As a vacation rental owner, it’s important to stay in the loop on what’s going on. No matter where you are located in the world, we’ve compiled the most important and recent news in the vacation rental industry.
As part of Lodgify’s vacation industry news updates, here’s our February 2020 edition.
1. Global Vacation Rental Market Report 2020-2024 Launched
Technavio has published a global report outlining vacation rental markets, sizes, trends, challenges, technologies, and predictions. The report includes regional analysis, covering all geographical locations around the world.
The report provides an in-depth analysis of key market drivers, how the vacation rental will grow over the next 5 years and predicts its market size.
So what are some of the outcomes of this global market report?
- The vacation rental industry is expected to grow by over 62 billion dollars over the next 4 years.
- Instant booking options and online booking contributed to the rapid growth in the industry.
- Technology has been the root of the growth in the vacation rental market.
It highlights the key players, (Airbnb, Tripadvisor, Expedia) and includes a competitor analysis overview. Types of rentals e.g. cabins, farms, apartments, beach houses, are also examined.
The report also forecasts consumer behavior and upcoming trends for the years leading up to 2024.
2. London Declared as Largest Vacation Rental Market in Europe
London has been ranked as the city with the highest amount of vacation rental properties in Europe. With over 67,000 rentals in the capital alone, it makes up the highest market supply for vacation rentals within Europe.
Where are all these rentals been advertised? Airbnb comes on top, with 51,552 listings, whilst 20,518 short rental rentals are listed on Booking.com and 13,422 advertised on HomeAway.
It turns out that more than 50% of London’s vacation rentals are actually 1 bedroom houses or apartments, whereas 25% consist of 2 bedrooms. The rest are studios and properties that have more than 2 bedrooms.
Over 55% of London’s short term rentals are managed by property managers, a figure that has increased by 3% since last year.
The peak time for vacation rental occupancy is June and July for summer, and for the colder months, October and December. The most popular areas are Kensington, Chelsea, City of London and Westminster.
Paris, Rome, Moscow, Madrid, Lisbon, and Barcelona are also among the top supply markets for short term lettings in Europe.
3. New Airbnb Proposal in Florida Moved Forward to House Floor
Vacation Rentals in Florida have long been subject to disputes, warnings, and changes in legislation.
Currently, a new proposal is going underway. OTAs such as Airbnb will need to collect and remit taxes from vacation rental businesses. The online listing platforms will also have to make sure that they are advertising rentals with the correct licenses and may have to provide the state of Florida information about the listings.
As it stands, the law cannot forbid vacation rentals to operate or regulate the duration of stay, however, local governments have the authority to inspect properties and ensure they have the proper licenses.
4. Japanese Vacation Rental Startup H20 Raises $7 million
The vacation rental company, H20 from Japan, has raised $7 million this month. This is part of their Series B funding, with investors from major companies such as Samsung Ventures, Shinhan Capital, and IMM Investment.
The tourism industry in Japan is growing, especially with the summer Olympics going underway this year in Tokyo. As there is a high demand for accommodation, H20 provides vacation rental owners a platform to advertise their rentals and manage their properties.
The company originated as a cleaning firm from South Korea in 2015 and was later acquired by H20 in 2017. H20 is considered to be the largest vacation rental management companies in Japan.