US home sales on the rise
Some good news from the heart of the credit crunch - according to the National Association of Realtors (NAR) in the US, sales of existing homes are on the rise by 11% this autumn, as the immediate effects of the squeeze on mortgages bottoms out.
As the first signs of recovery show, it is worth bearing in mind the age-old addage: Buy when the market is at the bottom and sell when it is at the top. There are some real property bargains from MRI in Florida and Tennessee at the moment, and with the exchange rate still favourable (but predicted to drop before Christmas), the window of opportunity to make a sound investment in the US could be running out for UK/European buyers. In short, now is the time for smart investors to act.
MRI currently has a GBP149 property viewing trip offer from the UK to Florida. Fill in the form there to find out more.
Monday, September 29, 2008
Homes average a quicker turnover as “days-on-market’ tally drops to its lowest level in 2008
Homes average a quicker turnover as
“days-on-market’ tally drops to its lowest level in 2008
(September, 2008 – Orlando, FL) Osceola County is the bright spot in this month’s housing statistics for the Orlando area: Nearly 9 percent more home sales took place in that county during August 2008 than during August 2007. Other market positives this month include the lowest days-on-market tally (113) so far this year and a fifth consecutive month with more pending sales than in 2007.
Those pending sales, considered by housing economists to be a reliable predictor of future sales activity, are expected to close the current year-to-date sales deficit of 23.30 percent by year end as there are 46.76 percent more homes under contract this month (3,220) than in August of 2007 (2,194).
Members of the Orlando Regional Realtor® Association sold 1,225 homes during the month of August, 16.78 percent below the (1,472) sold in July. That number is 16.50 percent below the total of 1,467 homes sold in August 2007.
The median sales price of a home in the Orlando area in August declined to $200,000, a 3.85 percent decrease compared to the July 2008 median of $208,000. (The median sales price for August 2008 is 18.03 percent below the August 2007 median of $244,000).
The decrease in the median home price to $200,000 means that the area’s affordability index jumped in August to 107.92 percent. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.) Buyers who earn the reported median income of $51,791 can qualify to purchase one of 9,765 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $215,840 or less.
The first time homebuyer affordability index increased to 76.75 percent from July’s 73.64 percent.
The area’s average interest rate was 6.39 percent in August 2008, down from 6.40 percent in July, but still the second-highest percentage for the last 12 months.
Homes of all types spent an average of 113 days on the market before being sold in August 2008, and the average home sold for 92.77 percent of its listing price. In August 2007 those numbers were 108 and 95.02 percent, respectively.
The majority of single-family homes (197) that changed hands in August 2008 were sold in the $200,000 - $250,000 price range; another 113 homes sold in August for between $250,000 and $300,000. Four hundred thirty-five homes sold for less than $200,000 in August, and 271 sold for more than $300,000. On the far ends of the scale, 16 homes were sold for $1 million or more (the least this year) while 14 homes sold for less than $50,000 (the most this year).
Inventory
There are currently 24,834 homes available for purchase through the MLS. Inventory increased by 92 homes in August 2008, which means that 92 more homes entered the market than left the market. Compared to last year, the August 2008 inventory level (24,834) is 5.62 percent lower than it was in August 2007 (26,313).
The current inventory level reflects a 20.27-month supply at the current pace of sales, which is up from the 16.81-month supply recorded July. Altogether, inventory months-of-supply has declined 35.92 percent since January 2008.
There are 18,363 single-family homes currently listed in the MLS, a number that is more than 1,000 less than this time last year. Most (3,047) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,377 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,094. Most condos (607) are priced at $120,000 - $140,000. The majority of duplexes/town homes/villas (383) are listed in the $200,000 - $250,000 price category.
Condos and Townhomes/Duplexes/Villas
The sales of condos in the Orlando area decreased by 31.33 percent in August: A total of 114 condos changed hands in August 2008 compared to 166 in August 2007. In a month-to-month comparison, August 2008 condo sales (114) decreased by 14.93 percent from July 2008 (134). Year to date, condo sales are down 43.71 percent, with 939 condos sold so far in 2008 compared to 1,668 sold through the same time in 2007.
