1. Finance

The future of luxury holiday villa rentals

08/24/2018 11:08

As the tourism industry continues to grow, new trends emerge in the accommodation sector to meet the growing demand. The popularity of luxury villas for rent is a fairly recent phenomenon, and one that is driven by the changing needs of the consumer.  

Not only do luxury holiday villas offer the combination of 5-star hotel luxury with the comfort and privacy of being in your own space, but most of the time they’re also much more reasonably priced than the average hotel suite, especially if you’re travelling as a group.

However, as new trends emerge and changes occur in travel, design, architecture, technology and economics, so does the fate of luxury holiday villa rentals. Nowadays, people are able to curate their holidays with the press of a button through an app in their smartphone. That way, one can travel in a way that compliments their unique preferences, personality and needs. Now let’s look at how these changes will affect the future of luxury holiday villa rentals for both the consumer and the owner. 

 

The Future of Luxury Holiday Villa Rentals

Luxury vacation villas are a lucrative business, to be sure. High end, luxury goods seem to be economic crisis proof, because the rich will always afford it say Adam from luxuryvillasmalta.com.  Statistics show that revenue for vacation rentals will increase by 0.8% from 2018 to 2022, which means that this market segment will account for US$48, 864 million of the travel industry in years to come. User penetration, on the other hand, is expected to grow to 3.3% by the year 2022.

Here are just some of the trends that are set to drive this future growth:

 

-          Instant Bookings: Thanks to the advent of the internet and social media, people are now used to getting things done at the swipe of a finger. Luxury villa operators have had to adapt to this trend by offering instant bookings via online sources, which enables the customer to enjoy a quick and painless booking experience.

After all, operators don’t want their guests to make multiple enquiries before they actually make the booking.

It’s also important to keep in mind that a lot of people tend to make their bookings a month before they actually travel. So holiday villa rentals that have an instant booking facility make it easier for travellers to enjoy a hassle-free booking experience even if they are making last-minute arrangements. 

 

-          Online Travel Agencies: These days, most villa rental bookings are done through OTA channels. That’s because they offer consumers a wide variety of options and for property owners, a large customer base to benefit from. Some of these OTAs include HouseTrip, Agoda, Booking.com, HomeAway and HolidayLettings to name but a few. In fact, OTA channels are fast becoming a big player in the industry, as they account for more than half of all online bookings.

 

-          Amenities: When looking for a luxury villa to rent, guests often look at the service and amenities offered before making their final decision. The types of services and amenities offered these days can range from smart kitchens and alarm systems to home automation devices like Alexa that ensure a much more convenient stay for the guests.

 

Of course, features like a swimming pool, an outdoor barbeque and lounging area, private spas, fitness rooms, cinema rooms and other amenities like that can be huge drawing cards as well.

 

-          Overall Experience: The guest experience is also seen as a very important feature to consider when booking a luxury holiday villa. Guests not only want a private, comfortable and safe place to call home while they’re on vacation, but they also want that place to provide them with reliable travel tips, tours and other experiences that will enhance their vacation.

 

To meet this demand, luxury villa operators often partner with independent and reliable tour operators in their local area to offer bespoke tours to their guests. Some come with a concierge service, which makes it easier for guests to explore the best of what the location has to offer.

 

-          Online Reviews: It’s no secret that online reviews play a major role in the decision making process of the modern day consumer. Most people consider online reviews to be the most accurate and genuine reflection of a place, because they reflect the experiences of others who’ve stayed there.

 

As a result, travellers tend to book the holiday villa with the most positive reviews, regardless of how it has been portrayed by the operator. That’s why good service and maintaining a quality establishment are so important to ensuring consistently positive reviews.

 

 

Interesting Facts…

-          Holiday villa rentals now account for more than $30 billion of the holiday accommodation market in the US, (Airbnb alone is now valued at 31 Billion US Dollars – May 2017) while the European market accounts for an even larger market share. This shows an ever-growing demand for this alternative form of holiday accommodation, which is met by an even larger supply. For example, while Amsterdam boasts having 29, 000 hotel rooms, the alternative accommodation segment has over 27, 000 bedrooms available for guests- and growing! 

 

-          Research also shows that travellers are opting for shorter stays now more than ever. This means that owners of luxury villa rentals can look forward to an increased frequency of guests coming through their doors, and an increase in revenue for their business is sure to follow as a result.  

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