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HomeAway Holiday RentalsMarketplace Report

First Quarter 2009

HomeAway Holiday Rentals Marketplace ReportSarah Chambers | 020 8846 3430 | [email protected] © 2009 HomeAway. All rights reserved.

www.Holiday-Rentals.co.uk

http://www.Holiday-Rentals.co.uk/

mailto:[email protected]


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of 8HomeAway Holiday Rentals Marketplace ReportSarah Chambers | 020 8846 3430 | [email protected] © 2009 HomeAway. All rights reserved.

HomeAway Holiday Rentals Marketplace ReportFirst Quarter 2009

Contents 2

Special Incentives 3

Destination Details 4

Redefining Traveller Behaviour 5

Redefining Traveller Behaviour (ctd…) 6

Holiday Rentals as an Investment 7

Holiday Rentals among the Stars 8


3

Which of the following deals or incentives are you offering to travellers this year based on the current economic climate?

68.6%

26.6% 24.5%

11.2%7.4% 6.9%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Percentage offthe rental rates

Free cleaning No minimum stayrequirement

Free night w ithpurchase of a

specif ic no. nights

Specific £ amountoff the rental rate

Complimentaryproducts or

services

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Special Incentives Owners get creative, with more than half offering special deals during the crunchIn response to the current economic climate, more than half of holiday home owners advertising on Holiday-Rentals and sister site Owners Direct have offered special deals or incentives at some point this year.

While the most common deal was a percentage off the rental rates, many owners used of a variety of other offers to entice travellers during the crunch. These included free end-of-stay cleaning, no minimum stay requirement, free nights, or a specific pound amount of the rates.

In addition, 6.9% of owners offered complimentary products or services to provide added value, such as free welcome food hampers, tickets to local attractions or excursions, airport transfers, car hire and bicycles for use during their stay.




Average nightly rate per square foot: Holiday Rentals v Hotels

£0.38

£0.49

£0.35

£0.25

£0.41

£0.32 £0.30 £0.29

£0.08£0.09£0.10£0.12£0.12£0.13

£0.21£0.21£0.21

£0.13

£0.36

£0.46

£0.00

£0.10

£0.20

£0.30

£0.40

£0.50

£0.60

Holiday Rental Price/Square Foot Hotel Price/Square Foot

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Destination DetailsThe Costas, Cote d’Azur & Canaries hold strongDespite various reports about Brits abandoning holidays in the Euro-zone, during the first quarter of 2009, popular European cities and established holiday hotspots in the Costa del Sol, the Cote d’Azur and the Canaries remained the most popular destinations for holiday home rentals.

Top Ten Most Popular Destinations in Q109

1. London2. Nice, Cote d’Azur3. Barcelona4. Playa de las Americas, Tenerife5. Rome6. Puerto Banus, Costa del Sol7. Javea, Costa Blanca8. Cornwall 9. Devon10. Los Cristianos, Tenerife

A notable addition to the top summer destinations this year though was Kas in Turkey, to the detriment of resorts on its more expensive neighbour Cyprus. However, the key regions of Protaras and Paphos remain popular for longer breaks in June and September.

Emerging markets for demand & supplyA strong rise in traveller demand, combined with a relatively low but rising number of British-owned holiday home rental accommodation in the following countries marks them out as emerging markets in the holiday rentals industry:

SOUTH AMERICA: Mexico and Brazil AFRICA: Egypt, Morocco and South AfricaEUROPE: Turkey, Croatia and MontenegroNORTH AMERICA: Canada According to booking enquiries on Holiday-Rentals, Cape Town in South Africa is particularly popular this year for winter and Christmas/New Year breaks.


Although demand for established holiday destinations remained strong this year, a large proportion of British travellers did express a desire against travelling to the US or Europe this year, as the value of the pound continued to decline versus the dollar and the Euro. According to a survey 2,880 travellers during May 2009, 25% stated they were less likely to choose destinations in these countries this year.

Holiday rentals v hotels in popular citiesExtra room to relax and unwind is one of the many benefits provided by holiday rentals over hotels and they also work out much better value per square foot. When comparing the price per square foot of holiday rentals with hotels in popular cities, this is clear to see. According to statistics collated by Holiday-Rentals, apartments in Prague provide the best value for money, working out four times less expensive per square foot than hotels, while the competition is closest in New York, but rentals still come in at 1.8 times cheaper.


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Redefining Traveller Behaviour Moving beyond week-long family holidays & leisure travel Travellers agree that the use of holiday home rentals instead of hotels allows them to enjoy a range of value-related benefits, including traveling with more friends and family, taking longer holidays and taking more upscale holidays. How staying in a holiday home rental impacts Brits’ travel plans:

While family holidays still account for the most popular use of holiday rentals, travellers are also now considering holiday homes for a range of travel, including festivals, sporting events and business trips.

For what types of break would you consider a holiday rental?

38.4%

91.2%

10.0%

24.4%24.6%

53.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Family holiday Friends getaw ay Reunion/w edding Festival Sports event Business tripHomeAway Holiday Rentals Marketplace ReportSarah Chambers | 020 8846 3430 | [email protected] © 2009 HomeAway. All rights reserved.

What impact does staying in a holiday rental have on your trip?

60.2%

40.6% 39.9% 36.7%

0%

10%

20%

30%

40%

50%

60%

70%

Travel more w ithfriends/family

Take more upscaleholidays

Take longer holidays Travel morefrequently



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Redefining Traveller Behaviour (ctd…)

Regardless of the type of trip, travellers are increasingly using and considering holiday home rentals for more than just the traditional week-long holiday. Nearly half those travellers surveyed would consider staying in a holiday rental for a weekend getaway and almost three quarters would consider it for a longer, multi-week holiday.


