Via Discover Vacation Homes…

More leisure travelers enjoyed vacation home and condo rental hospitality last year than ever reported before – a respective 22 and 24 percent, even though  parts of the economy are still subdued from the effects of the Great Recession.

Bookings for professional vacation rental managers grew more than seven percent nationwide in the past six months versus the same time last year. Future predictions say this trend will continue with a more than 12 percent rise over 2010 expected in the next six month.

“Travelers are selecting vacation rentals for many reasons, from cost savings to the inherent values that allow families and friends to grow closer by enjoying quality time together underneath the same roof,” explains Alex Risser, President of the Vacation Rental Managers Association (VRMA) and its Discover Vacation Homes awareness initiative, the official public resource on vacation rental travel.

The Vacation Rental Industry is on the rise. For more information about investment opportunities, contact a Coldwell Banker Seaside Realty agent or visit Seaside Vacations for existing vacation home rentals.

The Seaside Difference

In another sign that global tourism is rebounding from the recession, a report released Monday shows a sharp increase in travel spending by Visa card holders. Last year Visa card holders traveling abroad spent 6% more than last year at $31 billion dollars. Interestingly foreign card holders traveling to the USA increased spending 18% from $29 billion last year.

“Despite economic uncertainties, the United States continues to be a major contributor to the global tourism economy, both as a destination of choice and as a critical source of tourism for many countries,” says William Sheedy, Visa’s group president for the Americas.

U.S card holders spent $3.5 billion for Canada travel, making it the most popular foreign    destination for Americans, followed by Mexico and Britain. Looks like Canadians returned the favor spending $9.2 billion for travel in the U.S- a larger amount than card holders of any other country.

The most popular U.S. destinations for foreign Visa card holders were Florida, New York, California, Texas and Nevada. Spending by them increased more than 15% in each state.

Foreign Visa card holders spent more last year in 48 of 50 states. States with the biggest percentage growth last year were North Dakota, 39%; Tennessee, 33%; Utah, 27%; and Wisconsin, 26%.

We hope to continue to see increases in the United States tourism industry especially here in our home state. With recent reports of 9% increases in visitor spending in North Carolina we are confident that a real estate market recovery is also beginning making it a perfect time to buy a vacation home here on the Outer Banks.

Ghost of Blackbeard

Is Dare County really a “ghost town”? Yahoo Finance seems to think so, but I’m not sure I agree with their assessment.

Yahoo Finance recently ran an article about American Ghost Towns of the 21st Century, and they included Dare County at #6 on their top 10 list. Sure, the Ghost of Blackbeard lives here, but a ghost town?!…I beg to differ.

Here’s what Yahoo Finance had to say about Dare County:

6. Dare County, N.C.

Number of homes: 33,492
Vacancy rate: 57%
Population: 95,828

Dare County includes the northern-most parts of North Carolina’s Outer Banks. The situation in the vacation area is so severe that the “Outer Banks Voice” recently wrote, “If Dare County Manager Bobby Outten was intending to sound an alarm by suggesting that the EMS helicopter and school nurses were expendable in the next budget, he probably succeeded.” His comments are unlikely to be terribly different from those of other executives of counties on the list. Vacant homes and homes which lose double-digit amounts of their value each year irreparably undermine the tax base. And, as services fall, fewer potential homeowners will consider investing in the area.

My first point of contention is that they don’t understand the location of Dare County. They mention that it includes the “northern-most parts of North Carolina’s Outer Banks.” This is clearly an error. The northern-most parts of the OBX belong to Currituck County. This could be considered a minor error, but to me it calls into question their research as a whole.

But the bigger issue I have is that despite the fact that they mention that Dare County encompasses the Outer Banks, they don’t seem to understand the relevance of this fact. The Outer Banks is a tourist destination with a large amount of vacation rental and second homes. Yes, there are a large amount of vacant homes on the OBX, but that is because they are not primary residences. We should expect vacation homes to be vacant for a large percentage of the year.

The article seems to argue that the economic/housing downturn has hit Dare County harder than other areas, and as a result,  home values are falling, services are falling, and fewer buyers are interested in the area. This seems like a big jump in reasoning. Yes, the housing downturn has affected the Outer Banks (like every other US market), but I would argue that as one of the strongest vacation rental home markets, the Outer Banks is more insulated from the downturn than most areas. We’ve mentioned a few articles on this blog that indicate that the vacation home/2^nd home real estate market is increasing in strength; here are a couple examples:

• Vacation Home Market on the Rebound
• Vacation Home Real Estate Market on the Rise

The article mentions, “Some of the affected regions are tourist destinations, but much of that traffic has disappeared as the recession has caused people to sell or desert vacation homes and delay trips for leisure. This makes these areas particularly desolate when tourists are not around. The future of these areas is grim.”

