The year 2021 was a good one for short-term rental owners. In 2019, Airbnb demand was 10% higher than it was pre-pandemic. Higher Average Daily Rates (ADR) resulted in a 40 percent increase in revenue for the overall business. Keep in mind that all of this happened with 10% fewer listings on the market.
What will the market look like in 2022 with that in mind? There’s already a lot of excitement about what this year has in store for Airbnb hosts. In several markets around the world, the vacation rental business is gaining traction. While there may still be some difficulties, everyone is looking forward to the new year. We want to acquire a deeper understanding of some Airbnb projections for 2022, Airbnb trends that will influence the industry, and why we believe Airbnb growth will be significant in 2022 based on our Airbnb industry analysis in this post.
In 2022, how will Airbnb trends affect the short-term rental market?
Did you know that vacation rentals with flexible cancellation policies get five times the number of bookings? In many respects, the Covid epidemic altered our lives. Travelers, on the other hand, are still feeling the consequences of the uncertainty around travel. As a result, they want the ability to cancel their reservations and receive a full or partial refund if their plans change.
Many property managers are exposed to significant financial risk as a result of their ability to cancel bookings. Many online travel providers, on the other hand, have formalised their norms and criteria for guest-friendly cancellations.Property managers will need to be more creative in 2022 to deal with last-minute cancellations. Filling them up with last-minute reservations is one method to do this.
Vacation rentals will continue to have a competitive advantage over hotels.
The competition between short-term rentals and hotels will reach new heights in 2022. Other forms of hospitality will continue to lose market share to vacation rentals. This is largely due to the way Airbnbs are altering people’s perceptions of the locations and settings they visit and reside in.
Another factor is that many travelers regard vacation rentals as far safer alternatives to hotels. Many travelers prefer Airbnb rentals over hotel rooms because they offer more variety and flexibility. While hotels may see a complete turnaround and record reservations, this will not be to Airbnb’s detriment. Keep in mind that Airbnbs has now become a popular option of travel accommodation.
As a result, we can predict that the increased demand and high travel activity will benefit both hotels and Airbnb rentals. We may anticipate increased convergence between the two businesses. Many hotels, for example, are now including apartment-style accommodations in their accommodation portfolios. Short-term rental owners, on the other hand, are already offering digital concierge services and upsells that are popular with hotels.
Business travel is expected to rebound.
Many experts projected that it would take many years for business travel to recover to pre-pandemic levels. However, 2022 could be the year that business travel truly takes off. In comparison to the pre-pandemic era, far more individuals have stayed in vacation homes and continue to do so with Airbnb rentals. As a result, Airbnb may attract a significant number of business travelers who previously would not have considered holiday rentals.
What does this mean for owners of short-term rentals? They’ll have to start making sure that their vacation accommodations are ready for business guests. In 2022, property managers will need to provide amenities that are welcoming and popular with these travelers. This includes features like free Wi-Fi and convenient transportation. More preference will be given to properties that can accommodate more than one guest at a time. Corporate visitors can be extremely beneficial in assisting short-term rental firms to reclaim their footing. Corporate guests, for example, can reserve rentals for significantly longer periods of time.
Consolidation will become more common.
In 2021, the sector was changed by a series of acquisitions and mergers. Furthermore, several property management companies and firms around the world have received significant cash injections to help them grow.
In 2022, the rapid consolidations we’ve seen will continue. Property management organizations will continue to buy more inventory as a result of the greater capital to meet expanding consumer demands. They’ll also purchase smaller hospitality brands, modernize the units’ design, and integrate technology and automation into their operations.
Rural and outdoor vacation destinations will remain popular.
The way people travel has changed. Destinations that were not as popular before to the epidemic are now in a better position to attract visitors than others.
International tourism and short-term rental reservations in general are slowly improving. Longer, domestic, and low-touch stays, on the other hand, will bring in the most money for short-term rental owners.
Pay attention to rural destinations if you want to launch a vacation rental business in 2022. In comparison to 2019, larger houses in rural destinations are in higher demand, with higher ADRs.
Sustainability Will Prevail in the Future
Since the pre-Covid era, increasing sustainability in the hospitality and tourism business has been a primary concern. During the pandemic, it became even more urgent.
The short-term rental sector continues to expand. This means that vacation rental owners bear an even greater share of the environmental burden. More visitors are looking for environmentally friendly holiday accommodations.
In the year 2022, these Airbnb tendencies will continue to shape the market.
In 2022, what challenges will Airbnb rental owners face?
What Challenges Will Airbnb Rental Owners Face in 2022?
Now that we’ve identified some Airbnb trends that will shape the market in 2022, let’s look at some challenges that property managers and hosts will have to face.
Communicating in an Impressive Way
In 2022, property managers will have to go above and above to ensure that their guests have all of the information they need to book and have a pleasant stay. Consider how difficult it is to plan a trip. While on vacation or on business, you don’t want to be surprised. Even before they begin their vacation, every tourist wants to learn more about a listing. Extend the same courtesy to your visitors.
What can you do to improve your communication skills? To begin, draw attention to your short-term rental and features in your listing. Engage the services of a professional photographer to capture high-resolution images and videos.
Second, make certain that your visitor’s communication is excellent. In order for your guests to enjoy their stay and book with you again, you must communicate with them. Respond to their questions as soon as possible, and be accessible to resolve any concerns that arise. Make this procedure more efficient by automating it. Chatbots and artificial intelligence ensure that communication is available 24 hours a day, seven days a week.
