PRICE + Value + (assumed) Quality is the most important equation

Here’s a quick breakdown of some of the more popular statistics that were shared at the most recent Vacation Rental Management Association (our industry) conference:

The big take-away: people are, and will remain, very price conscious. Yes, value and quality are important, but the combination of PRICE + value + assumed quality is the most important equation.

What are the major obstacles to traveling?

  • 55 percent of travelers interested in vacation rentals cited household budget as a major obstacle.
  • 41 percent cited airfare prices.
  • 44 percent cited gas prices.

Many people were going on vacation to celebrate special life events. The three most popular were:

  • Milestone birthdays
  • Milestone Anniversaries
  • Weddings

Children are having a big influence on the choice of where and how to vacation:  

  • 50 percent of people interested in vacation rentals said children had a significant effect on their decision of vacation destination.

How much lead time do people need in advance of a vacation? Many people are making last-minute travel plans. 

  • 38 percent said they have taken last-minute vacations (made arrangement six days or less prior to stay) in the last year.

Rate now trumps brand in hotels and resorts

  • 89 percent indicated that room rate was very important (in fact, the most important consideration).
  • Brand was much further down the list.

In terms of appeal for vacation rentals, the following were most important:

  • 94 percent noted value.
  • 91 percent listed privacy.

As price transparency rises, brand clarity becomes more urgent. This becomes even clearer when you look at the statistics behind what travelers are looking for in a website.

  • 89  want to be able to check lowest fares.
  • 85 percent want a lowest price guarantee.
  • 84 percent want photos of rooms and facilities.

However…

  • Only 21 percent of active leisure travelers have visited a meta search site, like Kayak

 

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