Wow, quite an alarmist perspective. The Outer Banks has always been quiet in the offseason. The past few years have not been more quiet than usual, and definitely not “grim.” And as for in season, the OBX is gaining strength, not losing it.

As an industry, vacation rentals are making large gains in the travel market, and 2011 is starting very strong for OBX vacation rental homes with significant improvements over 2010…and 2010 was a strong year. We’ve mentioned a few articles that indicate the increasing strength of the vacation rental industry, and here are a couple examples:

• Vacation Rental Market Growing 4 Times Faster Than the US Economy
• TripAdvisor Projects Big Year for Vacation Rentals in 2011

This does not indicate a declining real estate market to me, and especially not a “ghost town.” And the March 2011 MLS stats seem to agree with my perspective.

Yes, Dare County has budget issues (like most US cities/states right now), and yes, unemployment is high (like the entire US), but this Yahoo Finance article strikes me as inaccurate. Dare County has a large amount of absentee owners and as a result, vacant homes during a large part of the year, but vacant homes in a vacation market do not necessarily indicate a “ghost town.” Yahoo Finance needs to reach past the statistics to understand the market as a whole. I would invite Yahoo Finance to visit the OBX July 4^th weekend and tell us it’s a ghost town.

Gov. Bev Perdue announced today that visitors to North Carolina spent a record $17 billion in 2010, an increase of 9 percent from 2009. As the sixth most visited state in the nation North Carolina has become a great market for tourism related industries and the Outer Banks is on the top of the list.

“North Carolina’s natural and cultural treasures bring people and dollars into our state,” Gov. Perdue said during remarks at the N.C. Governor’s Conference on Tourism and Hospitality in Asheville. Visitors and vacationers spend money that helps local economies thrive and creates jobs here in North Carolina.

More than 40,000 businesses in North Carolina directly provide products and services to travelers. Visitors are spending more than $46.6 million per day in North Carolina and contribute nearly $4.1 million per day in state and local tax revenues as a result of that spending, according to the U.S. Travel Association.

The record-setting increase in visitor spending in tourism and the jobs being created in our state is great news for North Carolinians. In such tough economic times is it refreshing to see people still investing in our area and enjoying the thrills of our very own Outer Banks. It is a testament to the strength of our tourism product and the partnership in the North Carolina travel industry.

Outer Banks Vacation Rental Home

Vacation Home Rentals recently named the Outer Banks one of the top growth markets for vacation rentals in the United States. Studies show that the vacation rental market is expected to grow 13.1% in 2011, more than twice the rate of the travel market and four times faster than the U.S economy. About 85% of vacation rental property owners expect 2011 to be as good as, or better than 2010. The OBX is projected to have a 20% increase from last year alone!

Vacation rental property owners believe this growth may be attributed to the fact that vacationers are looking for small, reasonable destinations they can drive to, rather than fly.

With this news coming from one of the most visited vacation rental sites in North America, there is a lot to look forward to this year. Whether interested in buying a potential vacation home or searching for a weekend getaway Coldwell Banker Seaside Realty and Seaside Vacations can help you find your own beach oasis.

Outer Banks Sunrise

TripAdvisor®, dubbed the world’s largest travel site, today announced America’s top 10  vacation rental hot spots for 2011, based on TripAdvisor search data and site editors. The Outer Banks landed at number 7!

Top 10 Vacation Rental Hot Spots in the U.S.

1. Kissimmee, Florida
2. Big Bear Lake, California
3. Gatlinburg, Tennessee
4. Kihei, Hawaii
5. Destin, Florida
6. Palm Springs, California

7. Outer Banks, North Carolina — 1,302 vacation rentals on TripAdvisor
A narrow strip of land just off the Atlantic Coast, the Outer Banks boasts miles of picturesque beaches and a wide array of wildlife, including herds of wild horses that roam the beaches in the northern portion of the islands.

Potential Vacation Rental Savings: $1,580 for a weeklong trip.
*All Seaside Vacations homes are listed on TripAdvisor

8. Lahaina, Hawaii
9. Hilton Head, South Carolina
10. Cape Cod, Massachusetts

“Vacation rentals can offer families and groups of travelers significant savings over other accommodation options,” said Hank Hudepohl, director of vacation rentals at TripAdvisor. “Our list shows off some of the best vacation rental destinations in the U.S. where travelers can save big, ranging from prime summer beach spots to areas with first-rate ski resorts.”

