Overview
The rise of luxury vacation rentals over the years has been exponential. No one predicted a sudden rise in the trend, and the hotel industry failed to anticipate it as well. How did this happen? How did the rise of a sudden trend leave a dent in the hotel industry that had been flourishing for decades?
A simple answer to this question is peer-to-peer sharing of resources. Sharing economies such as Uber and Airbnb helped establish the rentals that are now gaining popularity. In the past, the homeowners were sceptical when it came to giving out their properties for rent. Even customers were pretty much
gambling when it came to choosing a hotel since they never knew whether they would get a decent one or not.
Luxury Vacation Rentals VS Traditional Hospitality Industry
But thanks to the rise in technology, we have seen a change in attitudes and the introduction of luxury vacation rentals. The proliferation of the internet and globalization helped in narrowing the gap and fostering healthy communication between the people. And not to mention, key innovations helped in
implementing the idea.
Luxury Vacation Rentals and Technology Development
The rise in the internet and technology is paving the way for change in attitudes towards traditional hospitality businesses. With the help of the internet, people can now find rental properties from any part of the world. For instance, someone living in the U.K can easily explore their options for hotels in America.
Almost all the necessary information is available online, but users can also ask any queries directly from the owners. The knowledge online is helping luxury property owners explore different investment opportunities. Meanwhile, online portals ensure a fixed and easy payment method that provides peace
of mind for the owner and guests alike.
Applications such as Airbnb have enabled people to market their luxury vacation rentals. The project is now popular all over the world, with travelers booking their spots on the go without having to go through a tedious process.
The reason luxury vacation rentals boomed was due to the fact that hotels were run and managed poorly. They were unable to adapt to changes and stuck to the same traditional techniques. Ultimately, they allowed competitors to enter the market and take a big chunk of business.
The luxury vacation rentals are constantly improving. They offer professionalism, hard work, and transparency, which sets them apart from conventional hospitality models. Moreover, it also makes these rentals more appealing, especially in the luxury sector of rental services.
Increased Transparency and Customer Power
The era of the internet has helped in increasing the transparency of financial transactions, and in the end, it was one of the key reasons for the change in the hospitality industry. The overall payment and transaction process is seamless, and the amount is pre-determined along with extra charges already mentioned. Guests can make payments in advance to avoid any inconvenience.
But when we compare it to the hospitality industry, there are plenty of pitfalls due to ineffective communication. In the hotel industry, amenities are not clearly identified, and it may hinder the overall guest experience. They also lack an objective way of dealing with guests. Luxury vacation rentals available online are data-driven, objective, and online. These factors are helping the industry stand out from the rest.
The Rise in Shared-Economy
Luxury vacation rentals have been around for many decades, but it is today that we are seeing their growth first-hand. The rise in shared economy models such as Uber and other services enabled rental services to take over traditional methods. Now, applications such as Airbnb have over 2 million listingswhile operating in 190+ countries. A growing number of people use the site on a daily basis to book themselves luxury rentals for vacations.
Often, businessmen and corporate teams choose luxury vacation rentals as well for business tours. It is slowly seeping into every sector due to its amazing functionality and numerous benefits. Nowadays, almost everyone prefers luxury vacation rentals over expensive five-star hotels.
Homes are larger than typical hotel rooms and offer more privacy and value for the dollar in high traffic cities. This offers guests the opportunity to experience the city with friends and family and “live like a local.”
The change is not surprising since it helps guests avoid different problems and provides them with swift solutions. This is why the traditional hospitality industry finds it difficult to compete against them.
Homes are larger than typical hotel rooms and offer more privacy and value for the dollar in high traffic cities. This offers guests the opportunity to experience the city with friends and family and “live like a local.”
The change is not surprising since it helps guests avoid different problems and provides them with swift solutions. This is why the traditional hospitality industry finds it difficult to compete against them.
Hotel Industry Response
Things still are not out of reach for the hotel industry and traditional hospitality industry. Lately, they have been developing ways to increase their market share by incorporating the use of new systems and tech. The industry is keen to take back the lost market share and bounce back from the crises.
They have partnered up with different applications and websites in the industry to make the process more seamless than ever before. They have even partnered up with Airbnb to ensure that both businesses benefit from the growing interest in luxury rentals. By partnering up with the rental services, hotels are maximizing their exposure, and in the end, it is a win-win situation for both industries.
Hotels have also started advertising their amenities online to give a clear picture of what guests can expect from them. All their focus is set on generating more leads and competing against luxury vacation rentals. Also some are creating larger homes within their portfolio to work within their hotel system and share the unique on site experiences.
Investing in areas rich with resorts like Scottsdale AZ, offers investors the ability to own a Luxury Vacation Rental and provide hotel like amenities as well with their single family home.
Healthy Competition and Rising Innovation
The innovation in technology has enabled a remarkable change in luxury vacation rentals. With plenty of property owners entering the luxury rental businesses, the competition is stiffer than ever. Both businesses are trying their best to offer the best possible price and services. Experts regard this competition as healthy and agree that this has immensely benefitted travelers from all over the world.
As we look at the trends, the tourism industry is only going to get bigger, especially in the luxury rentals niche. The market will grow over the next decade and would almost guarantee the growth for hotels and luxury vacation rentals alike.
If you have read it this far, don’t forget to check out Homeslicestays. Our professionals help you get more bookings and improve services. We work closely with luxury vacation rentals and manage various tasks so you can focus on business growth.
Contact us today:
Phone: 480-463-4630
Email: Paget@homeslicestays.com
