Private holiday rentals market travel

An overview of the private holiday rentals market: 

An overview of the private holiday rentals market The private holiday home rentals market is booming as more Brits rent out their second homes and more travellers seek an ‘authentic’ holiday experience 40% of self-catering breaks – 11 million holidays – were taken in private holiday homes in 2006

DEMAND: 40% of Brits taking a self-catering holiday stay in a private holiday home: 

DEMAND: 40% of Brits taking a self-catering holiday stay in a private holiday home Self catering holidays accounted for 60% of all overseas holidays in 2006. In 2007, they will represent over 62%* Self-catering holidays abroad grew by 22% over the last five years to 27.6 million; a faster rate than overseas holidays in general. By 2011 the self-catering market will have exceeded 34.3 million breaks* 27% of people taking a self-catering break booked directly with the owner. A further 13% stayed in their own, or a friend or relative’s holiday home. So in 2006, 11 million holidays were taken in private holiday homes (40% of 27.6m) In recent years Holiday-Rentals.co.uk has seen a 50% increase in traffic year-on-year. In January 2007 alone, the site received over 1.1 million visits Staying in a holiday home rental ticks the boxes for holidaymakers top priorities : FREEDOM SELF-EXPRESSION AUTHENTICITY … It is also extremely COST-EFFECTIVE, offering 10 to 40% savings on travel agent prices The growth of self-catering holidays is linked to the independent/DIY/low-cost trend and the growing need amongst travellers for authenticity, local interaction and gastronomical experiences* 45% of respondents enjoy the interaction when buying local produce and a further 35% felt that self-catering gives them ‘a real feel for the area’ in which they’re staying Flexibility is also one of the key reasons people choose self-catering: Almost three quarters of respondents cite the choice of eating in or out as self-catering’s major draw* The top reasons for choosing a holiday home rental are; for the privacy, self-catering facilities and the flexibility they provide, according to a recent survey of 1,250 visitors to Holiday-Rentals.co.uk Consumers also expect increasingly ‘customised’ services; Dealing directly with a private owner offers just this PRIVATE HOLIDAY RENTALS BETWEEN INDIVIDUALS ARE PART OF THE ‘C2C’ REVOLUTION *Mintel, March 2007. Self catering holidays UK report   

SUPPLY: The rising number of holiday home owners renting out their properties is fuelling growth of the private holiday rentals market: 

SUPPLY: The rising number of holiday home owners renting out their properties is fuelling growth of the private holiday rentals market Up to 400,000 overseas properties are currently owned by the British; an increase of 9% per annum over the past decade* The number of properties listed on Holiday-Rentals.co.uk has increased by over 220% since January 2004. This represents average growth of over 45% year-on-year The proportion of people renting out their holiday homes to help cover costs is rising faster than the total number of foreign properties owned Investment in property abroad is no longer the preserve of the ‘rich’. It has been fuelled by; greater UK housing equity, cheap borrowing, the rise of low-cost airlines, and lifestyle aspirations Rental potential has become a major consideration. The ability to rent the property out to help cover costs is often implicit in the decision to purchase (and sometimes taken for granted) Holiday-Rentals.co.uk estimates that 25% of holiday home owners are currently renting their properties out on the internet 30% of the UK population intend to buy or would like to buy a holiday home in the future** The ongoing increase in overseas property ownership will fuel growth of the private holiday rentals market and an increase in the selection of properties available to travellers With a large proportion of the 400,000+ British-owned foreign properties being rented out, there is now a huge choice of holiday rental accommodation for travellers “ ” *Savills Research/Holiday-Rentals.co.uk, March 2007 **Mintel, March 2007: Self catering holidays UK For ski & golf holidays,… …city breaks… …romantic getaways… …rural retreats… …beach holidays… ..or something a bit different…

Holiday-Rentals.co.uk distribution of properties: 

Holiday-Rentals.co.uk distribution of properties Holiday-Rentals.co.uk advertises properties to suit every taste and budget, from around £150 to over £10,000 per week. The site currently lists over 22,000 properties in 80 countries, ranging from cottages to country houses; budget apartments to luxury villas; in the city or the country; by the beach or in the snow.

Slide5: 

40% of Holiday-Rentals.co.uk website visitors are families Holidays are a family decision but Mum does most of the planning, getting inspiration from the internet (78%) and by word-of-mouth (65%) Most families are planning 2 to 3 holidays in 2007; a mixture of long and short breaks Long breaks will mostly be taken in August, July or April and will focus on getting away for some sun, sea and sand. 97% intend to use a holiday rental Short breaks will be taken in October, February or April and will most likely be city breaks, or rural retreats. This is a time to discover somewhere new together. 49% intend to use a holiday rental Access to a pool, and flexibility regarding minimum stay and arrival/departure times are crucial factors when choosing a holiday rental property The availability of a maid service was not at all important for the majority of respondents The presence of ‘good restaurants’ as a deciding factor for both short and long breaks clearly reflects the trend highlighted by Mintel towards gastro-tourism Confidential© 2007 Holiday-Rentals.co.uk. All rights reserved. *Based on a survey of 1,250 site visitors in January 2007

Slide6: 

