Holiday homes, independent hosts, branded home rentals and all branches that fall under the alternative type accommodation have existed for years. However, thanks to platforms such as Airbnb and Booking.com, the industry has seen a positive demand from customers all over the world. So, what is the impact of short-term rentals in the travel industry and why are travelers opting for these accommodation models? Based on Skift Research, the short-term rental presence on the market is on the rise. It estimates that short-term rental properties had a 7% increase in bookings in 2019. According to the data, the overall presence of alternative accommodations has grown constantly in the last years. So, what are the key factors that are influencing this trend?
- Cost-Effectiveness: You obtain better value for your money. How? Short-term rentals generally have lower rates than hotels while having more amenities, bigger spaces, and more freedom. Bmmagazine adds a great point. Guests have the opportunity to further save costs by cooking at the rental´s kitchen. Also, having that extra money to spend is a perfect opportunity to add some leisure activities to your trip! Let´s not forget the added feeling at home sensation has no price! It’s almost as if there would be a sign on the door saying “these will be your home for the next days”.
- Personalized Experiences: Travelers have different expectations. Whatever the motivation may be, short-term rentals allow travelers to customize their experience. Guests can choose from different locations that accommodate their trip goals, for instance, if they want to be near the city´s downtown, or next to the business areas or having proximity to a specific attraction. They also have the opportunity to invite friends over, cook their meals, doing laundry, and the list goes on.
- Professionalization of the sector: Branded home managers such as Nuovo, Sonder, Domio, Stay Alfred, Lyric and, Vacasa are professionalizing the sector setting hotel-like standards. Offers combine the best attributes of a hotel and a vacation rental property. Omer Rabin points out that the industry is growing at a faster pace than hotels, as it’s become more tech-enabled, with a keen focus on professionalization. Nowadays, alternative accommodations stand out for their 24/7 customer service and easy-access platforms that automate the operations associated with short-term rentals.
Undoubtedly, the short-rental sector has great potential when we analyze all the advantages it has to offer. As a result of this fast-paced growth, the industry has had to overcome regulation challenges, however, it has not stopped it from shaking up the travel industry because when it comes down to the question, ¿why are travelers opting for this type of accommodations? We believe that the key lies in expectations, being able to offer exactly what customers value and that is what this booming industry is achieving.