A war that dates back as far as the 1800’s is the one between the hotel industry and the vacation rental industry. When we say war, it means the growing fear of that one day the Vacation Rental Industry might completely take over.
Vacation Rental Percentage Growth Over the Years
As far as statistics go, this is true for most countries. We see how the Vacation Rental Industry always wins by a landslide. An industry last year valued at $100 billion dollars is predicted to reach a worth of $167.9 billion by 2019 – a statistic verified by the findings of the most recent Serviced Apartments Summit.
Another example, hotels added 139,000 rooms in North America in 2015, whilst Airbnb alone added 229,000 lodgings in the same area in the same period.
One might ask why these numbers seem to be rising with time. This is due to more and more youth seeking to spend lavishly on a luxurious holiday. If you’ve noticed, the rising popularity of social media and content creating is contributing to this market as this creates the need to share the on-goings of one’s daily life for everyone to see on social media.
As the pressure increases and becomes a checklist for social acceptance more youth seemingly spend more money on luxury and eye candy. It’s safe to admit that both the industries gain from this urge for luxury.
But again, why is the vacation industry growing at a more exponential rate than the hotel industry?
JZ Vacation Rentals is a renowned prime example of the reasons why. Our statistics show the truth and perhaps the future of both these industries. Reaching the epitome of Value, Amenities and Luxury with a great location as a bonus, we can now give you a detailed explanation of why this growing industry attracts its mass consumers.
Alex Zemianek, the CEO of JZ Vacation Rentals recently explained this frequently asked question at the Fasterhouse event. Here’s a deeper dive into each reason and perhaps even advice to those that wish to join this industry.
First and foremost, it is important to remind ourselves constantly that we are a service industry and not here to simply steal the client’s money. JZ Vacation Rentals found that 98% of our consumers and all of our clients keep coming back to us because of Value.
- JZ Vacation Rentals not only get a lot of families but also many company retreats come our way. So our Vacation Homes can home from four to ten people, sometimes more. So if our average is $500 per night, sharing that between 10 people is much cheaper than renting out hotels rooms. All our properties have passed the 300 point inspection, so we can guarantee a quality up-to-standards-and-then-some for all our homes. We believe that a home can be both be the epitome of luxury and most importantly, affordable.
Vacations and retreats are meant to serve as getaways from our daily busy compact lives to a more free and relaxing surrounding. The main reason people so on vacations is to unwind and relax. This reason can be heavily challenged by the all the procedures you need to go through to get a room or even the unsettling feeling of constantly having to face strangers every time you exit your room.
- Vacation homes provide you with on of the most important elements for relaxation, privacy. You have your own safe haven to yourself. Here, you are the center of no one’s attention but still get all the services you would normally get from hotels.
This next reason might be unexpected but makes complete sense. Being able to prepare your own food might seem like a tedious task to many, especially during vacation. However, it is a much cheaper and healthier choice that some people choose to make, especially for those with children. Unfortunately, most hotel rooms don’t have enough kitchen space and neither is it equipped with the needed utensils and cutlery.
- Guess who has a fully equipped kitchen? Vacation homes. This makes it much easier for you to prepare your own meal whenever you want. A healthier and cheaper option.
Claustrophobia is a fear of tight spaces. As exaggerated as it may sound, hotel rooms have a small space when compared to Vacation homes. It might also be suffocating for some individuals. There is always the choice of getting a bigger room but you can only expand so much. You can also notice the trend of the increasing room size being directly proportional to the rate.
- Simply put, from the suggestive names “Vacation Houses” and “Hotel Rooms”, it’s easy to tell the space offered by each industry.
- Sometimes the decision comes down to the amenities offered by each industry. Unfortunately, Vacation Rentals Industry wins this race by a long run. This industry not only offers the same amenities as hotel rooms do but this offers more.
In the end, the consumer wants to feel special and go for an experience offered by the Vacation Rental Industry. It’s really hard to not succumb to this tempting offer.
If the hotel industry ever wishes to continue on this battlefield in the coming decade, now is the time to re-organize your strategy to keep up in this market before it’s too late.
To watch the CEO of JZ Vacation Rentals, Alex Zemianek’s thoughts on the topic from the Fasterhouse Presentation watch this: