‘No policy for this:’ Cancellations flood Hilton Head vacation rental companies
Like hundreds of other tourists who normally visit Hilton Head Island each spring, the Marich family of Chicago isn’t coming this year.
Coronavirus is keeping Matt Marich, 77, and his family home. The first week of April, for the first time in 42 years, they won’t be in their timeshare at Port O’Call Resort in Shipyard Plantation.
“The unknowns” made them cancel, he said. “As things started progressing, I saw all restaurants were going to takeout,” Marich said. He thought, “This is getting ridiculous. What’s going to happen when we get there?”
Hundreds of tourists have weighed the benefits and risks of making the cross-country trip to the island.
More and more often, and to the delight of some Hilton Head residents, they’re choosing to stay home.
But what happens to the thousands of dollars visitors have deposited on rentals, paid for timeshares, and set aside for Hilton Head vacations?
As visitors swamp rental companies’ phone lines, asking about bookings as far out as May, how the companies respond may affect whether their customers — those who call Hilton Head their vacation paradise — return.
‘Definitely a loss’
Andy Belanger, a father of three from Traverse City, Michigan, said he and his wife have been on the phone with Sunset Rentals on Hilton Head at least 10 times in the past week over their upcoming week-long stay on South Forest Beach.
“I’ve been back and forth with them daily,” he said. “They just keep saying ‘it’s changing. It’s a fluid situation,’ and they won’t process your request or transfer you to management or the owner.”
Belanger said Sunset Rentals offered him a credit to his account to re-book the rental later this year, but it needed a decision from him in the next five days. Belanger, who works in beer distribution, said he sets his vacation time at the start of the year and can’t choose another week in that amount of time.
“I don’t know that I necessarily need a refund, but a travel voucher to book in the next six months would be nice,” he said. “It’s definitely a loss for us.”
After a receptionist refused to share the company’s cancellation policy with The Island Packet on Monday, Sunset Rentals general manager Stacy Charlton said Tuesday it’s possible Belanger got that ultimatum because of how rapidly the company has changed its cancellation policies in the last two weeks.
“Initially, over a week ago, that was the policy,” he said of asking guests to make a rescheduling decision quickly. “But it is not anymore.”
He said Sunset is now offering credits to be used into 2021 without requiring a decision in a handful of days. The coronavirus is proving uncharted territory for the rental company, which has operated on the island for over 20 years.
“I’ve been through 9/11 and Y2K and the hurricanes and no one’s seen anything to the scale of this,” he said. “We’re trying to be human.”
Credits give ‘something to look forward to’
Alma Pearl, who lives near Augusta, Georgia, said she didn’t even think about travel insurance when she booked a home rental in Sea Pines through Island Rentals of Hilton Head Island for the first week of April.
It was “a complete oversight,” she said, recalling that she had considered weather problems and determined there was no way her long-awaited vacation with her two grown daughters would be affected by a hurricane or similar natural disaster.
She spent about $3,200 for a rental for her 6-person family.
Then coronavirus hit.
After several attempts to reach her rental company, Pearl got a call back and was offered a credit to use on a future trip to the island.
“I’m not sure when we can get everyone together again,” she said. Her family includes teachers, who are unsure when they’ll go back to work. “But it’s something to look forward to.”
Pearl said she understands why not all rental companies can provide refunds.
“They may rather have that money right now,” Pearl said. “I know a lot of people that rent for The Masters, and if they don’t have that income, they can’t afford to take that vacation. It’s kind of a snowball effect.”
Offering credits appears to be how most rental companies on Hilton Head are dealing with coronavirus cancellations, although the first week was chaotic.
Terry Notartomaso, the broker in charge of Vacation Time of Hilton Head Island, said callers to all rental companies may have been confused because the companies were still ironing out policies.
“Every day for the first week or so we were changing, we were adapting just like everybody else,” she said. “It’s not something that we’ve ever really had to deal with before. There’s no policy for this.”
While Pearl was thrilled to get a credit from Island Rentals, dozens of online commentators have shared their frustrations over their inability to get a full refund — and generally, the uncertainties of this pandemic, not knowing when life will return to normal.
‘Losing money hand over fist’
Lila Konecny, who owns Seashore Vacations and lives in Sea Pines, said her rental company has thrown nearly all its cancellation policies out the window to deal with coronavirus.
Renters used to have to cancel more than 45 days in advance to get a refund, Konecny said, but now, anyone who cancels will receive a full refund except for a $100 administrative fee.
