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2013 Starts with a Bang for Vacation Rental Industry

By January 3, 2013 One Comment

fireworksAdios 2012. Hello 2013!

Happy New Year. Hope y’all enjoyed your holidays.

But no time to rest. It seems 2013 will be a big year for the vacation rental industry.

I closed 2012 with a post proclaiming that Property Automation [Would] Help Shape the Vacation Rental Industry in 2013. Here we are on January 3, 2013, and I’m more convinced than ever.

Shortly after hitting enter on that post, I came across an article that predicted 2013: The Year of the Vacation Rental. Having watched the growth in the vacation rental industry over the past five years, I agreed with the sentiments. It’s time for the vacation rentals to go “mainstream.”

But I’ve thought that for the last five years. The vacation rental industry has seen great growth, but it’s still a “mom and pop” industry at the core, and the mass population still leans heavily towards the hotel industry. Will 2013 really be the year that we witness a tipping point for the vacation rental industry?

It just may be.

As I fired up my computer on January 2, 2013 (yesterday :)), I was welcomed by some big news in the vacation rental industry.

  1. Booking.com is HomeAway’s New Vacation Rental Competitor
  2. Wyndham Vacation Rentals Continues Global Expansion; Acquires Three Vacation Rental Management Businesses

On the surface, perhaps these are just small advances on the growth trajectory of the vacation rental industry. But as we look at the bigger picture, I think we are seeing a significant trend begin to solidify – hotel-focused businesses, with deep pockets, are beginning to develop a strong presence in the vacation rental industry.

There are some big implications as these trends continue to develop. And it’s only January 3rd!

Let’s dive in a little deeper on these articles to see what the implications may be…

1.  Booking.com is HomeAway’s New Vacation Rental Competitor:

  • Booking.com is owned by Priceline.com.
  • Priceline.com is in the process of buying Kayak.com for $1.8B. Yes, that’s billion! Deep pockets.
  • Booking.com is quietly adding vacation rentals to their search results as they work out the kinks.
  • Is this really HomeAway’s new competitor? Or a very good “exit” strategy for HomeAway?
  • HomeAway CEO, Brian Sharples, also happens to be a member of the Kayak.com board of directors. Hmmmm.

2.  Wyndham Vacation Rentals Continues Global Expansion; Acquires Three Vacation Rental Management Businesses:

  • It was announced yesterday that Wyndham Vacation Rentals acquired three vacation rental managers (VRM’s).
    • Kaiser Realty in Gulf Shores, Alabama
    • Oceana Resorts in Myrtle Beach, South Carolina
    • Cumbrian Cottages in the United Kingdom
  • Wyndham Vacation Rentals is the world’s largest professionally managed vacation rentals business, and is part of Wyndham Exchange & Rentals and the Wyndham Worldwide family of brands – a publicly traded company. Right, deep pockets.
  • Wyndham has over 100,000 vacation rental properties in over 500 destinations worldwide.
  • Wyndham now consists of more than 25 rental brands.

Wow. That’s a lot to take in…and only the 2nd day of the year!

The first trend that seems clear is that the hotel industry has taken notice of the vacation rental industry. But they are not only taking notice. They are getting in the game. Big names and big money are moving towards the growing vacation rental industry.

This is fantastic! Attention from big names and big money will surely help push the vacation rental industry over that tipping point of mainstream acceptance.

However, it’s a double-edged sword. The “mom & pop” industry is going to be forced to grow up quickly as big business enters the game. What exactly this means is yet to be seen. We need to continue wait to see how some of these big moves play out.

But the vacation rental industry – the “mom’s & pop’s” – doesn’t need to sit on its heels and wait for big guys to act. In fact, VRM’s need to get out in front and leverage the expertise they bring to the industry.

It’s great to have deep pockets, but deep pockets don’t create an instant level of knowledge and expertise. VRM’s that have been at this game for 10, 20, or 30+ years know the challenges managing a large number of scattered homes brings. The big dogs still have to figure those challenges out.

Booking.com is already seeing this as they try to integrate vacation rental listings but have to manage different requirements from their hotel inventory. This is no easy task.

And Wyndham is experiencing these challenges first-hand as they try to manage 25+ brands with 25+ unique business practices and 25+ unique sets of inventory. No easy task indeed.

At this point smaller VRM’s still have a leg up, but the big competition is gaining momentum. VRM’s need to recognize the challenges and find ways to overcome and streamline their businesses.

To some degree, the vacation rental industry needs to emulate the hotel industry. VRM’s need to be sleek, efficient, and streamlined.

And this is why I am more confident than ever that property automation will have a HUGE impact on the future of the vacation rental industry starting right now.

PointCentral property automation offers VRM’s hotel-like control.

With PointCentral home automation, vacation rental managers have the ability to manage a scattered inventory of homes like a hotel! Property control like they’ve never experienced. And to be efficient, VRM’s will need to leverage this type of control.

