Global Travel Trends: How Vacation Rentals Adapt

So why do people favor vacation rentals over traditional hotels? Here are a few reasons: they are often cheaper, offer more personal space and privacy, and make you feel like a local. The travel industry was built on hotels and motels, or inns at the very beginning, and only now has the travel and tourism industry changed and more travelers are choosing to support local small businesses by staying within the local community at Airbnb properties.

In this article, we’ll explore some of the latest vacation rental industry travel trends. We’ll also consider how the travel industry is adapting to the needs of increasingly mobile and demanding guests.

In recent years, the vacation rental industry has been one of the fastest-growing sectors of the tourism industry. According to ResearchAndMarkets, the global vacation rental market was valued at $169.9 billion in 2020 and is expected to reach $220.4 billion by 2024, growing 6.3% over the forecast period.
Here are a few more facts that deserve your attention to assess the overall background:

• A report by the American Hotel & Lodging Association (AH&LA) states that the vacation rental industry was growing rapidly, with the number of active listings increasing by over 50% from 2015 to 2020. In 2021, more than 60% of visitors have given up staying in standard hotels and opted to book accommodations instead;
• According to a report by Mckinsey & Company (a global management consulting firm), the vacation rental industry is expected to benefit from the post-pandemic travel boom as travelers seek more flexible and spacious accommodations over hotels;
• According to a survey by TripAdvisor (a booking platform), over 60% of travelers chose a vacation rental for their accommodation in 2020 (citing factors such as more space, flexibility, and cost savings) instead of hotels;
• According to a report by Phocuswright (a travel market research company), the vacation rental market was expected to continue evolving, driven by increasing demand for alternative forms of accommodation and the rise of online booking platforms.

However, the global pandemic has certainly thrown a wrench into everyone’s travel plans. Despite this setback, the industry has shown sustainability and has responded to fluctuating market conditions to stay on track.

The aftermath of the pandemic continues to hit the industry. And it’s not about wearing a mask in public places or flight cancellations: it is slowly becoming our memories, not our reality. It’s more accurate to say that the pandemic has changed the way we imagine traveling and brought new vacation rental industry trends that are still relevant for 2023. 

Why Is It Important to Know About the Travel Trends?

If you’re one of those people who love traveling in style and comfort, then you definitely need to be aware of the latest travel trends.

For example, did you know that eco-friendly and sustainable travel is now at the peak of popularity?

According to a report by TripAdvisor, the trend towards sustainable travel has seen a significant increase in 2022, with 45% of travelers stating that they would choose sustainable or eco-friendly accommodation over a traditional hotel. This information can easily be obtained by using a TripAdvisor Scraper to gather data on the latest travel trends.

You should learn more about this trend If you:

• Care about the environment;
• Want to minimize your carbon footprint during your vacation.

That way, you’ll discover a secret hidden gem amidst accommodations that will not only be classy and comfy but also eco-friendly!

For the vacation business, understanding current travel trends is even more important. If you’re a representative of a rental company and don’t pay attention to the rapidly growing demand for eco-friendly accommodations, you’re missing out on a huge share of your potential customers!

And if you don’t offer flexible booking options, you better rethink the way you do business: travelers now consider this to be one of the most important aspects of choosing accommodation.

Whether you’re a traveler or a travel business, it’s always smart to stay on top of the latest travel trends. Who knows, maybe in this way, you will discover your next favorite vacation destination or find the key to the maximum success of your travel business.

COVID-19 and the Vacation Rental Industry: Impact and Implications

COVID-19 has had a huge impact on the global economy, and the vacation rental market is no exception. But it’s not all doom and gloom! In fact, the pandemic has made us take a new look at traveling. And all of the tourism types that emerged during that time are still hot today and don’t expect to relinquish their positions.

Shift Towards Domestic Trips & Travel

The first thing worth talking about is the shift to domestic traveling. Today, we don’t have to endure long and tiresome international flights, jet lag, currency exchange, and finding out how public transportation runs in another country. Now, we can just get in the car and be at the vacation destination in just a few hours and we can enjoy our trips.

It all started with the cancellation of plane flights and the inability to go to popular destinations. So, people set about exploring fascinating locations within their own country. Air travel has long since been resumed in 2023, but traveling within the country is still a favored option.

Increased Demand for Private Accommodations

Since COVID-19 is still not completely defeated, it looks like privacy is a new luxury! Privacy on trips is the new expectation from guests, suggests recent data.

