I ran across an article today that talked about the lack of vacation home renters on the North Carolina coast.
Read full article here. Vacation Home Investors Struggling to Find Renters
The focus of the article is that the traffic is down from a record 2007 performance and that lowering prices from $5500 to $4950 is not making a big difference. (personal note – the family paying $5500 for a week will probably not be very price elastic – so 10% is not going to tap into a new class of vacationers and make a meaningful different – my opinion).
Alarmist article? Maybe a bit. But an important point is that the vacation property managers that I have seen maintain occupancy and success are proactively marketing themselves and thinking of new and creative ways to differentiate themselves. This could be via a Niche Marketing Campaign (listen to a recent webinar on the topic) or simply by focusing on bringing shoppers to their website and offering a pleasant shopping experience that is conducive to high conversions by lookers into bookers.
I firmly believe that the vacationers are out there. But they are looking for extra value. Value, not cheap. Value can be created in two ways: (1) lower the price, (2) make it more important, applicable, personalized etc. to the shopper. The latter is a better choice and worth an investment.
Ralf
LiveRez.com