Hello Everyone,
The last 3 years have been spectacular for those of us who rent our homes. Covid proved to be a boom for us. 2023 seems to be much different so I wanted to email everyone what I am seeing and have confirmed with my VRBO account manager that they are also seeing.
I have identified 5 factors impacting occupancy on Fripp Island. I believe all of these are playing a part in what seems to be a slower booking profile even for the peak summer months.
1Movement back towards hotels
VRBO is seeing a 20% movement back toward hotels. The pandemic pushed people to homes and this is going back to a more normal pattern.
2COVID Travel
ovid allowed many people not to go into the office; and therefore, many chose to work while traveling.
3US Economy
The US economy is not great, so more people are deciding against vacations. I definitely see a trend of shopping for the best deals and guests going for low price.
4Increased Number of Available Rentals
The number of rentals on Fripp has expanded by 20% in the last 2 years and more are coming on. Many of these are new construction homes or complete remodels.
5Resort Fee
Content
When setting 2024 prices, I think you should be aware of these trends; and consider, at least for your returning renters, not raising prices. It is definitely a tough decision because we are all seeing our costs rise due to inflation and insurance. If you have not set rates for 2024, I would at least set them through labor day 2024.
-David