From all reports, higher gas prices do not seem to have cut down the number of road trips that vacationers are taking. Major destination resorts have reported higher occupancy rates this year. This trend has allowed hotels to increase their rates this year and offer fewer discounts. Vacation rental property managers are reporting that prime properties were rented much earlier this year. This trend has been reflected in our own experience, with the prime weeks of the Summer and Fall seasons being booked earlier than ever before. If you are not experiencing this general increase in activity, you may wish to evaluate your marketing strategy.

1) High Vacation Rental Occupancy Does Not Guarantee Profits

It is obvious that you cannot expect to achieve your profit goals if you do not maintain a high level of occupancy. However, it is still possible to be unprofitable with a high occupancy rate. The key is to target the right segment of the market. If you try to compete primarily on price you will not be profitable even with high occupancy rates. There is always someone willing to rent vacation property cheaper than you. There is a lot of competition for the low end of the market.

2) Target the High-End Vacation Rental Market

You should aim for the segment of the market that is interested in a memorable vacation experience. When you consider the large and growing number of expensive resort hotels, both in the U.S. and abroad, it is clear that there is a huge market for upscale, expensive vacation accommodations.  On a smaller scale, you can check the B&B directories and see that many B&Bs are successfully charging some very high rates for rooms. Of course, these establishments compete by offering a very high level of service that you cannot possibly offer in a vacation rental. However, it does point out that a large segment of the market is willing to pay extra if you can provide them with something special. Your goal should be to make your property something special wherever it is located. The higher price market is the market that you should strive for.

3) Competing in the High-End Vacation Rental Market

In order to compete in this market, you should include as many of the features as possible that are included at first class hotels. No scruffy furniture or uncomfortable beds are allowed. Try to add the little extra touches such as hair dryers in bathrooms that those who frequent first class hotels have come to expect. Provide the same quality mattresses that you used in your own home. And of course, the property should be as clean as you would find at any first class hotel.

4) Minimum Quality is not Acceptable For Your Vacation Rental

We have specified many of the standards necessary for competition in the high-end market in our Standards of Quality, because it is our mission to inform the public that there are many high-quality vacation rental properties that offer amenities and luxuries that are not even available in first class hotels. However, our quality standards are only minimum standards. Never be satisfied with the minimum for your vacation rental!  Use your imagination and your own experiences to create special touches that will make your guests remember you. When my husband and I visit hotels and resorts, we notice each amenity and special feature, with the idea of possibly including them in our vacation cabins.

5) Wi-Fi Will Be a Necessity for the Best Vacation Rentals

One feature that more and more guests are coming to expect or even require is a broadband Internet connection, preferably wireless. The national hotel chains are moving aggressively to install wi-fi in all their properties. Eventually almost all the major hotels will have wi-fi. The only question is whether they will be able to continue to charge ten dollars or more a night for it or if it will become part of the price of a room. You should attempt to be ahead of the curve in this trend, rather than wait until you are forced to catch up.

6) Vacation Rental Furnishings Should be Tasteful and Luxurious

With respect to decorating your vacation rental, don’t fall into the trap of using old or unattractive furnishings. The décor should be bright, cheerful and uncluttered. The one difference is that you should pick more durable and sturdier furnishings than you might use in your own home. We are fond of using leather for sofas and chairs, because, while more expensive, it tends to last longer and is easier to keep clean. At the same time, it gives a feeling of luxury.

7) Maintaining High Vacation Rental Quality Should Be Your Priority

In any vacation rental property it is harder to maintain a level of good quality than it is to initially decorate it. However, you must do so or you will lose business. One of our guests left a note in her suggestion form that after years of visiting the same cabin, it had started to look pretty tired. We took a fresh look at our place and decided she was right. We immediately redecorated at the first opportunity.  As a vacation property owner, you have to face the fact that furniture does not last nearly as long as it does in your own home. If you have a high occupancy rate, you will be lucky to get five years’ wear out of sofas, chairs and mattresses. If you are in the vacation rental business, you just have to assume that frequently replacing furnishings is a cost of doing business.

8) Good Vacation Rental Maintenance is Good Business

The important thing is to be constantly vigilant in detecting anything that needs replacing and any repainting that needs to be done. This strategy will pay off in repeat rentals and actually pay dividends in lower maintenance and less breakage. If a property is well maintained and looks clean and fresh, guests will treat it with a lot more care and respect. If a property looks run-down and beat up, guests will treat it accordingly and cause more damage. In all our years of being in the business, we have experienced very few cases of guests abusing our properties. We attribute this to our efforts to always keep things looking first class and worthy of respect.

9) Your Vacation Rental Should Profit From a Growing Industry

Both the travel business and the vacation rental business are growth industries. Recently, major online travel services such as Hotels.com and Expedia.com have reported increased travel revenues of over 30%. Priceline.com has said that it expects travel bookings to climb as much as 48% during the second half of 2004, after 58% growth in the second quarter. The Internet has made it possible for the operators of small inns, B&Bs, and vacation rentals to compete with the giants in the lodging industry. If you target the right market and maintain the highest levels of quality, you will share in the growing profits of a growth industry.