2013 sure is starting off with a bang! Looking forward to “the year of the vacation rental!” 🙂

PointConnect property automation services enable vacation rental managers to improve…

  • Operating Efficiency
  • Guest Experience
  • Energy Management
  • Security

You can reach us at [email protected] to learn how PointConnect can deliver all of these “smart home” capabilities.

One Comment

  • Why This Confirmed Bachelor Likes valentines

    Day: wedding Post by Elliott Lewis

    Her cell phone rang soon after we were seated at the small Italian restaurant in among those “up-to-date” sections of town. She pushed the strands of her long dark hair behind her ear and lifted the iphone to her cheek.

    We’d met at a professional conference several months earlier and decided we’d get together the next time she was in town on business. Strictly agent, in fact. But it just so happened to be on romantic days celebration 2007.

    “also, consequently so sweet of you, I been told her say. “OK due to, sweetie. Bye,

    “Boyfriend, industry experts, As she put down the rim.

    “wow, none of, She suggested. “I don’t have one anymore,

    valentine’s. Italian kitchen. And we had arrived both single and unattached. I could’ve sworn I heard a violin activity. or simply it was a harp. That would have been in addition to this.

    But this story won’t have a romantic Hollywood ending. None of my valentine’s day stories do. That doubtless explains why I’m a never married, Self described loser at relationships confirmed bachelor. it is not self loathing; It’s a definative reflection of where I rank in the dating department.

    you may realise that would be reason enough for me to hate Valentine’s Day. But take part in. that it is one of my favorite pseudo holidays of the year.

    I look at it this way: If you have a special love interest for you, Then Valentine’s Day can be a very special event for the both of you. But if you’re not romantically involved when February 14th rolls around, It’s not the end of the world.

    Bars and places to eat, cinemas and comedy clubs, Museums and your local library, Amusement parks and shopping malls all stay open on evening of romance. number of features things you can do either on your own or with other single people to occupy your time in a festive sort of way.

    It’s not like thanksgiving holiday or Christmas, When the world essentially shuts down for the holidays, And even the unattached scatter to the four corners of the earth to be with friends or family out of town. if you’ve ever been “Orphaned” On thanksgiving holiday or Christmas, It can do a real head job you. Avoiding that trap typically requires critical advance planning. But I have never felt lonely on valentine’s. any kind of.

    I was reminded of all this throughout a recent episode of NBC’s “carry on, Which reminded me of an episode of ABC’s “Grey’s function, Which came rushing back to me during a chapter of Fox TV’s “The Mindy design,

    Each of these shows featured single characters who didn’t quite know how to handle themselves on Valentine’s Day. ideally, Mindy had it discovered better than the rest. She and her current flame had planned to go to the top of the Empire State Building, But things blew up in her face after she helped him realize he was in love with a co-worker.

    “Grey’s” and simply “embark upon” Had characters who were either quite hostile to the whole notion of valentine’s day, Or were just down in the dumps about not having newer and interesting. love interest this time of year. At first I couldn’t figure out the main reason for all the negativity. Then it struck me:

    THESE PEOPLE DON know how to BE SINGLE!

    For individuals who’ve had a bit more practice atit, We’re quite soothing flying solo each February. at least we’ve grownaccustomed to it. Instead of whining about loss of a Valentine, We just exercise one of our other choices. It not like we forced to sit both at home and play with our cats. we’re not “Anti social, we live “Anti mandatory dating,

    Cagen’swebsiteexplains the term in this way:

    The quirky in quirkyalone is really about credibility. it’s about accepting yourself in all your quirky glory, And being fully oneself, automobile single or in a relationship. The alone part is about willing to differentiate themselves from the crowd, To go ukraine wife to a wedding alone as an alternative for go with a date, for example, Out of social desire. it’s really down to resisting the tyranny of coupledom, The prevailing notion that you must be in a relationship at all times to happy.

    precisely. Which brings me back to valentine’s 2007.

    “I think I produce the gnocchi, She reported, Glancing at recption menus,you’re certain of, I never been sure of methods to pronounce it,

    “provided that you don say I think you fine,

    “I think you’re beautiful, She explained. But there wouldn’t be a third. She created the decision she “Didn’t think me that way” in fact.

    I’ll never know whether the decision she took that evening was from a boyfriend in waiting. But I do know she’s one of those people who throw aroundterms of affection like “honies” on top of that”sweetie” and consequently “lovely” In casual conversation with numerous friends.

    When my married women friends talk to me in which, I know there’s nothingflirtatious happening. But when asingle woman friend does it in an Italian restaurant on romantic evening well, it truly is damn confusing. peculiarly to a quirkyalone. In the months that followed, There were times I wondered about what might have been.

    my year, I’ll be treating evening of romance like any other day of the week. other quirkyalones, buying more of a counterpunch to all the Valentine hoopla, are arranging “Quirkyalone Day” Parties to celebrate solitary pilot is a life.

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