city has seen another sort of accommodation crop up: the individually owned vacation property.”

Cont…

“Indeed, according to a quick and dirty survey of a dozen Web sites which list San Francisco vacation homes, more than 700 houses, flats or apartments in San Francisco are being primarily rented as temporary crash pads. That doesn’t count those properties that exclusively use Craigslist.org as their sales portal.”

For visitors this is great news — especially as hotel rates escalate through the roof. Renting an individual apartment or house can mean a lot more space and luxury for a fraction of the price.

The Good and The Bad:

The emergence of urban vacation rentals is a great win for consumers. Consider, New York City, where average hotels prices exceed $300/night. If you perform a quick search for vacation rentals in NYC you can find accommodations for ~$150/room/night. – a 50% savings boost compared to the average NYC hotel…

I have hands on experience with urban vacation rentals as I used to rent my Boston condo as a vacation rental. Last summer I was able to command ~$1,500/week. Most of my guests left wonderful notes thanking me for the unit and suggesting I charge MORE (true story).

The problem with urban vacation rentals is the increased unpredictability and potential legal concerns. Last summer, most of my guests required I “prove my identity” before they would send me payment. Luckily, I have a number of online profiles that helped.

An additional challenge faced by urban vacation rentals pertains to zoning laws and condo/co-opt bi-laws. Most urban vacation rentals are facilitated via apartments/condos that are accompanied by specific rules/regulations for how an owner/primary-renter is to maintain their unit. In many cases, the owner/primary-renter may be taking legal risks in turning their unit into a vacation rental.

The Urban Vacation Rental market is a real opportunity in cities such as, San Francisco, Boston, New York and Chicago, but there are valid trust and legal concerns that need to be addressed before this segment of the vacation rental market will emerge as a mainstream lodging option. In the interim, it’s great to see the concept gaining momentum and I look forward to helping provide urban vacation rental accommodations via FlipKey.com in the near future.

On Tuesday FlipKey released a press announcement highlighting the health and growth the vacation rental industry (see full release below). Typically, public relation efforts are focused on a single product or company. At FlipKey we, of course, are interested in promoting our service publicly, but we also feel the underlying vacation rental market has an interesting story to tell.

Moving forward FlipKey will begin to focus a portion of its marketing investments and efforts in broader industry awareness. We will soon feature a story highlighting an emerging industry group we feel will be a powerful advocate for the vacation rental market – Discover Vacation Homes

Discover Vacation Homes began as a collaborative effort amongst vacation rental managers in the Orlando, FL market to promote vacation rentals as a mainstream lodging option. Rather than focusing their marketing efforts to compete against one another, they agreed collaborative industry marketing to “increase the pie for all” was a more beneficial approach.

If you’re interested in learning more, visit them at www.discovervacationhomes.com. Next week we will feature a more in-depth profile on the organization.

—-FlipKey Recent Press Release—–

BOSTON, MA - May 20 2008 - Despite the dark U.S. real estate market, individuals that own a second home and make it available as a vacation rental are seeing pure sunshine. In March, the Vacation Rental Management Association (VRMA) announced that the vacation rental industry saw a 17.4% revenue increase in 2007. The $80B domestic vacation rental market continues to benefit from rising hotel prices and second-home owners looking for additional sources of income. Vacationers are quickly discovering that renting a vacation home often provides a more spacious, personal and economic lodging experience when compared to hotels.

According to Steve Trover, President of Discover Vacation Homes, the industry’s public awareness organization, “Anyone who stays in a vacation rental will tell you they will never go back to hotels. Renting a well-kept private home, in a beautiful destination, affords families a more personal experience, ideal location, more space and extra amenities simply not offered by hotels, such as private pools, a backyard and full kitchen. Vacation rentals are a win-win for vacationers and second-home owners alike.”

In 2007, hotel rates in major U.S. cities increased an average of 9%, and the average nightly rate for a room in Manhattan saw a year-over-year increase of 12%. In response, consumers are seeking alternative accommodations, which bodes well for the vacation rental industry. However, many consumers have been confused by the booking process and discouraged by fragmented listings, inaccurate calendars, unverified hospitality and management services and the potential for fraud.