More information about TripAdvisor’s more than 100,000 vacation rentals listings from around the world, as well as its innovative Vacation Rentals Calculator, can be found at:http://www.tripadvisor.com/vacationrentals.

† Average potential savings versus a hotel based on a group of four travelers using the TripAdvisor Vacation Rentals Calculator.

Seaside Vacations - Sandy Oasis

The New York Times recently ran an article about the great amenities that vacation rental homes offer.  In the article, they mentioned that due diligence is a must with vacation rental homes.  Unlike hotels, there is no brand-standard that you can expect from individual vacation homes, so it’s important to make sure the end product is what you expect.  Renting from a well-established property management company is a great start, but it is always wise to ask a few questions to ensure the quality.

As a follow-up to the original article, the New York Times ran a second article highlighting questions you should consider when renting a vacation rental home, and speaking from experience on both sides of the vacation rental business (guest and renter), I can assure you that these questions are well worth the time and effort it will take to ponder the answers, and every homeowner and/or property manager should be happy to answer these questions for you.

Location: Be sure to ask for specifics about the location, including the kind of details you may not be able to tell just from looking at a map; view, distance to attractions and stores.

Configuration: You should ask for details about how the house sleeps the number of people it claims to sleep as well as where and how big the bedrooms and bathrooms are.

Child and Pet Friendly: If the house is described as “child friendly” or “pet friendly,” make sure to ask for the property’s definition of those terms since they may not necessarily line up with how you define them.

Surroundings/Activities: Be sure to ask the homeowner or property manager for recommendations of favorite places to eat and things to do so you can vacation like a local rather than as a tourist.

• • PS – Take a look at Seaside Vacations’ Club Seaside events…talk about living like a local!

Amenities: Ask about what kinds of household amenities are provided so you can determine whether you need to bring your own hair products, dishwashing detergent, seasonings for cooking, and whether you can just arrive and settle in or whether you’ll need to stop at the supermarket first.

Cleaning Fees: Ask for specifics about cleaning fees and surcharges and especially about if and when extra cleaning fees are charged.

Cancellation Policy, Keys and Problems: If the cancellation policy is not specified in the contract, be sure to ask about it, and how you’ll get the key. You should also be sure to ask for details about how far the property manager or emergency contact lives from the vacation rental should you need assistance.

"True Friends"

The Outer Banks is a huge tourism draw; so a big year for travel generally correlates to a good year for the OBX economy and the OBX real estate market.

It’s great to see very positive projections for 2011 coming from the travel industry.  The travel industry is a major piece of the US economy, and the past couple years have seen a decline in travel do the economic woes.  But 2011 seems to be poised for growth.

Here are some of our recent posts about positive news from experts in the travel industry:

1. Frommers.com sees a surge in vacation rentals.
2. Y Partnership sees positive travel trends for 2011…especially vacation rentals.
3. TripAdvisor projects a big year for vacation rentals.

In addition, a newspaper out of Minnesota recently ran an article discussing the confidence that is replacing caution throughout the travel industry.

The article points out that “The highly respected U.S. Travel Association which represents all segments of the industry — airlines, cruise ships, rental cars, hotels and the like — predicts that the industry “will be above water” in 2011, with domestic travel up modestly and business travel slightly better than leisure travel.”

The piece goes on to mention that “Orbitz, one of the leading Internet travel sites, surveyed more than 3,000 U.S. travelers and noted that “Americans appear eager to pack their bags” this year.

Some 36 percent plan to spend more on leisure travel in 2011 than in 2010, and 42 percent plan to spend the same amount. Ninety percent plan to take two or more leisure trips in 2011, slightly more than in 2010.”

Good news all around.  Here’s to a big year in travel for 2011!

"The Good Life"

Survey Shows Increased Interest in Vacation Rentals, With 40 Percent of Travelers Planning a Rental Stay in 2011

TripAdvisor®, the world’s largest travel site, recently announced the results of its second annual vacation rentals survey of more than 1,400 U.S. travelers.

Thirty-three percent of travelers said they stayed in a vacation rental in 2010, and forty percent of respondents said they are planning a vacation rental stay in 2011, indicating that rental homes are poised for a busy 2011.

From Hank Hudepohl, director of vacation rentals at TripAdvisor:  “With an increased interest in vacation rentals on TripAdvisor and a similar trend shown in our survey, it’s shaping up to be another strong year of growth for rentals.  For travelers staying with larger groups in 2011, a vacation rental is a great option to consider for its home-like amenities and affordable pricing compared to hotels.”

