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Vacation rental market review

in Business,Host,My Friends Hotel

The Market

  1. Vacation Rentals
  2. Homestay

In Europe and the US there are over 15 million holiday homes.  Annually, holiday rentals are considered by 30 million consumers in the US and 50 million consumers worldwide.

Owner rentals comprise about 56% of U.S. inventory however only 10% of US adults and 20% of all online travelers have booked a holiday home.  The market potential for the online travel sector is significant and these figures are why the sector is suddenly so busy.

MyFriendsHotel.com offers a unique set of tools to build a travel community.. These tools build on Trust; the single most important factor influencing travel decisions.  An amazing 89% of people trust the recommendations of their travel peers.  MyFriendsHotel.com understands and values this – that’s the basis for our community, enhanced by shared interests and friends.  Trust is vital in business as in life.

Hosts and Guests will benefit hugely from our tools and it could shake up what’s already a busy market place.  We will remain differentiated from the competition by our core values and our vision for the future.  We’re about creating a community to build trust, network contacts and create experiential travel opportunities.

MyFriendsHotel.com will cater for ‘all’ independent rental needs:

  • Tourist Travel
  • Weekend Breaks
  • Holiday Rentals
  • Event Accommodation (Sports, Festivals, Conferences…)
  • Monday-Friday Business Workers
  • Shot Term Lets
  • Long Term Lets

The Online Market Place

Research shows that almost 50% of leisure travelers now consider booking a holiday rental when researching their holiday.  The conversion rates are however significantly lower.

Huge growth in the online rental market is expected as there are millions of homes being rented out privately; with 70% now considering promoting their homes online. These are hugely positive signs but online rental market is still lagging far behind the online travel sector as a whole.

Self-promotion online is often difficult and it feels as though each year is a new beginning, there is no community to sustain momentum or feed traffic.  Traditional online market places take a ‘Me v Everyone Else’ approach.  It’s not fulfilling and can often leave you feeling helpless.

MyFriendsHotel.com is different, it’s a community with values, we promote accommodation considering the property, the values and interests of the people involved and also the activities in the surrounding area.


Online Holiday Rental Bookings

2007 – online bookings accounted for 12% of overall holiday rental revenue (compared with 50% in the Leisure Travel sector)

2010 – online bookings will account for 17% of the market.

The Main Competitor

In 2008 the market leader HomeAway secured $205 million dollars of funding and promptly bought out all major competition in the Vacation Rental market place.  These aggressive tactics were “to signal an end to competition in the market place.”  What happened was a consolidation of the market enabling a plethora of small players to establish a foot hold in the industry.  Sadly most of these start-ups are opportunists rather than really adding value to the industry or the consumers.  That said, in the long run, competition is good for the consumer.

I’m confident that MyFriendsHotel.com has a well considered product which will find support in the market place and a home with the consumers.  Watch out HomeAway!

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Originally posted 2009-11-14 01:02:12. Republished by Blog Post Promoter

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