Length of holiday in a holiday home rental

55.7%

65.4%

24.2%

73.2% 72.4%

47.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Multi-week holiday Week-long holiday Weekend getaway

Have Stayed Would Consider


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Holiday home owners turn to rentals for extra incomeThe economy played an important role among owners who began renting out their property to travellers in the last 12 months. One in ten owners new to the holiday rental market cited economic conditions as the reason why they started marketing their property for rentals. These included; the need to generate additional income, a recent job loss, the inability to sell the home or the risk of foreclosure.

The main goal for the majority of owners remains to cover some of their expenses, over a fifth still hope it will help cover all their expenses and 15% hope to generate a profit.

Even during these turbulent times, it appears a significant number of new entrants have not been deterred from chasing the dream of a holiday rentals business, as one in ten stated it was their primary business.


Market opportunitiesFor people who may be looking at holiday homes as a source of income, the HomeAway Holiday Rentals Marketplace Report identifies the top markets where consumer demand exceeds current inventory levels.

The Top Underserved Markets for Q1 2009

1) New York2) Holland3) Belgium (particularly Bruges & Brussels)4) Paris, France5) Venice6) Sardinia7) California (particularly L.A.)8) Mauritius9) Liguria10) Rome11) Prague, Czech Republic12) Island of Malta13) Austria (Tirol area)14) Lisbon15) Edinburgh & Lothians16) Madrid, Spain17) Lake District18) Dominican Republic (particularly the North Coast)19) Croatia (particularly the Dalmatian Coast)20) Egypt (the Med & Red Sea coasts)

Holiday Home Rentals as an Investment

Why did you originally begin to rent your home to travellers?

47.2%

21.2%

14.6% 14.2%

2.8%

22.4%

14.7%

9.8%

42.7%

10.5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

I w anted to cover someof my expenses

I had the goal ofcovering all my

expenses

I w anted to generate aprof it

It's my primary businessw ith the goal ofmaximising profit

Economic conditionsmade it necessary

Renting more than one year Renting less than one year



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of 8HomeAway Holiday Rentals Marketplace ReportSarah Chambers | 020 8846 3430 | [email protected] © 2009 HomeAway. All rights reserved.

About the HomeAway Holiday Rentals Marketplace ReportData for the HomeAway Holiday Rentals Marketplace report was collected via surveys that poll travellers and homeowners on holiday rental-related issues. Based on HomeAway, Inc. internal customer satisfaction research, traveller results are compiled from 2,880 responses between May 6 to May 27, 2009. Owner results are based on 593 responses between April 28 to May 27, 2009. Market trends were based on a combination of in-depth research of supplier and consumer markets from Holiday-Rentals’ site statistics. Smith Travel Research was also utilised for hotel research into specific markets. Average daily rates for rental properties were measured on a random sampling of properties from Holiday-Rentals for each respective city.

About HomeAway, Inc.HomeAway is the worldwide leader of online holiday rentals, representing nearly 400,000 holiday home listings across more than 120 countries. The company has contributed significantly to the popularity of holiday home rentals, making it easier than ever for both owners to advertise their second homes and for millions of travellers to find the perfect rental accommodation. The HomeAway sites include HomeAway.com, VRBO and VacationRentals in the USA, FeWo-direkt in Germany, Abritel and Homelidays in France, and Holiday-Rentals and Owners Direct in the UK.

HomeAway is funded by Austin Ventures, Institutional Venture Partners, Redpoint Ventures, Technology Crossover Ventures and Trident Capital. The company is based in Austin, Texas and has offices in London and Ashtead in England; Kassel, Germany; and Marseille and Paris, France.

Holiday Rentals with the StarsHollywood hearth-throbs top choice for holiday companionsWhen it comes to holiday companions, Hollywood heart-throbs Brad Pitt and Hugh Jackman were the clear winners over local girls Cheryl Cole and Kate Moss. It seems most would opt for romance over friendship on their ideal holiday, although pop princess Kylie came a close third, beating David Beckham by 7%, what would Victoria say?!

1. Brad Pitt (24.7%)

2. Hugh Jackman (23%)

3. Kylie Minogue (20.3%)

4. David Beckham (13.4%)

5. Cheryl Cole (12.1%)

6. Kate Moss (6.5%)

Pukka lad Jamie beats Gordon as the choice for a personal chefHoliday rentals come with full kitchens, allowing you to save some money and keep dining out to a minimum, but if they came with a personal chef too, who would you pick?! According to our survey, Brits would much rather be with cheery, friendly Jamie than f-word ranting Gordon Ramsay any day. Though Gordon does still retain a slight lead over other celebrity cooking chums; perhaps not everyone has seen that famous rant on Ozzie TV yet:

1. Jamie Oliver (38.8%)

2. Gordon Ramsay (18.6%)

3. Nigella Lawson (14.6%)

4. Hugh Fearnley-Whittingstall (10.6%)

5. Delia Smith (10.6%)

6. Ainsley Harriott (6.9%)

Holidaying with Brad or Jamie might not be possible in reality, but staying in a private French chateau à la Jolie-Pitts or renting somewhere with a gourmet kitchen where you can cook up a treat certainly is within reach. There are hundreds of French chateaux on Holiday-Rentals that can work out extremely cost-effective per head for a large group, and our free travel cookbook provides plenty of inspiration for a gastro-break, with over 90 recipes submitted by holiday home owners on the site.



http://www.holiday-rentals.co.uk/travelcookbook

http://www.holiday-rentals.co.uk/search/refined/keywords:france/Property+Type:chateau

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