Saturated gite market?

[AllezAllezAllez]

Are there any well-researched members of the forum who would know what the current and future state is of the gite rental business in France?  Are we approaching melt-down and is the supply of rented accommodation outstripping demand?  Or, is demand still strong and is there information to suggest the future is positive? 

I appreciate that there are many variables to the question, such as geogaphical region, target market pricing etc, but if there were any facts published (whether national or regional), these would help us contemplate over future investment decisions.

Many thanks

Ali

 

[Will]

France is a big place. Some areas are undoubtedly saturated, others under-supplied. I am sure I have seen figures from one regional tourist organisation which suggested there were something like eight beds available for every visitor. But how these figures were obtained and calculated I haven't a clue. One can manipulate statistics to prove anything.

There are plenty of other factors that are not taken into account in any past figures. Like, for example, many of the people who rented holiday homes up to three or four years ago became French holiday home owners themselves. Many of those rented out their holiday home, adding to the supply while demand was falling (thanks to the renters becoming buyers). Now, many more of them are putting those homes up for sale, some seeing (misguidedly) a profit, others because they have not had the hoped-for occupancy, some just becoming fed up and wanting to spend their money elsewhere. So maybe they will be re-entering the rental market as customers - or maybe not. Who knows?

Questions like yours can only be answered by your own research and gut feeling, including asking those selling holiday accommodation why they are moving on, and closely examining their records.

[Val_2]

A lot of people bought gîte rental properties near to small provincial airports that started to serve the low cost airlines from the UK, big mistake in a lot of cases as these routes didn't last long. Don't be seduced by that idea.  If you want some facts and figures for a particular area, ask at the local main tourist office and see what their bookings were like as it is in their interest to attract the right properties.

[nimportequoi]

How do you measure the occupancy of gites? For example I am not registered with the local tourist office, as far as I am concerned it is only me who knows what the occupancy is in my gites. I advertise on with a number of rental sites and no doubt they could give some stats on what potential holidaymakers are requesting, area, facilities etc., which may be useful, but they do not know about actual bookings. Over the last four years, my occupancy rate has increased, so the "saturation" of gites in France does not seem to have affected my bookings. I know of others in the area who are finding it hard to fill capacity over the peak summer period. I would hazard a guess that to be in a popular area is a plus (I am in Brittany), and we also have a heated pool which is the main attraction. I also pay quite a lot to market the properties. There are so many different variables it is impossible to say that the gite market is "saturated" - it may be in some areas and for some gites, but for others in the right areas, who are providing what people are looking for now (and I have to say that a pool seems to be a feature) there is still a good market. My gites are already fully booked for next summer, far ahead of bookings previous years and I am not alone in this. You may find it useful to look at this: http://www.laymyhat.com/forum ,there are a few gite owners (including me!) who post there from different areas of France (and the rest of the world) so you might be able to pick up some tips there based on other peoples experience.

[Russethouse]

This from the French News Brittany section http://www.brittany-news.net/

In the light of three consecutive years of declining numbers of British visitors, the region organised a major workshop to brainstorm the reasons and solutions. Participants included Brittany Ferries, Condor Ferries, Flybe, tour operators, Saatchi advertising agency, hotel and golf-club managers, and the Association Intégration Kreiz Breizh.
British tourism represents the lion’s share (37%) of the foreign tourist market in Brittany, well ahead of Germany at 16%. However, in common with the rest of France, the region is experiencing fierce competition from cheap, sunny destinations and developing seaside resorts in Eastern Europe. There is a possibility that if rising oil prices force up air fares, closer destinations may benefit and reverse the trend next year. But some feel this would still be insufficient to return British tourism in Brittany to its former level because of competition from south-west France.

So while I am glad that Susan is doing well, I do think its as well to look at the 'bigger picture'

 

[le bouffon]

I for one would not even go to northern france(when the south is so much warmer)all one as to do is compare the house prices in the north to the south of france,that would give anyone  thinking of a gite in the north food for thought,to add a house in the south near(driving distance)of the coast will cost more than a farm in the north.The cost of a flight to here or Spain in much less than the cost of a journey across the channel by car,than again the cost once you get there is a lot more!