New services, such as FlipKey.com, are focused on taking the guesswork out of vacation rentals by verifying the legitimacy of vacation homes listed on its site and publishing reviews from real guests. According to a recent FlipKey.com study conducted in partnership with Compete, Inc, 78% of vacationers indicate they are significantly more likely to rent a vacation home if they can read a review of a prior guest and have some level of guarantee that a manager is within driving distance to assist with any maintenance issues that might arise.

“Transparency and confidence are the crucial elements to successful vacation home rentals, and as hotel prices escalate, vacation home rentals are becoming the lodging option of choice,” said TJ Mahony, CEO of FlipKey. “The FlipKey study, backed by Compete’s web analytics, reinforces our belief that the vacation home rental market will see continued growth as FlipKey guest reviews and service verification are made openly available, bringing the same level of transparency and confidence to renting a vacation home that other websites have brought to booking a hotel.”

With the introduction of new reputation-based services like FlipKey.com, the industry is enjoying strong demand. In fact, VRMA reports that 88% of its member companies (management companies who oversee the rental of owners’ homes) experienced an overall gross income increase between 2006 and 2007. Summarized by Steve Trover, “Despite the real estate market, despite rising fuel prices and despite rising hotel rates, vacation rentals continue to prosper, offering second-home owners significant sources of income and vacationers superior and more economical lodging options.”

It’s a small world after all… In 2005 I attended a small party in Vail, CO to celebrate a good friend’s wedding engagement. There were 10 of us and we all decided to go in on a vacation rental in the heart of Vail. Among the group was a gentleman by the name of Michael McFadden - who I had not previously known. By the end of the weekend we had all had a great time and Michael and I had become friends.

Fast forward three years…. By pure chance Michael and I started two vacation rental services at basically the same time. I, of course, helped create FlipKey – a community driven travel site that helps consumers find trusted vacation rentals throughout the world, by providing real reviews of verified vacation rental properties – and Michael started TheSociety.

About the Society (Taken from thesociety.com)
At The Society, you’ll discover only the finest in luxury vacation rental homes in beach, mountain and desert destinations. Unlike typical online vacation search sites, The Society ensures that each vacation home meets quality standards established by experts in the luxury real estate industry. Also, members and guests of The Society have access to The Society-rated concierge information including the best golf courses in an area, nearest ski resort or popular restaurants. Planning an unforgettable luxurious vacation just got easier. The Society. A symbol of luxury.

As described in their company profile, TheSociety focuses on high-end luxury rentals. With a keen focus on high-end properties, TheSociety goes a step further by aggregating information on nearby golf courses, ski options and restaurant choices.

Recently, TheSociety announced a partnership with LuxuryRealEstate.com. As explained in TheSociety’s press release, TheSociety will be the exclusive provider of vacation rentals on LuxuryRealEstate.com. Click here to read more.

Congratulations on the progress Michael…. One question, the home we stayed in Vail three years ago was quite nice – would it have met TheSociety’s standards?

FlipKey is focused on helping vacation rental managers collect and manage guest reviews and is constantly developing new tools to help maximize the value of this powerful social asset. Today, we are happy to announce the launch of FlipKey Alerts.

What are FlipKey Alerts?
Research shows 81% of vacation rental reviews are positive, 16% neutral and only 3% are of a negative nature.

The fact is, consumers love the vacation rental product; however, there will always be a few voices you simply can’t satisfy. In some situations these negative reviews are justified, but in most cases the second side to the story gives a more accurate picture.

With the Response feature, FlipKey allows managers to respond to all reviews and provide context or more information (such as maintenance improvements) to a guest review. Now with FlipKey Alerts, FlipKey sends an alert message as soon as a negative review is submitted to help managers efficiently respond to negative reviews.

Benefits of FlipKey Alerts:

• Immediate email notification of negative reviews
• Direct link to the FlipKey Response tool to allow managers to post a public response to provide more context to the guest’s opinion
• FlipKey customer service outreach within 48 hours if the review has not been responded to

Early Example of a manager response to negative review alert:
Ladybug Cabin - Carolina Mornings (Click to view)

Scrolling to the bottom of the page, we see the first review is not positive. However, the manager’s response highlights Carolina Mornings commitment to quality, responsiveness to guest feedback and counter opinion. Suddenly, when put into context this first review does not seem particularly negative and provides credibility to the four subsequent positive reviews.

