Vacation Rental Bookings are Skyrocketing
Despite a lack of consensus on health and safety protocols, some resort destinations around the world have begun nudging their vacation rental industries back to normalcy. However, Palm Springs has yet to allow the return of short-term vacation rentals in light of the COVID-19 Pandemic. But judging from what's going on with short-term rentals in other markets that have opened up, according to a recent study published by AIRDNA, we can expect a surge in new bookings.
New vacation rental reservations are up 127% over the last six weeks, per AIRDNA.
Worldwide, North America is seeing the fastest rebound in reservations. Of particular note, over the last 6 weeks, Big Bear Lake has gone from 133 bookings at the beginning of April to over 3,000 bookings as of May 15th; that's a 2,200% increase! The markets rebounding the fastest are primarily leisure destinations in the States.
Travel Distance is Affecting Recovery Rates and is the driving force determining which cities are recovering relates to where guests are traveling from. Leisure destinations in the U.S. — think beaches, ski resorts, mountain towns, and the desert — are seeing rebound rates of 322%.
Per AIRDNA, travel distances are now a fraction of what they were before the Coronavirus. The average distance traveled has decreased by 74%. Fewer people are traveling internationally and instead looking to travel more locally and closer to home.
Whatever comes of social distancing protocols, vacation rentals appear to have a leg up on hotels. People are looking for space, safety, and comfort, even in the most crowded of urban cities, within a reasonable driving distance from home.
Palm Springs is an ideal destination — we predict that based on the relative ease of getting here from three major metropolitan markets, Los Angeles, Orange County, and San Diego, once restrictions are lifted, we will see a boom in vacation rental bookings. What does this mean for investors? Now may be a good time to buy that vacation home that you've always dreamed of — to use for yourself and rent it out when you're not using it!
Read the complete article from AIRDNA.