Here are some of the results from the survey:

Summer is the busiest vacation rental season…
Summer projects to be the most popular season for vacation rental stays in 2011, with 52 percent of U.S. travelers planning a rental home stay during the warmer months. In addition, 47 percent of respondents are planning to stay in beachfront villas, making them the most popular vacation rental type for 2011. The most popular U.S. region for rental stays in 2011 is the Southeast (31 percent) according to the survey. This was followed by the Southwest and the Northwest, which came in second and third, respectively.

Best part of a vacation rental…
When asked what travelers liked the most about vacation rentals as a lodging option:

• 28 percent cited more space
• 23 percent of travelers enjoyed having access to a full kitchen
• 13 percent liked that rentals were often less expensive than hotels

In addition, 41 percent of respondents said vacation rentals were the best option for a trip when staying in a destination for a week or more, while 33 percent thought they were the best option when staying with a large group.

Booking early pays off…
Twenty-nine percent of travelers either always or often stay in the same rental year after year. Of the travelers who stayed in a vacation rental in the past:

• 22 percent booked their rental home more than six months prior to the trip
• 34 percent of travelers booked their rentals between three and six months out
• 22 percent booked between one and three months out
• 2 percent of travelers booked their vacation rental less than one month out

Vacation Rental vs. Hotel…
Eighty-seven percent of respondents said they would choose to stay in a vacation rental over a hotel if it were significantly less expensive. In addition, 80 percent of travelers would book a last minute vacation rental stay if they found a great deal.

Luxury vacation rental features…
If travelers had their pick of luxury vacation rental features:

• 51 percent would choose a rental home with a private beach
• 12 percent would choose a rental home with maid service
• 9 percent would choose a rental home with a hot tub
• 8 percent would choose a rental home with a personal chef

Vacation Rentals and life events…
According to the survey, 36 percent of travelers who have rented in the past have stayed in a vacation rental for a milestone life event, such as a wedding, birthday or reunion.

Know Before You Go…
When deciding between different rental properties, the key influences cited by respondents are:

• Photos of the home (42 percent)
• Traveler reviews (27 percent)
• Cost of staying at the properties (13 percent)

Power of the internet and friends’ advice…
Most travelers find out about vacation rental properties on the Web, both on vacation rental property websites (70 percent) and online travel websites (55 percent). In addition, 25 percent of respondents find out about particular homes by word of mouth from friends and family.

The Outer Banks is the perfect beach vacation…a great combination of peaceful relaxation and fun local activities/attractions; gorgeous beaches, a wide variety of water sports, world-class fishing and surfing, great local art and shopping, delicious local food, history, nature, etc.

The OBX offers great vacation rental homes for all types of travelers; small beach bungalows to large beach front estates.

Please let us know if we can help you plan your next trip to the Outer Banks: www.OuterBanksVacations.com.

Seaside Vacations - Sandy Oasis

Ypartnership is a global marketing communications agency specializing in the travel, leisure, and entertainment industries. Headquartered in Orlando, Florida, the agency is one of the most frequently quoted sources on emerging trends in travel and tourism.

Ypartnership chairman and CEO Peter Yesawich recently issued their detailed forecast for the travel industry in 2011, and they see good things for travel as a whole, and great things for vacation rentals specifically.

I won’t include all of the details of the report (you can find more here), but I’ll share a few highlights:

A. As of October of this year, fully 55 percent of all U.S. adults were planning at least one overnight trip primarily for leisure purposes during the first two calendar quarters of 2011, up slightly from the 53 percent who expressed this sentiment at the same point in time in 2009.

B. Although travel with one’s spouse or another adult will continue to represent the highest incidence of leisure travel (eight out of ten leisure travelers will take at least one such trip in the year ahead), family travel (adults who travel with children) will continue to grow because of the burgeoning popularity of multi-generational leisure travel: one third of all leisure travelers are now grandparents, and three out of ten took at least one vacation with their grandchildren last year. This incidence will continue to grow as the population continues to age.

C. Interest in condominium and vacation home rentals will demonstrate robust growth (almost half of all leisure travelers are now interested in a vacation home rental as an alternative to conventional lodging when on vacation), particularly among family travelers seeking more space and better value.

The travel industry plays a major role in the overall economy; it’s great to see positive forecasts for the upcoming year.

For an area that depends heavily on tourism, and has a preponderance of vacation rental homes, this is great news for the Outer Banks and the OBX real estate market.