In August, the most (20) condos that changed hands were in the $100,000 - $120,000 price category, while an additional 14 sold condos fell in the $140,000 – $160,000 range. The former price category has seen the most condo-sales activity for the last five months.
Orlando homebuyers purchased 95 duplexes, town homes, and villas in August 2008, which is a 29.10 percent decrease from August 2007 when 134 of these alternative housing types were purchased. Year-to-date, duplex, town home, and villa sales are down 19.36 percent. The majority (23) of duplexes, town homes, and villas sold in August 2008 fell into the $160,000 - $180,000 price category, while another 15 sold for between $200,000 and $250,000.
MSA Numbers
Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were down by 12.25 percent when compared to August of last year. Throughout the entire MSA, 1,518 homes were sold in August 2008 compared with 1,730 in August 2007. Year-to-date, the MSA is down by 22.45 percent, with 11,649 homes sold far in 2008 compared to 15,021 sold through August 2007.
Seminole County’s August 2008 sales dropped 30.90 percent below that of August 2007 (275 to 398), while Orange County fell 10.64 percent (764 to 855). Lake County saw a 5.84 percent decline in the number of sales in August 2008 compared to August 2007 (258 to 274), and Osceola County experienced an 8.87 percent increase (221 to 203).
Each county’s year-to-date sales comparisons are as follows:
Lake: 12.48 percent below 2007 (1,996 homes sold to date in 2008 compared to 2,281 in 2007);
Orange: 24.27 percent below 2007 (5,700 homes sold to date in 2008 compared to 7,527 in 2007);
Osceola: 16.63 percent below 2007 (1,664 homes sold to date in 2008 compared to 1,996 in 2007); and
Seminole: 28.85 percent below 2007 (2,289 sold to date in 2008 compared to 3,217 in 2007).
For detailed statistical reports, please visit www.orlrealtor.com and click on Housing Statistics on the top menu bar. This representation is based in whole or in part on data supplied by the Orlando Regional Realtor® Association or its Multiple Listing Service (MLS). Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA Realtor® sales, referred to as the core market, represent all sales by members of the Orlando Regional Realtor® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.
Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any Realtor® association, not just members of ORRA.
Statistics on the sales of area homes that are sold without the assistance of a Realtor® are available in the Real Estate Index, a report produced jointly by ORRA and the Real Estate Attorney’s Fund.
“days-on-market’ tally drops to its lowest level in 2008
(September, 2008 – Orlando, FL) Osceola County is the bright spot in this month’s housing statistics for the Orlando area: Nearly 9 percent more home sales took place in that county during August 2008 than during August 2007. Other market positives this month include the lowest days-on-market tally (113) so far this year and a fifth consecutive month with more pending sales than in 2007.
Those pending sales, considered by housing economists to be a reliable predictor of future sales activity, are expected to close the current year-to-date sales deficit of 23.30 percent by year end as there are 46.76 percent more homes under contract this month (3,220) than in August of 2007 (2,194).
Members of the Orlando Regional Realtor® Association sold 1,225 homes during the month of August, 16.78 percent below the (1,472) sold in July. That number is 16.50 percent below the total of 1,467 homes sold in August 2007.
The median sales price of a home in the Orlando area in August declined to $200,000, a 3.85 percent decrease compared to the July 2008 median of $208,000. (The median sales price for August 2008 is 18.03 percent below the August 2007 median of $244,000).
The decrease in the median home price to $200,000 means that the area’s affordability index jumped in August to 107.92 percent. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.) Buyers who earn the reported median income of $51,791 can qualify to purchase one of 9,765 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $215,840 or less.
The first time homebuyer affordability index increased to 76.75 percent from July’s 73.64 percent.
The area’s average interest rate was 6.39 percent in August 2008, down from 6.40 percent in July, but still the second-highest percentage for the last 12 months.
Homes of all types spent an average of 113 days on the market before being sold in August 2008, and the average home sold for 92.77 percent of its listing price. In August 2007 those numbers were 108 and 95.02 percent, respectively.
