2022 has been a standout year for the short-term rental market, as demand for Airbnbs and vacation rentals has continued a sharp upward trend.
New data reveals that the number of new Airbnb hosts in the US has grown by 50% in Q2 of 2022 compared to the same period last year. With more competition than ever, it’s important for hosts to have the most effective property management platform, one which can help them generate the widest visibility and drive conversions among would-be travelers.
Owing to a number of factors that have emerged in the wake of the Covid-19 pandemic, the way people travel has shifted. Work-life is more flexible than ever for travelers around the world, thanks to the rise of ‘work from home’ policies. Travelers are continuing to seek new locations and experiences after spending so much time indoors. And economic repercussions of the pandemic plus a potential looming recession are big considerations for how people spend on travel.
Considering the evolving travel landscape, let’s take a look at four top trends that will shape vacation rentals in 2023.
1. Demand will slow but remain steady.
This year to date has been impressive for the vacation rental sector in terms of both booking volume and the number of new hosts. With the impending financial slowdown, analysts are not expecting the same stellar outcome for 2023 — at least not for bookings.
Occupancy is forecasted to decline in the coming year, though available listings will continue to grow. With fewer travelers seeking vacation rentals, along with more hosts competing for their business, the short-term rental landscape is primed to become increasingly competitive.
To stand out, property managers will need to expand the visibility of their vacation rental and rely on keen insights to optimize performance.
2. Travelers will seek deals and discounts.
New research suggests that travelers will continue to prioritize getaways in 2023, but they will be more mindful of budgets.
Specifically, 50% of travelers say that booking a vacation will remain a priority for them — yet 70% of travelers report that they’re interested in travel if it is budget-friendly. People will seek deals, discounts and smartly-timed travel to conserve their budget during uncertain financial times.
To capitalize on these opportunities, hosts will need to find ways to run effective promotions, which are compelling and smartly integrated.
3. Longer stays are in.
A clear trend emerged in 2021 that travelers are now booking longer stays — and this phenomenon has continued to expand this year. Long-term stays were at an all-time high in Q1 of 2022, doubling in size from the same period in 2019. Stays of more than one week now represent 1 in every 5 nights booked on Airbnb.
For 2023, the trend towards longer stays shows no signs of slowing. To meet growing demands for long-term stays, Airbnb has introduced a new feature called Split Stays, which can split guests’ trips between two places when they’re searching for a week or longer. With Split Stays, guests will see approximately 40 percent more listings when searching for longer stays.
4. Say hello to business travel pods.
As ‘work from anywhere’ policies become commonplace, employees have grown less keen on working during their vacation. 70% of travelers now say they want their trips to be strictly work-free in 2023. That said, 51% say they would consider joining a company trip or retreat.
Traveling for work is projected to return significantly in 2023. However, employees would prefer opportunities to interact with teammates in real life (away from the office), and for those to include both travel-for-work and fun, leisure experiences.
With this information in mind, 2023 is expected to see a rise in destination business retreats — where corporate recreation and strengthening relationships are the focus. These business travel pods provide a new opportunity for larger vacation rentals to snatch up additional semi long-term stays.
Looking for more facts on the booming short-term rental market? Check out our blog, detailing the specifics of this year’s short-term rental rise >> Number of New Airbnb Hosts has Doubled Since Last Year — A Boon For Independent Accommodations.
Sources:
https://www.hospitalitynet.org/opinion/4112925.html
https://news.booking.com/en-sg/bookingcoms-seven-predictions-for-travel-in-2023/
https://news.airbnb.com/new-survey-hosts-use-income-to-cover-rising-costs-guests-find-new-travel-spots/