IN A SIMILAR FASHION TO THE URBAN APARTHOTEL CONCEPT , LIGHT-TOUCH ( AND THEREFORE LOW COST ) OPERATIONS , TECHNOLOGY- LED GUEST COMMUNICATIONS AND ASPIRATIONAL INTERIOR DESIGN ARE COMMON CHARACTERISTICS OF THE SHORT-TERM RENTAL MODEL .
trends in consumers ’ preferences such as nomadism , co-living , extra services and tailor-made user experience . Residential letting and property management is an extremely atomized sector with a clear opportunity for professional managers due to the lack of transparency and efficient management models .”
2 . LACK OF SUPPLY The lack of supply , or more specifically supply of a consistent quality , remains elusive in this segment of the industry . This presents an opportunity .
Airbnb has educated the modern consumer to think beyond traditional hotels and now consumers are seeking accommodation that delivers high quality , provides flexibility – you can decide not to go to a restaurant but to the supermarket for a bottle of wine and a pizza – enables you to feel part of a community and guarantees high standards of hygiene and cleanliness .
Brands that can create and consistently deliver this are ripe for growth and more than piquing the interest of investors .
3 . LOW OPERATIONAL AND DISTRIBUTION COSTS In a similar fashion to the urban aparthotel concept , light-touch ( and therefore low cost ) operations , technology-led guest communications and aspirational interior design are common characteristics of the short-term rental model .
Low distribution costs driven largely by direct bookings through a strong and reputable brand are attractive to investors .
4 . HIGH RATES High rates can be commanded due to lifestyle positioning , an aspirational brand , desirable location and good quality fixtures and fittings .
For consumers , the convenience of being part of a destination and therefore local activities , eating , drinking and entertainment easily accessible translate to being able to market properties at a higher rate .
5 . HIGH OCCUPANCY AND ATTRACTIVE CASHFLOW Targeted and intelligent multi-segment marketing can deliver year-round revenues for investors .
Demand is no longer just generated from the family market . Travelers across a range of demographics are experiencing and enjoying short-term rentals . As restrictions ease and families reunite , they will likely opt to do this in an environment that can accommodate large groups with hygiene standards they can control .
As a more flexible approach to working from home becomes routine and the corporate market looks for locations to unite teams , year-round demand is created .
Investors have shown enthusiasm for this flexible business model , proven to be resilient and withstand volatility in the marketplace , and underpinned by strong management . While the naming convention is inconsistent , including but not limited to : aparthotels , vacation rentals , self-catering , short-term rentals and holiday lets , the investor interest is anything but .
IN THE IMMEDIATE SHORT TERM , THE ONGOING UNCERTAINTY AND RESTRICTIONS AROUND INTERNATIONAL TRAVEL ARE LIKELY TO MEAN TRAVELERS LOOK TO DOMESTIC ACCOMMODATION OPTIONS FOR SECURITY AND RELIABILITY . THERE IS ALSO STRONG EVIDENCE TO SUGGEST THAT GLOBALLY PEOPLE REMAIN MORE COMFORTABLE WITH DRIVE-TO AND FLY-TO DESTINATIONS .
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