The majority of single-family homes (197) that changed hands in August 2008 were sold in the $200,000 - $250,000 price range; another 113 homes sold in August for between $250,000 and $300,000. Four hundred thirty-five homes sold for less than $200,000 in August, and 271 sold for more than $300,000. On the far ends of the scale, 16 homes were sold for $1 million or more (the least this year) while 14 homes sold for less than $50,000 (the most this year).
Inventory
There are currently 24,834 homes available for purchase through the MLS. Inventory increased by 92 homes in August 2008, which means that 92 more homes entered the market than left the market. Compared to last year, the August 2008 inventory level (24,834) is 5.62 percent lower than it was in August 2007 (26,313).
The current inventory level reflects a 20.27-month supply at the current pace of sales, which is up from the 16.81-month supply recorded July. Altogether, inventory months-of-supply has declined 35.92 percent since January 2008.
There are 18,363 single-family homes currently listed in the MLS, a number that is more than 1,000 less than this time last year. Most (3,047) are listed in the $200,000 - $250,000 price range. Condos currently make up 4,377 offerings in the MLS, while duplexes/town homes/villas make up the remaining 2,094. Most condos (607) are priced at $120,000 - $140,000. The majority of duplexes/town homes/villas (383) are listed in the $200,000 - $250,000 price category.
Condos and Townhomes/Duplexes/Villas
The sales of condos in the Orlando area decreased by 31.33 percent in August: A total of 114 condos changed hands in August 2008 compared to 166 in August 2007. In a month-to-month comparison, August 2008 condo sales (114) decreased by 14.93 percent from July 2008 (134). Year to date, condo sales are down 43.71 percent, with 939 condos sold so far in 2008 compared to 1,668 sold through the same time in 2007.
In August, the most (20) condos that changed hands were in the $100,000 - $120,000 price category, while an additional 14 sold condos fell in the $140,000 – $160,000 range. The former price category has seen the most condo-sales activity for the last five months.
Orlando homebuyers purchased 95 duplexes, town homes, and villas in August 2008, which is a 29.10 percent decrease from August 2007 when 134 of these alternative housing types were purchased. Year-to-date, duplex, town home, and villa sales are down 19.36 percent. The majority (23) of duplexes, town homes, and villas sold in August 2008 fell into the $160,000 - $180,000 price category, while another 15 sold for between $200,000 and $250,000.
MSA Numbers
Sales of existing homes within the Orlando MSA (Lake, Orange, Osceola, and Seminole counties) in August were down by 12.25 percent when compared to August of last year. Throughout the entire MSA, 1,518 homes were sold in August 2008 compared with 1,730 in August 2007. Year-to-date, the MSA is down by 22.45 percent, with 11,649 homes sold far in 2008 compared to 15,021 sold through August 2007.
Seminole County’s August 2008 sales dropped 30.90 percent below that of August 2007 (275 to 398), while Orange County fell 10.64 percent (764 to 855). Lake County saw a 5.84 percent decline in the number of sales in August 2008 compared to August 2007 (258 to 274), and Osceola County experienced an 8.87 percent increase (221 to 203).
Each county’s year-to-date sales comparisons are as follows:
Lake: 12.48 percent below 2007 (1,996 homes sold to date in 2008 compared to 2,281 in 2007);
Orange: 24.27 percent below 2007 (5,700 homes sold to date in 2008 compared to 7,527 in 2007);
Osceola: 16.63 percent below 2007 (1,664 homes sold to date in 2008 compared to 1,996 in 2007); and
Seminole: 28.85 percent below 2007 (2,289 sold to date in 2008 compared to 3,217 in 2007).
For detailed statistical reports, please visit www.orlrealtor.com and click on Housing Statistics on the top menu bar. This representation is based in whole or in part on data supplied by the Orlando Regional Realtor® Association or its Multiple Listing Service (MLS). Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Due to late closings, an adjustment is necessary to record those closings posted after our reporting date.
ORRA Realtor® sales, referred to as the core market, represent all sales by members of the Orlando Regional Realtor® Association, not necessarily those sales strictly in Orange and Seminole counties. Note that statistics released each month may be revised in the future as new data is received.
