What: Vacation Rentals Are Edging Out Hotel Bookings
Although the hospitality industry was one of the hardest-hit sectors of travel at the onset of the COVID-19 pandemic, the tides are now turning. Expedia’s 2021 Q4 Travel Recovery Trend Report showed a spike in global accommodation bookings — accounting for both hotels and vacation rentals — by 50% year-over-year in the fourth quarter of 2021. But, between the third and fourth quarter of 2021, vacation rentals edged out hotels in popularity.
Why It Matters: It’s Time to Partner With Travel Agent-Friendly Vacation Rental Companies
Although both hotels and vacation rentals saw an increase in overall bookings at the end of last year, travel advisors should pay special attention to the vacation rental market in 2022. The average length of stay for vacation rentals has increased, these rentals draw domestic travelers at a higher rate, and the booking window for this accommodation type is lengthening.
As hotel rates continue to soar (they are projected to climb 80% in the U.S. alone over the next few months, according to Virtuoso), and “celebration travel” continues to rise in popularity, clients are increasingly seeking out larger, private accommodations. Although some vacation rental companies are infamous for promoting direct-to-consumer booking practices, other companies — such as Vacasa, VillaKey and Vrbo, to name a few — partner with travel agents. If you haven’t yet been offering vacation rentals to clients, now may be a good time to start.
Fast Facts
- The shift from hotels to vacation rentals in the last two quarters of 2021 was likely due to the busy holiday travel season and an upward swing in popularity with families and friend groups, according to the report.
- Latin America’s vacation rental bookings were up more than 100% quarter-over-quarter between Q3 and Q4 of last year.
- The average length of stay for vacation rentals at the end of last year increased from 5.2 days to 5.4 days.
- According to the 2022 Vrbo Trend Report, which was mentioned in Expedia’s study, “booking activity on Vrbo in 2021 occurred on average two to three months earlier than usual for several major travel seasons, including summer and the holidays, and this behavior is expected to continue this year.”
- Sixty percent of American families surveyed in Vrbo’s report say they plan to book future vacations earlier than they did before the pandemic.
What They Are Saying: Travelers Are Evolving Their Preferences Due to the Pandemic
“After nearly two years of the pandemic, consumers have learned how to travel under ever changing circumstances, based on their comfort level and local government and health guidance,” wrote Jennifer Andre, global vice president of Expedia Group Media Solutions, at the start of the trend report. “We anticipate that travelers will continue to adapt their travel behaviors and preferences as the landscape changes. Year-over-year progress is encouraging, and we remain confident in the power of travel and the resilience of both the industry and travelers.”
The Details
Expedia Group Media Solutions