The times of crowded hostels and sharing a bathroom with 20 strangers have come to an end. The demand for private and secluded accommodation continues to rise so we can finally escape from the hustle and bustle of everyday life and relax in our own little piece of paradise and tranquility.

Plenty of vacation rental companies have already noticed this trend and now offer more options for private accommodations. The number of variants is limitless:

• Tree houses;
• Wooden huts in the woods;
• Transparent cottages with a 360-degree view;
• Luxury villas with huge pools.

Focus on Health and Safety

Traveling is not only about escaping the daily grind but also discovering new destinations and cultures. However, since the COVID-19 pandemic has gripped the world, travelers have become more cautious and choosy.

Health and safety are now top priorities for travelers. It used to be that a cozy bed and a free breakfast in a hotel were all it took to win the hearts of travelers.

Now, travelers want to make sure their accommodations have strict cleaning and disinfection protocols to ensure their safety. What’s more, in 2023, cleanliness is no more just a trend, it’s a requirement!

Growing Interest in Sustainable and Eco-Friendly Accommodations

Today, travelers are becoming more eco-conscious and looking for accommodations that not only provide comfort but also respect the environment.

Real estate where energy-efficient systems are installed, renewable resources are used, and waste reduction is encouraged is in high demand. So, if you’re a property owner, now is the perfect time to invest in green initiatives!

In addition, those travelers who want to be on-trend should be looking for this type of accommodation.

Virtual Tours

Another hot and not yet widespread trend in the short-term rental market is the popularity of virtual tours. Since many travelers are hesitant to go on trips because of health and safety concerns, virtual tours, facilitated by cutting-edge travel software development, are becoming an increasingly popular solution to the problem.

Commonly, virtual tours feature a 360-degree view of the rental properties, allowing travelers to view the interior and exterior in detail.

Pros of virtual tours and trips:

• It helps people have an overview of the rental properties before they make a reservation;
• It makes it easier for travelers to make informed decisions about their accommodation options and gives them control over the booking process.

If a business offers an option like viewing a vacation home online before booking, it is evidently concerned about the convenience of its customers and is up-to-date on the hot vacation rental industry happenings. Such a business inspires trust because it keeps up with the times.

Focus on Digital Nomads and Remote Work Professionals

Remote work became the norm during the pandemic and luckily for the workforce, it seems to be staying put. Most businesses are now working within a hybrid model, which allows staff some freedom, quality time, and to go on more trips when they’re working remotely. They could find themselves in different destinations in the same month.

Digital nomads have more freedom to travel to various destinations and can do so in their personal time when they’re not on the clock. They can travel to exotic locations, well off the beaten path, and work remotely while they do it!

Post-pandemic, people around the world are seeking travel options and destinations that allow them to spend time exploring immersive experiences and make a positive impact on their mental well-being.

Increased Demand for Unique and Local Experiences

Finally, travelers are craving unique local experiences: this is a complete substitute for standard hotel service. They want to delve into the local culture, taste the authentic cuisine, and have a genuine local experience.

According to a report by Airbnb, 60% of travelers state that they would choose a local, authentic experience over a touristy destination.

The trend is a win-win for travelers and rental companies alike. Travelers get an authentic experience at their chosen destinations, and rental companies can showcase their unique accommodations. This helps the latter stand out from the competition.

How Rental Housing Companies Adapt to Trends in the Industry

In the vacation rental market, it is always critical to assess what steps competitors are taking to stay afloat and retain customers.

Investing in Technology

Founders of today’s vacation rental companies realize they need to go digital to keep up with the times. They are investing in:

• User-friendly websites – one way to ensure your website is visually appealing and professional is by using design templates from different providers such as Templatemonster.com and, etc.
• Apps for the accessibility of the services;
• Virtual tours for those who can’t physically travel or those who want to see the accommodation from all angles in advance before booking it;
• Solutions that make the booking process smoother and more convenient for travelers.

No more getting ready and going to a physical company office to look at pictures of beaches and hotel rooms to book a trip. Now, you can find and book accommodation from the comfort of your own home while enjoying a morning cup of coffee!

Diversifying Marketing Efforts

The vacation rental industry has also diversified its marketing efforts by targeting a wider range of travelers through social media, influencer partnerships, and Google ads.

