While short-term rentals enjoyed a clear advantage over traditional hotels, demand for rentals has leveled off and hotels are taking some lost ground by competing in the space on their own terms.
The impact from the Pandemic caused short-term rental market share to spike to its highest level in mid 2020 when the segment ballooned to nearly 17% of all accommodation demand in the U.S.
The share had fallen to 12.7% by the end of the year, 3% below the projected trend line, based on their tracking of the segment's growth.
The current linear growth trend is flatter than the pre-pandemic trend.
The flatter slope may have been caused by a sudden contraction of short-term rental supply in urban markets. The price gap between hotels and short-term rentals may have been a factor. According to the report, the average daily rate for short-term rentals surpassed that of hotels in the suburbs.
Hotels are giving short-term rentals a run for their money now that they've emerged from the Pandemic.
Marriott International is making a bigger play for short term rentals. Apartments by Marriott Bonvoy is a serviced-apartment brand that is in the upper-upscale and luxury categories.
There will be a separate living room and bedroom as well as a full kitchen and washer and dryer. Catbird, an independent lifestyle extended-stay hotel concept, is a new breed of up-and-coming hotels that blend aspects of short-term rentals into the hotel experience.
The Catbird hotel has a kitchen in a guest room. The photo was taken by a photographer
The 165-room property has a lively lobby with an F&B venue and a rooftop bar. Each of Catbird's rooms has a kitchen complete with cookware and Spice Pods. The Catbird Playroom is a gear locker with household items that guests can borrow for free.
Catbird's general manager said that a lot of guests wanted an extended-stay-style hotel, but there wasn't anything out there that was upscale enough.
Will Balinbin said that the Catbird concept could be replicated.
He said that they intend to grow the brand. We'll start small, with two or three, but I could see 50 or more in the US.
Rentyl Resorts, a hospitality management company and distribution platform focused on showcasing resorts with residential-style units like villas, townhomes and cottages, is trying to promote accommodations that offer what CEO Nick Falcone describes as the best of both worlds.
Some of Rentyl's resort partners include the Grand Isle Resort & Residences in the Bahamas and the Martinhal Family Hotels & Resorts.
The market is moving towards home products. I think that more people are looking for scenarios where they have a home or a more spacious place to stay.
Rentyl, which works with travel advisors, has 100 new partner resorts in the works, all with residential-style accommodations.
The big players in the short-term rental category are not taking their foot off the gas, despite the fact that more traditional hotels and resorts are stepping up their game.
The recent Q3 was the most profitable quarter in the company's history and it is making an aggressive effort to further grow its short-term rental supply.
At a media event in Brooklyn on Nov. 14, Brian Chesky detailed several of these strategies, including the launch of its Airbnb Setup program and its new tool enabling newbie hosts to match with experiencedAirbnb Superhosts and get one-on-one support via audio, video or
The expansion of the AirCover damage protection program from $1 million to $3 million is expected to ease concerns for first-time hosts.
The home that is part of the Top of the World collection is 10,000 feet above sea level. The photo is fromAirbnb.
Chesky said current hosts are making records. The more we have, the more people we have. The business is a network effect. You get more supply if you get more demand.
Balinbin thinks that short-term rentals are up against stiff competition.
He said that the pendulum could start to swing a bit. Cleaning fees, the fact that you may still have to do some cleaning work yourself, and if something goes wrong, you have to wait for the owner or property manager to come your way are some of the issues with short-term rentals. We're held to higher standards as a hotelier. We're trying to fight back.
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