The overall vacation rental market is projected to hit $36.6 billion in 2018. The industry is still growing–and quickly! Of course, growth doesn’t simply happen.
Growth comes on the heels of change–an expanding marketplace, more awareness for vacation rentals, or even broader economic growth and increased consumer confidence. 2018 is shaping up to be a year of change for the vacation rental management industry.
NICHE MARKETS WILL GAIN MORE TRACTION
The vacation rental industry is attractive to travelers for a reason: vacation rentals are not hotels. Vacation rentals are uniquely able to meet needs that hotels simply can’t. In 2018, a few niche traveler segments historically undeserved by hotels will rely more on vacation rentals, includes the following.
31% of travelers want to take their pet on vacation with them instead of leaving Fido at home. Even pet-friendly hotels don’t provide the flexibility needed to make traveling with your pet enjoyable. Vacation rentals, on the other hand, offer the privacy, space, and yard you need to truly enjoy your vacation with your furry friend.
33% of travelers take trips to destinations within 250 miles of their home. Often, roadtrips take travelers away from the sterility of hotels and towards stunning landscapes, quiet retreats, or vibrant neighborhoods.
Six in ten households have at least one dietary restriction6 which means that kitchens matter when traveling. Having access to a functional kitchen can make traveling with food allergies or restrictions much easier and cheaper than eating out every night of vacation.
CONSUMER CONFIDENCE WILL AFFECT WHO TRAVELS AND HOW THEY BOOK.
The vacation rental market responds to economic growth and shrinkage in the same way that consumer-focused markets do. During economic booms, the industry sees a rise in younger, less affluent travelers taking trips. This is likely because this group feels economically safe and can afford to spend money on a vacation when they’re not pinching pennies. During economic downturns, the industry sees an increase in travel by a more economically stable group–older travelers, perhaps retired, who have more time and money to put towards travel. Booking methods rise and fall with economic booms and downturns, too. During economic booms (when younger travelers take more trips), the proportion of bookings received from mobile devices increase. Similarly, economic downturns see more bookings from desktop computers, likely a consequence of older travelers who are more comfortable using larger screens.
TOTAL TRIP LENGTH WILL CONTINUE TO SHRINK
The recent shift to travelers taking shorter-length trips is likely to continue in 2018. With instances of short trips (4-6 nights) and long vacations (7+ nights) both down 4% over the last three years, the dream vacations travelers aspire to take are being cut down. On the other hand, instances of long weekend trips have actually increased 8% since 2014. What does this mean? In general, people are still traveling–they’re just changing how they travel to meet their lifestyle. Shorter trips may be a consequence of a busy family, tightened purse strings, or being unable to escape from the office.
Millenials and Gen Z
Millennials are the largest segment of the US population and boasts an estimated $200 billion in purchasing power. They’re a sought-after segment in nearly every market and travel is no exception. Millennials truly value travel, ranking it more important than paying off their student loans or improving their relationships with their family and friends. Generation Z was born in the mid-1990s or later and, because of this, have never known life without the internet and mobile technology. For Gen Z, smartphones were their first phones. This group is just now starting to enter the workforce and flex their consumer muscles. Their impact on the overall travel market has yet to be seen, but early studies show that they’ll prioritize unique, life-changing bucket-list trips over the “regularly scheduled” vacation. Fortunately for the vacation rental management industry, Millennials also love to rent when they travel. 74% of Millennial travelers have rented a vacation rental when they travel, eclipsing the same behavior in GenXers (38%) and Baby Boomers (20%).
Safety and Ease
The affinity that Millennials have for Smart Home technology represents a huge opportunity for vacation rental managers. Millennials(a huge market) are attracted to smart home technology which can they can also deliver a better guest experience. Being able to access the house directly ( keyless entry) without checking in at an office is a compelling feature Millennial travelers enjoy. NomadnessRentals properties offer keyless entries for safety and ease. 86% of Millennials are willing to pay more to stay in a vacation rental property outfitted with smart home technology than one without it compared to 65% of Baby Boomers.
No love for Grandma
Travelers these days don’t want to stay at a vacation rental that is a hodgepodge of mismatched furniture and dated decor. Statistics show that updated rentals outperform by 61% properties that are dated, old and tired looking. Travelers are willing to pay more for a new, fresh and beautiful property. Your grandmother’s old cabin might be great for the family but travelers are not willing to spare the love that you do for grandma.
The Personal Touch Still a Big Deal
We all know that Millenials and Gen Z and even Baby Boomers are all using the internet and booking online but when it comes to questions, issues or problems ALL RENTERs want to talk to someone, a live human being. They don’t want to Chat, send emails or go to FAQ’s. This is where property managers outperform OTA’s ( HomeAway, Airbnb, VRBO etc) because property managers usually know each and every property in their rental pool and can answer renter questions. NomadnessRentals intimately knows every property and additionally provides renters 24/7 emergency support during their stay. Enjoy your vacation with confidence that NomadnessRentals is there for you 24/7 with just one phone call.
Nomadness Rentals offers properties that are pet-friendly, fully stocked kitchens to enable renters to prepare special diets, the best and largest number of Yelp and Google reviews with rental flexibility, minimum night stays of 1 night and Price Match Guarantee. Enjoy the Key-less entry experience with Nomadness Rentals and feel safe and free of keys.
Rent with confidence knowing that your vacation rental with Nomadness will be updated and fresh looking, priced right and approved by hundreds of travelers for quality, pricing and peace of mind when it comes to safety with a real live person available to assist you before, during and after your stay.