While most hoteliers rely upon reservations made for their rooms and suites, additional revenue presents itself in the form of managing vacation rental homes. Some hotel companies are just entering the space—Choice Hotels announced the launch of Vacation Rentals by Choice Hotels earlier this year—while others are finding new ways to build upon already-established rental services. Wyndham Worldwide has been part of the vacation rental scene since 2001, when offshoot Wyndham Vacation Rentals acquired Holiday Cottages Group, a European company. Wyndham Vacation Rentals now has more than 108,000 rental properties in 600 properties worldwide. Last year, Wyndham Vacation Rentals invested in a company in the same vein as vacation rentals, but with a twist: Home-swapping site Love Home Swap, which allows users to try other homes on for size while on vacation.
The investment was timely, with one in four U.S. travelers turning to alternative accommodations at a rapidly increasing pace, according to Phocuswright. Between 2011 and 2014, the market jumped from one in 10 U.S. travelers to one in four who would be likely to rent a whole home or apartment. As Airbnb and like-companies continue taking bigger pieces of the travel market pie, it is important for the hospitality industry to find ways to compete.
Gail Mandel, president and CEO of Wyndham Destination Network, explains, “Our mission is to send people on the vacations of their dreams. Since that definition is so personal to the individual, we looked at vacation rentals. At the time we entered vacation rentals, we were a pure hospitality franchise company, and we looked at vacation rentals as a natural extension of different types of dream vacations that we could provide to consumers.” Since vacation homes can be more user-friendly than hotel rooms to those seeking kitchens and other utilities, as well as space for larger and multi-generational groups, the affiliation between hotel management and private vacation rentals offers a great combination of a comfortable “home away from home” experience but with the room service, concierge service, and other exemplary customer service associated with a hotel.
Wyndham is marketing the advantage of providing a 24/7 contact who can resolve issues quickly for guests during their stay. “If the air conditioning breaks in the middle of the night, and you’re in our hotel vacation rental, 24/7, there’s going to be somebody who is going to pick up the phone for you that is working with us. Also, from a homeowner’s standpoint, the homeowner is not going to get that call in the middle of the night. So, the consumer vacations with confidence, but the homeowner also has a confident experience as well, because they know that their asset is being cared for by the hospitality company.”
While this delivery model, with this new continuum of services, is new to the States, it has a longer and successful history in Europe. Despite its relatively new arrival on this side of the pond, there are definite signs of growth and improved revenue already due to increased demand from savvy vacationers who seek the comforts of home while enjoying the perks of a hotel stay.
