In recent years, the vacation rental industry has grown into a thriving market that is not only on a constant upward trajectory, but it is also expected to topple the hotel industry in 2020 and the years to come. Now that vacationers are looking for private accommodations like apartments, city pads, and entire houses instead of hotel rooms, landlords from all over the world are able to capitalize on the new trends with ease. Let’s take a look at some of the prevailing trends that will shape the vacation rental industry in 2020, and set the stage for growth in the years to come.
1. Vacation rentals are favored by millennials and Gen Z-ers
While the older generations might still prefer the comfort and perceived security of big hotel chains, younger generations of consumers the likes of millennials and Gen Z-ers are increasingly interested in private vacation rentals. This is unsurprising, as private rentals offer flexibility and privacy, they have fully-stocked kitchens and bathrooms, they help the traveler immerse themselves in the local culture, and they usually offer better connectivity that allows digital nomads to work from home.
2. Vacationing with pets is becoming the norm
It should come as no surprise that vacationers are increasingly looking for pet-friendly rental accommodation in order to bring their furry friends with them on their escapades. No longer are they forced to leave their best friends at doggy hotels back home while they’re traveling the world, so if you want to capitalize on a rising demographic and increase vacation rental bookings this summer, you need to make your accommodation pet friendly across the board.
3. Serviced apartments are on the rise
The modern traveler is all about comfort and peace of mind, which is why serviced apartments are becoming so popular around the world, and especially in those bustling metropolises like Hong Kong. For example, when people are traveling to Hong Kong nowadays, they will predominantly look for those functional studios for rent that boast a comfortable living space and numerous communal areas like a shared kitchen or a communal living room where they can network and meet new people. However, they will also look for additional services that are included in the rent such as apartment cleaning, regular linen changes, and other perks that make everyday living stress-free and enjoyable.
4. Landlords are utilizing software for property management
Now that the vacation rental industry is growing exponentially, landlords are buying more than one vacation rental property in order to establish multiple revenue streams. While this is the best way to grow your income, it also means that you need to manage multiple properties at the same time. This is why hosts will often use software tools that allow them to schedule cleaning, maintenance, landscaping, and more without actually having to visit their properties. This significantly cuts your expenditure while ensuring efficiency and tenant satisfaction.
5. Investing heavily in vacation rental marketing
Lastly, it’s important to note that vacation rental marketing is on the rise. Because of the competitiveness of the sector, landlords have to invest in digital marketing strategies in order to stand out and attract the best tenants to their doorstep. Be sure to invest in digital marketing yourself in order to ensure a positive long-term ROI in the short, mid, and long term.
Vacation rentals are becoming more popular with each passing year, so be sure to act on these trends to capitalize on a rising industry and pave the road to long-term success.
Mike Johnston is an avid blogging enthusiast and experienced content writer with a focus in real estate, home improvement, and the construction industry. He is a regular contributor to the Smooth Decorator blog.