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Australian mum’s travel hate booms into $20m business Luxico

When it comes to holidaying, deciding whether to go with the expected comforts of a hotel or the relaxed amenities of an Airbnb generally comes down to the guest and the mood of the trip.

For mum and businesswoman Alexandra Ormerod, travel has always been high on the priority list – and she had no plans for that to change when she and husband Tom decided to start a family.

But with a little one in tow, the pair soon realized that the simple pleasures they once took for granted in a hotel room were no longer applicable for a young family.

“We have a lot of family overseas… we are avid travelers and after our first daughter was born we quickly discovered in our travels that hotels were dead to us and that came as a bit of a shock,” Ms Ormerod told news.com. ouch

“We soon found it very challenging to be traveling with a small child and finding accommodation that was of a standard better than a serviced apartment.

“We realized quite early on that places like Europe and Asia have a more mature market than Australia, so there are a lot more villas to hire in different locations. Whereas when you came to Australia and you effectively had the option of a holiday home. That home would be hired through a real estate agent and generally you were restricted to a coastal location and picking the keys up from the local fish and chip shop because the office was closed.

Ms Ormerod said the “disconnected experience” and “transactional approach” to hiring holiday homes in Australia meant guests “never really knew what they were going to get” on arrival.

With a background in advertising, Ms Ormerod said her work in travel and tourism along with her husband’s involvement in property development and real estate meant they identified a gap in the market for couples, friends and family groups seeking options in the luxury end of the holiday homes market.

As a result, ‘Luxico’ – which essentially combines hotels and holidays homes into one – was born in 2013.

“Luxico was a bit of an obvious outcome,” she explained of the company, which is now worth almost $20 million.

“We found there was a real niche for designer accommodation which we identified as not really existing at the time Luxico was born.”

Having a house on the Mornington Peninsula, Ms Ormerod said a lot of neighbors and Melbourne residents had “big homes” in the area which sat empty for most of the year. So she and Tom started renting out properties in the area which signaled a huge area of ​​demand for beautiful, high-end homes temporarily.

“We found there was a lot of demand for that $1000-a-night or more price point that was not being serviced,” she said.

“So we then built on that to try and service that demand, and try to take the experience away from a transactional offering to a more hospitality or hotel offering [within a luxury home].”

Each Luxico stay comes with a concierge service – essentially a local who ‘checks you in’ to the home. Each concierge acts as a point of call for guests, with no request too big, small or bizarre. The homes range from $250 to $15,000 or more per night.

“It’s bringing the human element back into that holiday home stay, and all our concierges are from the local area,” she explained of the company which exclusively manages $700 million worth of property across Australia.

“The extra services you can have – from chefs, to butlers and specialist touring – are all part of the optional extras.

“But for the everyday traveller, the feedback has been that the concierge had given them insider tips to the area … maybe told them of an amazing hidden gem they wouldn’t have otherwise known about that made their holiday.”

While celebrity clients make up a large bulk of the brand’s clientele, Ms Ormerod said “mums and dads” still make up the majority of bookings.

“Luxico is an end-to-end service so we exclusively manage all of the properties that we offer,” she said, adding that if a family is looking to book two or three hotel rooms – a home works out to be better value.

“So we are managing the guest experience not just through the booking process, but the experience they have in home and even afterwards.

“So from the slippers, to the towels to prepared toiletries, the concierge is going in there and provisioning and preparing the home so if you are traveling with small children we will bring in a toy box so they have something to play with. So it’s all those little touches that make the experience a continuance of the booking process.

“It’s more a holistic experience, connecting you with local products, experiences and service providers that will build on that stay.”

Read related topics:airbnb

.

Categories
Business

Australian mum’s travel hate booms into $20m business Luxico

When it comes to holidaying, deciding whether to go with the expected comforts of a hotel or the relaxed amenities of an Airbnb generally comes down to the guest and the mood of the trip.

For mum and businesswoman Alexandra Ormerod, travel has always been high on the priority list – and she had no plans for that to change when she and husband Tom decided to start a family.

But with a little one in tow, the pair soon realized that the simple pleasures they once took for granted in a hotel room were no longer applicable for a young family.

“We have a lot of family overseas… we are avid travelers and after our first daughter was born we quickly discovered in our travels that hotels were dead to us and that came as a bit of a shock,” Ms Ormerod told news.com. ouch

“We soon found it very challenging to be traveling with a small child and finding accommodation that was of a standard better than a serviced apartment.

