Strong pricing & early bookings launch the 2016 Cape & Islands vacation rental season.
Early Cape Cod and Islands vacation rental bookings of homes listed on WeNeedaVacation.com are indicating a promising rental season this year for homeowners. For the high summer season alone, weekly bookings through the end of January are up 9.5% over the same period last year. And homeowners appear to have anticipated a good season this year, raising their rates nearly as much as they did in 2014, which saw the highest rate increase in this company’s history (since 1997).
Broken down by region, the Islands account for the lion’s share of the strong bookings, with Martha’s Vineyard enjoying a significant 16.4% increase over last year and Nantucket as much as 18.9%, while bookings on the Cape were up a more modest 3.8%.
Bookings and Pricing increases 2016 v 2015
In terms of pricing, however, Cape Cod vacation homes have increased their rates more aggressively than both the Islands this year. Whereas weekly rental rates increase on average by around 2.5% annually, homeowners on the Cape raised their prices for this summer by 3.2%, second only to two years ago when they increased them by 3.3%. Prices of Vineyard homes are also up a significant 2.9%, while Nantucket homes are essentially unchanged from last year.
Naturally, by increasing their prices, homeowners are indicating how successful they were in booking their homes last summer and how confident they are in doing so again this year. Not until the end of the season, however, will we be able to see if these early booking numbers are sustainable throughout the long booking season. Will pricing remain firm? Or will homeowners find their confidence misplaced and be forced to lower their prices to fill remaining vacancies?
Although recent national and global events could conceivably impact vacationers’ choices adversely, these positive booking figures indicate the resiliency of the Cape and Islands as a favorite vacation destination. And perhaps mitigating any financial concerns are the lower gas prices, which are beneficial to the vast majority of Cape and Islands vacationers who live within a day’s drive.