Australians have a long tradition of renting a holiday shack for their summer holidays. Enjoying beach or mountain, city or country town and everything in between, from the comfort of rental holiday house makes sense on so many levels.
So what are the facts of the holiday rental industry?
What contribution does it make to the Australian economy?
What is the future for the Short-term accommodation sector?
- There are approximately 210,000 holiday rentals listed in Australia across online platforms such as Airbnb and Stayz. This includes entire homes or people renting a room in their own home.
- The Short-term rental accommodation sector supported a $5.8 billion economic uplift to the Australian economy.
- 9 million nights of accommodation were booked in 2017/18 through short-term rental platforms.
- 35,336 full-time equivalent jobs across Australia within the tourism sector in 2017/18.
- Source ACIL Allen Consulting.
Future Trends For The Short-term Accommodation Sector…
Is is clear that the industry is here to stay and will continue to grow. The industry will evolve and be influenced with new trends and ideas, such as Airbnb did when it slowly hit the market a short 10 years ago.
Families, business travellers, international tourists love the flexibility, availability and personalised touch a short-term property can offer over other forms of accommodation. Demand is there…travellers want the type of accommodation opportunity which short-term rentals offer.
Regulation will become a reality for the industry, as government at levels attempt to balance the needs of the local community, as well as the rights of property owners/managers and their guests. Some local councils around the country, already have some form of regulation in place, be it property registration as well as rules and code of conduct for both owners and guests. This will continue, but hopefully without unfairly penalising owners and operators who do the right thing.
Industry players need to evolve for, engage with and listen to what guests want and expectations are no doubt on the rise. Short-term rentals compete with traditional hotel accommodation for example, so properties need to offer a point of difference. Amenities need to be perfect, the experience unique, communication clear and information absolutely accurate. Services and experiences attached or complimentary to the property will become a regular offering.
Success for short-term property owners and property managers is not guaranteed. All players need to embrace and invest in new technology to manage guest communication through to financial reporting. An explosion of cloud based software is out there to help connect platform calendars, manage guest communication as well as property marketing and so much more. There is no surer way than to turn a short-term rental dream into a disaster, if the owner/manager is not organised, responsive and customer focused.
Guests particular tech-savvy millennials, expect instant information and want instant book. There is not doubt, that a property with instant book will attract more bookings and therefore be more financially successful.
The future is looking bright for the Short-term accommodation industry in Australia. At Good House Holiday Rentals, we are ready to embrace change, as we continue to offer a more personalised service to both guests and owners are alike with investment in new backend systems and property marketing.