“We realized quite early on that places like Europe and Asia have a more mature market than Australia, so there are a lot more villas to hire in different locations. Whereas when you came to Australia and you effectively had the option of a holiday home. That home would be hired through a real estate agent and generally you were restricted to a coastal location and picking the keys up from the local fish and chip shop because the office was closed.

Ms Ormerod said the “disconnected experience” and “transactional approach” to hiring holiday homes in Australia meant guests “never really knew what they were going to get” on arrival.

With a background in advertising, Ms Ormerod said her work in travel and tourism along with her husband’s involvement in property development and real estate meant they identified a gap in the market for couples, friends and family groups seeking options in the luxury end of the holiday homes market.

As a result, ‘Luxico’ – which essentially combines hotels and holidays homes into one – was born in 2013.

“Luxico was a bit of an obvious outcome,” she explained of the company, which is now worth almost $20 million.

“We found there was a real niche for designer accommodation which we identified as not really existing at the time Luxico was born.”

Having a house on the Mornington Peninsula, Ms Ormerod said a lot of neighbors and Melbourne residents had “big homes” in the area which sat empty for most of the year. So she and Tom started renting out properties in the area which signaled a huge area of ​​demand for beautiful, high-end homes temporarily.

“We found there was a lot of demand for that $1000-a-night or more price point that was not being serviced,” she said.

“So we then built on that to try and service that demand, and try to take the experience away from a transactional offering to a more hospitality or hotel offering [within a luxury home].”

Each Luxico stay comes with a concierge service – essentially a local who ‘checks you in’ to the home. Each concierge acts as a point of call for guests, with no request too big, small or bizarre. The homes range from $250 to $15,000 or more per night.

“It’s bringing the human element back into that holiday home stay, and all our concierges are from the local area,” she explained of the company which exclusively manages $700 million worth of property across Australia.

“The extra services you can have – from chefs, to butlers and specialist touring – are all part of the optional extras.

“But for the everyday traveller, the feedback has been that the concierge had given them insider tips to the area … maybe told them of an amazing hidden gem they wouldn’t have otherwise known about that made their holiday.”

While celebrity clients make up a large bulk of the brand’s clientele, Ms Ormerod said “mums and dads” still make up the majority of bookings.

“Luxico is an end-to-end service so we exclusively manage all of the properties that we offer,” she said, adding that if a family is looking to book two or three hotel rooms – a home works out to be better value.

“So we are managing the guest experience not just through the booking process, but the experience they have in home and even afterwards.

“So from the slippers, to the towels to prepared toiletries, the concierge is going in there and provisioning and preparing the home so if you are traveling with small children we will bring in a toy box so they have something to play with. So it’s all those little touches that make the experience a continuance of the booking process.

“It’s more a holistic experience, connecting you with local products, experiences and service providers that will build on that stay.”

Read related topics:airbnb

.

Categories
Business

Australian house prices: 300 suburbs that have significantly dropped in value

As skyrocketing interest rates smash the Australian housing market, a dozen suburbs have already seen property prices fall by more than $500,000 since March.

PropTrack’s automated valuation model (AVM) data show more than 300 suburbs across the country where dwelling values ​​have experienced six-figure falls over the quarter.

In percentage terms, the worst-performing suburb in the country was South Hedland in WA’s Pilbara region, where units dropped by 24.81 per cent to a median value of $213,791 in June 2022 – a loss of more than $70,000.

That was closely followed by Booval in Queensland, where unit prices were down 24.64 per cent, or more than $121,000, to $370,231.

But it was wealthy suburbs in the capital cities that experienced the largest falls in dollar terms, with parts of Sydney’s northern beaches and eastern suburbs, Melbourne’s Mornington Peninsula, as well as inner-city Perth and Canberra all experiencing falls in excess of half a million dollars.

Former Prime Minister Malcolm Turnbull’s eastern suburbs home of Point Piper recorded the biggest fall in dollar terms, with units there losing nearly $715,000 in value – a 14.82 per cent fall from $4.82 million to $4.11 million.

Manly came in second place with losses of nearly $680,000 in house prices, representing a 13.8 per cent fall from $4.92 million to $4.25 million.

Ingleside on Sydney’s northern beaches saw house prices fall nearly $610,000 to $2.77 million, while Flinders in Melbourne suffered a $600,000 fall to $2.51 million.

