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Beyond’s ‘Short-Term Rental Industry Summer Season Trends Report’ deep dives into the short-term rental market, giving operators and managers actionable actions on how to navigate the post-pandemic leisure boom.
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Heading into the 2nd half of 2021, the travel industry continues to shift forward with promising signs of upward momentum. With leisure tourists showing their desire to offset wasted time, bookings are rising: favorable growth that’s most likely to sustain as additional pandemic constraints are raised.
Providing a targeted glance at the existing short-term rental market scene, revenue management platform Beyond has actually just launched its ‘Short-Term Rental Market Summer Trends Report’.
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The report offers an analysis of what’s taking place right now in the short-term rental market, providing actionable guidance for short-term rental providers to take advantage of trends in a shifting landscape.
The report condenses 600 reactions from the traveling public and 890 from short-term rental managers and owners. It looks at the latest spring market habits, with likely projections through summertime and beyond.
SkiftX unpacks the report’s crucial findings ahead of the summer upsurge.
LEADING REASONS FOR TRAVEL AND LOCATIONS OF OPTION
After a trying year, tourists are ready for some rest and recovery. Many respondents reported rest and relaxation as the main chauffeur for travel this summertime (26 percent), with another 23 percent anticipating checking out friends and family with limitations lifted.
Booking speed is now trending at or slightly above 2019 levels, while city centers and cities are most likely to witness the greatest influx of traffic. Nearly 30 percent of respondents revealed plans to visit this type of location.
Others choose the outdoors, with 28 percent headed to the beach, and 20 percent to the mountains.
Pent up demand for European destinations persists, nevertheless logistical obstructions and vaccination hold-ups mean unpredictability, and lower reservation uptake. It’s expected that nationwide updates on this will identify EU growth patterns in Q2 2021 and beyond.
CHOICE ACCOMMODATIONS CHOICES FOR THE SUMMER SEASON
With 31 percent of travelers expressing a desire to make reservations, hotels and resorts are set to receive the greatest upswing.
This was followed by 24 percent of participants who expressed preference for a short-term rental, with 22 percent anticipating staying with family and friends.
POST-PANDEMIC SHORT TERM LEASING IMPACT
The combination of suppressed demand, and more tourists relying on short-term rentals, means that the recuperating market is poised for development.
Forty-six percent of the owners and managers spoke with reported an increase in interest in their properties throughout the previous months. This dovetails into the fact that 35 percent of tourists reported that they ‘d already stayed in a short-term rental in the previous 12 months, 12 percent more than those who selected a hotel or motel. Additionally, one in 3 travelers expressed the desire to pick a short-term leasing at some point in the next six months.
All in all, it’s an optimistic projection. And while numerous operators are still recovering 2020’s lost income, they’re likely to witness year-over-year increases in need and general income through summer season 2021 and into the future.
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THE SIGNIFICANCE OF A VIBRANT PRICES DESIGN
Dynamic pricing is no longer a high-end, however a need. Seventy-five percent of homeowner pointed out dynamic prices as crucial in their home management.
Further, 70 percent of owners and managers concurred that dynamic prices equips them with greater control, and the ability to be proactive instead of reactive as they catch and profit from market changes. Thirty-four percent believed it assisted level the playing field against hotel competitors.
LONGER STAYS EQUIVALENT BRAND-NEW OPPORTUNITIES
As an outcome of the pandemic, tourists are now staying much longer, with some fusing work and leisure. This opens up numerous brand-new opportunities for short-term leasings, and supervisors and owners should capitalize on this emerging trend with restored focus on direct bookings.
Naturally, online travel agencies remain popular; 94 percent of short-term rentals are listed on Airbnb. Nevertheless, the report reminds the industry that this channel is no ‘silver bullet’. Thirty-eight percent of owners and supervisors reported using their own site or booking engines, revealing that they’re engaged with their home on prices, utilizing market data and including the current technology.
Paired with vibrant prices, a strong direct reservation model ought to be a core point of focus for supervisors and operators to benefit strongly as a growing number of bookings roll in, while offering optimum flexibility and competitive control.
This material was developed collaboratively by Beyond and Skift’s top quality content studio, SkiftX.