Escapia Blog - Vacation Rental News and Trends

Escapia takes to the Smoky Mountains in Gatlinburg, TN

By Mike Zaroudny, Escapia Sales

I just got back to Seattle from a week of Southern Hospitality nestled in the hills in the Great Smoky Mountains of Gatlinburg, TN - just about an hour’s drive south of Knoxville.  We flew in to host the Smoky Mountain Vacation Rental Breakfast Seminar.

Not knowing what to expect I hopped in the rental car, powered up the GPS and set course south to Gatlinburg. Good thing for me I had GPS leading the way through the night or I’m afraid I’d still be lost in the woods. Somehow the GPS figured the best route to town was on a series of winding one-lane roads, following creeks over wooden bridges for 30 miles through places like Wears Valley and Cove Creek. 50 minutes later, poof! There it was, Gatlinburg, TN.

The next day I started my adventure to visit the surrounding towns and see why families flock to the area year-round. Turns out, there’s plenty to do. The main strip in Gatlinburg is family attractions like miniature golf, rides, tours, shops, arcade games and the Aquarium. You can get an airbrushed t-shirt or an old time photo while dining on the latest deep-fried food from one of the many vendors that line the parkway.  Cantilevered cabins that dot the hills looking out into the valley or Ober Mountain, which is accessible by tram from town.

I also ventured outside Gatlinburg to nearby Pigeon Forge and Sevierville to meet with vacation rental managers and explored all I could along the way.  The winding tree-lined roads made me wish I could pack my Harley in a carry-on bag.  I bet when fall hits and “leaf season” begins the Smokies is the place to be.  Other attractions along the way are Dollywood and the Boardwalk-attractions that line the parkway for miles through Pigeon Forge, my favorite was the upside-down WonderWorks building.   

The next day at the Vacation Rental Seminar we had twenty plus attendees from the top local vacation rental companies in the area. The topics discussed at the seminar included how the economy and the Internet have impacted how people search and book rentals today and how to maximize revenue and traffic in 2009.

The group of attendees at the seminar was interactive and had many questions as well as insight into their local market. Thanks to everyone who attended and I hope to see you in the future.

Escapia Research: Lead Times...Are They a-Changin' (or Not)?

By Bill Furlong, CEO

When you talk to any group of vacation rental managers about how the business has changed over the past few years, one theme you’ll regularly hear is that booking lead times are shrinking.  In the midst of this severe recession, we often hear that bookings are happening later than ever. We thought we would go to the data to see if that is really happening.

The first way we looked at the question was by analyzing February bookings to see if a higher proportion of them were for rentals happening sooner rather than later. The change in the timing of bookings from a year ago is less than some might think.

The chart above shows that 25% of bookings received by managers in February were for rentals with February arrival dates. A year ago, that percentage was 22%. So there was a small shift toward booking for trips taken in the same month. Is that 3% shift significant? On the one hand, it is a 14% increase (i.e. 3% as a percentage of 22%) in the share of February bookings that were for immediate trips. But still, going from 22% to 25% isn’t a dramatic change, and as the chart above shows, when including March the numbers shift back the other direction a bit.

So then we flipped the analysis around and looked at the timing of when bookings for rentals that had arrival dates in February occurred. This confirms the general conclusion above – there is a slight shift towards last minute bookings but not a dramatic change.

As the chart above shows, in 2009 31% of February rentals were booked in February; a year ago that number was 29%. But expand that to January and the year-over-year numbers are the same with 62% of February rentals being booked in either January or February both in 2008 and 2009.

Looking at the chart below, you can see how the economic crisis impacted the pace of bookings.

The dark area in the chart above shows how bookings for February 2008 arrivals built over the course of the 12 months preceding that date. The yellow line shows the same number for February 2009 rentals. As you can see, bookings for February rentals were actually doing slightly better for 2009 rentals than 2008 rentals until October. As we all know, the financial crisis kicked into high gear in October, and as the chart above shows, the bookings for February arrivals began to suffer.

While we like to think that travelers were just waiting to book until the last minute, what we see really is that bookings did not recover in the first two months of the year and in fact continued to slide, resulting in February 2009 arrivals 13% lower than the year before.

Escapia Research: February Bookings Show What a Difference a Year Makes

By Bill Furlong, CEO

Can you remember what it was like a year ago? It seems like a lifetime ago to most of us. From the perspective of vacation rental bookings, it was a lifetime ago. Last February was the last month in the past year with very strong year-over-year increases in vacation rental bookings -- an 18% increase in February 2008 over the year before. What a difference a year makes. Escapia Research just completed our analysis of monthly bookings for February 2009 and found that overall people continue to react the the recession by putting off vacation plans. As the chart below shows, February 2009 bookings for vacation homes in our sample were down 25% compared to a year ago.