Thanks to new online opportunities, accommodations can now be found for every type of traveler, from the adventurous backpacker to the explorer looking for the next Instagram-worthy place to stay.

Flexible Booking Options

As other travelers have become more cautious and travel planning beforehand has become even more complicated, vacation rental companies have also started offering more flexible options. Who doesn’t appreciate the opportunity to be relaxed in case plans collapse?

Flexible booking options are an opportunity for customers to change their reservations without significant penalties and fees. This can improve their overall booking experience.

Examples of flexible booking options include:

• Ability to change the dates of stay;
• Flexible cancellation policies;
• Opportunity to receive a full or partial refund.

By offering flexible booking options, companies can demonstrate their desire to meet customers’ expectations and build trust. This can lead to increased customer loyalty in a consistent pace, positive feedback, and demand growth. Failing to do so will definitely result in fewer guest bookings.

Potentila guests should pay special attention to this bullet point, which will tell you a lot about a business’s values.

Manage Your Vacation Rental with iGMS

As an industry leader in vacation rental management, iGMS offers a range of features that facilitate the easiest running of your property as possible.

With iGMS, you can enjoy the following features:

• Managing multiple accounts and listings on the top OTAs from a single interface
• Synchronizing reservations across multiple platforms to eliminate the risk of double bookings
• Organizing messages into a single feed with a unified inbox
• Improving communication with automated templates and triggered messaging
• Creating and coordinating cleaning tasks with live tracking to completion
• Creating your own direct booking website
• Managing direct bookings using a direct booking management toolkit
• Processing payments securely via integration with Stripe.
• Creating essential reports on your business results within minutes
• Adjusting your pricing in a smart way through integrations with PriceLabs, DPGO, and Wheelhouse
• Automating the process of guest reviews

How to Pump Up Business in the Vacation Rental Industry

Based on the points above and an analysis of all the consumer movements, you can find ideas on how to pump up a vacation rental business and build a service attractive to customers.

Implement Technology

Use the latest technologies to enhance customer service and make the booking process easier. Invest in comprehensive rental management software. This will help automate many tasks related to running your business.

Health and Safety

Since travelers keep prioritizing health and safety, it’s critical to consider actions that will help guests feel more comfortable and safe.

For example, consider implementing strict cleaning and disinfection protocols (in case you haven’t done it yet).

Offer Flexible Booking Options

Offer your customers flexible booking options, such as “book now, pay later” or the ability to change or cancel a reservation without penalty.

This will help travelers feel comfortable when booking vacation accommodations.

Diversify Your Marketing Efforts

Diversify your marketing efforts to reach a wider audience and increase the number of bookings especially during the peak season.

Consider using:

• Social media to promote your services;
• Email marketing;
• Other online channels to attract potential guests;
• Collaboration with travel marketing agencies, bloggers, and influencers to promote your business.

Strengthen your Online Reputation

Online reviews play a crucial role in attracting new customers. After all, most of us are used to checking out other people’s reviews before paying money.

Encourage guests to leave positive reviews and promptly react to negative ones. For example, you can offer discounts on the next booking for the feedback left.

That way, you can learn how to provide the best possible guest experience.

Offer One-Of-a-Kind Local Experience

Offer a unique local experience that guests can’t discover anywhere else:

• Consider partnering with local businesses to give guests exclusive access to sights and activities;
• Create customized itineraries to offer customers a unique experience and have full control over the process.

If you adopt these strategies, you can increase bookings and grow your vacation rental business in the local and global travel space.

Final Thoughts on the Future of the Vacation Rental Industry

So what does the future hold for the vacation rental industry? It holds both market challenges and opportunities.

It is safe to say that the industry will continue to grow and develop. The vacation rental industry has demonstrated an amazing ability to adapt to changing circumstances.

By focusing on health and safety, sustainability, unique local experience, and privacy, the vacation rental industry stands a good chance of meeting the needs of travelers in the future.

It’s been quite a turbulent last four years for the vacation rental market. But as the saying goes, when life gives you lemons, you make lemonade.

With all the changes brought on by COVID-19, vacation rental companies have had to re-adapt quickly to stay afloat. Nevertheless, it has opened up new room for growth and brought a lot of fresh vacation rental industry ideas that are still hot in 2023.

Author bio: Dmytro Sokhach is an entrepreneur and the 6-Figure Flipper Club member. Founded Admix Global (web agency) that builds websites, makes them profitable, and sells them as business