Vacation rentals more appealing in tough economy

On both sides of the pond, vacation rental companies are reporting a spike in business from value-conscious travellers. In particular, people seem to be looking for self-catering digs close to home.

Boston-based FlipKey says that vacation rentals in ski resorts that draw largely from a local area--such as Loon Mountain in New Hampshire, whose clients are mainly New Englanders--are up, while those in "long-haul" spots such as Aspen are down. Not surprisingly, the company cites economic woes as one reason for the trend. However, the firm also thinks new airline baggage regulations are playing a role, since a family of four could face extra charges of over $300 to check all their skis, boots and gear. According to FlipKey, at least some of these people are choosing to drive a few hours for their vacation rather than fly.

Meanwhile, The Telegraph reports that self-catering holiday rentals within the U.K. are up as well. Even though U.K. rental prices aren't always a clear bargain--a randomly chosen two-bedroom cottage in Cornwall, for instance, costs more than similar properties in Spain and Italy--travellers don't have to fly or drive long distances to reach their holiday home. In addition, the unfavourable exchange rate between the pound and the euro is causing more Britons to think twice about that year (or week) in Provence.

U.K. cottages for large groups

If you've rented a self-catering holiday home before, you may realize that not all villas are right for all travelling parties. Some homes simply aren't large enough to accommodate groups of a dozen or more. In other cases, you want a bit more privacy than one home can provide. Perhaps you'd like to separate the night hawks from the morning people, or the families with lively small children from older adults who've happily put their diaper-changing days behind them.

For all these groups, there's a convenient alternative to checking into a hotel: spots where you can rent multiple self-catering cottages. The Times (U.K.) recently ran an article highlighting 12 of their favourite multiple-unit locations in the U.K., including everything from cottages clustered around a Tudor manor in the storybook Cotswolds to houses decorated like New York lofts in the Peak District.

To this list I would add my own fave, a set of cottages my extended family rented in Northern Ireland a few years ago. Lecale Cottages, near the village of Rostrevor in County Down's scenic Mourne Mountains, are reasonably priced and spotlessly clean. Smaller, more basic ones appeal mainly to Europeans, while two custom-built cottages with all the bells and whistles--washer and dryer, multiple loos, big kitchens--are aimed at the North American market. (We went for the bells-and-whistles properties and enjoyed them immensely.)