The Opportunities of the Travel Boom
Renewal in Travel
2020 was a weird year for everyone. Travel and tourism ground to a halt in an effort to stop the spread of the Covid-19 virus. However, it looks like the long awaited reopening of travel and tourism is near. Vaccination rates in the United States are nearing the CDC’s threshold for acceptability as mask mandates and travel restrictions are relaxed.
Americans are not waiting to use these relaxed restrictions. The number of vacation rentals booked in Florida during the week of May 10th was 40% higher than the same week in 2019, according to Transparent. Beach and nature vacations were popular in 2020. However in 2021, city vacations could see a comeback as well. New York City is relaxing restrictions on May 19th and is planning to fully reopen on July 1st.
Airbnb conducted a promising study in January of 2021, before vaccines had even been rolled out to the general public. The study found that 54% of Americans either already had travel plans booked or were planning to travel in 2021. Americans are not just ready to travel. They’re ready to travel in groups. Rather than staying in hotels, these groups prefer home experiences such as those offered by Airbnb.
To gear up for this new surge in travel, Airbnb is looking for more hosts to join the platform. In an interview with CNBC, CEO Brian Chesky said, “To meet the demand over the coming years, we’re going to need millions more hosts.” To fill this need, Airbnb has started an advertising campaign aimed at recruiting hosts rather than guests to meet demand.
Companies like Uber have also seen shortages on the supply side recently. Uber has offered incentives in an effort to recruit more people. Airbnb is unlikely to try this same strategy. Instead, they’re hoping the high returns of short-term rentals will entice more hosts to get involved with real estate opportunities. However, 70% of Airbnb’s hosts are mom and pop. Most lack the ability to quickly scale up with more investment properties.
Increased demand and short supply is music to any savvy real estate investor’s ears. With the resurgence in travel and the lack of hosts,there has never been a better time to get involved with investing in short-term rental properties. Visit ReAlpha.com to learn more about ways to invest in real estate.