How the Vacation Rental Industry Began
Before the Internet, vacation rentals were a mom-and-pop industry—organically popular in Europe. Businesses advertised via classifieds or real estate agents. However, some also mailed promotions to travel-related lists. With the Internet, like for most industries, came significant changes. Thankfully, a Colorado couple looking for a better way to rent their ski condo launched Vacation Rental By Owner in 1996—known as VRBO. Fast forward, and ten years later, Home Away acquired VRBO in 2006, along with others, creating a semi-monopoly. Consequently, they became the dominant listings hub. Then last year, Expedia devoured up Home Away, paying $3.9 billion. Today, the Expedia-HomeAway combo moves ahead of Booking.com as the world’s largest accommodations site. Expedia Inc. now offers an estimated 1.3 million properties — compared with Booking.com’s 821,400.
The Future and All the Numbers
The 1996 cottage industry has now evolved into a major corporate endeavor. The industry is said to be worth $100 billion, with the United States accounting for about 25% of that-24 billion per year. Estimates show that the current $100 billion dollar market is on track to reacj $170 billion by 2019 and to $285 billion by 2025. Meanwhile, Skift, an online business stats service, calculates that in the first quarter of 2016, vr startups attracted nearly $100 million in venture capital funding.
Yesterday, the vacation rental industry was an Internet experiment. Today, with these numbers, it’s a whole new story! Therefore, those who adjust and adapt to the changes, will be the most successful.
With the industry focused on numbers and approximately 8 million listings, we believe that booking behavior is will shift and in fact, already has. Amazinly, in the United States, the percentage of adults who have stayed in a vacation rental has quadrupled from eight percent in 2011 to 32 percent in 2015.
Obviously, one reason travelers gravitate towards vacation rentals instead of hotels is because they offer the unique and unknown. In addition, vacation homes satisfy the human desire for a comfortable home. They value these over a predictable beige corporate hotel, located near the Denny’s or Seven Eleven. They are looking for a little something more.
Choosing Your Profitable Vacation Rental Niche
Below are key ways you may dentify one or two ways to begin to brand your property to that niche as well as how to reach potential travelers in that niche. Therefore, these four segments may stimuate you to define your ideal niche:
- Note a niche related to your area: certain tourist attractions, geographic feature
- Define a niche related to your vacation rental structure, design, or grounds
- Think of a niche related to interests: golfing, scuba diving, surfing, etc–those superior venues in your area.
- Niche related to timed events: sports event, Broadway events, film festivals, etc.
A Handbook for Defining Your Niche
Free E-Book or buy a physical copy at AMAZON BOOKS.