December 19, 2022
3 Vacation Rental Industry End-of-year Takeaways from 2022—And What to Expect in 2023
Another busy year is wrapping up for the vacation rental industry. 2022 continued to show improvements as COVID restrictions eased and more and more people stepped out of their homes and back into the world. Let’s take a look at three end-of-year takeaways we gathered from 2022.
Demand Continued—Just at a Slower Pace
2021 was a big year for demand, propelling the vacation rental industry into the record books for fastest recovery. At the beginning of the year, AirDNA predicted that growth would increase about 14% over 2021. But now, with the end of the year in sight, the final number is looking more like a 21% increase in demand over 2021. While it wasn’t the rocket growth the vacation rental industry experienced in 2021, it was still better than expected.
Expect more “mature” growth, but much slower with the continued economic uncertainty and likelihood of a minor recession.
Guests Expectations Stayed High
Now more than ever, guests expect luxury treatment no matter what kind of vacation rental they’re staying in. Some of the trends that came out of the pandemic that guests are wanting to stay include:
- More flexible cancellation policies. Between illness and thwarted travel plans, guests expected vacation rental hosts and property managers to show more compassion and more flexibility than ever before. In fact, Booking.com recently reported that about a third of travelers surveyed said their top travel priority was the ability to cancel and reschedule their trip free of charge.
- Attention to detail. Guests sought out vacation rental hosts and property managers who would offer more personalized touches for their vacation, such as wine, discounts and coupons to local attractions, seasonal décor, ample supplies, or gifts for special occasions like birthdays or anniversaries.
- Streamlined check-ins. More and more guests booked rentals that offered contactless check-ins with lockboxes or key codes, another demonstration of flexibility.
- Tech-savvy homes. Smart thermostats, keyless locks, and interactive digital guests books are also more popular than ever.
Continue to improve your guest experiences by incorporating more concierge-level service into every stay, like booking dinner reservations and guide tours for your guests and communicating clearly and regularly.
Streamlining the Business Process is Top of Mind
2022 saw a continued effort to streamline the vacation rental management business process. Property managers continue to push for more direct bookings, better ways to screen potential guests and communicate with paying ones, and improved revenue management. Rented’s revenue management experts can help you stay competitive by setting dynamic rates based on a variety of factors. Rented’s Automated Rates Tool (Art) makes updating rates on multiple properties and projecting your potential return quick and easy.
Happy Holidays & Our Team hopes you had a great year!