In the newest industry research from its “HomeAway® Vacation Rental Report: Owner Edition,” HomeAway, Inc. (NASDAQ: AWAY), the world’s leading online marketplace for vacation rentals, highlights the strong performance of its vacation rental owners during the summer season. The case for vacation home owners to rent their otherwise vacant properties to travelers grows more compelling when examining the number of bookings and increased rental rates compared over last year.
A Strong 2013 Summer Season
The Labor Day holiday brings a welcome conclusion to a lucrative summer for many vacation rental owners. This summer’s report finds the average occupancy rate for vacation rentals is 77 percent for vacation rental owners who consider summer their peak season. These owners reported an average weekly rental rate of $1,778 ( $254 per night), a 19 percent increase over the same time period in 2012.
Comparatively, Smith Travel Research, Inc. reports the average occupancy rate for U.S. hotels for the summer season was approximately 70 percent 1 (a slight two percent rise from the same period last year) with an average room rate of $110.21 per night, representing just a 3 percent increase over the same time period in 2012. Even though the nightly rate of a hotel is lower than that of a vacation rental, vacation rentals still hold a much higher value than a single hotel room, offering multiple bedrooms and bathrooms, allowing for comfortable and convenient family and group travel.For the second consecutive year, nearly nine in 10 vacation rental owners (86 percent) report their summer business was about the same or better than last summer. And 95 percent of vacation rental owners said they did not lower their rental rates from last summer—23 percent even increased their rental rates. “It’s clear from this year’s report our owners are utilizing their vacation homes as assets to help pay their expenses and even turn a profit,” says Brian Sharples, co-founder and chief executive officer of HomeAway. “Nothing makes me more proud than aiding our owners and property managers in filling their vacation rentals.”