Economy Series: Vacation rentals
In a land far, far away
By Lindsey Conklin
How is Folly Beach's vacation rental industry doing in a struggling economy?
In most fairytales, the beautiful princess and the handsome prince ride off into the sunset, destined to travel to faraway lands. In our fairytale, Folly has become that dream destination, but an evil shadow has been cast over the royal couple’s sunset dream. The economy has been cast as the villain, but is it a powerful enough foe to threaten and destroy the magical Folly Beach?
Our ne’er-do-well is desperately working to limit a favorite American pastime: summer vacations. Outsmarting the evil forces, however, people have discovered that Folly Beach is a great place to seek a summer sunshine getaway. Folly has not seen the dramatic decline that similar local areas have witnessed in terms of summer rentals. This could be due to the fact that people accustomed to visiting Kiawah and Isle of Palms are finding a refreshing retreat in Folly Beach as you not only have a place to relax, but a way to do it at a more affordable price. Dawn Goldman, Manager of the Water’s Edge Inn, noted that they have experienced a positive increase in business this year.
While occupancy seems to be maintaining a steady pace, the Realty companies (Avocet, Fred Holland, and Dunes Properties) have noticed changes in demand patterns. For instance, renters are now looking at vacation homes two or three streets back from the once highly sought after ocean front to cut back on expenditures. People are finding smarter ways to travel and are making efforts to decrease expenses by restraining their luxury purchases instead of eliminating them.
Another trend, according to local realtors and hotel proprietors, is last minute shopping. Instead of making reservations six months in advance, travelers are waiting to book their trips to ensure that the vacation can fit in their budget, and with the hopes of snagging a last minute deal. Matt Barba of Avocet noted that, rather than booking in January or February, “People are waiting until March or April, or even May” to inquire about a summer holiday escape.
Online travel sites, TV talk shows, news networks and magazine tips all play a role in the way people are travelling today, transforming vacationers into quintessential bargain hunters.
Headlines on internet websites and newspaper columns which read “Ten Ways to Recession Proof your Vacation” and “Recession Friendly Vacation Rentals” tempt us to indulge in a much needed vacation at a better price, with tips on how best to accomplish it. Obviously, these tips have had an influence on vacationers. According to LaJuan Kennedy of Fred Holland Realty, “People are looking for more discounts and deals” in their rentals. Incidentally, prices have dropped a little this summer as rental prices are being negotiated, but not by much. On the other hand, some hotels on the island have not noticed a difference at all in their average daily rate.
Folly Beach’s Holiday Inn is experiencing consistent business while rates have remained steady when compared to previous years. However, there have been more last minute bookings and walk-in traffic. Sarah Irving, Director of Guest Services, has noticed the fairytale anomaly working in the hotel.
“The industry itself is down, but we’re doing better and we’re staying on par,” she says.
Ken Merkel, General Manager, adds, “I think Folly Beach, based on location and the connotation of it being lower priced, has benefited. A lot of resorts are down 40-50 percent. We are a predominately social and transient hotel and have been able to experience a growth partially due to the renovation, the ’stay-cation’ theory, and also the added 4-5 restaurants on Folly to keep it interesting.”
So is this economic villain truly a foe revealing our best kept secret: the fabulous Folly Beach? Obviously, Folly is not completely recession proof as rental rates have dropped in some instances. However, occupancy is strong. This recession has produced an abundance of summer travelers searching to get the best bargain for their buck and Folly Beach has been a financial beneficiary. While much of the country seems to be suffering, Folly Beach, which is financially dependent on tourism dollars, is that fantasy land which seems to remain just out of the reach of our economic antagonist. Perhaps our villain is actually a hero in disguise, saving a small town from the dangers of a bad economy and making our story a classic Folly-tale.
