Few industries have been impacted by the rise of the sharing economy as the vacation rental industry. This has propelled vacation rentals from a network of “mom and pop” agencies to a sector driven by private equity firms, major hotel brands, online travel agencies (OTAs) and new travel technology platforms.
In this industry brief, we discuss the opportunities and challenges for vacation rental owners and managers in this new landscape. Some highlights:
- By 2021, vacation rentals (or “holiday villas” as they’re known in Europe) are expected to be a $193 billion USD global market, with Europe generating the highest revenue and growth.
- While vacation rental software and travel apps have been great for operations, the industry is still missing a certain brand promise that stands on its own, apart from Airbnb or Vacasa.
- The typical ‘connected’ and ‘experiential’ traveler wants brand promise and not just a contract to rent a piece of property.
- As innovation has made travel more accessible and commoditized, it’s essential for travel operators like vacation rental owners to develop effective ancillary revenue programs such as travel clubs.
Is your vacation rentals business equipped for the sharing economy and online growth?
Download this industry brief to understand the challenges and opportunities for vacation rental owners and managers and how a travel club can improve both brand promise and perceived value.