If there is one way to describe the vacation rental industry, it is “ever-evolving”. One minute, large holiday homes are the trendy vacation rentals to book, the next, it is remote cabin vacation rental properties in the woods. While a pandemic could utterly devastate the vacation rental market growth in one year, demand could be stronger than ever in the next.
One of the best ways to stay ahead of the curve as a short-term rental owner and boost your vacation rental bookings is to keep on top of the emerging trends within the vacation rental industry.
In our 2023 vacation rental industry report, we take a closer look at the state of the industry and the hottest trends, allowing vacation rental hosts to maximize their occupancy, increase revenue, and keep their vacation rental business thriving in the year ahead.
Read on to learn more about these vacation rental trends and how best to adjust your management strategy to make them work for your vacation rental business.
The State of 2022 Vacation Rentals — Stats and Metrics
But first, it’s important to know where we’re coming from before we can look ahead. Let’s look at some of the key stats and results from 2022 within the vacation rentals segment so far:
The global vacation rental market size is expected to reach USD 82.63 billion in 2022 vs. USD 74.64 billion in 2021
- Market supply from vacation rental companies +12% compared to 2020 and +45% compared to 2019
- Short-term rental market demand +21% compared to 2020 and +47% compared to. 2019)
- Average revenue per vacation rental property: +6% compared to 2020 and +62% compared to 2019)
- Airbnb revenue: +58% compared to 2020 and +73% compared to 2019
Direct Bookings & All-In-One Software Offerings Will Steal The Show
While online travel agencies like Airbnb or Vrbo are fantastic starting points for new short-term rentals to get exposure to a large audience of travelers, hosts are becoming increasingly aware of the benefits of direct bookings:
- Cutting out OTA service fees through direct bookings is a game-changer for hosts who are trying to keep their online booking pricing competitive.
- Direct booking websites are the easiest ways for vacation rental businesses to grow their brand presence.
- Direct booking websites also have more potential to be customized for a better user experience.
- Property management teams and hosts find it easier to communicate with potential guests through direct channels.
Along with direct bookings, hosts will increasingly be searching for all-in-one software offerings to manage their short-term rental business. While this is no new concept, the trend has come back into the spotlight as the world recovers from the after-effects of the pandemic.
Hosts of short-term rentals will aim to simplify their daily routine as much as possible so that they have more time to spend either with their loved ones or focusing on the long-term growth and stability of their business.
For example, iGMS has seen a 24% increase in sign-ups over the past year, and this number is expected to increase further in the next year. This is a clear sign that hosts are ready to take the plunge and invest in automation software to:
- Manage short-term vacation rentals more efficiently
- Avoid double bookings
- Streamline guest communication
- Easily manage their cleaning team and staff, and
- Create and manage their own direct bookings website, all from one convenient platform.
Expect a Boom In The Global Vacation Rental Market
Grand View Research indicates that the US vacation rental market size is growing. As one of the leading economies within the industry, this is telling for the global market as a whole. Already, the market is experiencing an increase in vacation rental competition as more property owners discover the profitability of running a short-term rental business.
Luckily, with travel on the mend after the devastating effects of the pandemic, travel demand is also expected to increase in the coming year. Travel data shows a growing trend for travelers is not only to book stays more often, but to book longer, global stays too, now that travel restrictions have eased exponentially.
Travelers are also feeling confident enough to plan trips ahead of time, booking stays further in advance. This paints a positive outlook for the market heading into 2023.
First published at https://www.igms.com/vacation-rental-industry-trends-2023/