Tuesday, September 25, 2012

Wyndam Hotel Chain Competes Directly with Privately Owned Vacation Rentals

Under the name Wyndham Vacation Rentals, the Wyndham hotel chain is planning to directly compete with your privately owned vacation rental operations.  They are already promoting themselves as "the world's largest professionally managed vacation rental business".

Based on a 2012 survey that Wyndham commissioned with the travel consulting firm PhoCusWright, Wyndham cites a number of important findings.  The most important finding from their perspective, concerns the strong appeal of "a hotel-branded vacation rental company" to consumers.

They further cite that 86% of non-frequent vacation home renters say that they are more likely to rent from a hotel-branded vacation rental, because they like consistency in features and service.  This suggests that those who don't rent vacation homes often are worried that they won't be satisfied with the quality of their vacation home rental experiences - a concern that is also supported by other studies.

More specifically, those who responded to the survey said they would like the hotel-branded option because:
•  I would know what standard to expect from a home
•  It would be easier to contact someone with longer business hours
•  It would be easier to search and book online
•  A home would have more service options like housekeeping and check-in
•  There would be more information and pictures available online
•  I know I would have recourse if I needed help


PhoCusWright says that there are 20 million non-frequent vacation renters who would spend over $12 billion dollars each year to stay in short term rental homes.  According to their numbers, capturing these additional customers for the vacation rental sector would just about double the amount of money spent on vacation rentals in the US each year.


To support their marketing effort, and encourage prospective vacation home guests, Wyndham is rolling out a Vacation Rental Bill of Rights, which tells renters that they have a right to:
•  Work with an experienced hospitality company they can trust
•  Assistance from a knowledgeable customer service team before, during and after their stay
•  Easily search from property descriptions that are detailed and accurate
•  Choose from a diverse selection of distinctive vacation accommodations
•  Book confidently in real time and pay online
•  A clean, regularly inspected vacation rental 


The study focuses on how to capture those potential VR guests that have concerns about what their experience in a short term rental will be like, and does not cover much about what the experience is of those guests who are already comfortable about the idea of vacation rentals.  

If you run an owner-managed VR, or operate a small property management company - be aware that Wyndham is gearing up to capture your future customers.

Read a Press Release here.

Read the Survey here.

Doug Coates


4 comments:

  1. This is exactly what went through my mind when I heard HA and Wyndham had made a deal! Watch for Wyndham to purchase HA in the future. This is certainly bad news for us VRBO owners that depend on sites like HA to give us a fighting chance at profits from vacation rentals!

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  2. Oh, and also, now HA has done a deal with Westgate Timeshare Resorts. Pretty soon HA will become the number one provider of timeshares and be making millions from promoting and marketing timeshare rentals,,, not privately-owned vacation rentals. So long HA, its been nice knowing ya!

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  3. Vacation rental owners are notoriously fickle. HA are already trying to milk them for ever more cash for ever fewer bookings. But the internet is a wonderful place and another bus will be along shortly.

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Thoughtful comments are welcome, whether you are in favor of vacation rentals or concerned about the impacts of VRs on your community. Comments that contain advertising, including ads for properties, will be deleted.