How does strong Euro affect holiday home lettings ?

As the Euro € gets ever closer to being equal to the Great British pound £
We look at how this can affect holiday home rentals.

A lot of holiday home owners rent out the weeks when they are not there with a view to covering the running costs of the holiday home. If these bills are in Euro and the revenue from rentals is in pounds these individuals might be having their own little budget deficit.

There might well be a dip in demand for your property, we are already seeing that airlines and holiday companies are cutting capacity so it’s more important than ever that your adverts are compelling and your holiday home is competitively priced – against the local competition (your neighbours !) and also versus package prices from tour operators. The good news is that the major tour operators have signalled they expect higher average selling prices thanks to the capacity cuts. Strongly consider an “investment” in a leading holiday lettings website like holiday lettings or holiday rentals.

Travel industry experts are predicting that hardest hit in 2009 will be the city break type destinations that people maybe took a couple of extra breaks to in addition to the classic beach summer holiday. We are already seeing this as bmibaby cancelled flights to Rome, Milan, Lisbon, Madrid and Bordeaux. This should indicate that beach properties in sunny Spain should do OK but that is before the Euro got so strong against the pound. Have a think about what you can list as “free” or “included” at your holiday home rental as that may tempt people to book. See the rest of our advice on letting out a holiday home.

January 2, 2009


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