In 2018, domestic and international travelers spent a mind-blowing $1.1 trillion in the United States. This helped bring in as much as $171 billion in tax revenue as well as $268 billion in payroll income for employees working in this industry. Thus, there is absolutely no shortage of travelers who make the United States their desired destination every year.
And, although the expenditures and tourist numbers continue to be reliably predictable, there are many changes taking place in this market. The most notable ones belong to the area of vacation rentals that have gone through a number of innovative evolutions over the past few years. So, what are some of the most notable trends that are expected to take place in vacation rentals during 2019?
Continuance of the Slow Death of Mid-Size Hotels
While large hotel chains are not going to be phased by the rise of Airbnb and other platforms for short-term rentals, the same cannot be said for mid-size providers. This is because they continue to lack the necessary resources and demand to stand up to companies like Airbnb while lacking the support from commercial chains. Assuming that more and more travelers will continue seeking short-term vacation rentals through home-sharing platforms, one can expect the downfall of mid-size hotels to advance. Of course, it is impossible to gauge just how far they might sink. Regardless, the fact that this change will take place is becoming more inevitable with every home-share booking that takes place.
Higher Demand for Millennials
As with prior years, the most avid travelers tend to be Millennials. While the exact reasons for this remain somewhat blurry, most experts predict that the group will continue raising the demand levels. Additionally, the fact that take-home income is rising as the unemployment rate decreases further supports the claim. So, one of the trends that can be expected is the relentless growth of domestic travel initiated by America’s young professionals. Such age dominance can be used to further pursue advanced demographic-based analyses that help understand the types of travel that may start taking places.
More Flexible and Understanding Rentals
Given the fact that vacation rentals are in the customer-service business with a singular product, their negotiating power in the market will continue to decline. Fortunately, according to a real estate expert and owner of The Eckerman Group, Michael Eckerman, this bodes well for the actual travelers. The reason why is the fact that they will continue to benefit from even more flexible rentals and lenient renters. A good example that showcases this is the number of increasing properties that are loosening their criteria to allow people who bring pets, more guests, check-in/out in non-traditional hours, and more.
Enormous Focus on Beaches Will Not Perish
Once again, the focus on vacation rentals will continue to revolve around beaches in the summer months. Over the past decades, this has been one of the most constant and anticipated trends given busy professionals’ tendency to take breaks from work during the summer. Additionally, their pursuit of warm regions makes them much more inclined to seek rentals in areas that are close to beaches where they can swim, tan, and other recreation.
Rise of Non-Traditional Rentals
According to Michael Eckerman, one of the most exciting changes in the market is the rapid rise of unorthodox vacation rentals. These include housing options that do not have a very long history of operations as they were not utilized in the past. Some of the most common examples include the following:
- Japanese-style ryokans
- Nature lodges
An easy way to explain this trend is to tie it back to the spending power of Millennials who are one of the main demographics in the travel industry. In translation, their pursuit of exciting and unconventional endeavors will give rise to the aforementioned types of rentals.
Short-Distance Vacation Rentals Expected to Remain Popular
While the younger travelers continue to push the limits and explore new housing options, seasoned individuals and families will continue to push in the other direction. Namely, their tendency to book vacation rentals close to their original residence will stay firm. This is mostly done to help minimize trip expenses, reduce the need for long-term planning, and provide more safety assurances given the travelers’ familiarity with the area. Finally, evaluating all of these trends at the end of the year will be a great way to see how close the market predictions came to reality. That way, one can make more accurate forecasts for the subsequent years!