 

Looking at the regional results (booking dollar % change from February 2008) shows a few changes from last month:

• Hawaii -43%: A significant drop off versus where they were last month (-22% year over year).
• East -38%: Also a big drop from last month. In January, vacation rentals in the East seemed to be doing relatively well ("relative" meaning down less than 20%).
• Rockies -29%: A bit of improvement for rentals in the Rockies. Last month they were looking at a year over year decline of just under 40%.
• West -23%: No change over the January results.
• South -17%: Just about the same as last month, and still the region where the impact of the recession seems least severe. Only in 2009 could someone look at a 17% drop in bookings and feel relieved that it could be worse!

A New Way for Travelers to Discover Vacation Homes

By Bill Furlong, CEO

Our passion for vacation rentals at Escapia is focused specifically on doing all we can to help professional vacation rental managers thrive.  That's what our EscapiaONE software platform does and that is why we launched our consumer site, ClearStay.com.  So we're always excited to see new initiatives dedicated to the success of professional vacation rental managers.   

We are very pleased to see the Vacation Rental Managers Association (VRMA), launch a much-needed awareness campaign under the Discover Vacation Homes banner.  VRMA’s Discover Vacation Homes initiative will promote professionally managed vacation rentals through public relations – including media coverage, social networking and new media initiatives.

The VRMA's goal with its DVH promotions arm is to elevate the perception of the entire category.  With the strength of more than 600 vacation rental agencies who manage approximately 150,000 trusted rental homes, condos and villas, the VRMA has a significant opportunity to craft the opinion of the traveling public about the benefits of renting a vacation home as well as the reasons to rent from a professional rental agency.

The VRMA has been very busy and productive lately, launching a redesigned website for the full association (www.vrma.com) as well as a website featuring this publicity initiative (www.growvr.com) with a video that tells much more about the initiative.  

We're excited to be part of VRMA and congratulate the association's leadership for the new initiatives designed to raise the profile of the category.

New EscapiaNET Partner: AOL Travel

By Kris Lande, Product Marketing Manager

Escapia is pleased to announce that AOL Travel will be joining the EscapiaNET distribution partner network!  AOL Travel receives about 1 million unique visitors a month, and many of these visitors will be looking for vacation homes for their travel plans.

Escapia customers need only opt into ClearStay to ensure that their units will be on AOL Travel.  If you're not already an Escapia client, contact us to learn more about the benefits of this distribution partnership among the many others available through EscapiaNET.

Escapia Thaws Out in Wilmington, NC

By Dylan Peterson, Escapia Sales Operations

Last week we flew out of the grip of the Seattle winter and landed in the sunshine and southern hospitality of Wilmington, North Carolina to host the Vacation Rental Breakfast Seminar.  Driving around in that beautiful weather, taking “purely business” detours to check out the local beaches, and talking with a number of friendly vacation rental managers sure makes for a fun week at work.

It’s easy to see why so many people return to this area year after year.  I especially liked  how each beach community was separated by some channel of water creating a chain of coastal communities each with their own Southern flavor. Wilmington itself struck me as one of those places that has more variety and character in the restaurants, bars, and downtown architecture than you would expect in a town of that size.  It felt alive and fun even in the off-season.

North Carolina is one of the largest markets for vacation rentals and comes with some very specific ways of doing business.  Talking with vacation rental managers in person was a great way to learn more about how they operate and confirm that we are offering the right product for this unique market.

 
Larry Bell and Paul Herman

An attentive room full of vacation rental company owners, managers, and staff listened as Bill covered topics ranging from the state of economy to trends and statistics to ideas on how to capitalize on the changing market.  In addition, our partners, CSA Travel Protection, Ascent Processing, and Visual Data Systems, joined us as well as local experts in vacation rentals including Larry Bell and Chris Smith.  In shaking hands and reading feedback forms it was good to learn how valuable they all found the seminar to be.  But I was particularly impressed with a common theme I was hearing from everyone in that area: “Yeah, business is down, but we’re going to make it!”

“The direct and current information proved to be the most informative four hours I can remember having spent at an event like this in thirty plus years in the vacation rental business.” – feedback from Alan Holden, President of Holden Beach Rentals.

 

 

VRMA Presentation and Roundtable Sessions Sneak Peek

Guest Author Post by Steve Milo, Vacation Rental Pros Property Management

The upcoming VRMA (Vacation Rental Managers Association) spring seminars are focused on sharing information on how to deal with the economy.

 

There are 2 roundtables on the economy in which owners can candidly share advice on how they are handling reservations, discounting and owners in this economy.

 

The Eastern VRMA Seminar is scheduled for Charlotte NC on April 1, 2

The Western VRMA Seminar is scheduled for Portland, OR on April 29, 30

 

I am working a presentation on "10 Tips to Survive and Thrive in a Slow Economy" for the Charlotte NC seminar at 2:40 pm on April 1st.

 

These 10 tips are projected to add in incremental revenue over $150,000. Two tips that seem to be generating a lot of buzz are the way we are using EchoSign and Adobe technology to literally create a paperless office.  I will have Ed Linsky from my Operations and IS team at the Charlottee presentation to give specific details on how to set these systems up.  Going to a paperless office saves a tremendous amount of staff hours, postage, paper, toner and filing cabinets - and is a very "green friendly" thing to do.

