Cumbrian Cottages swallowed up by Hoseasons

[Windy]

More consolidation

http://www.travelweekly.co.uk/Articles/ ... tages.html

Hoseasons parent Wyndham Vacation Rentals has acquired Cumbrian Cottages which represents more than 2,500 self-catering properties.

The deal, for an undisclosed sum, strengthens the operator’s cottages offering in key locations like the Lake District and Yorkshire.

Cumbrian also supports owners by offering housekeeping, key-holding and property management services in key locations.

A spokesman said jobs were safe at Cumbrian which also covers properties in Scotland, Wales. Northumberland and Derbyshire.

Wyndham also acquired vacation rental assets of Oceana Resorts in Myrtle Beach, South Carolina and Kaiser Realty in Alabama and the Gulf of Mexico.

President and chief executive Geoff Ballotti said: “Cumbrian Cottages expands our presence in key European vacation markets while Oceana Resorts and Kaiser Realty help expand the selection of properties we offer our guests in popular US beach communities like Myrtle Beach and Gulf Shores.

“These three brands will join our global network of rental brands which offer hand-picked, regularly inspected and professionally managed accommodations backed by Wyndham Worldwide.”

[kendalcottages]

Hmmm... Hoseasons seems to be becoming quite a dominant force. Correct me if I'm wrong, but they also own English Country Cottages, cottages4you and, I think, Dales Holiday Cottages (and no doubt others).

[Nemo]

Shame - they're not a force for the good of the owner, I'm afraid.

[Windy]

Yes KC they are pretty big now

http://www.thehoseasonsgroup.co.uk/brands/

[kendalcottages]

Gosh... hadn't realised they'd mopped up James Villas as well.

[DaveN]

...and even Stilwells to cover the 'book direct with the owner' angle.

I have had one guest who mentioned that he consciously avoided booking through Wyndham Group because of their market domination, but I guess most don't really care.

[kendalcottages]

...but I guess most don't really care.

...or even know.

You're right - at the end of the day, a holidaymaker is just going to want a nice holiday property at a fair price. They're generally not going to be too worried who they book with as long as they get what they want.

[charles cawley]

Hoseasons is a giant. It could control as much as 60% of the agency booking market. When Wyndham Worldwide took over Hoseasons to combine it with its then Cottages4You named UK operation the deal was referred to the Competition Commission.

They tend to charge owners commissions well above most other booking agencies and their expansion has not been organic but by takeover. There will come a time when there will be little left to take over and then they will begin to feel the cost of owners going it alone or using other services either in tandem with getting private bookings or in some other way.

There is an advantage of local ownership, especially when it comes to the all important relationships between owners and booking agents. This is an important quality aspect.

As people get better at using the internet so the economies of scale which have benefited vast legacy agencies are falling away. Hoseasons still caters for the brochure market of people who do not have computers... and for many elderly people. These sources of demand are only going to go one way.

Hoseasons is run with great machine like efficiency... but it may be heading for quite challenging times.

[kendalcottages]

Hoseasons still caters for the brochure market of people who do not have computers...

I'm not sure you're on the mark with that statement, Charles. They have one of the most successful affiliate schemes I know. With my day job, I have worked with a number of hotel and self-catering affiliates (Hoseasons, Sykes, cottages4you, Stilwells, Blue Chip Holidays, Bluestone etc. on the self-catering side). Hoseasons has always been head and shoulders ahead of the rest, both in terms of the bookings we've been able to generate through them, and the service they've offered to those selling their holidays. They are much more of an online force than I think you're giving them credit for.

[Nemo]

Thank you Charles. I am one of the owners who walked away from Hoseasons. I was indirectly with them as when I used the park management, they were the sole booking agency.

They set the rates, sometimes with absurd anomalies within them. They could bring in special offers that were so low you would make no profit from them and you had no choice but to accept them. They gave inadequate or zero information to the holidaymaker. On attempting to speak to them I made no headway as I did not have a direct contract with them.

I have many elderly guests and it is surprising how quickly they are learning to use the internet, and if they can't, they always have younger relatives who can help. Give me smaller, niche sites or agencies every time!

[charles cawley]

Wyndham Worldwide owns Hoseasons, Cottages4You and many other brands. It is still doing well through bought expansion. The future will tell how things will go.

[kendalcottages]

My point was that Hoseasons isn't the online dinosaur you seem to suggest it is. And it wasn't prior to Wyndham's takeover either.

[Lindisfarne]

I think KC and CC are both making valid points however I agree with KC that one shouldn't underestimate the Wyndham Group

I deal with many of their brands and have communicated with senior managers recently who are in tune with today's fast moving market.

I don't always agree with their marketing techniques however they are a major force and will be for some time

[charles cawley]

They are a highly competitive organisation that takes few prisoners.

The question is whether it can grow organically or retain its present size in a market that it already dominates.

Buying business and stripping out overheads is one thing, but losing local presence can make it very much harder to establish the necessary relationship with local owners essential to a quality service.

This is not a dinosaur... it is well managed and the way they work their Google Advertising is highly sophisticated. However a significant fraction of their revenue is gained in the moderate quality sector of the market. This is going to take a major hit in 2013 and could be crippled in 2014.

In hard times good quality is a matter of survival for organisations without major financial backing. For those organisations that have done well on a mixture of good quality and so so quality the economic tsunami coming our way could be more of a challenge.

[kendalcottages]

However a significant fraction of their revenue is gained in the moderate quality sector of the market. This is going to take a major hit in 2013 and could be crippled in 2014.

Says who, Charles? Whilst I agree that high quality will always tend to win through, I would have thought moderate quality (particularly in the self-catering industry) would still fair well whilst the economic climate remains challenging.