Where were you in April 2020? If you were like most people in the world, you were probably not traveling, that’s for sure. While the entertainment and food industries suffered from tremendous losses in revenue, the hospitality industry was not far behind. While the housing market continued to skyrocket, what did this mean for short-term rentals?
Understanding New Consumer Patterns
As you know, short term rentals (STRs) have been gaining popularity, especially with the rise of Airbnb and other online marketplaces. STRs have disrupted the hotel industry and changed consumer patterns with more people turning to short-term rentals because of the convenience and accessibility.
It’s obvious there have been some impacts due to COVID-19. And while travel has been limited for most people, there are still people who are finding ways and time to get away. People may not be traveling by plane, but they are traveling by car, either to continue business as usual or to break up routine and explore.
In addition, many front line workers have turned to STRs as a way to maintain the conveniences of home while keeping their families safe from potential contamination. And a number of college students and international travelers found themselves stranded when transportation shut down, so they took refuge in STRs while they awaited word that travel was safe.
The Future for STRs is Promising
While consumer habits are shifting and adapting to the times, there is certainty in the projections for the next couple of years. If you are still on the fence about the future of STRs, Skift reported STRs will experience a 62% increase in sales, which equates to $132.5 billion, by 2022.
(I can help you work through the process of starting your journey with short-term rentals through my free playbook that I created just for you.)
People are still working and they are still traveling, and since the demand is there, there needs to be a supply. While the economy is recuperating, lodging needs--especially short term rentals--will continue to rise.
New Ways to Make Money
I get asked regularly about the marketing and money-making aspect of STRs, but obviously, that’s what you go into this line of business for. It is apparent that COVID-19 has changed some of the ways in which property owners have to market their property.
One of the ways I saw that property owners or landlords could supplement their income is through parking spaces, particularly if your STR unit is in an area with limited parking. Parking tends to be an added bonus that not only contributes to convenience but also contributes to a complete package when shopping for places to stay. Bundling a parking fee within the total cost of your rental cost can provide an amenity that not all STR operators offer.
Moving Forward: Learning the Trade
If you still have some reservations about what the future holds for STRs or how to move forward, take a listen to my podcast on YouTube where I highlight some of the trends I have been seeing from Skift Research.