Despite being battered by the pandemic, short-term rentals on vacation homes have surged. While traditional hotels and vacation clubs seem to struggle to keep their doors open, companies such as Airbnb, Luxury Retreats, and HouseTrip are receiving more interest and bookings. Sparse finances mean fewer people travel overseas for vacation and choose instead to stay within their local environment. The health implications of staying in public spaces such as hotels and cruises have also made people evaluate their vacation plans.
The global pandemic has led to the emergence of new trends among travelers seeking vacation experiences. A study conducted in September by Airbnb, which sampled over a thousand American citizens, found that these respondents were changing their vacation plans for the newly adopted pandemic lifestyle.
After a series of postponements, the online vacation rental company finally has its IPO in December. Airbnb intends to raise $30bn through a SPAC – a special acquisition company when it debuts on the New York Stock Exchange in December. The company has an approximate $85 million market cap today, which is an estimation of the total value of shares of the company.
Airbnb’s move is bold, considering that the pandemic has seriously battered the hospitality and travel sectors, the vacation rental industry’s leading drivers. The company’s listing is one of the year’s most anticipated IPOs.
The company’s decision to go public has been bolstered by the noted survey trends which have been forecasted by industry experts, offering positive insight into demand trends emerging in the vacation rentals sector post-pandemic:
Q3 2020 hedge fund letters, conferences and more
The surge in holiday bookings and vacation rentals
Prior to the pandemic, the timeshare industry saw its 10th straight year of growth with a 7% sales increase totaling $12.5 billion; This year travel has seen a decline of nearly 34%. While the pandemic has hindered traveling and tourism, it has not dampened holiday travelers’ enthusiasm. There has been a surge in holiday bookings between April and June, seeing approximately 32% weekly growth. Most people still want to get out and see the world, but how they do it has changed. Cruise lines such as Carnival and Norwegian Cruise announced record-breaking bookings, which, following the lifting of restrictions in more countries, has been uplifting for the sector (This is besides customers who had their bookings rescheduled to next summer). These companies’ positive news implies that travel and leisure companies may witness a record turn out next year post-vaccine distribution.
With the acceleration of remote working, many people are now favoring short-term vacation commitments over yearlong leases and rent. Findings from a survey on short-term rentals discovered that a growing number of remote workers are extending their stays on online rental platforms such as Airbnb.
These customers consider moving to another city but want to experience the ins and outs before committing. Others stay in specific destinations for a short period before moving to the next. Whatever may be the case, the rise of remote working has