Orlando MSA numbers reflect sales of homes located in Orange, Seminole, Osceola, and Lake counties by members of any Realtor® association, not just members of ORRA.
Statistics on the sales of area homes that are sold without the assistance of a Realtor® are available in the Real Estate Index, a report produced jointly by ORRA and the Real Estate Attorney’s Fund.
Tuesday, September 23, 2008
Visit Disney for free on your birthday...
...plan your trip over here, whether just a vacation or an inspection trip organised by MRI Overseas Property and you can get into Disney for free on your birthday!
Visit Disney park for free on your birthday in 2009
Scott Powers | Sentinel Staff Writer
September 19, 2008
Next year, everyone will be able to visit a Walt Disney World theme park on his or her birthday and get in free.
That's the cornerstone of the 2009 national promotional campaign -- "What will you celebrate?" -- announced Thursday by Walt Disney Parks and Resorts. Anyone showing up with a valid ID including proof of birth date will get a free ticket on that date in 2009 for one of the theme parks at Disney World or at Disneyland in California.
Disney officials said the promotion is designed to cash in on what they describe as a growing trend called "celebration vacations" -- trips organized by families and others to mark milestone birthdays and anniversaries, honeymoons and other momentous personal occasions. The campaign succeeds Disney's two-year "Year of a Million Dreams" promotion, which ends Dec. 31.
Disney World already attracts a lot of celebration vacations, according to a marketing survey that Disney cited Thursday. But until now, the company has never put together a unified marketing campaign to attract such celebrations on a large scale.
Related links
The latest Disney news
Photos of Disney's theme parks Multimedia
Walt Disney World's Magic Kingdom now and through the years Photos
Photos: Disney Epcot Center through the years Photos
Disney's Hollywood Studios now and through the years Photos
Disney's Animal Kingdom photos Photos
Photos: Orlando's newest rides and attractions Photos
I'm going to Disney World! Photos
The scoop on Orlando's best attractions...
Will you celebrate your birthday at Disney World
Hints of Halloween Horror Nights at Universal Studios
Tree cheers at Orlando Science Center
Free admission to WDW on your birthday
Wheel of Fortune correction
More...
More Orlando Sentinel blogs
Search: Theme park attractions injury, illness and death reports
A free birthday ticket amounts to a $75 discount, which might seem insignificant in a family vacation budget that might run several thousand dollars or more. But Disney said the goal is to get more people thinking about their celebrations as much as it is about the free tickets, in hopes of enticing more vacationers to bring their big birthday parties to Disney World.
This personal-celebration theme will be omnipresent at Disney World next year, reflected in everything from buttons to banners to the parks' entertainment. Disney is expanding its offerings of celebration-oriented packages, which involve the resorts' hotels, bars, restaurants and merchandise shops.
"From the moment you arrive in the resort, we will use the buzz line 'celebrate today' in all our theming," said Jay Rasulo, chairman of Walt Disney Parks and Resorts. The promotion also gives Disney something to help keep the turnstiles spinning even if the teetering national economy starts dragging down the theme-park business.
Easy lure for locals
While Disney's announcement in New York on Thursday talked of attracting "celebration vacations" from all over the world, local residents may be most easily lured by the offer of a free Disney World admission. Potentially, millions of Floridians usually not eager to spend $75 to visit a Disney theme park might consider a day trip for a free birthday treat. The same could be true for Southern Californians and Disneyland.
"We hope they'll take the opportunity," Rasulo said, adding, "The flip side of that is, nobody celebrates their birthday by themselves."
Other theme-park companies have offered a variety of ticket giveaways in recent years. Universal Orlando, for example, has offered free tickets to limited numbers of local residents through direct-mail promotions, and it once ran a promotion offering free tickets to young children. SeaWorld Orlando and some other Busch Entertainment Corp. parks have offered free tickets for several years to teachers and members of the military. Disney, however, has not been known for widespread ticket giveaways; Rasulo said he could not recall any similar previous campaigns.
Disney wants an even larger share of the celebration-vacation business for a good reason: Such vacations typically are more lucrative than ordinary ones, said Peter C. Yesawich, chairman of Ypartnership, an Orlando-based marketing company that specializes in travel and tourism.