That fee, she said, is because her staff is “working double time here, and we are losing money hand over fist.”
“While I’m on the phone with you, I’ll have three more voicemails to get to,” she told The Island Packet Monday morning. “We can’t answer the phones as quickly as people are calling.”
The company, which manages around 175 properties, has had 400 cancellations in March and April, Konecny said.
Although Seashore is offering credits for re-booking, Konecny said her company is getting more cancellations than requests to reschedule.
Notartomaso said Vacation Time of Hilton Head Island is seeing cancellations through May.
She said most people planning a trip for summer are “still hanging in there.”
Like many others, Vacation Time is offering credits.
“We are making every attempt to get the customer to re-book for another time within the next 12 months,” she said. “But some people can’t afford to do that to have their money out there. They need to have their money now. We understand and are refunding their money.”
The refunds include all but credit card fees and a $75 administrative fee, Notartomaso said.
Other rental companies on the island are less forthcoming about their refund and cancellation policies.
TurnKey rentals, a national company that operates on Hilton Head, changed its policy last week after travelers lambasted the company for not offering refunds. Turnkey updated its policy to provide more options for credits but no outright refunds.
“Please know that on the other side of every refund request of a non-refundable booking is a homeowner, another person also experiencing hardship,” the company’s website says. “The reservation agreement entered into by guests helps them pay for expenses like a mortgage, maintenance and utility bills. Many of these homeowners are facing multiple potential cancellations in light of the uncertainty created by COVID-19.”
AIG Travel Insurance, one of the nation’s largest travel insurers through its program TravelGuard, updated its website with a new coronavirus advisory that appears to put the onus on travelers.
“If you are considering canceling your trip due to the Coronavirus, please read your insurance policy thoroughly. Generally, fear of travel is not a covered event under most of our policies,” the advisory says.
‘Discourage tourism and close the hotels’
Marich, the said he’s going to lose about $1,000 on his Shipyard timeshare this year since he can’t trade his family’s week for another.
When he spoke to a representative of Port-O-Call, he said he was told the resort was still open, and that he’d have to forfeit his week.
That sentiment has ruffled many permanent residents on the island who say hotels, rentals and timeshares aren’t doing enough to discourage visitors from out of state who shouldn’t be traveling during a pandemic.
Lauri Mitchell, who lives on the island, said the message needs to come from the top that Hilton Head Island is closed.
“We need to discourage tourism and close the hotels,” she told The Island Packet. “The mayor needs to say in public our hotels are closed and that rentals are not being accepted.”
Mitchell said Mayor John McCann needs to “dissuade people from coming here,” to slow the pandemic.
To rent or not to rent?
For homeowners who rent, the decision of whether to close rests on safety and the hope to not to lose all business. If vacationers cancel, is it unfair to keep their payment during a pandemic?
Tammie Schmieler Ferraro, a Pennsylvanian who rents her home in the South Forest Beach area when she’s not spending the winter on the island, said March 17 that she’d had two cancellations that set her back over $1,000.
“Lost bookings are a lost mortgage payment,” she wrote to The Island Packet. “It hurts the owners, too.”
But Schmieler Ferraro said she refunded the renters’ money for their lost vacation, even though it was impossible to re-list and book her home.
“People should not feel they are ‘forced’ to travel or lose their money during a pandemic,” she wrote. “I agree with those who feel (that) less outside visitors to the island, the better for the time being for the safety of the residents.”
But the uncertainty of coronavirus is hurting her ability to rent long into the future.
“What can’t be determined is the April bookings that never materialized,” she wrote. “Right now, my summer bookings are much slower than last summer.”
Should I still come to Hilton Head Island for vacation?
While it’s a deeply personal decision to choose whether to travel, many have taken to Facebook groups and even The Island Packet to ask whether they should cancel upcoming trips to Hilton Head.
Here are some facts that may help you make your decision:
- Island restaurants and bars have been forced to close dining rooms as of March 18. SERG restaurants are offering discounts for pickup orders.
- Public beach access points and parking lots were closed for 60 days starting March 21.
- Law enforcement and emergency services are active and responding to calls.
- Two major resorts have closed as of Monday afternoon: Disney’s Hilton Head Island Resort and Spinnaker Resorts.
- Store shelves are bare in many cases. Many shoppers have reported no eggs, bread, paper products and other staples at Beaufort County stores.
- RBC Heritage Presented by Boeing, originally set for April 13-19, has been canceled.
This story was originally published March 24, 2020 at 4:45 AM.