 

We are an Escapia client, and two tips might be especially valuable for clients of Escapia as they are a quick way to drive incremental revenue/profitability.

 

So, as a preview to the presentation I'll be giving at VRMA East, here are two tips:

Twitterpated!

By Kris Lande, Product Marketing Manager

The Urban Dictionary defines the word 'twitterpated' as "being completely enamored with someone/something."  You might recall from a popular Walt Disney cartoon, when Bambi learns from the wise old owl that springtime makes everyone get 'twitterpated.' That said, I am officially 'twitterpated' for Twitter, the social networking service that lets you micro-blog your thoughts and updates 140 characters at a time.  And I'm not the only one - Twitter is everywhere lately.  It seems to be all the rage on the Today Show, Fox News, CNN, the John Stewart Show...and the list goes on and on. 

I've 'tweeted' (aka: used Twitter) personally for about a year, and recently ventured into tweeting for Escapia.  I've been pleasantly surprised and impressed with all the great networking and the instant circle of vacation rental industry tweeters I've been able to connect with.  So many companies in the industry are tweeting, it is great to see everyone's updates and links to great and valuable vacation rental industry information. 

The other day I attended a webinar hosted by Blizzard Internet and Resortquest on 'Marketing Vacation Rentals on Twitter.'  It was a terrific opportunity to learn more about how vacation rental managers are using Twitter to market their rentals by promoting specials and engaging their audience.  I've also been reading many articles on using Twitter effectively.  Based on what I've learned over the past few weeks as I've started tweeting, here are some Twitter tips I'd like to share with you:

1. Follow interesting people/companies: I've began 'following' a lot Twitterers I find interesting (ex. vacation rental directories/companies, social media experts, etc.). By following them I've already been introduced to lots of interesting articles, studies and tips/tricks that they've posted.

2.  Follow interesting people/companies: Okay, yes I realize this was also #1.  But another reason to follow interesting people is that by following them, they may in turn follow you - getting your updates in front of them.  Great exposure for you!

3. Share a mix of information with your Twitter community: I view Twitter as a great place to not only feature blog posts and company updates, but also to share your company's personality.  Many companies on Twitter only tweet 'new blog posts.'  While sharing blog posts on Twitter is great, I encourage you to share more - such as what you're doing, what you're reading, and what you're working on.  I've enjoyed putting 'fun' company pictures and updates on Twitter as well.  The key is to be personable, yet professional.

4. Engage your Twitter following: Watch the conversations happen on Twitter, and chime in to respond and help as needed.  For example, if you see someone tweet "looking for a vacation rental for 10 people somewhere along the California coast in June," engage with that person if you can point them in the right direction. By the way, below is an actual tweet I saw, and there are tweets like this all the time - potential customers for YOU!

 

5. Use Twitter tools to make it easier on yourself: Twitter can be addicting and a time-suck, so use tools available to make posting, following and searching easier.  I came across a great list of '10 Twitter tools that help you work smarter' - check it out.  These tools can help you integrate your blog, search for keywords, create auto-updates, and broadcast your tweets to your other networks such as Facebook. 

You're feeling a little twitterpated now too aren't you?  If your company is not yet on Twitter, you should definitely see what it's all about. Twitter can be another way to create your own online community to engage, interact and share your company's information.  There are lots of vacationers on Twitter looking for that great rental!

Oh, when you're there be sure to follow us. :)

Happy St. Patrick's Day from Escapia!

By Kris Lande, Product Marketing Manager

When I walked into the office this morning, I noticed about half of the Escapia team festively wearing green.  This definitely warranted a group picture...

 
Happy St. Patrick's Day from Escapia!

Here's a Tasty Idea

By Bill Furlong, CEO

Many of you in the vacation rental business know Escapia's Chairman, Steve Murch.  Steve was one of the early pioneers of the online vacation rental world when he built VacationSpot.com.  His interest in vacation rentals has continued for over a decade now as he continues to provide terrific guidance for us at Escapia.

Steve's latest brilliant creation has been BigOven.com.  The product of many years of work, BigOven is a destination packed with cooking advice, recipes and a rich community of foodies.  Clearly, Steve is onto something since BigOven is ranked as the seventh most frequently visited web site from a Seattle startup -- and as many of you know, we pride ourselves for having a vibrant online startup community here in Seattle.

Steve just did a big redesign and update to BigOven.  One of the things he added not long ago was a way for BigOven users to create custom recipe books from their favorites on BigOven or their own personal favorite recipes.

So here's an idea.  Vacation rental guests love having access to a kitchen where they can cook a dinner for themselves.  So how about including in your vacation homes a cookbook with recipes that are typical of your area.  How easy is it?  Well, a search on BigOven of Hawaiian recipes brings up 221 to choose from; "Cajun" delivers 430 results.  And to make it even easier, BigOven offers a custom publishing tool where you can create a custom cookbook in just a few clicks.