It would be an understatement to say that the travel and hospitality industries are back in full force. Revenge travel has been at the forefront of many travelers’ minds, booking trips far into the future and focusing more on experiences rather than physical items. As we look forward to what this year will look like for short-term rental owners, our excitement grows.
4 Trends for Vacation Rental Businesses This Year
Prioritization of Travel
In 2022, even though there was a significant uptick in booking travel, there was a slight hesitation due to the lingering effects of the pandemic. However, travel data shows a trend of travelers booking more frequently and booking longer now that there are fewer restrictions and less uncertainty. We predict that these numbers will only increase over 2023 and beyond.
Even during times of a possible recession, consumers are still making travel a priority. In return, short-term rentals are reaping the benefits of increased interest and personal consumption.
Steady Supply of Short-term Rental Properties
With the economic climate weighing heavily on everyone’s mind, more and more people are entering the short-term rental market. The competition among rental owners will be high in 2023 as economic uncertainty may have second homeowners renting to maximize profits. Zillow’s recent report forecasts there will be a surge of first-time landlords; “The record-low mortgage rates of 2020 and 2021 spurred lots of investment in a second house, especially from mom-and-pop investors getting their second property. As rent growth continues its aggressive pace, many of these second homes have an even better potential to yield regular rental income above mortgage payment fixed with record low rates.”
Catering to Remote Workers and Families
Similar to 2022, remote workers and families should be a part of your marketing strategy. Adapting your vacation rental to this audience is a good opportunity that leads to longer stays and more occupancy.
If you don’t have a designated working space or office, don’t worry! Travelers searching for a getaway still want a leisurely experience. Though many people are comfortable when working from a space that isn’t their own, they’re also less apt to check their email while on vacation. More parents are giving their children a bigger say in where they’re booking because they want it to be not only a reward for themselves but also for the kids. According to a VRBO survey, half of the family respondents said they’re more likely to let their kids decide where they vacation in comparison to pre-pandemic times.
Longer Stays
AirDNA reported that the average length of stay may drop some in 2023 but will still be higher than pre-pandemic levels. The average length of stay in the U.S. has doubled since before the start of the pandemic.
With many still working remotely, there’s an increased desire for a change of scenery. This allows people to combine work and leisure without having to rush everything they want to see and do during the weekend or a few days. Take this time to plan for more occupancy and potentially more risks that can occur during a longer stay.
We’re Here to Help You Protect Your Rental Business
Whether you own a cabin that sits high in the tree-covered mountains or a quiet cottage near the beach, we have you covered. To learn more about protecting your vacation rental business through CBIZ Vacation Rental Insurance, request a free quote today!
This blog may contain scenarios that are provided as examples only. Coverage is subject to the terms, conditions and exclusions of the policy issued. The information provided is general in nature and may be affected by changes in law or the interpretation of such laws. The reader is advised to contact a professional prior to taking any action based upon this information.