With the pandemic fueling a travel bonanza this summer, vacation rental homes have enjoyed a steady nightly appreciation in listing rates, cementing their value as investments.
The business was already booming for the vacation rental market before the pandemic, but interest has skyrocketed in the past year.
The global vacation rental market size is expected to reach $113.9 billion by 2027, according to a report by Grand View Research.
In March, Avi Vaknin, CEO of HomeEscape, said that the company was having the most successful start to a year since the beginning of the company.
Vacation rentals give travelers more customization options. Hotels cater to tourists, but vacation rentals enable travelers to really get the feel of a neighborhood, city, or travel destination.
One of the most popular vacation rentals on HomeEscape continues to be cabins, and with the pandemic fueling anxiety of being around people, nature-based views and locations have had an almost 100% increase in bookings.
"People are really concerned about their safety and want to be somewhere safe and private," says Vaknin. "Seclusion and privacy come naturally in a vacation rental, but are harder to find in hotels."
It's not just holidaymakers who are booking up vacation rentals. The rise in popularity of remote working due to Covid-19 means that some travelers are booking properties for longer stays that they can work and play from.
According to the vacation rental platform, HomeToGo has also noted that travelers are booking rentals for longer periods of time now.
"We're also seeing that travelers are turning to vacation rentals to book out longer stays, with the average length of stay being 11 days (+14% vs. 2019) for domestic getaways," Mahendra Roopa, Director of Product, Machine Learning and Data Science at HomeToGo said in a statement earlier this month.
"As the world starts to open up, vacationers are looking to enjoy some well-earned 'revenge travel' and spend time getting fully immersed in a new destination."
Another noticeable trend is that of travelers vacationing in bigger groups and opting to rent out larger properties.
In April, travel groups reported that demand for homes with four or more bedrooms has been more than 5 times higher than the previous year.
"With vacation rentals, you can absolutely find budget options because you can go in groups. You get to rent a house, and if you bring three friends, everybody splits the price."
At present, there are over 1.3 million vacation rentals in the US, and successful vaccine rollouts are helping to boost domestic travel.
Vacation rental search engine HomeToGo recently reported that search demand for domestic stays has been up by 58% this year when compared with searches prior to the pandemic, while interest in homes located in smaller towns and rural areas is also continuing to grow.
"The domestic travel boom we're observing has turned travelers' attention to the amazing hidden gem destinations that are available closer to home," Caroline Burns, head of PR and travel expert for the company, said in a statement.
"There are plenty of reasons for which staycations are more appealing, from avoiding the stress of quarantines and tests, to offering convenient options for flight-free getaways."
With vacation rentals in some instances exceeding the popularity of hotels, more and more owners are deciding to invest in vacation rental real estate.
"Now is the time to take the plunge into vacation rental investment," remarked Vaknin. "HomeEscape has seen a massive surge in business, and the summer still has a ways to go.
About HomeEscape: HomeEscape connects homeowners and property managers with travelers who seek the space, value, and amenities of vacation rental homes as an alternative to hotels. With detailed property descriptions, photos, and lists of amenities and nearby attractions, HomeEscape makes it easy for owners and travelers to find and compare vacation rentals all over the world.