What are short-term rentals?

Short-term rentals refer to properties or rooms that are rented out for brief stays as an alternative to traditional hotel accommodation. They usually offer travellers more space, privacy, and a local experience.

The short-term rental encompasses all types of properties or rooms that are rented out for brief stays. This can include everything from a spare room in someone's home to the entire space of a fully equipped vacation rental property, a beach front villa or a secluded ski lodge. The options for consumers are almost endless.

The short-term rental industry has seen significant growth in recent years, driven by the popularity of well known short-term rental platforms like Airbnb and VRBO (which stands for Vacation Rental By Owner).

Airbnb and VRBO are the two most significant players in the short-term rental industry. Both operating online, connecting property owners with travellers searching for short-term rental accommodation.

Airbnb, founded in 2008, has since become an instantly recognisable brand and the largest short-term rental provider in the world, offering an incredible 6.6 million listings in over 100,000 cities globally. VRBO is also a major operator, offering approximately 2 million listings.

Airbnb, VRBO and smaller platforms within the short-term rental offer travellers a convenient and cost-effective way to find and book vacation homes, while providing property owners and management companies with a simple platform to operate and market their rental properties.

These companies are changing how consumers think about and book accommodation, and as a result, are reimagining the travel and hospitality industries.

As a hotelier, it is now vital that you are knowledgeable about the rise of the short-term rental industry and how it can affect your hotel’s business.