People on vacations tied to a special occasion -- a 40th birthday, a 25th wedding anniversary, a honeymoon, a bar mitzvah -- tend to splurge more than ordinary visitors, according to the Ypartnership survey. It showed such vacationers often spend more, have more people in their party, stay longer, shell out for more shows and special dinners, and buy more souvenirs than people on routine vacations.
"People sensed that, but this is the first time it has really been quantified," Yesawich said.
Success in eateries, hotels
Birthday promotions are an old and usually successful deal for restaurants and other eateries, from Baskin-Robbins to Macaroni Grill, as well as for some hotel chains, and research shows that the total bill can make up for the giveaway, said Ady Milman, a professor in the University of Central Florida's Rosen College of Hospitality Management.
For Disney, such a promotion can also help build stronger ties with the Central Florida market, giving locals some Disney cheer during hard times, Milman said. It also allows Disney to collect marketing information that could prove valuable later. Finally, Disney's non-park assets, especially its hotels, should also benefit, he said.
Consultant Dennis Speigel, president of International Theme Park Services, called the idea "brilliant."
"Why hasn't anybody done this before?" he said. "I don't know of anyone that has done celebration vacations like this."
Scott Powers can be reached at spowers@orlandosentinel.com or 407-420-5441.
Visit Disney park for free on your birthday in 2009
Scott Powers | Sentinel Staff Writer
September 19, 2008
Next year, everyone will be able to visit a Walt Disney World theme park on his or her birthday and get in free.
That's the cornerstone of the 2009 national promotional campaign -- "What will you celebrate?" -- announced Thursday by Walt Disney Parks and Resorts. Anyone showing up with a valid ID including proof of birth date will get a free ticket on that date in 2009 for one of the theme parks at Disney World or at Disneyland in California.
Disney officials said the promotion is designed to cash in on what they describe as a growing trend called "celebration vacations" -- trips organized by families and others to mark milestone birthdays and anniversaries, honeymoons and other momentous personal occasions. The campaign succeeds Disney's two-year "Year of a Million Dreams" promotion, which ends Dec. 31.
Disney World already attracts a lot of celebration vacations, according to a marketing survey that Disney cited Thursday. But until now, the company has never put together a unified marketing campaign to attract such celebrations on a large scale.
Related links
The latest Disney news
Photos of Disney's theme parks Multimedia
Walt Disney World's Magic Kingdom now and through the years Photos
Photos: Disney Epcot Center through the years Photos
Disney's Hollywood Studios now and through the years Photos
Disney's Animal Kingdom photos Photos
Photos: Orlando's newest rides and attractions Photos
I'm going to Disney World! Photos
The scoop on Orlando's best attractions...
Will you celebrate your birthday at Disney World
Hints of Halloween Horror Nights at Universal Studios
Tree cheers at Orlando Science Center
Free admission to WDW on your birthday
Wheel of Fortune correction
More...
More Orlando Sentinel blogs
Search: Theme park attractions injury, illness and death reports
A free birthday ticket amounts to a $75 discount, which might seem insignificant in a family vacation budget that might run several thousand dollars or more. But Disney said the goal is to get more people thinking about their celebrations as much as it is about the free tickets, in hopes of enticing more vacationers to bring their big birthday parties to Disney World.
This personal-celebration theme will be omnipresent at Disney World next year, reflected in everything from buttons to banners to the parks' entertainment. Disney is expanding its offerings of celebration-oriented packages, which involve the resorts' hotels, bars, restaurants and merchandise shops.
"From the moment you arrive in the resort, we will use the buzz line 'celebrate today' in all our theming," said Jay Rasulo, chairman of Walt Disney Parks and Resorts. The promotion also gives Disney something to help keep the turnstiles spinning even if the teetering national economy starts dragging down the theme-park business.
Easy lure for locals
While Disney's announcement in New York on Thursday talked of attracting "celebration vacations" from all over the world, local residents may be most easily lured by the offer of a free Disney World admission. Potentially, millions of Floridians usually not eager to spend $75 to visit a Disney theme park might consider a day trip for a free birthday treat. The same could be true for Southern Californians and Disneyland.
