Vacation Rentals Poised to Make a Strong Return in 2011

Rental Resurgence: Vacation Homeowners Optimistic About Business in 2011

RISMEDIA, January 13, 2011

As leisure travel continues to rebound, owners of vacation rentals are expressing optimism about their bookings in 2011.

In fact, HomeAway, a leading online vacation rental marketplace, finds in its latest "HomeAway Vacation Rental Marketplace Report" that eight of 10 vacation rental owners anticipate their rental business this year will be stronger or about the same as it was in 2010.

The year is already off to a good start for some owners. According to HomeAway's seventh quarterly report, about 60 percent of vacation rental owners say their bookings for the first quarter of the year (January through March) are about the same or higher than the same time period last year.

The HomeAway report also found that a majority (59 percent) of vacation rental owners will keep their 2010 rental rates in place this year – good news for travelers looking to stretch their travel dollar in 2011. About 10 percent will decrease their rental rates from last year, and approximately 31 percent expect to increase their rates.

While rates look to be consistent in 2011, vacation rental inventory continues to grow. For the sixth consecutive quarter, Austin makes the list of the top 10 fastest-growing cities for vacation rental listings. Last year's list, comprised of three markets in California (Carnelian Bay, Santa Monica and Beverly Hills), three ski towns (Estes, Colo.; Truckee and Carnelian Bay, Calif.) and two lake destinations (Canyon Lake, Texas; Lake Norman, Illinois) is a change from this year's list that featured beaches and less traditional vacation rental destinations.

In addition to a greater selection of vacation rentals, travelers also will benefit from owners' efforts to improve their properties and the experience that travelers have while staying in them. The report found that 59 percent of vacation rental owners are planning an upgrade to their homes in 2011.

Of those owners who say they'll embark on an improvement project:
• 41 percent plan to paint the interior of their vacation home
• 29 percent will add new bedding
• 23 percent will update the home's exterior (landscaping, roofing, painting, etc.)
• 21 percent will add new electronics
• 17 percent will add new furniture
• 11 percent will upgrade the appliances
• 9 percent will make their vacation rental more energy efficient