What is a Resort?

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How it works

Resorts attract guests by offering an all-encompassing experience. They generate revenue not only from room bookings but also from a wide variety of ancillary services like restaurants, bars, spas, golf courses, water parks, and guided tours.

The business model often relies on keeping guests on-site to maximize their spending across these different outlets. Many resorts also host events, weddings, and conferences to ensure high occupancy and revenue throughout the year.

Why it matters

For vacation rental owners, nearby resorts serve as both competition and a source of opportunity. They set a high standard for amenities and guest experience, which can influence guest expectations for surrounding private rentals.

However, a popular resort can also create an 'overflow' effect, driving demand to nearby vacation homes when the resort is fully booked. Understanding the offerings and pricing of local resorts helps property managers position their own rentals competitively within the local tourism ecosystem.

Examples

• An owner of a condo near a major ski resort markets their property as a more private and affordable alternative, highlighting easy access to the resort's slopes and restaurants.
• A property manager partners with a nearby beach resort to offer their guests access to the resort's spa and kids' club for a daily fee.
• A family rents a large vacation home for a reunion but spends their days using the water park and golf course at an all-inclusive resort down the road by purchasing day passes.
• During a major conference held at a hotel resort, local short-term rentals see a surge in bookings from attendees seeking different accommodation options or lower prices.