The Vacation Rental Industry
The vacation rental industry is always evolving. To learn more about our global industry, check out the information and articles below. If you have a press inquiry, contact Kevin Hurley, Marketing and Membership Director. No solicitations, please.
5 Vacation Rental Trends for 2017
- 2017 is likely to be one of our most polarizing years and one of its most pronounced trends will be vacation rental properties self-identifying into one of two buckets - professionally managers (PM) and rent by owner (RBO) - each with their own challenges.
- Limited edition products vs. commodity goods
- How testing guarantees your growth
- Personality as the new luxury
- Limited edition prototype
- Less text, more visuals
Source: Vacation Rental Marketing Blog (http://www.vacationrentalmarketingblog.com)
Millennials Help Short Term Vacation Rentals Disrupt the Travel Industry
- Millennials are predicted to spend $1.4 trillion on travel each year by 2020
Source: TurnKey Vacation Rentals Blog (http://blog.turnkeyvr.com)
Date: May 11, 2017
Global Vacation Rental Market 2017-2021
- Technavio's analysts forecast the global vacation rental market to grow at a CAGR of 7.07% during the period 2017-2021
Source: Cision PR Newswire (http://www.prnewswire.com)
Date: Feb 22, 2017
Vacation Rental Market Growth: Eye-Watering Projections
- Holiday lets are now the fastest-growing sector of UK tourism
- Transactional value of the European short-term rental market grew more than 220% between the first quarters of 2015 and 2016
- An industry last year (2016) valued at $100 billion dollars is predicted to reach a worth of $167.9 billion by 2019
- USA 26% year-on-year growth
- UK 38% year-on-year growth
Source: Smarthosts Vacation Rental Forum (https://www.smarthosts.org)
Date: Feb 2017
New Skift Research Report: The State of the Global Vacation Rental Market 2017
- This report takes a holistic look at the vacation rental ecosystem, examining the property management groups, marketplaces, and technology that are changing the face of accommodations as we know it.
- Three waves of consolidation in the vacation rental space: Marketplaces, Property Management and Management Tech.
- Growth of professional management in urban short-term rentals.
- The biggest trend driving growth in the "alternative accommodation" sector, is the growth of professional management in urban short-term rentals.
Source: Luke Bujarski, Skift (https://skift.com)
Date: Feb 14, 2017
U.S. Citizen International Outbound Travel Up Eight Percent in 2016
- U.S. travel to overseas markets totaled 35.1 million, up seven percent for the year.
Source: International Trade Administration (https://travel.trade.gov/tinews/archive/tinews2017/20171026.asp)
Vacation Rental Market
- Revenue in the vacation rentals segment amounts to US$10,620m in 2017
- User penetration is at 6.2% in 2017 and is expected to hit 7.4% in 2021
- The average revenue per user (ARPU) currently amounts to US$659.01
Source: statista- The Statistics Portal (https://www.statista.com)
Why the Vacation Rental Industry Is Blowing Up Right Now
- First four months of 2016 alone, vacation rentals startups attracted nearly $100 million in venture capital funding, concentrated in the US and Europe
- Consolidation as well as convergence are two key trends
Source: LeisureLink + Skift (https://skift.com)
Date: May 25, 2017
National Survey Shines Light on America’s Emerging Peer-to-Peer Culture
- 1 in 4 report engaging short-term rental platforms (23%), up 277% from 6%
- 9 of 10 previous ridesharing passengers and short-term rental guests rate peer-to-peer services as valuable or extremely valuable (both 89%)
- Becoming a guest reverses opinions on short-term rental: 26% of non-users would be less inclined to visit a city if short-term rentals were banned, a number that increases by a 127% to 59% for previous guests
Source: Short Term Rental Advocacy Center (http://stradvocacy.org)
Date: Dec 3, 2015
The Changing Face of Travel
- The beach is best for most travelers, with 74% of respondents preferring to spend their vacations on the coast
- 83% simply prefer to be near water—whether the ocean or a lake
- 51% and 35% prefer mountainous and city vacations, respectively
- Millennials have expensive tastes—12% plan to stay in a villa/estate in the next year vs. only 6% of Boomers and 9% of Gen Xers
- 71% of travelers with children said access to cook their own meals was a major reason they chose a vacation rental
- Travelers will end up spending the most if they book a short-term rental in a city that's considered a seasonal getaway.
Source: Tripping Industry Trends (https://www.tripping.com)
HomeAway Trend Report
- Key findings on millennials’ vacation yearnings and the primacy of privacy
- Uncovers surprise up-and-coming destinations
- Research show Americans will head for the hills for vacation in 2017, driving longer distances to spend more time at increasingly private accommodations.
Source: HomeAway Research (https://www.homeaway.com)
Vacation Rentals Provide Valuable Income Source for Owners this Summer, HomeAway Survey Shows
- 2015 in the US, the average purchase price was $192,000 and 61% of buyers used a mortgage to finance
- Vacation rental income comprises about a quarter (24 percent) of the average owner’s income
- 29 percent of properties for the survey’s last two years are owned by more than one person
- The average age when owners began renting their home is 49.5 years old, 6.5 years younger than last year’s respondents
Source: HomeAway Press Releases (https://www.homeaway.com)
Date: June 29, 2016
HomeAway: The Vacation Equation
- Those who traveled with a mixed (friends and family) group remembered their trips at least 20% better
- Mountain vacations top the list for most memorable vacations—they’re up to 12% more memorable than other destinations
Source: HomeAway (https://www.homeaway.com)
- Phocuswright's research on consumer technology, social media, booking tendencies, brand loyalty and all other traveler decisions will help you stay abreast of consumer trends.
Source: Phocuswright Research Topics (http://www.phocuswright.com)
Phocuswright releases study on private residence rentals and the “New Gen” Renter
- Examines the attitudes, aspirations, expectations and behaviors of renters and non-renters alike
- This report provides critical insights into how, when and why travelers do and do not choose rentals vs. hotels
- What influences their decisions, where they shop and book, and what renters want
Source: VRM Intel (http://www.vrmintel.com)
Date: Jul 11, 2014
Online Travel Agencies
- 53% of all travel being booked online
Source: Henry B. Tippie School of Management (https://www.biz.uiowa.edu)
Date: Feb 10, 2016
Why Do Consumers Prefer Booking with Online Travel Agencies?
- The 2014 Traveler’s Road to Decision, 50% of corporate tourists prefer to book through a travel agency with approximately 33% of leisure tourists opting for the same.
- 50% of people aged between 35 and 44 prefer to reserve through OTAs
- The two main tactics that OTAs have adopted to achieve their success over hotels are:
- Winning New Customers
- Maintaining active clients, or those who were once active
Source: Tnooz (https://www.tnooz.com)
Date: Dec 10, 2014