As the need for short term rental property is rising, property managers need to look to the quality of guest experience that they are providing. The vacation rental business is increasingly competitive, and the short term rental market is exploding as a result.
As traditional vacation business models have changed, and companies like Airbnb have led the way in peer to peer rentals, vacation rental owners must seek ways to offer the best guest experience possible to remain competitive in the marketplace. The economy is moving towards adopting a ‘share’ rather than ‘own’ philosophy, and the short term rental market may be benefiting from it.
Service Expectations Increase For Short Term Property
When vacation rental bookings are taken, the expectations of today’s consumers have entirely changed. Not only will the guests expect that the property matches their vision, but there has also been an upswing in value-added treats and additions to the rental package.
Vacation rental managers now find that a simple property rental is not enough, no matter how good the standard. It has become almost obligatory within the short term rental industry to include items like breakfast, welcome gifts, or provide local area recommendations. Vacation managers are increasingly laying on an extra level of service, all to enhance the overall guest experience.
Pet-Friendly Rentals And Luxury Home Demand Increasing
Along with the increased level of service expectations, there also comes a rise in demand for luxury property and pet-friendly homes. More than ever, people choose to travel with their pet, meaning that for any vacation rental manager, this is an option to be taken into consideration when marketing short term rental property.
Pets can cause occasional problems, but the segment of guests traveling with their family companion is rising. Not offering accommodations that cater to animals may mean missing out on vacation rental bookings. The luxury property is also becoming increasingly sought after.
Travelers are willing to shell out extra money to have the experience of living short term in an exclusive penthouse or high-end luxury yacht. Quality is becoming more important than functionality, and as many short term rental properties are not subject to zoning requirements or residency restrictions, homes can be made readily available.
Are Millennials And Gen Z Driving The Vacation Rental Industry?
The movement in many short term rental markets, including the vacation rental industry, has been primarily driven by Millenials and Gen Z’s. The latter has never known a world without tech, and easy access to many required commodities may be driving the change.
So too is the attitude of these generations towards ownership and sustainability, both deeming it unnecessary to buy something outright if it is not needed for the long term. Several business models are changing, including the short term rental market to encompass the shift towards renting vs. owning.
There has also been a recent travel trend, especially among Millenials of combining business travel with vacation time, a trend that is set to grow with 7 out of 10 Millennial business travelers electing to stay in local short term rentals because of the guest experience they provide. This, in itself, is adding volume to an already growing short term rental market.
Focus On Tech Tools For The Short-Term Rental Industry
For every property manager in the short term rental market, technology is playing an increasing role due to the high demand and fast-paced nature of the vacation rental industry. A large number of Millenials and Gen Z’s are entering into the short term rental industry, and adopting this new technology to manage vacation rental bookings.
Smart tools are helping to monitor the safety and management of short term rental properties on a daily basis. A quick search of the internet will reveal a slew of websites offering short term rental solution software to manage your vacation rental business.
Also, there has been an increase in smart doorbells that include a camera, smart locks that secure a property with the click of a button on a cell phone, and connected smoke alarms that alert property owners of any potential hazards. These tools all serve to ensure the property’s security and the safety of guests, even if the property manager is not locally based.
Many people are investing in property to use solely for a vacation rental business, and all indications point to an overall market increase. In America, the short term rental industry saw revenues in excess of $169 million in 2018.
In emerging markets like the Asia-Pacific, the sharing economy is set to enjoy continued expansion with areas like Thailand, India, China, and the Philippines, leading the charge. Many countries have seen the introduction of different channels of the sharing economy.
Typical employment is being replaced by gig-work, taxi companies have been almost entirely replaced by ride-sharing organizations, small startups, and tech companies have embarked on office sharing to fulfill their day-to-day business needs. With these market trends and the continued advancement of technology, it is evident that the short term vacation rental industry is here to stay.
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