The current crisis has a profound effect on the global economy. The travel industry, in particular, experiences a significant downturn in activity since the second half of 2008. Especially international demand is under pressure and travellers tend to prefer domestic holidays in order to cut back on travel costs. This trend is unlikely to change anytime soon as unemployment rates will remain high, long after the economic pick up. Even though the industry suffers, people still travel but start to rethink their habits and increasingly seek different and ultimately more affordable solutions. This movement stimulates the growth of specific segments within the travel industry such as vacation rentals.
Travel One Way...
Same price, same destination, different approach! Your call. 
...or Another! Cute House in France
The boost realized by the vacation rental industry is twofold. On the one side there is an increase in demand from travellers for vacation rentals, partly due to the reasons mentioned above, and on the other side impacted by the growing amount of homeowners who rent out their properties (or guestrooms) in order to generate additional income or simply to pay their mortgages. Indeed, according to PhoCusWright report ‘Vacation Rental Marketplace: Poised for change’, as much as 25% of developed countries’ second homeowners currently want to rent out their property; while 50% of those who look at buying a vacation home consider doing so in the near future. This development creates a significant opportunity for the online channel as 70% of these owners consider promoting their property on the internet.
Rent out Your Place Online!
The vacation rental market accounts for more than $24 billion in the United States alone. That represents more than 20% of all hotel room revenue and a staggering 8% of the total U.S. travel market. While data is mostly available for the US, it is important to note that the majority of holiday homes are located in Europe with about 8 to 10 million vacation homes (versus around 7 million for the US). Spain for example is a popular travel destination for European citizens with more than 33% of all Spanish properties being second homes.
Costa Brava in Spain. Very Popular!
Emerging Destinations
While Europe and the US have not yet reached maturity, other geographical areas gain in importance in the market such as the Asia-Pacific region, Middle East, South America and Eastern Europe. Those regions are expected to see higher than average growth rates in demand and supply, also linked to the fact that the travel industry in those countries will experience a faster rebound.
The Beauty of Eastern Europe, which many of us have yet to discover! (House of Parliament in Budapest)
Flexibility is Key
In addition, short-term breaks (<5 days) are nowadays more and more favoured compared to longer vacation periods, challenging vacation rental managers (VRMs) and owners to respond to this trend. Weekend trips have gained in importance due to an increasing offer from low cost carriers driving prices to a level where one can afford to fly away for the weekend. VRMs and owners alike should welcome this new clientele and prepare for more flexible bookings in order to cope with the current demand.
Dominik
3 years agoThanks for your positive feedback Andrew.
AndrewBoldman
3 years agoHi, good post. I have been wondering about this issue,so thanks for posting.
KrisBelucci
3 years agoI really liked this post. Can I copy it to my site? Thank you in advance.
Arnaud
3 years agoYes, no problem, feel free to copy (maybe just a link to this original page).
szq
3 years agoThanks Housetrip.com
Your going my way. All I would need to do the rent my house for one
month would be to find accomodations else-where; right!
Junjun
3 years agoIt is great to hear that Vacation Rental industry is still strong in spite of this crisis!!
Ghermine
3 years agoWe’re finding vacation home owners in the US with quality properties are not having to offer rate specials this summer, they’re booked! Florida and Phoenix, AZ being exceptions.
Arnaud
3 years agoWe get the pictures from http://www.fotolia.com The website from our friend (and Swiss neighbor) Oleg.
TheLuxPod
3 years agoDon’t forget Latvia, in particular Liepaja, which is one of the most beautiful destinations in the world, with stunning old town, marvelous canal area and a Blue Flag beach on which one can walk for miles, without crossing over a road. Sheer bliss and not a Prada shop in site:) BTW its party time at the Baltic Beach party on week-end of 24th July. PS Nice pics, but don’t forget to thank the photographers or did you take them?
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Arnaud
3 years agoTo reply to Claude, we think that “special offers for flexible dates of stay can be another key point” can be achieved through the revenue management system we will put in place at HT
Dominik
3 years agoThank you Claude for your comment. I absolutely agree with the key points you have mentioned.
In one of our next posts we can address the owners (host) side and how they can enhance their renting process in general.
We’ll keep you updated!
Claude
3 years agoInteresting views Dominik,
I have strong sensibility about what you say “growing amount of homeowners who rent out their properties (or guestrooms) in order to generate additional income or simply to pay their mortgages”
That’s mean new offer can be visible in the market.
Keys points could be flexibility, owners training, assistance as it”s a very fragmented market and owners need advices and assistance to better sales their products
From the demand side, special offer for flexible dates of stay can be another key point.
What do you think?
Best regards
Claude
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Garri
3 years agoNice photos