Local Vacation Rental Market is Doing Well
With no bottom in sight for the U.S. housing market and recession fears growing, the summer rental market is doing well. Galveston area rentals are up this year.
Landlords and property managers say beach-front rentals are going fast, with reservations for peak summer weeks up 10% or more over last year - according to a report from the Wall Street Journal. Older, smaller properties are feeling the pinch, as people increasingly vacation with extended families and look for newly built resorts or large homes with central air conditioning, hot tubs and other amenities.
In Galveston, Texas, where rental demand has soared alongside the Houston oil economy, Sand 'N Sea Properties says it has just one August week left for "Wind Song," a large beach front home renting for about $5,775 a week -- 7% more than last year.
On the Bolivar Peninsula in Galveston County, Swedes Real Estate says a large number of their 320 vacation home rentals are booked for the summer season by March, as renters increasingly prefer the family oriented setting of the Crystal Beach area.
Many people may see renting in a "drive-to" market as a bargain compared with a stay at a hotel or vacationing abroad, says Justin Halloran, vice president of U.S. operations for Home Away, a paid classified Web site.
Strong rental demand is giving some would-be home sellers a welcome windfall.
Galveston is also the Gulf Coast's most popular cruise ship port
Royal Caribbean cruise line moved the
Voyager of the Seas, one of its larger cruise ships, to the Port of Galveston, offering passengers leaving from Texas the chance to experience all the amenities available on such megaships.
The Voyager, which can carry 3,200 passengers, replaces the smaller, less equipped Rhapsody of the Seas, offering customers a more luxurious, interactive cruise experience, Royal Caribbean spokesman Lionel Garcia says.
"The customers demanded to see and do more, and the Voyager really allows that," Garcia says. "We listened to our customers and we wanted to reward them for being very faithful to Royal Caribbean for so long and going with us year after year."
Now passengers cruising from Galveston can go ice skating, in-line skating, play miniature golf, climb a rock wall and enjoy fancy spa treatments. In addition to a Broadway-style productions and a large casino, guests can dine at the 1950s-style Johnny Rockets Diner, the Portofino Italian Ristorante or stroll along the 24-hour promenade that features vendors and themed lounges and bars.
"Voyager's arrival also marks the first time a Voyager-class ship has been deployed in Texas," Alice Norsworthy, senior vice president of Royal Caribbean International, says in a press release. "We are excited to offer more Texans the opportunity to experience our signature style of cruising right from their backyard."
Galveston is the Gulf Coast's most popular cruise port, according to Steven M. Cernak, port director. He said 617,000 cruisers traveled from there in 2006. And Carnival Cruise Lines is a big reason for the success. While Royal Caribbean only sails part of the year, Carnival has two ships sailing year round, offering four-, five- and seven day cruises to the Caribbean.
"We are the biggest user of the Galveston port," says Vance Gulliksen, a spokesman for Carnival. "We are expecting 330,000 passengers to board our ships in Galveston this year."
"We have a wide range of passengers," Gulliksen says. "We get a lot of families in the summertime, but we also get young couples and senior citizens." The Carnival company has a high number of children passengers. Gulliksen anticipates about 600,000 children will board the company's ships this year.