State of the US Travel Industry and How it Affects STR Owners
What 2022 Held and What 2023 Holds
Recent years have been a rollercoaster ride for the travel and hospitality industry. Anyone following along closely knows that 2020-2022 have been anything but the market at its most predictable, but thankfully, 2023’s indicators signal a return to more familiar territory.
Today, we’ll take a closer look at how the travel industry as a whole fared in 2022 and what is forecasted for 2023, as well as provide some key trends and takeaways for short-term rental owners to help prepare themselves for the future of this often-unpredictable market.
A Short Travel Industry Recap and Forecast for 2023
Pressure caused by the onset of the pandemic in 2020 fueled a number of changes in both the market and the way that consumers view travel, leading to a huge decline in travel due to the inability to travel for much of the year. Consequently, 2021 saw a huge rebound and upswing as the market recovered from its pandemic shock, and 2022 continued this trend, albeit at a slower pace. During this period, there was a rise in what Statista terms “revenge travel”, as people were finally able to plan out trips that they’d been waiting on and saving up for since the beginning of the pandemic.
While the 2023 travel market is expected to return to a more predictable state and mature more closely to 2019 levels than either of the previous two years, there are still reverberations being felt throughout the industry. According to Statista, in the post-pandemic period, consumers' biggest concerns will be the rise of inflation and the increased cost of travel.
Key Hospitality Takeaways for Short-Term Rental Owners
This ever-changing market has led to the birth of new trends that will be important for short-term rental owners to pay attention to if they want to keep themselves on the leading edge of the market, especially considering the growth slowdowns expected for the coming years.
The Rise of Remote Work and “Bleisure” Travel
The pandemic caused huge shake-ups not only in the travel industry but also in the job market, which has made a big shift from in-person work to a more flexible remote workforce. By 2024, one study by AT&T predicts that the hybrid work model will grow to 81% compared to 42% in 2021, while Upwork forecasted that 22% of American workers will be remote by 2025.
Not only will the rise in remote work mean that remote and hybrid workers will have more free time and flexibility to travel in the future, it will also lead to the rise of “bleisure” travel. This newer term refers to trips that combine both business and leisure, such as an extended vacation after a work trip. Those working remotely have more flexibility in the way that they can plan such trips since they work right from their laptops.
For STR owners, one way to get on board with the rise of remote work and bleisure travel is to establish a dedicated workspace with a desk, plenty of outlets, and easy-to-use Wifi on your property. This small investment can help you to attract more of those remote workers, especially if you feature the workstation in your listing descriptions and include photos.
Innovation and Technology at the Forefront
Another trend that is emerging in the travel industry in 2023 is the increased utilization of technology to give guests a smoother and more simplified travel experience. Technology in this sector has grown by leaps and bounds, and includes the rise in contactless payment options, mobile check-in for lodgings and airline travel, and AI chatbots to replace the more traditional customer-facing roles seen in the industry.
On the management side, AI has also been used to create dynamic pricing and scheduling technology as well as to improve cybersecurity measures to protect consumer information online.
Short-term rental owners should keep an eye on the massive growth of the travel technology sector, both as it relates to guest experience as well as managing their rentals. Innovations in this industry will continue to make a big splash on the market, and staying up-to-date with the latest technology can pay off big when it comes to guest experience and forward-facing management of your short-term rental property.
The Importance of a Forward-Facing Property Management Service For Your Vacation Rental
In the face of a changing travel market, it’s important to keep yourself at the forefront of the latest predictions and trends that are coming from the experts in the industry. But it can be a challenge for any short-term rental owner to weather all of the market’s ups and downs on their own, which is why LocalVR is here to help.
Not only can our expert property management services take all of the worry and energy out of managing and pricing your vacation rental, we also take a page out of the travel industry’s book and implement our own technological solutions that make it easier than ever for you to oversee your property, even from afar. To learn more about how our program can help owners like you, visit our Program page.