GULF SHORES — Vacation rental occupancy is down along the Gulf Coast as people and families have all their options open again after the pandemic.

VRBO has reported a projected 13% decrease in occupancy for the rental property market in popular beach destinations along the Gulf Coast compared to the previous year. However, Hunter Harrelson, owner of Beachball Properties, claimed a lesser decline, saying his company's occupancy is down by only 6% but that he expects a further decrease as the season progresses.

Harrelson emphasized that the COVID-19 pandemic was an unexpectedly prosperous period for his business.

"When the beaches reopened, our phones were ringing off the hook. We experienced our largest sales day during the COVID-19 pandemic, with sales totaling $100,000," Harrelson said.

He said achieving such sales figures in 2023 will be rare, but overall business remains healthy. Harrelson compared the current situation to a record-breaking year in 2019 and referred to 2021 as an anomalous period.

Harrelson said he anticipates revenue per available room (RevPAR) and occupancy rates will decline by 10% to 15% due to a smaller number of tourists.

He highlighted the popularity of pet-friendly properties, stating that one out of every four guests looks for accommodations that allow pets.

Beachball Properties uses a pricing strategy known as dynamic pricing, which considers the features and amenities of each property. This means that newer and more luxurious properties tend to be priced higher than those without updates.

Harrelson also noted that on average, tourists book properties for a minimum of three nights. The peak season for Beachball Properties is during the first two or three weeks of March and April, which is during spring break.

Other busy periods include Hangout Music Festival weekend in May, Labor Day in September, Fourth of July, public schools' fall break and Orange Beach's Shrimp Festival, during which prices tend to spike.

Harrelson said he remains optimistic about the future of the rental property industry at beach destinations, emphasizing that Beachball Properties is adapting to changing market demands and maintaining a strong business foundation.