The Outer Banks "Beach Factor"

I have never been one to blurt out comments or opinions until I have thoroughly thought them through. Everyone has been around people that love to sound intellectual on any subject that comes up, and more often than not, they think they know more than you. I call these type of people "one-uppers". They have to constantly "one-up" any story, theory, idea, etc.

Anyway (I tend to get off track sometimes), I have been watching a lot of so-called financial experts on TV lately due to this current economic downturn (I refuse to call it a crisis yet). It seems that every single one of them say the same thing but in different ways. Everyone is offering an opinion, from Larry Kudlow to Dennis Miller and everyone in between. While I have a few investments in Stocks and Funds I am not to over excited about any of this.

My main focus, currently, is how this is going to effect our Vacation Rental business on the Outer Banks. Because blogs are all about self-expression and "free-speech" and all that jazz, i'll through in my 2 cents.

I believe, and I have been busily politicking this theory to all of my staff, that this economic down cycle will actually help the Outer Banks Vacation Rental market as a whole. Think about it, now that everyone is watching their pennies because every talking head is talking about the economic "crisis", those grand Caribbean, European, World Tour Vacations are going to be put on hold. But, that doesn't mean people are going to give up their week or two of mental and physical rejuvenation.

Here's the scenario I have been thinking about:

Mike and Holly want to go on a week long vacation to Costa Rica this year at a nice Resort. Holly's business isn't doing so hot the last quarter of 2008 and into the first quarter of 2009. Suddenly that travel fund isn't as robust as they had hoped it would be.

Mike and Holly are discussing this with their friends Jamie and Becca and John and Lindsay. They are in a similar boat as well. All of these couples have been to the Outer Banks before and loved it. Holly, in a flash of brilliance, recommends to the group, "Hey, why don't we just all go in together and rent a big Vacation home on the Outer Banks! It is much cheaper per night than a hotel, and we can cook a lot of our own meals at the house." Game On!

The Outer Banks has quite a few things working for it during times like these. The fact that it is a drive to location takes the headache and enormous cost of flying to an exotic location out of the equation. Also, the cost per bedroom per night can be significantly lower that any hotel or resort. And when you add in the fact that you can cook for breakfast, lunch, and dinner in your own personal kitchen, it can reduce your costs for a total trip that much more.

So, let's call my theory the "Beach Factor". Beach being more regional than a global hot spot. I wouldn't be spouting off theories without any quantitative data to look at however. At Resort Realty we have already noticed a 15% increase in pre-reservations for the same time last year. whether this is because of the "Beach Factor" I really can't say, but I'm going to claim it until proven otherwise!