The Trends To Know if You Want to Rent Out Your Vacation Homes for a ProfitJanuary 22nd, 2019 by Holly Godbey | Comments Off on The Trends To Know if You Want to Rent Out Your Vacation Homes for a Profit
Vacation rentals are big business. With more travelers looking for unique accommodations, and more property owners looking to make some money on the side from their vacation homes, the travel trend has attached itself to the industry. With companies like VRBO and Airbnb becoming household names, the trend shows no signs of going away.
According to one study from CBRE, Airbnb accommodations now account for 9 percent total lodging units in the 10 largest U.S. markets, with all indications pointing to more units being added at a faster rate than the U.S. hotel industry growth. Airbnb units were noted to be doubling every year, while hotel supply only increases by about 1.1 percent per year. After all, it takes little to nothing to list your property on Airbnb. Building a hotel is an entirely different matter.
Additionally, Bloomberg has noted that over the past five years, once someone has stayed in peer-to-peer lodging, the likelihood they’ll still prefer traditional hotels has halved. Goldman Sachs data agreed, showing that people prefer peer-to-peer lodging almost as soon as they try it. There are tons of studies out there that indicating the same. Some destinations go so far as to claim that their tourism has increased solely because peer-to-peer home rentals are an option.
With all that said, what must you know to jump on this bandwagon, not as a consumer, but for profit? Here are the upcoming trends of this year’s vacation rental scene, according to the experts at brands like HomeAway and VRMB, showing the variety of ways you can make a profit.
1. Niche Markets are Big Deals
It’s Marketing and Business 101. Before you can start making money, you have to know your consumer and your consumer simply cannot be everyone. Similarly, if you want to make top dollar from your vacation rental, you can’t please everyone all the time. Instead of hoping to cater to all travelers, what is your property’s unique value proposition?
HomeAway predicts niche markets will continue gaining more traction, so you want to be able to cater to individual needs. It’s a trend that’s becoming more popular across the travel industry board. Travelers don’t want the same experience as everyone else — they want an experience that’s uniquely catered to them. Oh — and they’re ready to pay for it.
So, who do you feel you can best target? Does your condo have awesome amenities like a pool, great views, easy nightlife access, a wet bar and the latest tech, along with quiet workspaces and business amenities like a printer? Maybe you should go after exclusively young professional millennials who want these things, and have the discretionary income to afford them. Is your apartment close to gourmet grocery stores and amazing restaurants, as well as outfitted with a chef’s kitchen? Start branding your rental as a foodie’s paradise.
2. Speaking of Food…
This is a big niche market and even if you can’t all-out cater to the foodie crowd, looking at how your visitors eat when they stay with you can help you better anticipate guest needs. Six in 10 households have at least one dietary restriction, which means when they’re on vacation, they want to know that they’ll have options. Are you stocking your kitchen with snacks? If not, it’s a common amenity you would do well to offer. Make sure they’re allergy-free and suitable for all lifestyles. Additionally, a majority of travelers prefer to cook while they’re traveling, versus eating out all the time, so making that option available can be a big plus. Supply the pots, pans and basic ingredients like spices, but take things a step further by providing some local ingredients, and recipes for local dishes.
3. It’s Not All About Tech
Somewhat surprisingly, while technology is a big boon in the home rental industry (apps, smart locks and more can make a huge difference), old-fashioned touches still make a difference in your guests’ experiences. According to VRMB, with industries like vinyl records and tabletop board games seeing amazing growth, more people just want something a bit nostalgic, human and physical. Welcome gifts, handwritten thank-you notes, a little homestyle hospitality; these are features more travelers want. Offering these can give you an edge over the competition.
Of course, trends are changing all the time, especially in the travel and hospitality industries.
“Staying abreast of the latest traveler preferences takes time and diligence,” said Hartman Media founder Jason Hartman, “But it’s absolutely necessary in order to make a profit with your vacation rental.”
One of the ways to keep ahead of the latest trends and changes in travel is staying tuned to the JetSetter Show for more blog posts and podcasts like these!