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AirDNA has found that 2020 short-term rental bookings are sporadic, and the U.S. Travel Association anticipates a 44.8% decline in U.S. travel dollars since 2019. Still, Short Term Rentalz predicts a bright future for vacation rentals. Let’s look at why they think so and what is currently happening in the market.
Prior to COVID-19, over 70% of U.S. travel bookings were international and the rest domestic. Since April 2020, that has flipped to over 65% of bookings being domestic. Now, travelers are driving to their destinations, staying longer, and looking for more space. With the rise of COVID, the average length of bookings has increased by one full night, and apartment bookings have decreased over ten percent, while house bookings grew over 12%.
Additionally, while there was a significant decline in rental bookings in March, April, and May, since June, there has been a sustained recovery. Further S&P Global Intelligence claims short-term rentals have fared COVID far better than hotels.
At the height of COVID, global STR bookings fell 45% compared to the hotel industry, where bookings fell 77%. And through the progression of COVID, STRs have made a substantial recovery, while hotel bookings remain low. S&P Global Intelligence attributes this to less business travel and perceived safeness in a private space.
Clearly, despite a significant decrease in STR bookings in March, April, and May, the industry is making a comeback with vengeance. Looking to finance a vacation rental? Contact us.
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