If you are an existing FlipKey user or are considering using FlipKey and you have any questions regarding FlipKey Alerts, feel free to call us at 877-FLIPKEY.

FlipKey has officially outgrown its Cambridge office and is moving downtown to accommodate its growing staff. We are excited about the move and love our new location in the heart of downtown Boston.

We will be spending a good amount of time getting settled this week, so we are going to give the Blog the week off. We’ll be back first thing next week, so stayed tuned.

Carrie Hill of Blizzard Internet Marketing recently wrote a great post highlighting some Do’s and Don’ts for responding to negative reviews online. Among other great tips, she encourages managers to acknowledge the problem or issue presented in the review and publicly respond, thus allowing future customers to see your proactive approach. (Read Carrie’s post in full here)

Andy Beal wrote a post on Marketing Pilgrim back in November of 2007 which described “Five Ways Negative Reviews help your Online Reputation“.

From Andy’s post:

Here’s how you can benefit from negative reviews:

1. Your need to know. If your products or services are crap, then you need to know about it. It’s better to hear it from your customers-so you can fix it-than never know about it and wonder why your sales suck.
2. Build credibility. As Goodman points out, negative reviews add authenticity to your reputation. Consumers are smart-mostly-and they know that if you have 1000 customers, a few will be upset over something. Take a look at the hotel industry. Just about every hotel has a review that mentions dirty sheets, cockroaches, or rude staff. Yet we still stay in hotels. We just look for the ones that have the best overall reviews.
3. Fix the problem. Research suggests that a customer will tell ten people about a negative experience with a business. However, if you fix the problem to their satisfaction, they’ll tell twenty people how happy they are! Look for negative reviews and fix the problem!
4. Show you care. Potential customers look at how you handled the situation. If you do find yourself with a negative review or critique, rectifying the situation publicly will demonstrate to potential customers that you care about your reputation-and your customers.
5. Learn from competitors’ mistakes. Don’t just read your negative reviews, read those of your competitors. If you learn where your rivals keep slipping-up, you can fine-tune your offering to make sure you don’t make the same mistake. Better still, how about reaching out to an unhappy customer of one of your competitors and fixing their problem-you could win a new customer for life!

For vacation rental mangers, collecting verified guest reviews is an excellent first step, but more may be needed to solidify your company’s online reputation. The guest reviews you collect must be managed. Whether it be thanking a consumer for a great review or addressing a consumer who had a bad experience, the review and your response together will create an image of your company and the homes you represent to future consumers. Negative reviews should be seen as an opportunity rather than a nuisance. Companies that embrace this philosophy will instill confidence in potential guests. This confidence will lead to increased conversion rates, higher occupancy and the ability to charge higher nightly rates.

Managing your online reputation means more than collecting and displaying verified guest reviews of your vacation rental properties. An additional component is the ability to engage in direct dialogue with your past guests by using FlipKey’s ‘Manager Response’ feature.

By responding to guest reviews, managers are taking the next step and engaging in a public dialogue with their consumers, a powerful tactic and integral part of maintaining a company’s consumer brand. In an industry hungry for more consumer confidence, vacation rental managers can benefit substantially from this.

Below are several examples from managers that are using the ‘Manager Response’ tool on FlipKey to effectively engage their current consumers and present themselves to prospective guests.

Clarifications and Additional Property Details
Using the Response feature, property managers clarify information in their guest reviews and provide additional details about the property. Franconia Notch Vacations uses the Manager Response to clarify the maximum occupancy of the home and the repercussions of breaking these rental rules.


A response from Franconia Notch Vacations in Franconia, NH clarifies information in this guest review.

Addressing Specific Guest Experiences
Here Escape 2 Florida Homes responds to a guest review and provides specific information about the pool and the hot tub in this vacation home. By displaying this public dialogue, future consumers learn how diligent this property manager is about customer service and the satisfaction of their guests.

Escape 2 Florida Homes in the Orlando, FL area uses the Manager Response to address specific guest information and highlight their hospitality services.

Thanking Your Guests on a Public Forum
Vacation property managers also use the Manager Response tool simply to publicly thank their guests. With this personal response, Surfside Realty demonstrates the hands-on nature of vacation rentals and includes the direct email of their guest services coordinator. Responding and creating a guest-manager dialogue on a third-party site adds to the trusted nature of the verified guest review.

