“…vacation rentals are more cost and space efficient, with amenities hotels just can’t offer.”

An article published by the Wall Street Journal on August 18, 2010, touched on the topic of major hotel chains and their troubles with bankruptcy.

According to the WSJ.com article, bankruptcy’s most recent victim (potentially) is the hotelier of Highland Hospitality Corp., Joseph E. Robert Jr. Robert Jr. has holdings in 27 hotel chains, including, the Ritz-Carlton in Atlanta, GA and the Hilton Boston Back Bay.

The hotel industry has been on the decline for the past few years, (last year saw a whopping 40% decline) ”Extended Stay Inc., which caters to budget-conscious travelers, last year filed for the largest-ever bankruptcy in the hotel industry, and Red Roof Inn Inc., taken private in 2007, recently offered to forfeit dozens of its budget hotels to frustrated lenders,” said the WSJ.com article.

People “familiar with the situation” blame the economy, which has, without a doubt, created some problems for businesses both large and small, but, other sources and studies scattered throughout the internet have made mention of the evolution in the vacation rental industry.

Travelers are looking for a way to stretch their dollars, and believe it or not, they are seeking the experience of the culture behind their chosen vacation destination. One source had this to say about the “local flavor” and culture of vacation destinations, “Travelers are beginning to acknowledge that a vacation rental accomplishes this goal better than any other form of lodging.”

Travelers aren’t the only ones beginning to acknowledge this gem, however.  iTrip.net wrote about the evolving vacation rental marketplace months ago in two separate blog posts, “Vacation Rental Homes-What Consumers Look For,” and “Vacation Home Rentals Combined With Social Networking Make For Fastest Growing Segment in the Travel Industry.”

In these two blogs, we discovered the focus put on the vacation rental industry by media giants such as, MSNBC, Fox Business, Wall Street, and Business Week; we were also able to prove that vacation rentals are more cost and space efficient, with amenities hotels just can’t offer.

The hard truth is that the economy may be the least of the hotel industry’s problems in the coming years.