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Orlando Hotel Competition from Vacation Homes

The Orlando Sentinel (1) recently noted that Orlando hotels are now facing the worst economic conditions since recordkeeping began over 20 years ago. These are business conditions possibly worse than the aftermath of 9/11.

We projected that many hotels in Orlando would be facing some type of systemic failure back in December of 2008 (2).

Checking rates for September 28^th2009 for one night, we identified several major luxury hotel brands offering rates under $99 directly on their websites. The irony is that thousands more branded new luxury hotel rooms have either recently opened or are just opening, further increasing supply in an oversaturated market. Read More→

Checking the latest data on the Orlando CVB web site, indicators show that hotel rates are dropping at a much faster rate than occupancy.

In a market where lodging products have become commoditized (little or no differentiation), it is important to understand that there are significant differences between hotels and vacation home communities (see our reviews on the right).

When hotels drop their rates, it typically has a treacherous impact on their profitability. Some credible news sources now claim that as many as 1 in 5 hotels are in some stage of foreclosure. Vacation homes have also seen huge amounts of foreclosures, but such issues can be largely prevented by renting a home from a larger reputable management company.

Bargains now abound in Orlando as the competition for the consumer lodging business grows fierce. However, for the price of a decent hotel room, you can typically rent an entire house with your own private pool. If arriving with a family, it can be much more enjoyable for everyone to have their own bedroom and television as well enjoy large common spaces such as kitchens and living rooms. This may be contrasted to staying in a cramped hotel room. Many Orlando vacation homes also come with private pools and full garages.

In conclusion, if you are planning on coming to Orlando, consider renting a vacation home from a well established and reputable management company. Consult our unbiased vacation reviews and profiles and details of various vacation resorts in the area.