What you didn’t know about vacation rentals.
The vacation rental industry is doing pretty big business. It is predicted that by 2025, at least one in every five people will have stayed in a vacation rental property. Vacation rental properties are becoming increasingly popular, because vacationers can feel more at home when they travel. I fact, short-term hotel stays average two days, while short-term vacation rental stays average five and one-half days.
By 2025, the US vacation rental industry is on target to reach nearly $20 billion in revenue. This includes timeshares, Vrbo, Airbnb, and other similar products. The ACA Group understands the complexities of the vacation rental industry and can help you navigate them like a professional.
Most vacationers decide to go for a vacation rental because they are more spacious. Hotel rooms average about 325 square feet of space, which can be pretty confining if you’re traveling as a group or a larger family. The average square footage of a vacation rental is over 1,000 square feet. More space to relax and play can make a vacation far more enjoyable.
In 2020, there were 5.6 million active listings available through Airbnb in 100,000 locations globally from over 4 million hosts. Some of these listings included treehouses, tiny homes, castles, and igloos. There is a large selection and there is no typical Airbnb property, so travelers can get what resonates with them and meets their wants and needs.
Vrbo was founded in 1995, and has been an online travel agent trailblazer. It predates Booking.com, Priceline, and Expedia, and was first known as Vacation Rentals by Owner. Vrbo is very similar to Airbnb, and it’s now parent company, Expedia Group, has a market cap of $16.2 billion.
5. Privacy and Safety
During the COVID-19 pandemic, vacation rentals did better staying afloat than hotels did. The ability to interact with fewer people was undoubtedly a major factor in travelers choosing to stay in a vacation rental over a hotel. The vacation and tourist industries were heavily affected, but the ability to feel safer was preferred for those who still wanted to vacation.
6. Rural Destinations
Surprisingly, rural destinations are experiencing more popularity. This may be a result of the pandemic, or it could be just a shift in travelers’ attention. Some of the fastest-growing markets for Airbnb include Lake Tahoe, California and Hudson Valley, New York, while a largely popular market like New York City has seen a 55% decrease.
7. Length of Stay
Now that the pandemic is losing steam and people are feeling more secure, the length of short-term stays has increased. Pre-pandemic vacation stays were typically for one week or less. Post-pandemic, vacation stays exceed seven days.
8. Cabin Rentals
Vrbo has been experiencing a surge in cabin rentals, and chalet rentals are also in-demand. According to a recent Vrbo survey, more than 60% of families prefert to book an more outdoor-driven vacation location rather than a city location.
With the rising popularity of vacation rentals, more and more hotels are trying to throw their hat in the ring. Just before the pandemic in 2019, Marriott launched Homes & Villas by Marriott International with 2,000 properties. It has since grown to more than 25,000 properties worldwide.
One of the biggest draws of vacation rentals is the amenities. Travelers like the idea of having things like a kitchen, washer and dryer, and a hot tub. In addition to these amenities, increased privacy is also a big draw.
There’s a lot that goes into vacation rentals and property management. And there is still a lot of data to analyze pertaining to vacation rental properties.