Luxury villas are increasingly becoming the preferred choice for accommodation arrangements among the world’s top end travelers. Many new companies are entering the fore, such as Edge Retreats, Oliver’s Travels, Airbnb and HomeAway, to name just a few. Yet despite the competition, the potential for profit still appears to be strong. There is believed to be a possible 50,000 suitable luxury properties that would be available to let at prices starting from £3,500 to £5,000 for a weekly stay, and as much as £200,000 for a seven-night stay at the most luxurious end of the spectrum.
However, perhaps more pertinent than this, is that there appears to be overwhelming demand to fill the supply. The Australian born and London based founder of Edge Retreats, Luke McCormick, advised that his company is expecting to turn over £1 million this year, whilst expected revenues for next year are as high as £5-6 million.
McCormick believes that the success his company has experienced is largely due to strong positioning as “the premium online firm for exceptional villa experiences”. He explains that while they do offer more accessible villa retreats that are in more modest price brackets, it has been through developing a niche in the top end market where customers are willing to pay in the hundred of thousands.
The list of previous customers reads like an A class list of global movers and shakers. This includes industry chiefs, tycoon entrepreneurs, Russian ballerinas, Arab oil sheiks, and royal families. Members of this narrow and niche group, are simultaneously looking for a highly luxurious stay, whilst at the same time interested in renting out their high end property. Be it on the picturesque Alpine Hills of Switzerland, or a secluded resort just off the Caribbean Islands.