Other suburbs where house prices fell by more than $500,000 include Clontarf, Dover Heights, North Bondi, Bronte, Rose Bay and Bondi Beach in Sydney, Peppermint Grove in Perth and Griffith in Canberra.

Close behind in the $400,000 range were the likes of Double Bay and Tamarama in Sydney, Red Hill – both in Victoria and Canberra – and Mulgoa at the foot of the Blue Mountains.

“Price falls are largely being led by the ‘high end’ of the market and higher value suburbs,” said PropTrack senior economist Eleanor Creagh.

“Manly and Tamarama in Sydney have all posted declines in quarterly values.

“Previously popular suburbs in the Central Coast and Melbourne’s Mornington Peninsula have also seen values ​​decline.

“It’s often the case that the upper end of the market experiences larger price declines, and at the moment it’s the suburbs that are home to more expensive properties that are seeing bigger price falls than more affordable properties.”

It’s not all bad news for homeowners, however.

House prices in some suburbs are still rising, led by Balmain East in Sydney’s inner west, which saw house prices rise more than $329,000 over the quarter to $3.48 million.

New Farm in Brisbane was second with house price growth of more than $295,000 to $2.65 million, followed by Coledale in NSW’s Illawarra region, which was up nearly $289,000 to $2.47 million.

Other suburbs where dwelling values ​​rose more than $200,000 were Newcastle East, The Rocks and Waterloo in Sydney, and Brisbane’s Bowen Hills, Tenerife, Highgate Hill and West End.

“While the current cycle of exceptional price growth is winding down Australia-wide, there are some parts of the country bucking the falling price trend,” said Ms Creagh.

“Parts of Brisbane, Adelaide and regional Australia are proving more resilient.

“With the pandemic driving a boom in remote working, housing markets in parts of regional Australia have emerged, with sea and tree changers looking for lifestyle locations, larger homes, and beachside living.”

The ongoing low supply of properties available for sale, combined with relative affordability advantages driving heightened demand, are causing prices to continue to rise in some regional areas or only just beginning to fail as the impact of higher interest rates weighs on the market.

“As the home price cycle has matured and interest rates are now rising, some suburbs in previous regional hot spots on the Sunshine Coast, and in the Southern Highlands and Geelong regions are starting to see larger price falls, with affordability advantages having been eroded since the pandemic onset,” Ms Creagh said.

“Suburbs like Lorne, Sunshine Beach, Minyama and Noosa Heads have all seen quarterly declines in unit or house values.”

She added it was a similar picture in the capital cities, with markets that led the upswing like the “lifestyle and coastal locations of the northern beaches and eastern suburbs now seeing larger price falls”.

It comes after the Reserve Bank hiked interest rates for the fourth month in a row on Tuesday.

The 50 basis-point increase at the central bank’s August meeting brings the official cash rate to 1.85 per cent, up from the record low 0.1 per cent it was up until May.

Governor Philip Lowe said the RBA had made the decision to raise the rates in a bid to drive down the current 6.1 per cent inflation figure.

In a statement, he said the path to returning to inflation under 3 per cent while keeping the economy on an even keel was something that would take time.

“The path to achieve this is a narrow one and clouded in uncertainty, not least because of global developments,” Dr Lowe said.

“The outlook for global economic growth has been downgraded due to pressures on real incomes from higher inflation, the tightening of monetary policy in most countries, Russia’s invasion of Ukraine, and the Covid containment measures in China. Today’s increase … is a further step in the normalization of monetary conditions in Australia.”

Already, the rise in interest rates has pushed house prices down in most major cities as borrowers stare down the barrel of higher monthly payments.

PropTrack’s Home Price Index shows a national decline of 1.66 per cent in prices since March, but some regions have seen much sharper falls.

“As repayments become more expensive with rising interest rates, housing affordability will decline, prices pushing further down,” Ms Creagh said earlier this week.

Last week, the Australia Institute’s chief economist, Richard Dennis, told NCA NewsWire the RBA was one of the biggest threats to the economy at the moment.

“If we keep increasing interest rates because inflation is higher than we’d like, we might cause a recession,” he said.

“Increasing interest rates won’t help us prepare for a slowing global economy … but they might actually further dampen the Australian economy.”

[email protected]

– with NCA NewsWire

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