The vacation industry, with its sophisticated products and services, has taken a front seat in the list of priorities among consumers in North America and Europe in the last 20 years. In other words, consumers of today, don’t see vacations as a luxury anymore, like previous generations did, but as an essential need that families are seeking more often. At the same time, the number of companies active in the hospitality sector has consolidated in the past few years to less than 20 recognizable brands.1 This metamorphosis of a healthy and growing industry has created a number of very interesting business opportunities for real estate and asset management companies.
Vacation Industry Rentals of Second Homes
One vacation industry opportunity that has been created is vacation rentals of second homes. Not the traditional rental outlet company, but a robust one-stop-shop for all your vacation rental needs. This growing sector, estimated to be approximately $190 Billion by 2020, 2 with companies such as HomeAway© and AirBnB© offers tremendous opportunities.
National Asset Services (NAS) has the infrastructure and resources to compete in this space by building a portfolio of services for owners of second vacation homes. These services would include:
- Dynamic marketing to maximize bookings and pricing
- Offer user friendly mobile technology and personal service to this group of home owners
- Asset management of properties
- Permitting, tax registrations and accounting of rental properties to home owners
- Offer a Real Estate platform for buyers and sellers to advertise their properties
In other words a company that will connect the dots to make vacation home ownership simpler and profitable.
Another great opportunity in today’s market and within the hospitality industry is the conversion of existing hotels into vacation ownership resorts.
There are a number of small hotels (50 to 150 rooms) in high demand markets that are too small to be swallowed by the big hospitality brands, but they are great properties to be converted into small iconic vacation ownership assets with a 5 to 7- year horizon.
At the end of its cycle, these assets could be sold to existing vacation clubs with great profit potential. The key on selecting these properties is doing an extensive due diligence when purchasing the asset and the location. The location has to be associated to a major attraction with high levels of demand all year around.
National Asset Services has the expertise and know how to successfully enter this space and diversify from the core products and services being offered today.