Vacation rental properties in the Bahamas have several advantages over hotels when it comes to attracting guests.
A new industry report based on market data from 2018-2022 points out that they rarely compete for the same guests. “This is evidenced by the fact that both industries have seen unique trends during the COVID-19 era—which are also reminders of the evolving nature of travel behaviour. And future trends will likely only further accentuate these differences.”
The data relates to the United States market, but the main points also have lessons for the Bahamas' luxury vacation market for holiday rental properties.
Here are some advantages that vacation rentals have over hotels:
Average Daily Rates
It is often cheaper for vacationers to stay in vacation rental accommodation rather than hotels. Although the gap is closing, Average Daily Rates in vacation rentals are considerably lower in vacation rental properties than hotels. In large cities in 2019, hotel ADRs were 42.9% higher and in 2022, they were 26.6% more expensive, says the report. Guests are likely to find lower rates in vacation property rentals on the coast – which is where most people want to holiday – and in mountain areas. As a result, rentals are 17% more in demand than hotels in coastal areas and 10% more in demand in mountainous destinations. Travellers can find their perfect holiday home in the Bahamas from market specialist, Shore Concierge.
More first-time vacation rental property guests
More guests are trying vacation rental properties for the first time – and are liking what they see, as customer satisfaction is on the rise. They have likely been spurred on by the extra space, security and facilities that vacation rental properties offer guests over staying in a single hotel room. In 2020 and 2021, more than 40% of Airbnb guests were first-time guests, compared to 25% in a typical pre-pandemic year, states the report. The unique guest experiences that rental properties can deliver are a big differential over hotels. Rental demand is currently at an all-time high of 13.4%.
Rental owners can learn from the data
Now the anomalies caused by the COVID pandemic from late 2019 have begun to unravel, vacation market data has become much more predictable. This makes it easier for vacation rental property owners to be able to identify key trends and learn from the data. In 2019, that was only possible about half of the time, says the report. But in 2021, demand could accurately be predicted 87% of the time. Paying attention to market trends, and using accurate vacation rental data, is vital in staying ahead of the competition for vacation property rental owners in the Bahamas. Shore Concierge’s market experts know the Bahamas rental vacation property market inside out. We use can help owners interpret guest and market data to maximise income and profits.
Other important market trends and factors vacation rental property rental owners may want to consider are:
The shift towards sustainable and eco-friendly accommodation
The importance of customer reviews and ratings
The impact of social media and online marketing
Be flexible and adaptable to stay competitive.
For expert advice and assistance with your luxury vacation rental property in the Bahamas, email contact@shore-concierge.com
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