Hotel prices drive holidaymakers to rent property

Hotel prices are driving people to rent property, according to HomeAway.

The holiday rentals firm report that global hotel rates rotes by an average of 4 per cent last year, prompting 36 per cent of holidaymakers in the site's survey saying that they were considering cheaper accommodation instead, such as holiday rentals.

Saving money is also one of the top reasons why one in six holidaymakers will spend their main break at home this year. Surprisingly though, should the economy worsen, only 13% of holidaymakers would give up on their holiday altogether; many more are happy to wait for a last minute deal (27%) or choose a cheaper accommodation option (25%) instead.

The report also found that the supply of privately rented vacation property in Montenegro and Croatia grew in the first quarter of 2012. The popularity of the Adriatic nations could also be down to Brits looking save money by opting for better value destinations, with homeowners on reporting increasing demand:

Paul Clarke, owner of a two-bedroom apartment in Kotor commented: "I haven't experienced any downturn due to the recession, in fact last year the apartment was booked for 34 weeks of the year and this year is shaping up to be the same or even better."

Montenegro was the top performing market in terms of inventory growth on from January to 31st March. Now seen as a safe place to invest, it has not lost its value during the recession and experienced a healthy 87% year-on-year increase in the number of new properties added to the website.

Nicky Anson, owner of two properties in Istria, Croatia commented "2012 is shaping up to be one of our best rental years yet, with high levels of booking enquiries from January onwards. The end of April saw another flurry of bookings too as our last available high season weeks were snapped up."

Croatia was the third best performing destination for supply in the first quarter of 2012, jumping one position from the fourth quarter of last year. With the country's membership of the EU looming, its property market continues to see a surge in demand by foreign buyers. Demand from tourists is growing rapidly too, as also reported by Cosmos Holidays which recently announced sales have quadrupled since last year.