Free Rental Guide!
Learn what it takes to rent your vacation home and maximize your rental income.
Free Rental Guide!
Learn what it takes to rent your vacation home and maximize your rental income.
2023 Year-in-Review
After an early start to the rental booking season in 2023, the pace of booking slowed throughout the US as post pandemic travel to Europe experienced significant growth and cruise lines as well as all-inclusive resorts reopened.
Holiday Vacation Rentals (HVR) experienced an early start in summer bookings from loyal repeat guests and renters that wanted to book their rentals for preferred dates while there was availability. In May, HVR’s pace of booking slowed, similar to what most vacation rental destinations in the US were experiencing.
As traveler preferences and economic factors changed in 2023, a more volatile environment resulted. Enzo Morabito, of Douglas Elliman, reported to CNBC on the trend toward last-minute rental discounts across all segments, from the very low to the very top of the rental market. HVR experienced this trend as many renters waited to book last minute at reduced rates.
While overall travel demand was strong, a significant increase in the supply of vacation rentals impacted performance. Much of the increase in supply resulted from institutional and passive income investors purchasing homes to be rented as Airbnb’s. With the increase in the number of homes available to rent, performance slowed, and occupancy (nights rented) declined.
Many inexperienced Airbnb investors expected to cash-flow homes and cover debt service on the homes they had purchased. Many of these homes are expected to be sold or foreclosed by lenders. The Airbnb Bust should help to correct oversupply and improve occupancy and rates of professionally managed vacation rentals homes.
Looking Ahead to 2024
While facing economic uncertainty, there is cautious optimism for 2024. While the booking window may shrink, people are still traveling, and the long-term outlook is positive. Over supply will decline as the vacation rental market continues to grow and demand increases.
Success in vacation rental management will require companies to adopt innovative marketing strategies and use of market data to capture more bookings.
Proactive revenue management is becoming essential. Access to market data has become necessary for managing rates that will result in increasing owners’ income.
Proactively Addressing Challenges in Vacation Rental Management
- Key Data Analytics: HVR has begun to use Key Data Analytics to monitor shifting demand, rental rates, and occupancy in all Michigan markets to improve rate management.
- Streamline Property Management System: HVR is integrating with “Streamline” an industry-leading property management system to achieve better results for our homeowner partners. As a Streamline “Elite” user, HVR will complete its integration with Marriott Homes and Villas and have top placement on many OTA channels like VRBO.
- OTA Distribution: Distribution is being increased with preferred placement on more OTA channels using Streamline’s channel management.
- VRBO
- Airbnb
- Expedia
- com
- VacationFinder
- HomeToGo
- Whimstay
- Got2Go
- Bnbfinder
- Hopper
- com
- FindRentals
- Trip Advisor
- Google Vacation Rentals
Enhanced Marketing
- High Ranking Website: Continued optimization of HolidayVacationRental.com and our direct booking engine with shopping cart abandonment, area information, blogs, and free travel guide, to reach more renters.
- Social Media Marketing: Facebook, Instagram, Pinterest and other platforms
- Digital Marketing: Emmet County Airport and area restaurants, Google Ad Words
- Rental listings: Pure Michigan.com. West Michigan Travel and Tourism Association
- E-promotions: Sent regularly to 27,000 travelers in the HVR data base
Advanced Property Management Tools
- Yield Management: maximizing rates and occupancy.
- Hot Dates: adjusting rates for local events like auto or art shows.
- Floor Pricing: setting pricing limitations in line with the property owner’s expectations, and never letting their rates dip below a certain amount.
- Noise Aware: to monitor large homes and prevent over occupancy.
- Guest Screening: know who is renting your home.
Customer Loyalty and Insurance Programs
- Guest Loyalty Program: to incentivize repeat renters to rebook your home.
- Accidental Damage Protection: provided on every rental.
- Cancel For Any Reason Trip Insurance: provides renters with confidence when booking if travel uncertainly may exist, while assuring the homeowner rental income.
- Safely Homeowner Insurance (coming soon): saving homeowners on liability and casualty insurance.
Hospitality Focus & Property Care
Holiday Vacation Rentals is first and foremost in the hospitality and property care business. With 20 years’ experience, a dedicated team, a strong reputation, and A+ BBB rating we remain dedicated to our mission to serve our owner partners and help our rental guests to “Find Themselves in Northern Michigan”.
Sources:
Beyond Pricing
Key Data Dashboard
Hostaway
Wheelhouse
Alan R. Hammond is the founder and Managing Director of Holiday Vacation Rentals and Birchwood Property Management. He has served as a Director, Officer, and Treasurer of the Vacation Rental Managers Association (VRMA) and holds the Certificated Vacation Rental Manager (CVRM) designation. A recognized industry leader, Alan is featured in the book The Rental Game: Winning with a Professional Vacation Rental Team by Maureen Regan. Read more....
