The Biggest Problem of Vacation Owners in 2024:

Fees, fees, and more friggin' fees.

Yes, renting and owner fees are too darn high via traditional giant platforms for individual vacation owners. Despite how rental owners nationwide hope to profit off a still lukewarm tourism market many challenges remain dampening spirits and causing hesitation toward further investment in real estate and quality vacation experiences. According to AIRDNA in fact, travel spending grew just 1.85% year over year due to inflation concerns, high mortgage rates, low occupancy rates, and several other factors

Bothersome fees don’t seem to go away. Yes, the age-old, wallet-draining phenomenon of both transparent and hidden rental fees that can guzzle funds out of your wallet faster than a beverage-deprived, anxious tourist individually finding a lone gallon of water amidst a long travel through a vast desert. Homeowners, watch your bank accounts! According to data by Lodgify.com, vacation rental fees can blow up to 25-30% of the total vacation cost. With data wildly varying on fees that can be up to 50% of the rental cost, you need to plan well and diligently so that you make the most of what the vacation season has to offer. Starting early in your preparation can help your vacation rentals for 2025!

To even attempt to manage some of these challenging costs costs, you need to not just competitively sell to your customers but also manage quality expertly to bring in more business. Simply put, invest in your rental and customer experience to negotiate higher fees, (or avoid them altogether and look at our listings.) Consider the latest in technology, wifi speeds, amenities, and other accommodations that either make fees mean less, or to lower them with our platform on VacayHub. In a soon-to-be-released article on beach renetals we dive into the specifics and nuances of little value-adds that you can stack toward adding substantial value to the customer experience.

Another valuable tip?

Connect with your customers. Avoid the behemoth rental giants like vrbo and airbnb which can quickly suck the air out of your profits right as you get going. Find property listing opportunities where you can directly connect and speak with prospective customers. Consider links to your socials or having phone conversations with prospective customers as proactively as possible spearheads and builds a competitive advantage as a business and therefore can stimulate both your rental growth and your momentum toward building a portfolio of renters. You could possibly even have a customer office hour once a week where they can call you with any concerns or questions, if needed.

Even simply adding availability calendars and FAQs about each property brings a level of engagement to customers that are cheap/free, and are easy to implement. Think calendly.com and a link to reviews or testimonials from your website or socials, as examples.

Knowing the more transparent you are, the better off you will be versus the rental listing giants will increasingly put you in an advantageous position to benefit more from your rental property while benefiting your customers who choose to rent with you.

Indeed, there is still hope for optimism. AIRDNA noted inflation is exepectedly to slow in 2025 and May of this year produced a resounding uptick in demand growth of 11.4%! Perhaps even better for the rest of the country, small and medium sized cities are expectedly to be the biggest movers in growth through 2025.

With the vacation season flying by perhaps booking your dream vacation isn’t out of the cards yet. Consider signing up for our newsletter or seeing our listings!

Sources: https://www.airdna.co/blog/us-mid-year-outlook-2024-2025 https://articles.ezlandlordforms.com/general-property-management/how-to-avoid-airbnb-vrbo-fees/ https://vacayhub.com/ https://www.vhrnetwork.com/service-fees https://www.quora.com/What-criteria-should-I-prioritize-when-searching-for-the-best-vacation-rental-and-are-there-specific-tips-for-ensuring-a-memorable-and-comfortable-stay