Vacation Rental Market and Its Development
If you prefer to stay in rental holiday homes, it might be nice to have an idea about this market. In the ranking of the top 75 blogs in the vacation rental market futurestay.com is in the 30th row. We have translated one of their articles into Turkish for you.
History of Vacation Rental Business: Beginning
Vacation Rental market widens, and online booking becomes more popular. Understanding the history and industry trends of this business makes it easier for rental vacation homeowners to see future opportunities.
Records of the first rental holiday house are found in the middle of the 1600s. According to these records, the first rental holiday house is Louis XIV’s Versailles Palace. The Palace of Versailles was originally built as a hunting lodge for the Louis XIII. Louis XIV settled in this hunting lodge, rebuilt and expanded it to a palace we know today. Later in the history, the palace is used for entertainment and holiday purposes by various political figures. In the 1800s, the popularity of vacationing in friend’s rental houses has increased. By contrast, the term “timeshare” was not very popular until the 1960s (England) and 1970s (USA).
Technology and Advertising: Raising Awareness
With the invention of the telegraph in 1837, holiday rental reservations increased. Telegraphs provided faster communication between guests and holiday home owners.
The pre-Internet vacation rental market was based on printed media and advertising, such as real estate showcases, mailing brochures, and catalogs. In the 1950s, newspaper ads became popular for vacation rental homeowners.
Vacation Rental Industry Professionalizes
Vacation Rental Management Association in 1985. What is VRMA? and what does it do?
- VRMA is an “international, professional trade association”.
- VRMA is used by property managers, property owners and other providers on the market.
- VRMA members are part of a network of communication and sharing among all other holiday managers, property owners and providers in the international arena.
- VRMA offers professionalism, networking and training opportunities.
For the first time in 1995, with the presence of the internet, vacation home owners advertise their properties on the internet through the service provided by Colorado Property Company. E-commerce sites such as HomeAway and Airbnb, which were later established on the internet, have become popular sites for vacation reservations. In 2015, the rapidly growing vacation rental market has reached approximately $ 85 billion. For example, on its own e-commerce site called HomeAway, has got more than 2.8 billion rental rooms, which means there are more rental rooms on this site than the total of four largest hotel chains in the world.
Future of the Vacation Rental Business: How does the market change?
Holiday house sales increased by 57% in 2016 compared to the previous year, so the holiday market continues to grow. It is expected that the vacation market revenue soon will have a growth rate of 9.7% per annum. Now online booking and holiday homes are the preferred types of accommodation.
Increased professionalism – to compete on the go, vacation homes offer more value every day to their guests. More service delivery, such as check-in / check-out tools, marketing services, and business applications – more micromanagement tools. Smart technologies for holiday homes – home automation, smart locks, burglar alarms, etc.
Language Is Changing
As VRMA has stated, the idea of a “vacation home” is changing. It is questioned why the property is labeled as “vacation” because now there are also bookings for different reasons like “business” or “social”.
The changes to be made in the language can be a positive shift for the vacation rental market. Property owners are now hesitant to rename the phrase “Vacation Rental House”. With the developing demand in the rental property market, the sector’s perspective is widening, and higher income is targeted.
A popular topic in the industry is that large companies like Expedia are buying smaller vacation rental sites (such as HomeAway, Orbitz, and Travelocity). When companies join, be sure to be aware of new changes. Determine if there is a change in the reservation. Are prices increasing? Where and how are your rentals promoted? Is this positive or negative? It is very important to understand the expectations and practices of the new platform to avoid surprises in monetary matters (fees / pricing).
The hotel industry is demanding government regulations for rental holiday homes that offer alternative short-term accommodation services around the world. The hotel industry wants the vacation rental market to be subject to legal regulations as they are subject to and to follow these regulations. In other words, the law, legislation, and regulation for the vacation rental market are stated on the world’s agenda:
- Occupancy rules
- Tax reporting
So, if you are a rental holiday home owner or if you are going to stay in a holiday home as guest/tenant, stay up-to-date by following the regulations/decisions /legislation and laws for holiday rental homes.
Launches and Alliances
The first site, which was launched in 1995, was established by owners of rental holiday homes (VRBO). In the following years, the successive launches of holiday home rental e-commerce sites were made instantly. The popularity of holiday homes and the increase in technological growth have also expanded the market. The list of channels launches and industry alliances according to years is as follows:
1995 – VRBO (Vacation Rental Business Owners) was established.
2005- Cottage Blogger was founded.
2006- Vacationrentals.com was established.
June 2006 – HomeAway was established.
November 2006- HomeAway bought VRBO.
May 2007- HomeAway bought VacationRentals.com to market as an independent brand.
October 2007- HomeAway bought OwnersDirect.co.uk. By incorporating this brand in the UK, HomeAway has made it possible to reach the greatest masses of those who travel”
August 2008 – TripAdvisor bought a great share of FlipKey.