"We hope they'll take the opportunity," Rasulo said, adding, "The flip side of that is, nobody celebrates their birthday by themselves."
Other theme-park companies have offered a variety of ticket giveaways in recent years. Universal Orlando, for example, has offered free tickets to limited numbers of local residents through direct-mail promotions, and it once ran a promotion offering free tickets to young children. SeaWorld Orlando and some other Busch Entertainment Corp. parks have offered free tickets for several years to teachers and members of the military. Disney, however, has not been known for widespread ticket giveaways; Rasulo said he could not recall any similar previous campaigns.
Disney wants an even larger share of the celebration-vacation business for a good reason: Such vacations typically are more lucrative than ordinary ones, said Peter C. Yesawich, chairman of Ypartnership, an Orlando-based marketing company that specializes in travel and tourism.
People on vacations tied to a special occasion -- a 40th birthday, a 25th wedding anniversary, a honeymoon, a bar mitzvah -- tend to splurge more than ordinary visitors, according to the Ypartnership survey. It showed such vacationers often spend more, have more people in their party, stay longer, shell out for more shows and special dinners, and buy more souvenirs than people on routine vacations.
"People sensed that, but this is the first time it has really been quantified," Yesawich said.
Success in eateries, hotels
Birthday promotions are an old and usually successful deal for restaurants and other eateries, from Baskin-Robbins to Macaroni Grill, as well as for some hotel chains, and research shows that the total bill can make up for the giveaway, said Ady Milman, a professor in the University of Central Florida's Rosen College of Hospitality Management.
For Disney, such a promotion can also help build stronger ties with the Central Florida market, giving locals some Disney cheer during hard times, Milman said. It also allows Disney to collect marketing information that could prove valuable later. Finally, Disney's non-park assets, especially its hotels, should also benefit, he said.
Consultant Dennis Speigel, president of International Theme Park Services, called the idea "brilliant."
"Why hasn't anybody done this before?" he said. "I don't know of anyone that has done celebration vacations like this."
Scott Powers can be reached at spowers@orlandosentinel.com or 407-420-5441.
Wednesday, September 3, 2008
New attractions at Central Florida Zoo
Zoo to build two new exhibits for $11 million
Orlando Business Journal - by Melanie Stawicki Azam
The Central Florida Zoo & Botanical Gardens in Sanford is gearing up for an $11 million Sumatran Swamp Forest project, featuring two new exhibits that will open during the next two years.
Zoo CEO Joe Montisano wants to break ground on a $3.2 million Sumatran tiger exhibit by the end of this year, with work taking about eight months to complete.
Plans call for getting a pair of tigers from another U.S. zoo or facility, breeding them and eventually having four. "It's entirely feasible to have the tigers on the property by 2009,'' Montisano said.
The zoo also will start building an orangutan exhibit next year and open it in 2010 with six animals.
Orlando Business Journal - by Melanie Stawicki Azam
The Central Florida Zoo & Botanical Gardens in Sanford is gearing up for an $11 million Sumatran Swamp Forest project, featuring two new exhibits that will open during the next two years.
Zoo CEO Joe Montisano wants to break ground on a $3.2 million Sumatran tiger exhibit by the end of this year, with work taking about eight months to complete.
Plans call for getting a pair of tigers from another U.S. zoo or facility, breeding them and eventually having four. "It's entirely feasible to have the tigers on the property by 2009,'' Montisano said.
The zoo also will start building an orangutan exhibit next year and open it in 2010 with six animals.
More choice at Orlando International Airport
New car rental deal to drive up airport revenue, increase choices
Orlando Business Journal - by Chris Kauffmann
Orlando International Airport soon will have 11 rental car firms on site.
Orlando International Airport will land more than $21 million extra annually beginning in 2010, thanks to a new car rental agreement.
The deal puts more car rental companies on-site -- giving customers more choices, while also reducing the airport's reliance on airlines for its revenue.
