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Travel Trends: How the Vacation Rental Industry is Changing

While it may have taken a while to gain its footing, the short-term rental industry has been growing rapidly, with an increasing number of travelers opting to stay in rented accommodations instead of a traditional hotel. With a wide range of options– from luxury beachside villas to basic apartments located in city centers, vacation rentals have become a popular option for many travelers. Travelers, especially those who travel often, state that vacation rentals are often less expensive than hotels, they offer more privacy and space than hotels, and the rentals allow travelers to ‘feel like a local’, by staying in residential areas. 

A Quick Overview of the Vacation Rental Industry

In recent years, the vacation rental industry has been one of the fastest-growing sectors of the tourism industry. According to a study by ResearchAndMarkets, the global vacation rental market was valued at $169.9 billion in 2020 and is expected to reach $220.4 billion by 2024, growing 6.3% over the forecast period.  

According to a report by McKinsey & Company, the vacation rental industry has benefited from the post-pandemic travel boom, as travelers look for more spacious accommodations and more flexibility overall. A different report by Phocuswright revealed that the vacation rental market was expected to continue to grow, as a result of the demand for more alternative forms of accommodations and the rise of online booking platforms. 

The pandemic has changed what people look for when they plan trips and there are a few notable trends to be aware of in order to understand more about what consumers want now when they travel. 

Eco-Friendly and Sustainable Travel

Environmentally-aware travel has been part of the tourism landscape for a while, but sustainable travel has reached peak popularity post-COVID. According to a report by TripAdvisor, the trend towards sustainable travel has seen a significant increase in 2022, with 45% of travelers stating that they would choose sustainable or eco-friendly accommodation over a traditional hotel, with an eye toward reducing their carbon footprint while on vacation. Travelers are also increasingly interested in real estate where energy-efficient systems are installed, renewable resources are used, and waste reduction is encouraged is in high demand.

The Impact of COVID-19 on Vacation Rentals

As the world has started to learn to live with COVID, the experience of having lived through the pandemic has had a lasting effect on what travelers are looking for when they look for a place to stay while on vacation. 

• Increased Demand for Private Accommodation While it is possible to stay in a hotel with some measure of social distancing, many travelers want the added comfort and peace of mind of staying in more secluded and ultra-private spaces. Many vacation rental companies have picked up on this trend and have responded by offering vacationers unique, luxury experiences to accommodate their desire for privacy. Spaces like treehouses, luxury villas with infinity pools, 360-degree view transparent cottages, and luxury wooden huts in forests. 

• A Shift Towards More Domestic Travel The cancellation of air travel and the restrictions on travel to popular destinations led consumers to think more about destinations closer to home. Flights have long since resumed, but vacationing within the country is still a favored option, as many travelers have chosen to embrace old-fashioned American road trips. 

• Focus on Health and Safety Living with COVID-19 doesn’t mean that travelers are not still aware of health and safety while they are on the road. Health and safety are top priorities for travelers. In the recent past, a cozy bed and a free breakfast in a hotel were all it took to win the hearts of travelers.  Now, people want to make sure their accommodations have strict cleaning and disinfection protocols to ensure their safety and ease their minds. 

Increased Demand for Unique, Local Experiences

Travelers are craving special and authentic local experiences as a substitute for stand hotel service. They want an immersive cultural experience, close to where they are staying. According to a report by Airbnb, 60% of travelers stated that they would choose an authentic local activity over a tourist-focused destination. 

Virtual Tours Before Booking

Finally, an up-and-coming trend is consumers being able to virtually tour potential accommodations before they make their reservations. As mentioned earlier, many people are more cautious about health and safety concerns and want to make sure that they are making informed decisions about where they are staying before they make their reservations. While not yet widespread, these 360-degree tours of the interiors and exteriors of rental properties will become more commonplace as more travelers continue to search for alternatives to hotels. 

Read more about the travel industry on the Eyes4Research blog. Eyes4Research also has everything you need to collect high-quality insights from consumers in the travel audience. Our panels are comprised of B2B, B2C, and specialty audiences ready to participate in your next research project. Learn more about our specialty panels here.