[nimportequoi]

I guess that's another plus for Brittany then, if people like le bouffon don't consider staying here.

Strangely enough, there are people who choose Brittany because of the climate, particularly if they have young children. There are also quite a lot of places of interest to see, plus a coastline, so on balance I think it's not a bad area to be in, despite the (sometimes) not-so-hot weather!

[yorks45]

I think the rental market in France has taken a bit of a beating over

the last year or so but so have many other tourist areas and countries.

The advent of cheap flights and the current trend for exotic holidays

could be to blame but it may be we are just in a state of

transition.  I seem to think at present that there is alot of

'holiday snobbery' around. Tradional holiday destinations are being

shunned in favour of more 'glamourous holidays.'

For example I was talking to someone recently who was bragging about

their holiday in Jamaica and how wondeful it was. They actually stayed

at an all inclusive hotel and never left it throughout the two weeks !

The attraction of France, the friendly people, uncrowded villages and

roads, the variety of climates and landscapes, the ease of access will

always ensure France is a popular destination.

.

[Grays]

I think much like the housing market, it is a case of swings and roundabouts with Gites, the market has slumps and highs, and for longstayers these should not be the problem that it can be for those who come and go within a couple of years.

If you are prepared to stick at it and have the right property in the right area, decent advertising and do not rely totally on it for your income (unless of course you have at least 3 plus decent sized gites) then it can work very well.

True many have come and gone, but many of these will have had more reasons than lack of business behind the decision to quit, because a lot of people find it is not what they expected. 

[Gastines]

When discussing  Gites or B&B business, the answer always seems to be that the market is saturated and the Brits are going to Spain or Eastern Europe.Quite possible but what about the French and Italian market? I would estimate that 90% of our business comes from those 2 countries.One advantage of  most Continental visitors is that they know how to holiday. They don't get up and ask what to do today and is it going to rain, they get up and out! Might be worth advertising  to capture those markets?

Another idea that springs to mind, is a list of decent B&B's/Gites on a route, as we find that guests when leaving us,by St.Malo, then go onto Normandie, to visit the invasion beaches etc,or onto Gulf de Morbihan/Vannes etc. Perhaps this info is already available on this site? I am aware that Gites de France do a list of their own.

Regards,By St.Malo. 

[Jo Taylor]

[quote user="SusanAH"]

I guess that's another plus for Brittany then,...[/quote]

Brittany and Normandy are two of the areas with highest demand. Accessibilty from the UK and proximity to the sea (Brittany has over 25% of France's coastline) are key considerations.

I would reiterate the need for your own research in the area you've chosen - there are plenty of statistics available, but there are many, many, many holiday accommodation businesses which won't feature in those statistics, especially a large proportion of Brit-owned gite businesses. These include : those operating without registration (not necessarily illegally), those owners who let through UK agencies, second-home owners letting for extra income (who may or may not be paying their taxes). I recently carried out a great deal of research into this for a book on the subject, but the findings were nebulous and inconclusive - basically it does boil down to doing your own research in the area you have chosen. A pretty property that photographs well, located in a popular destination, will attract bookings. A cowshed 100 miles from the sea with no pool won't. But that's a generalisation. It might be a very pretty cowshed...

 

[Colette]

When we were looking for our house in south west France in 2003 one of the agents we met in the southern Gers was already advertising on his website that he believed the market for gites was well and truly saturated.  He also stressed that buyers should not take any potential rental income into account when budgeting to buy as the season was very short, even if you could attract business.  And I must say this is what we have seen for ourselves.  Beautiful houses with lots of en suites and a pool where the owners have been at this for some years do appear to get booked up for the school holidays and a few weeks more but smaller, more ordinary places struggle. 

[euro]

just take a look at hol rentals,french connection etc and they have a section for new property which is updated weekly !

a lot of people are buying second homes and getting a few weeks rent to cover taxes etc and are happy with just that,whereas investing to earn a living is a different proposition altogether.

If i could turn the clock back 3 years then there are lots of different ways to earn a living other than cleaning up after people,making small talk about life in france,cleaning the pool,and having no money  - sorry i mean running gites !

 

dont do it !