Tourism is one of the fastest growing industries in the world and the vacation rental business is one of the most important sectors driving the growth. The mainstream vacation rental market has opened up a whole new way of traveling that appeals to multiple generations and people from all walks of life.
The diversity of the target audience is matched by the broad spectrum of those operating vacation rentals. Everyone has the ability to become part statistic of the vacation rental industry and there is no shortage of individuals, local and regional property management companies, and even multi-million dollar businesses taking advantage of this 21st century spin on lodging. With single room rentals, stately manors, and everything in between there is literally a seat for every bottom.
The vacation rental industry is changing as quickly as it is growing and keeping up with the latest trends can be a daunting task. The days of guests being satisfied with the amenities of the traditional motor lodge, motel, or hotel are long gone. A more personalized service is required to maintain high occupancy rates, and the wants and needs of guests seem to change by the minute.
Having an understanding of modern trends will help you stay at the forefront of your industry and maintain a high success rate. With trends in a constant state of fluctuation there is an infinite pool of data available at all times to provide additional insight to fuel your business strategy.
The COVID-19 impact has been large for many short-term vacation rental companies – view the latest research regarding the Coronavirus and the industry impact from VRMA, Rent Responsibly and AirDNA here (view full report).
—The vacation rental industry is growing fast. Very fast! As new research data comes in, it’s often hard to keep pace with all of the updates and information that is shared. Keep up to date with all of the latest vacation rental marketing and management statistics.
The vacation rental industry is extremely lucrative and has been growing at a rapid rate in the last few years, thanks to new integrated apps and software. More and more people are taking advantage of vacation rentals and their variety of benefits. —–
Industry Growth And Sustainability
There are 9 million second homes in the U.S. 44% of these are professionally managed, and 25%-35% of them are rented out. (Hostfully)
The total number of vacation rental companies in the U.S. is currently at 23,000, which makes up 20% of all the vacation rental companies in the world. (Hostfully)
45% of investment property buyers purchased to generate income through renting the property (as opposed to flipping or only seeking price appreciation). (VRM Intel)
49% of vacation home buyers plan to use their property for vacations or as a family retreat. (VRM Intel)
In the vacation rentals segment, the number of users is expected to amount to 57.0M by 2023. (statista.com)
Revenue is expected to show an annual growth rate (CAGR 2018-2023) of 7.2%, resulting in a market volume of $18,517M by 2023. (statista.com)
The average rental income varies greatly by size of home, proximity to the beach, and quality of amenities. 1-bedroom vacation rentals in the 50th percentile earn about $38,490 per year, while a 3-bedroom brings in $98,688. (Evolve Vacation Rental Network)
34% of investors purchased vacation home properties in a suburb or subdivision, 24% in a small town and 19% in an urban area or central city. 33% of buyers purchased in a beach area, 21% purchased on a lake front, and 15% purchased a vacation home in the country. (VRM Intel)
According to a Hawaii Tourism Authority report, 15% of visitors would not have gone to Hawaii if there hadn’t been the option to stay in alternative accommodations, such as vacation rentals. (Evolve Vacation Rental Network)
Research showed that the percentage of longer stays (over 7 days) has doubled since 2019. (avantio.com)
85% of vacation rental companies and hoteliers surveyed said that automation was a priority. (avantio.com)
Currently 82% of vacation rental property managers plan to implement keyless technology. (avantio.com)
Rates And Pricing
A recent poll by Vrbo Software revealed that more than half of property managers (57%) adjust their rates once per quarter or less frequently each year. (Vrbo)
52% of property managers have diversified their revenue channels over the past year, and 91% are interested in listing on another OTA. (avantio.com
90% of European property managers said they’d made their cancellation policies more flexible. 52% were even planning to offer free cancellation in 2021. (avantio.com)
According to a survey, 90% of property managers had noticed an increase in last-minute bookings. Airbnb stated that the percentage of last-minute bookings had doubled. (avantio.com)
According to data from VRM Intel, direct bookings accounted for over 50% of bookings in 2020. (avantio.com)
The pandemic disrupted normal seasonality trends, and surprisingly, average rates actually grew slightly in 2020 by 4%-6%. (avantio.com)
Marketing, Reviews, And Distribution
31.6% of property owners said they spent four or more hours creating their vacation rental listing. (Evolve Vacation Rental Network)
Travelers will spend about 59 seconds navigating your website and clicking through your pictures. (Bookfull)
In the Vacation Rentals segment, 77% of total revenue will be generated through online sales by 2023. (statista.com)
69% of tourists find information about vacations from brochures at a display stand and 68% find it online. (VRMA)
Hosting And Services
77.9% of homeowners admit that the only way they welcome guests to their property is with an email. (Evolve Vacation Rental Network)
57% of hosts say they provide a welcome basket or gift for their guests upon arrival. (the distinguished guest)
42% of hosts will deep clean their BBQ grill twice per year, but just over ¼ only do this once. (the distinguished guest)
82% of hosts have a 5-star rating on listing sites like Airbnb and HomeAway. (the distinguished guest)
38% of property managers surveyed said they have got more bookings from family and large groups. (avantio.com)
57% of property managers said they noticed more bookings from guests intending to work during their stay. (avantio.com)
General Travel Trends
The average millennial spends $2,915 on travel each year, and they try to get away at least four times a year. (Bookfull).
Overseas visitations account for half of all international visitations to the United States, with the other half originating from Canada and Mexico. (U.S. Travel Association).
HomeAway reported a 55% growth in barn bookings, a 40% increase in houseboat reservations and a 30% boost in treehouse bookings compared with the previous year. (Lodgify)
The top amenity cited by 64% vacation rental travelers for booking a vacation rental is the kitchen (Bookfull).
31% of travelers said spending quality time with family was their main motivation for travel. (avantio.com)
Studies in the US showed that 61% of families were more likely to visit an outdoorsy destination than an urban one. (avantio.com)
The popularity of countryside cabins increased by 25% and people sought to be near lakes and rivers (avantio.com)
59% of US travelers said they were more likely to drive than fly to their next destination. (avantio.com)
The number of nights booked has increased year over year. Since 2019, guests have increased their length of stay by 6.2%. (lodgify.com)
In 2021, rural accommodations held a 12% lead over urban stays in terms of booking duration. (lodgify.com)
A little over 70% of bookings are short stays (with guests only staying 1-3 days). 25% of bookings are for mid-length stays (4-7 days). (lodgify.com)
People who book 90+ days in advance will stay 4 days on average. These bookings are 25% longer than spur of the moment planners. (lodgify.com)
A survey of guests who had booked flexcations found that:
- 33% of guests have been able to book vacation rentals and work due to remote working polices.
- 38% had booked flexcations to offer their children a new experience and break the monotony of staying at home.
- 67% said they would be likely to do it again. (avantio.com)