Welcome to Beyond’s Short-Term Rental Industry Trends Report. Our goal is to provide a concise analysis of what’s happening in the travel industry in general and the short-term rental market in particular.
This summary captures what you can find in the full report here.
What Happened in Travel in 2020
Last year will always be remembered for the global pandemic that affected nearly everyone on the planet. We first began to notice its effect on the travel industry with an abnormal rise in cancelations across the Asia-Pacific Region in February, followed by a significant decrease in booking pace as lockdowns and restrictions went into place.
By mid-March, it was clear that the initial impact of the pandemic on the travel industry had all but brought global short-term rental bookings to a halt. Booking pace plummeted across the globe as the pandemic spread from Asia to the rest of the world.
When Summer arrived, some markets around the world began to pick back up as the pent up demand of travelers to escape quarantine restrictions boiled over. The first markets to see an uptick were coastal, drive-to, and non-urban markets in the United States, where consumers could travel and have an entire short-term rental to themselves in order to avoid contact with others.
As Summer gave way to Fall, the demand for short-term rentals continued to be strong. With more people being able to continue to work remotely, and most schools still opting for virtual classrooms, travelers took advantage of traditional low rates in September and October to extend their stays.
By the end of the year, most markets saw the lingering demand fade as they normally do heading into the winter months. Another surge in COVID-19 cases also forced governments to impose more lockdowns and restrictions on people’s movement.
2021 Travel Industry Trends
Over the past 5 years, vacation rentals have significantly outpaced hotels and airlines in terms of growth. Even if we disregard 2020, short-term rentals have been steadily growing within the travel industry and gaining more attention from customers.
While we expect the travel industry to have stops and starts in 2021, with different geographies and sectors of the industry reacting, adapting, and recovering at different paces, we see a steady, upward trend in travel and spending moving forward.
As we move into 2021, there are several factors that we are keeping an eye on that could have an effect on the industry:
- Acceptance of “Work from Anywhere” Culture
- International Travel
- Vaccine Rollout
- Variable School Schedules
- OTA “War” Intensification
In conclusion, we are overall optimistic about the future and growth of the travel industry in general and the short-term rental market in specific. The players in this market have learned how to adapt to a new reality, whether that be in pricing, operations, marketing, or cleaning, for example, and are in good shape to meet the challenges of the years to come.
To access the full report, please click here.