The Greater Orlando Aviation Authority will spend $102 million on improvements to accommodate more car rental companies and improve the process of renting a car at the airport. The airport will pay for that project mostly with a "customer facility charge" of $2.50 per day for up to five days.
PCL Construction will do the first phase of the work, which will cost $39.5 million. Construction should start in November.
Attracting additional rental car companies will put more money into the pockets of the airport at a time when its revenue from airline operations is tenuous. Soaring fuel prices have sapped the financial strength of many airlines, putting some on the verge of going out of business.
While some major airports get as much as half their revenue from airlines, Orlando expects about a quarter of its revenue for fiscal 2009 to come from its principal carriers. Orlando International makes up the bulk of its revenue from car rentals, concessions, hotel, parking and revenue-producing properties.
And under the new deal, the $44 million the airport now gets from on-site rental car companies will rise to $65 million a year in 2010.
The rental car agreement, the first since 1998, will increase the number of on-site major car rental firms from five to nine. Along with L&M and EZ -- disadvantaged business enterprises that have been operating at the airport -- the airport will have 11 brands on site.
Absent since 1998, Hertz will return to the airport with its Hertz and Simply Wheelz brands, while Enterprise and Thrifty will come on-site for the first time. Enterprise brings its Enterprise, National and Alamo brands to the airport. DTG Operations Inc. brings Thrifty and Dollar to the site. Avis and Budget are already at the airport.
St. Louis-based Enterprise spokesman Ned Maniscalco said it made sense to come on-site after Enterprise got the National and Alamo brands last year.
"This is the first opportunity for us to offer three brands, and we think being on-site will make it more convenient for customers."
No decision has been made yet whether Enterprise will keep its off-site location or shift everything to the airport.
There are still some major car rental companies, including Advantage, Payless and Continental, operating off airport property. Executives for those companies could not be reached for comment.
ckauffmann@bizjournals.com | (407) 241-2903
Orlando Business Journal - by Chris Kauffmann
Orlando International Airport soon will have 11 rental car firms on site.
Orlando International Airport will land more than $21 million extra annually beginning in 2010, thanks to a new car rental agreement.
The deal puts more car rental companies on-site -- giving customers more choices, while also reducing the airport's reliance on airlines for its revenue.
The Greater Orlando Aviation Authority will spend $102 million on improvements to accommodate more car rental companies and improve the process of renting a car at the airport. The airport will pay for that project mostly with a "customer facility charge" of $2.50 per day for up to five days.
PCL Construction will do the first phase of the work, which will cost $39.5 million. Construction should start in November.
Attracting additional rental car companies will put more money into the pockets of the airport at a time when its revenue from airline operations is tenuous. Soaring fuel prices have sapped the financial strength of many airlines, putting some on the verge of going out of business.
While some major airports get as much as half their revenue from airlines, Orlando expects about a quarter of its revenue for fiscal 2009 to come from its principal carriers. Orlando International makes up the bulk of its revenue from car rentals, concessions, hotel, parking and revenue-producing properties.
And under the new deal, the $44 million the airport now gets from on-site rental car companies will rise to $65 million a year in 2010.
The rental car agreement, the first since 1998, will increase the number of on-site major car rental firms from five to nine. Along with L&M and EZ -- disadvantaged business enterprises that have been operating at the airport -- the airport will have 11 brands on site.
Absent since 1998, Hertz will return to the airport with its Hertz and Simply Wheelz brands, while Enterprise and Thrifty will come on-site for the first time. Enterprise brings its Enterprise, National and Alamo brands to the airport. DTG Operations Inc. brings Thrifty and Dollar to the site. Avis and Budget are already at the airport.
St. Louis-based Enterprise spokesman Ned Maniscalco said it made sense to come on-site after Enterprise got the National and Alamo brands last year.
"This is the first opportunity for us to offer three brands, and we think being on-site will make it more convenient for customers."
No decision has been made yet whether Enterprise will keep its off-site location or shift everything to the airport.
There are still some major car rental companies, including Advantage, Payless and Continental, operating off airport property. Executives for those companies could not be reached for comment.
ckauffmann@bizjournals.com | (407) 241-2903
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