August 2008- Airbnb was established. Airbnb popularized the vacation home e-marketplace model, highlighting instant booking and online trust.
June 2010 – TripAdvisor UK bought Holiday Lettings.
Feb 2011- 9Flats.com was founded.
March 2011- Wimdu was established.
May 2011- HomeAway bought Second Porch, a holiday home site. Second Porch’s technology “accelerated the integration of all the social features on HomeAway’s network of sites.”
2012- VRMB is established (Vacation Rental Marketing Blog publishes free articles and content to help vacation homeowners to increase their reservations)
October 2012- Airbnb bought Fondu (Fondu App) application. The aim was to provide readers with ready-made guides and tips on what to expect when visiting a city, based on what the hosts offered about the area.
May 2013 – TripAdvisor has bought Spain-based Niumba, which has more than 120,000 holiday homes in Spain and more than 230,000 vacation rentals worldwide.
May 2014 – TripAdvisor has purchased Massachusetts-based Vacation Home Rentals, which has 14,000 rental properties worldwide.
June 2014- Priceline buys Buuteeq and Hotel Ninjas for $ 98 million. With this action, the strategy of becoming a B2B hotel service provider continued.
October 2014- Futurestay has launched the holiday home dashboard for rentals. Futurestay collects the dashboard, marketing, and reservation management in one place.
January 2015- Tripping.com adds Migoa, a Spanish vacation home rental site with more than 2,000 destinations as its 25th partner.
September 2015- Expedia purchased Orbitz Worldwide.
November 2015- Expedia purchased HomeAway. This merger “took the title of Booking.com as being the world’s largest reseller. Today, Expedia Inc. offers at least 1.3 million property rentals, when it looks at the total number of hotels and rental homes in the world.
April 2016 – TripAdvisor has bought HouseTrip, a UK based company with 300,000 properties.
September 2016 – Expedia hires HomeAway’s new CEO to shift revenue chain to online bookings instead of competing subscription fees to Airbnb.
February 2017- Airbnb concluded a purchase agreement with Tilt, a startup project for shared payments. Groups of friends can now pay by dividing the rental cost.
February 2017- Airbnb made its biggest investment and bought “Luxury Retreats” and stepped into becoming a global travel company that can provide all services.
February 2017- Priceline buys Momondo for $ 550 million to expand Kayak’s brand in some parts of Europe.
May 2017- HomeAway has launched a $ 1 million liability insurance.
July 2017 – Roomorama, “has stopped its operations. It is likely to close due to the rivalry in the market and the storm of regulatory laws. ”
August 2017- “During the past decade famous CEO, Dara Khosrowshahi, who acquired many other companies for Expedia and enjoyed market leadership in the USA, agreed to become Uber’s patron.”
December 2017 – Futurestay launches Weebly (App) App. Also added Futurestay (App) application to Weebly’s web site.
December 2017- Futurestay drove Autopilot, the first smart link to HomeAway and Booking.com, to the market.
When you look at Gross Reservations …
As seen from the rental channels and company mergers, the rental holiday home market is growing rapidly. In 2008, the US rental holiday home market reached 24.3 billion dollars. Four years later, when it came to 2012, the global market volume of vacation rental business was 85 billion dollars. Popular channels like HomeAway.com have an annual revenue of $ 500 million in 2015.
HomeAway’s total current market value today is almost $ 3 billion. Some channels, such as Booking.com, has now almost 70% of their properties as rental holiday homes. Airbnb, another popular rental vacation platform, continues to compete internationally. Airbnb’s gross bookings in 2015 were close to accommodation bookings made on China’s Ctrip, and Japan’s Rakuten. These booking volumes put Airbnb ahead of Germany’s HRS, Britain’s Travel Republic, and Ireland’s Hostelworld. “In August of 2016, Airbnb had $ 30 billion market valuation … which makes it more valuable than Expedia, TripAdvisor and Ctrip.
As of October 2016, Airbnb has become the third largest online accommodation company in the world. Given the gross bookings, it is probably the fourth largest online travel tool. “The rental holiday market volume rose up to $ 100 billion in 2016. By 2019, the global rental holiday home market is estimated to reach $ 169.7 billion in volume.
Now you have more information about vacation rental market.
In small resorts, renting a holiday home from professional and local companies like Fidorento is much more advantageous for you. When renting a holiday home via Fidorento, you do not pay an additional commission fee for booking as it is on other online platforms. So, you can rent villas or apartments at much more affordable prices in Kas and the surrounding area via Fidorento.
How about renting a holiday home now via FidoRento? While packing your bags in rush! Do not forget to choose one of our rental apartments or villas and complete your booking. 🙂
With our love from The Land of The Lights!