Holiday bookings down considerably

GDB2222

jonnydeppiwish! said:

GDB2222 said:

I prefer to staycation, especially in the summer, but let’s face it, the weather is not reliable. It’s not as cheap as it used to be to holiday abroad, but it’s quite possibly cheaper than the uk, and the weather is more reliable.

It may well be that the demand for holiday accommodation in this country is going to stay  down, now that travel restrictions have eased. 

Quite possibly the case - a search for a holiday let on the Cornish coast has an average cost of £1700 for 2 weeks. I know cruises aren’t to everyone’s taste, but for the same period I’m off around the Med with Cunard full board for £2,800.
Overpriced lets I think

Cruises are out for us, I am afraid, as my wife gets seasick just looking at a boat. 

I’ve heard that cruises can be quite fattening?  Or so my wife says, although she does have a vested interest in finding an excuse not to go.

GDB2222

Pennylane said:

ts247 said:

There was a huge demand for uk holiday let accommodation after the lockdowns while travel abroad was still restricted.  Due to this the prices became inflated.  In the time since there has been more holiday accommodation made available (lots like yourself switching from long term to holiday lets and lots buying second homes) and travel has opened up, so there is more competition from these other options.  Mostly the price of holiday accommodation has not changed to reflect these changes, with owners/agencies still expecting the sort of rent they were getting at the peak of demand for uk holiday lets.  Of the lets I know of (looking Easter to october), one fully booked with week stays has an unbeatable view, so will always be in demand, one is super flexible with a minimum 2 nights and is chock with short stays, the rest have patchy occupancy and empty augusts.  If you’ve not got a USP (like breathtaking view), look at stay restrictions (are you limiting to 7 nights only?) and reduce price.  Good luck ☀️

We are very flexible.we will do 3 nights+ breaks. We have people in right now for 4 nights.  We got the agency to look at our bookings and they say our pricing is fine, we are flexible and we are getting more bookings than similar properties in the area.

I do agree that holidays abroad are often cheaper. We do AI from our local airport (which is always far more expensive) and we still get a great deal.  However, we mainly get retired couples staying here, many of whom may no longer be able to get insurance to travel abroad.  We also get a lot of people who bring their dog.

We have also had people who are having new kitchens fitted in their own homes or new flooring laid throughout and just want somewhere to relax away from workmen for a week.  

Thanks for all your helpful comments.

 I think you are answering your own question. Your agent says you are priced competitively, and the package you offer seems to be good. And yet, with the best part of the season just coming up, you have lots of vacancies. So, there’s an oversupply of accommodation, and you either need to lower your prices to attract what business there is, or get out of holiday letting.

 The only caveat I would add is that you mentioned that you mostly let to elderly people. They don’t have much incentive to pay premium prices for the peak summer season. 

Alderbank

Pennylane said:

There is little evidence here of people being on tight budgets and not going on holiday.
we got stuck in a traffic jam a few weeks ago … only a rural one where 2 buses tried to pass in a tiny village. But while we sat waiting we looked at the cars going through and it was like, BMW, Range Rover, Merc, BMW, Audi, Range Rover, Merc etc etc.  and all on recent plates.  

This is a neat snapshot of how unequally inflation has hit.

The 20-year-old Fiestas will all be staying at home, their owners worrying how to pay next month's rent and grocery bills.

theartfullodger

Sarah1Mitty2 said:

theartfullodger said:

Property is and always was a long-term game.  There always were and always will be bad years (and bad agents, and bad tenants).

Sit it out, hope for better times 

Part of the consequences of the "cost of leaving (leaving) crisis".

Good luck!

More likely the result of interest rates going from what 0.1% ?!!! back to more normal rates very quickly, holiday lets, AirBnB etc. will obviously be hit.

I recall under Thatcher's iron handbag when BoE base rate hit 17% with a for then large mortgage... 

RelievedSheff

We have just returned home from a 9 night trip to Norfolk and Suffolk with our motorhome and there was certainly no signs of staying at home and not spending. 

Everywhere we visited was busy and thriving. Sites were busy, pubs and restaurants were busy.

If people are cutting back we certainly didn't see any evidence of it!

RelievedSheff

Alderbank said:

Pennylane said:

There is little evidence here of people being on tight budgets and not going on holiday.
we got stuck in a traffic jam a few weeks ago … only a rural one where 2 buses tried to pass in a tiny village. But while we sat waiting we looked at the cars going through and it was like, BMW, Range Rover, Merc, BMW, Audi, Range Rover, Merc etc etc.  and all on recent plates.  

This is a neat snapshot of how unequally inflation has hit.

The 20-year-old Fiestas will all be staying at home, their owners worrying how to pay next month's rent and grocery bills.

I'm not so sure about that!

jonnydeppiwish!

RelievedSheff said:

We have just returned home from a 9 night trip to Norfolk and Suffolk with our motorhome and there was certainly no signs of staying at home and not spending. 

Everywhere we visited was busy and thriving. Sites were busy, pubs and restaurants were busy.

If people are cutting back we certainly didn't see any evidence of it!

Some people definitely still have money to spend. It would interesting to see what the percentage of 🇬🇧 was struggling with bills v those who have cash to spend.

AlexMac

theartfullodger said

I recall under Thatcher's iron handbag when BoE base rate hit 17% with a for then large mortgage... 

Mmmm?  Yeah, me too, in that I was grateful that in 1975 I’d had a 100% mortgage fixed on 15%, so when in 1979, Maggie’s rate ran to 17% I was cushioned… 

BUT… the gaff I bought only cost £10,000!  According to Zoopla, it sold this year, 40 years after I’d moved on, for the unbelievable price of over £1million. 

I dunno how much I earned then, but even if I was still working, I doubt my wages would have increased 100 times like that house has?  

DiamondLil

@Pennylane - whereabouts in the country is your holiday let ?

We've been searching for B&B and/or holiday lets in the UK and can't find anywhere not fully booked.

thegreenone

With mortgage deals expiring and rates doubled, I think holidays will be off the cards for lots of people this year.