Surfside Realty, Myrtle Beach, SC thanking a guest for their review.

Managing your reputation online does more than increase consumer confidence - it also helps you manage consumer expectations. With the help of guest reviews and direct dialogue with the Manager Response, vacation rental managers can add more to their property listings and services information. More information provides potential guests with a better sense of each home, making it easier to match a guest’s expectations with the right property and create a better vacation experience.

FlipKey’s mission is simple - help increase the presence of vacation rentals as a mainstream lodging option. At FlipKey we have managed our own vacation rentals and we have stayed, as guests, in other’s vacation homes. Our intimacy with the product is acute and we are confident that, in most circumstances, the vacation rental experience is superior to alternative lodging options.

The problem is that vacationers demand ‘predictability’. When consumers plan a trip with a hotel stay there is no pre-booking anxiety. Consumers are confident that there is staff on site for check-in, a standard TV with basic cable in the room, clean towels and a phone that with a press of the “0″ button connects them with the front desk if there are any problems. Inherently, the vacation rental experience is not afforded the same consistency and predictability.

Prospective guests want to know:
- Is the home as nice as the advertisement claims?
- How do I get my keys?
- What happens if something goes wrong?
- Is there a deposit? How much is it? How do I get it back?
- Who manages the home?

Vacation rentals are a unique product with a unique consumer process. The industry’s uniqueness is it’s strength and advantage. The missing piece of the equation is the voices of past vacation rental guests singing the praises of not only the vacation rental experience, but of the specific company and home they stayed in. If consumers want predictability, then lets provide them with the most powerful resource we can offer - “honest words and reviews from our past guests”.

Third party guest reviews (via TripAdvisor) have been cited to increase hotel conversion rates by 100% (click here for more info). If a hotel can yield higher occupancy from reviews of its simple and predictable product, imagine what trusted reviews can do for vacation rentals!

FlipKey has begun to offer the vacation rental industry the power of transparency and the increased consumer confidence that comes with it. By offering the first advanced guest review platform specific to the industry, FlipKey is helping vacation rental managers collect robust guest reviews from verified guests and helping future travelers discover the vacation rental experience.

FlipKey is a relatively new service, but in the 30 days since opening our doors, a number of the industry’s leading management companies have begun using our free guest review and management tools. See some examples below:

Wondering where a great vacation rental is available in the Disney, Orlando area? Read the reviews collected by these Orlando/Kissimmee based vacation rental management companies:
All-Star Vacation Homes (Orlando, FL)
Escape 2 Florida Homes (Orlando, FL)
Imagine Vacation Homes (Orlando, FL)

Planning to get a few families together for some golf and seaside fun in Myrtle Beach, SC? See what guests (including me) had to say about specific homes managed by Surfside Realty:
Surfside Realty (Myrtle Beach, SC)

Ski season may be over, but homes are already being reserved for the fall foliage in Franconia, NH. Read some of the reviews from the vacationers who have stayed in the large family homes managed by Franconia Vacation Rentals:
Franconia Vacation Rentals (Franconia, NH)

Looking to escape the hustle and bustle of Boston and enjoy some rest and relaxation by the beach? Cape Cod is your spot for beaches, golf, shopping, whale watching, deep sea fishing and more. Take a look at what past guests had to say about Cape Cod vacation homes:
Cape Cod Rentals (East Orleans, MA)

Ever been to Northern Michigan? Holiday Vacation Rentals in Harbor Springs manages wonderful places to stay while visiting one of the most beautiful resort towns in America. Miles of Lake Michigan beaches have been called the “Riviera of the Midwest”. Check their homes with guest reviews here:
Holiday Vacation Rentals (Harbor Springs, MI)

Carolina Mornings not only boasts reviews from pasts guests, the owners of the properties have been involved as well. What better way to understand exactly what a property offers than hearing directly from the owner?
Carolina Mornings (Asheville, NC)

This is only the beginning of how powerful verified guest reviews will be for the vacation rental industry. By offering tools for collecting, managing and distributing guest reviews online, FlipKey is here to help educate consumers on the incredible experience of a vacation home rental. If you are a property manager looking to get started leveraging guest reviews with Flipkey, apply for the FlipKey verified program here.