Vacation Rental Market Growing Despite Real Estate Downturn

BOSTON, MA, May 20 (MARKET WIRE) --
Despite the dark U.S. real estate market, individuals that own a second home
and
make it available as a vacation rental are seeing pure sunshine. In March,
the Vacation Rental Management Association (VRMA) announced that the vacation
rental industry saw a 17.4% revenue increase in 2007. The $80B domestic
vacation rental market continues to benefit from rising hotel prices and
second-homeowners looking for additional sources of income. Vacationers are
quickly
discovering that renting a vacation home often provides a more spacious,
personal
and economic lodging experience when compared to hotels.

According to Steve Trover, President of Discover Vacation Homes, the
industry's
public awareness organization, "Anyone who stays in a vacation rental will
tell you they will never go back to hotels. Renting a well-kept private
home, in a beautiful destination, affords families a more personal experience,
ideal location, more space and extra amenities simply not offered by hotels,
such as private pools, a backyard and full kitchen. Vacation rentals are a
win-win
for vacationers and second-home owners alike."

In 2007, hotel rates in major U.S. cities increased an average of 9%, and
the
average nightly rate for a room in Manhattan saw a year-over-year increase of
12%. In
response, consumers are seeking alternative accommodations, which bodes well for
the
vacation rental industry. However, many consumers have been confused by the
booking process on sites such as VRBO and discouraged by fragmented
listings, inaccurate calendars, unverified hospitality and management services
and
the potential for fraud.

New services, such as FlipKey.com, are focused on taking the guesswork out
of vacation
rentals by verifying the legitimacy of vacation homes listed on its site and
publishing reviews from real guests. According to a recent FlipKey.com study
conducted in partnership with Compete, Inc, 78% of vacationers indicate they
aresignificantly more likely to rent a vacation home if they can read a
reviewof a prior guest and have some level of guarantee that a manager is within
driving distance to assist with any maintenance issues that might arise.

"Transparency and confidence are the crucial elements to successful vacation
home
rentals, and as hotel prices escalate, vacation home rentals are becoming the
lodging option of choice," said TJ Mahony, CEO of FlipKey. "The FlipKey study,
backed by Compete's web analytics, reinforces our belief that the vacation
home rental market will see continued growth as FlipKey guest reviews and
service verification are made openly available, bringing the same level of
transparency and confidence to renting a vacation home that other websites
have brought to booking a hotel."

With the introduction of new reputation-based services like FlipKey.com, the
industry
is enjoying strong demand. In fact, VRMA reports that 88% of its member
companies (management companies who oversee the rental of owners' homes)
experienced an overall gross income increase between 2006 and 2007.
Summarized by Steve Trover, "Despite the real estate market, despite rising fuel
prices and despite rising hotel rates, vacation rentals continue to prosper,
offering second-home owners significant sources of income and vacationers
superior and more economical lodging options."

About FlipKey

FlipKey is a community driven travel site that helps consumers find
trustedvacation rentals throughout the world, by providing real reviews of
verified
vacation rental properties. FlipKey believes reputation, trust and feedback
from past guests are the best resources to ensure consumers find the ideal
vacation
home and vacation.

FlipKey is available today at www.flipkey.com and represents over 50,000
vacation homes throughout the United States.

Kendra Boccelli
Boccelli & Co. for FlipKey
Office: 978.499.0844
Mobile: 617.645.3205
Email Contact

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