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  Christine Karpinski , Christine's Blog: How Renters Are Adjusting to the Economy (1/20/2009)  
 
     
Christine's Blog: How Renters Are Adjusting to the Economy (1/20/2009)

Christine shares feedback from her renters that are still booking vacations in an uncertain economy.
 
Hi everyone!

Hope you and your rentals are doing well.

Last week was a crazy inquiry week for me. Every day I came home to many calls on my answering machine and tons of inquiries in my inbox. I couldn't help but wonder, what happened to this bad economy? The amount of inquiries I am getting seems counterintuitive. In this economy you'd think that inquiries and bookings would be down. So I decided to talk to some of my renters about it.

Here are a couple of things that I heard:

  • "I want to book early and “budget” for my vacation." Many people are looking to book early so they can save for their vacation. By booking early, they know exactly how much they need to save.

  • "I want to book early and pay incrementally." Some renters have asked if they can pay in more than the usual 2-3 installments. They have asked if I could charge their card monthly instead.

  • "I want to pay now while I have the money." Some renters have the money now (or will have it soon) and would just rather pay for it while they have it. I have also heard many say, “I'll pay it in full with my tax refund check.”

  • "We're traveling together to save money." Some renters are coupling with another family and renting one home, whereas in the past they would have traveled together but rented two separate homes. By staying together, they feel that they are saving hundreds of dollars.

  • "Not everyone is 'suffering' the effects of the economy." While millions of people have indeed been impacted by the economic situation (unemployment, foreclosures, withheld raises or bonuses, etc.) there are people whose daily lives have not seen an impact. One renter in particular articulated it quite well. She said that while her stock portfolio has been impacted, her day-to-day cash situation remains unchanged.

The bottom line is there are millions of people who will indeed take a vacation this year. I'm happy that they are inquiring about my vacation homes, and I hope they're inquiring about yours too!

Happy Renting by Owner!

Christine

 

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What have you noticed about inquiries and bookings at the start of 2009?

"So far the inquires have started earlier but nothing firm." - Michael, Kearny and Katrine Almaguin Area, Ontario

"A lot of folks with budget concerns, and an amazing number of small groups, 1-3 guest who want to stay for a month, cheap." -Judith, Santa Cruz, CA (HomeAway, VRBO, VacationRentals.com)

"We've had a lot of bi-weekly inquiries which was great. But they have had unrealistic expectations as far as what they can find for the money they want to pay. Everyone wants a deal!" Diane, Siesta Key, FL (HomeAway #223138, VRBO #194615)

"Huge! Most I've seen in awhile. It's about the total cost of a vacation as opposed to splitting it with another family. Can't split airfare....can't split a 2 bed hotel room...can't split room service...." - Joe

""So far this is the best year for the less in demand months. The better dollar value regards the Euro seems attractive and wealthier people seek better deals by downgrading from 2 bedrooms to one or seek less expensive yet exotic neighbourhoods if only with the best amenities they are used to." - Dicharry, Paris (VRBO)

"I notice that people are looking for a deal/steal for prime summer weeks. They say things like, "I know you are hurting in your area of the country, so I want to make a deal". They also tell me that they are hurting finacially, so could I reduce my rates. I am not cutting my rates as they are realistic, but there are owners who will. I know this as I have had people email me back to let me know that they found an owner who did cut their rates. I want to encourage owners to set a realistic price but don't give away your business. There are people out there that are trying to take advantage of nervous owners. Be realistic, don't be scared. You can always negotiate later in the season if you have a vacant week, but negotiating 6 months in advance is not realistic." -Tom, Michigan (HomeAway) 

"I hate to be negative but, so far, we've had a pretty crummy rental year. We usually do lots of rentals in the first quarter. This yr we've had lots of calls but everyone seems to want to wait a bit before signing on. I think we'll get more last minute rentals, later in the spring. We are priced fairly and I always allow for a bit of wiggle room. Especially this yr, people like the idea of getting a bit of a bargain. That wks for me - esp for small famiies or just a couple. Here's hoping things pick up soon. These concerns may be more pronounced in the northeast, as we are so tied to Wall St and the financial industry." - Kathy, Martha's Vineyard, MA (HomeAway #105691, VRBO #55574) 

"So far we have recieved only one call! It is early, I know, but I was hoping for more traffic. I plan on re-visiting my site to see if any changes are needed." -Tom, Surry, ME (HomeAway #224950)

"I agree with one Owner, who is suggesting not to give away condos for cheap! I am an owner myself and I see many inquiring guests would like to rent for almost nothing. As much as I am trying to help..I also need to watch my cost. I spent a lot of time buying, furnishing and then decorating my unit I own and I still spending money on replacing things, yes it's upsetting, when a guest comes back to me saying - he got for better price as I alredy keep my prices low. Yes! tHere is always a room/last minut/ when yu can give that"cheap" price - just to fill it out the empty gap. I have done this way and has been working, so far. Happy Rental Year to All of US!!" - Christine, Playa del Carmen, Mexico (HomeAway #200577, VRBO #39650

"They are up. I believe that this is because guests get more bang for the buck when they stay with us vs. a hotel. I think the economy is helping us, not hurting us." -Alfred, Ko Olina, HI (HomeAway #163412, VRBO #129629, VacationRentals.com #648)

“Realtors are slowly becoming obsolete. Owners are beginning to see the value and profitability in internet listing.” - Anonymous Owner, NJ


Related Tips header

How to Keep Your Vacation Home Booking in an Uncertain Economy Tips for marketing your vacation home during these tough financial times.

Setting Rates for 2009 Pricing can be tricky. Learn how to present rates that will bring in bookings and boost your bottom line.

How to Handle Payments for Far-in-Advance Bookings Consider adjusting your cancellation policy for vacation rentals nine months or more in advance.
Easing Your Renters' Minds During an Economic Downturn Before you and your guests start to panic, learn how to work with your renters'; financial concerns and keep your bookings strong.

© Copyright 2009 Christine Karpinski