40% of Holiday-Rentals.co.uk website visitors are older couples Most are over 50 years old, but 25% are under 50 83% get inspiration from the internet, 54% from word-of-mouth Although the majority (93%) travel mostly as a couple, 14% intend to take a short break and 12% a long break with friends, and 11% are planning a long holiday with extended family They are planning 3 to 4 holidays in 2007; most commonly 2 long and 2 short breaks They travel off peak to ensure peace and tranquillity: September and June are the favourite months for long breaks, followed by October. May and October are popular for short breaks Long breaks taken by older couples are mostly summer sun (71%), then winter sun (38%). 92% plan to use a holiday rental Short breaks are mostly city breaks or rural retreats, but 20% also intend to take a short summer sun break. 50% plan to use a holiday rental. As for families, the trend towards gastro-tourism is clear, as is the use of short trips to discover somewhere new together. Peace and tranquillity is tantamount to this segment Confidential© 2007 Holiday-Rentals.co.uk. All rights reserved. Based on a survey of 1,250 site visitors in January 2007

Slide7: 

20% of Holiday-Rentals.co.uk website visitors are groups – both small and large! Groups are adult friends holidaying together, or extended family groups with kids SMALL GROUPS Small groups consist of either empty nester couples or young singles travelling together: 32% are 51-60 years old, 25% are 41-50 years old and 14% are 18-30 years old They plan their long breaks off peak, in May, June or September. Short breaks are taken throughout the Spring and in October Unlike families, proximity to a beach is not so important on a long break; the most important factors are; nice weather, beautiful countryside and peace and tranquillity LARGE GROUPS Large groups are mostly extended families travelling with children. They are tied to school holidays and access to a pool is crucial, or very important People mostly take longer holidays (i.e. 7 nights+) as a large group. Short breaks as a large group are less common 13% of total survey respondents planned to take their next long break with extended family, showing people are using holidays to re-establish family bonds Confidential© 2007 Holiday-Rentals.co.uk. All rights reserved. Based on a survey of 1,250 site visitors in January 2007 Top 3 reasons small groups choose holiday rentals 1 Self-catering facilities 2 Flexibility 3 Privacy Top 3 reasons large groups choose holiday rentals 1 Privacy 2 Self-catering facilities 3 Larger living space (than a hotel) Both groups’ priorities are to relax and spend quality time together Nice weather, beautiful countryside, and peace and tranquillity were of key importance to both segments Having lots of activities available was not considered important The private facilities are one of the main reasons both these groups choose holiday rentals. The facilities and setting of the property itself are of key importance, indicating most of their time will be spent relaxing together at their ‘home from home’

Slide8: 

Speak to the owner before you confirm your booking to sound them out about the property, location and nearby facilities; What’s ‘next door’? What amenities and attractions are within walking distance? Do you really need a car to make the most of the holiday? Are linen and towels provided? What EXACTLY is included in the price? Ask for extra photos if not all rooms are shown in the advert. Also ask if the owner has a private website Ask to see references from previous guests. If the owner has only just bought or finished doing up the property, you might be their first guest though! In this case, you really have to go with your gut instinct, which is why it’s so important to talk to them first. Make sure you clearly understand the owner’s individual policies on refunds, cancellations, deposits, payment schedules etc… Get everything in writing and ensure you have a complete record of all communications. Follow up all telephone conversations with an email, ‘This is just to confirm that, as discussed, XYZ….’ Ask the owner the best way to get to the property. Can they arrange airport transfers? Many owners can help you get special deals, or the best price from local cab or car-hire firms What time is check-in / check-out? Is this flexible? Make sure you know who is going to hand over keys to you and get a mobile number for them Check who will be available to you in case of any problems once you are there. Will someone (English speaking) be available locally? If not, will someone be available by mobile? Ask the owner for contact details of maintenance staff and local emergency services Check if you need to clean the place before you leave, or if an end-of-stay clean is, or can be, included in the rental rates Top 10 Tips for booking direct with owners The key to booking direct is to speak to the owner first, ask plenty of questions, make sure you are clear on the details and get everything in writing “ ”

About Holiday-Rentals.co.uk: 

About Holiday-Rentals.co.uk 1996: Holiday-Rentals.co.uk is founded. The site takes off and continues to grow – fast! February 2005: Brian Sharples and Carl Shepherd recognise a huge opportunity in the holiday rentals market and create HomeAway, Inc. in Austin, Texas HomeAway receives $32m in funding from Austin Ventures and Redpoint Ventures and $9m from WVR management HomeAway acquires CyberRentals.com, GreatRentals.com, TripHomes.com, A1Vacations.com and Holiday-Rentals.co.uk December 2005: HomeAway acquires leading German site, FeWo-direkt.de May 2006: HomeAway receives $7m in funding from Austin Ventures, Redpoint Ventures and management June 2006: HomeAway.com is launched, listing properties from CyberRentals, GreatRentals, A1Vacations, TripHomes, FeWo-direkt.de and Holiday-Rentals.co.uk September 2006: USATODAY.com selects HomeAway.com to power its holiday rental classifieds November 2006: HomeAway receives $160m in equity and debt financing to fund expansion initiatives January 2007: HomeAway acquires leading French site, Abritel.fr March 2007: Holiday-Rentals.co.uk launches 8 European sites April 2007: Holiday-Rentals.co.uk lists over 22,000 properties Today, the HomeAway network of industry-leading private holiday rentals sites provides the largest and most complete selection of holiday home rentals in the world, advertising over 170,000 properties across 100 countries. In 2007, over 100 million travellers will visit HomeAway sites. “ ”