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Vacation rentals and short-term apartments are revolutionizing the tourism and hospitality industries. Ten years ago, the main competition for hotels were B&Bs and timeshares, but in today’s marketplace, travelers have expressed their desire for a different type of accommodation.
The latest home away from home
According to guest feedback, the biggest advantages of vacation rentals over traditional accommodations include the scheduling freedom, convenience of having a kitchen and on-site washer and the possibility to accommodate additional guests and larger groups. Not being bound to a schedule is one of the greatest perks of vacation rentals. No predetermined breakfast hours await guests and self-check ins allow for more flexible arrival and departure times. Moreover, the inventory in the vacation rental industry is generally more evenly distributed within a territory. Guests can be closer to their individual needs - business, holliday, medical, etc.
Amenities and facilities are also an aspect of vacation rentals that guests do not take for granted. In fact, “64 percent of renters say the vacation rental kitchen is the top amenity that motivates them to pick one house over another. Families love the idea of saving money by making meals at home and look forward to family dinners together in the comfort of their own home away from home” (Bookfull). Vacation rentals also make it easier to add extra guests - human and furry ones! “31% of travelers want to take their pet on vacation with them” (HomeAway).
More than a trend, vacation rental revenues speak for themselves
The vacation rental industry is rapidly growing in terms of guests, revenues and listed properties. “The number of vacation rental users worldwide was 64 million in 2015. It is currently more than 100 million. By 2023, it is expected to rise to 361 million” (PhocusWire).
Moreover, there are 115,000 vacation rental companies around the world, 60% of which are in Europe as of 2018. (VRMA). According to Statista, the 2019 vacation rental revenue has amounted to $57,669 million dollars and continues to grow. A growth rate of 6.4% is expected, which would result in a market value of $74,005 million dollars by 2023.
Uncovering guest’s desires to enhance their experience
The vacation rental industry, similar to the traditional hospitality industry, is experiencing a surge of guest feedback and reviews. Not only are these properties welcoming mass amounts of customer feedback, but potential guests are basing their decisions off them. In fact, “72% of people surveyed said they would not book a rental with no reviews” (TripAdvisor). Moreover, in a BreakAway study, they revealed that “64% of buyers want to read at least 6 reviews before making a purchase decision. 88% of consumers form an opinion by reading up to ten reviews.”
In a recent Travel Appeal study, we analyzed the impact of the vacation rental sector in Italy, focusing on the ten most popular cities throughout The Boot. We found that travelers love independent rental properties and express their satisfaction by leaving positive reviews. By leveraging Travel Appeal's semantic analysis algorithm, we uncovered the overall guest sentiment of rental properties in Italy is 90.5 percent.
Create an ideal guest experience to boost your online positioning and image
Dedicated to vacation and apartment property managers and agencies around the world, Travel Appeal collects and analyzes all customer reviews and online content about any property.
Uncover what guests really think about their overall experience and leverage actionable insights designed to improve your business with our Dashboard. Discover how external factors impact your properties and track the competition.
With our data-driven solutions, monitor the status of your properties and your competitors so you can strategize effectively. Leverage tailor-made Reports to deeply understand your properties and destination.
Save time, improve your online image, increase occupancy and boost guest satisfaction to grow your business!