These characteristics will set you apart from other hosts.
Observance of Legal Requirements
Compliance with legal standards and regulations is nothing new for property managers. In 2022, however, you’ll need to pay greater care. This is due to the fact that, in 2022, increased regulatory rules will keep property managers busy.
With this in mind, engaging policymakers and actively participating in policy discussions with the government will become more vital than ever. Property managers must remember that they have a responsibility to play in assisting their communities in navigating these discussions.
You can contribute in a variety of ways. You can, for example:
- Join forces with advocacy organizations.
- Devote time and resources to gathering data that will provide lawmakers with facts to help them make informed decisions.
- Individual short-term rental owners are being educated, aligned, and mobilized through partnerships.
Demand Capture
Demand is increasing, which is one of the primary Airbnb trends. For many vacation rental owners, this is fantastic news. It does, however, provide a problem. How can you genuinely capture demand, especially when supply is also increasing in some markets?
As a result, driving demand across all stock types in 2022 may be difficult. The key will be to take a proactive stance and adjust your Airbnb rental strategy to market conditions.
If demand in your market fluctuates, keep in mind that it still exists in all segments. You simply need to be in the right place at the right time to capture it. Also, make sure your rates are consistent with market competition and demand on a daily basis and across all property kinds and locations. This is one strategy for boosting revenue in 2022.
Increasing Revenue
One of the main obstacles for short-term rental operators in 2022 will be figuring out how to charge more for the same booking. Another concern for property owners will be rising distribution costs with declining margins, as well as increasing demand for a wide range of services for customers and owners. Revenue managers will have their hands busy in 2022 due to prolonged market volatility.
This could be a difficult undertaking that necessitates a thorough understanding of your industry and the quality of your listings in order to boost your rankings and conversions. Only by basing your decisions on Airbnb metrics and insights will you be able to achieve this. These findings will assist you in developing a data-driven short-term rental strategy that will be critical in 2022.
Why Will Vacation Rentals Be Big in 2022?
The short-term rental industry had a difficult time throughout the pandemic. The hospitality and tourist sectors were brought to its knees by stay-at-home policies to prevent the spread of Covid and curfew lockdowns.
However, we’ve seen how different Airbnb trends and variables have turned vacation rentals into one of the most promising real estate investment opportunities. Let’s look at some of the other reasons we believe short-term rentals will be popular in 2022.
Work that is adaptable
Most people only went once or twice a year before Covid. Traveling and staying away from home for an extended amount of time was impractical due to full-time employment obligations. Our lives have become much more flexible as a result of the pandemic, and work hasn’t been forgotten. In fact, going back in time appears to be becoming increasingly difficult. Why?
Demand for office space had fallen below 2019 levels to 39% in December 2021. Furthermore, just 15% of all enterprises and firms who require their employees to return to their physical offices do not offer any form of hybrid arrangement. The bulk of businesses have made the switch to remote work.
This fits perfectly with the Airbnb trend and provides an excellent opportunity to extend our travel perspectives. The move toward travel as a way of life has prompted revisions and improvements to the Airbnb platform. This isn’t simply a blip on the radar. It’ll be around for a long time.
What does this mean for owners of short-term rentals? Longer stays are expected to continue. Travelers are looking for a truly “home away from home” experience, which hotels can’t provide. Property managers and vacation rental hosts will have less work to do as a result of the lower turnover.
Unusual Possibilities
New Airbnb features make it easier for guests to find the particular types of properties they’re looking for. A category for unusual residences has been introduced to the website. This is noteworthy because, since the outbreak, there has been an increase in demand for one-of-a-kind residences.
In the midst of a pandemic, why did individuals seek unique homes? Because they were not allowed to travel. They needed to hunt for one-of-a-kind adventures within their own neighborhoods or cities.
This Airbnb trend, like flexible work options, appears to be here to stay. All ten of the fastest rising property types identified by AirDNA for 2021 offered some sort of unique experience, according to the company. The following were among the property types:
- Tiny homes
- Yurts
- Farm stays
- Treehouses
If you’re considering becoming a vacation rental host in 2022, consider providing an experience that is difficult to duplicate in a hotel. This is a once-in-a-lifetime chance for you to think creatively. The following are some unusual Airbnb properties to consider:
- Igloos
- Caves
- Themed properties
- Historically-rich properties
You can, for example, list a home that was formerly a celebrity’s “crib” or a rumored haunted house.
The demand for larger residences is another trend we saw in 2021. Many families or groups that were forced to stay apart in 2020 reunited in 2021, eager to build something extraordinary.
Because so many individuals have learned what actually matters to them, anticipate this trend to continue as family get-togethers become a new tradition. If you’re thinking about getting into short-term rentals and can afford a large home, keep this in mind.
Should You Invest in Airbnb Property in 2022?
While the pandemic and the government’s response to it may make investments in 2022 a gamble, the year ahead looks promising for real estate investors. The comeback has been quick, and the Airbnbs demonstrate that things are only going to get better.
If you think short-term rentals will be a solid investment in 2022, you might want to look at Airbnb data analytics. Mashvisor Property Finder is the greatest spot to look for these. This tool not only allows you to uncover fantastic real estate investment options, but it also allows you to search for top-performing Airbnb properties for sale and calculate your Airbnb ROI.
