Holiday Homes in the UK – Will They Benefit From the Weak Pound?

Posted by admin on July 6, 2009 under Holiday Home General Items, Holiday Home Owners | Be the First to Comment

In today’s competitive tourism market, the challenges of the global economic crisis will create winners and losers in 2009.

It is very likely that the winners will include owners of quality holiday homes in the UK.

With sterling now at a historic low in relation to the Euro and plunging against the dollar and other currencies, the UK is set to prove an attractive option to holidaymakers from overseas in 2009. Indeed, Visit Britain is pinning its hopes on a surge of additional overseas visitors, attracted by how much further their money will go in the UK this year.

But an even more significant market is the British holidaymaker, who is likely to think twice about holidaying in Europe or America this year, now that the weak pound looks like knocking a third off the value of their spending money. So there is every possibility that a greater number will decide to take their holiday in the UK this year.

As the leading tourism destination in the UK, the counties of Devon and Cornwall are set to win the lion’s share of this business.

Certainly, early indications from property management companies are that this prediction is on course to becoming a reality.

According to property management companies, bookings of UK holiday homes in Devon and Cornwall are higher than at the same time last year and holiday home enquiries are also running at a high level.

However, the supply of holiday homes is also increasing as many second home owners, who previously reserved their second homes for use by their own family, try to make additional income by renting their second home out to paying guests for some of the year. This trend will intensify competition in the self catering sector further.

The credit crunch is also likely to have a positive impact on the holiday home market, in comparison to other accommodation sectors. With most, if not all, holidaymakers feeling the pinch, they are likely to look for ways of achieving a high quality holiday experience but also saving money where they can.

Unlike hotel accommodation, holiday homes mean that customers can tailor their expenditure on food and drink to their budget. It is also possible to increase the party size by inviting additional family or friends to larger holiday homes, which usually works out less expensive than the equivalent number staying at a hotel.

With the range of facilities on offer in today’s holiday home, it is also easier to have a high quality experience spending time at the house itself, allowing the option to spend less money on visiting attractions and other secondary spend.

Indeed, the rise of holiday concierge services and other holiday home property management services is leading to an increased range of ‘a la carte’ features being made available to customers according to their specific needs. This allows the holiday home guest to tailor the experience to his wishes and budget, with greater flexibility than can easily be provided by other accommodation sectors.

In an age where the customer is king and flexibility is increasingly valued, this creates a competitive edge for the holiday home sector.

This makes it likely that holiday homes will be in pole position to benefit from the weakness of sterling and the increased demand for holidays in the UK in 2009.