Property investors with holiday rentals are set to benefit in coming months as demand increases due to the high cost of hotels.
Holidaymakers are increasingly looking to rent an apartment or a villa rather than pay more for hotel accommodation, according to research from the UK’s largest holiday home website.
The latest quarterly marketplace HomeAway report from Holiday-Rentals.co.uk shows that in popular cities worldwide, rental apartments are up to four times cheaper per square foot than hotels.
It also found that established holiday spots like Spain and Florida are not as popular this year and travellers are also interested in renting for the weekend and not just the traditional week or two week long holiday.
‘As travellers attempt to stretch their holiday pounds further, an increasing number are turning to holiday home rentals for everything from family holidays to reunions, festivals and business trips,’ said the report.
‘While the travel industry in general struggles, demand for rentals is going from strength to strength as travellers realise they can rent a whole home for less per head than a hotel and stretch their budget even further by taking advantage of self-catering facilities,’ said Courtney Wylie, Managing Director for Holiday-Rentals.
The company expects continued strong demand in established holiday markets, combined with a growth in supply throughout the world as increasing numbers of owners look to their property for extra income.
Apartments in Prague were found to be the best value for money but even in traditionally expensive locations like New York, renting an apartment can be 1.8 times cheaper than a hotel.
Overall European cities and established hotspots in the Spanish Costas, the Cote d’Azur in the south of France and the Canaries are among the most popular places to rent. But over 25% of travellers stated they were less likely to choose destinations in Europe or the US this year.
Up and coming destination include Kas in Turkey and Cape Town, South Africa. Strong rises in traveller demand, combined with a relatively low but rising number of holiday home rental accommodation also highlighted emerging markets in South America, Africa, Asia and Europe.
The economy played an important role among owners who began renting out their property during the last 12 months as one in ten cited economic conditions as their reason for entering the market. ‘The main goal for the majority of owners remains to partially cover expenses, however even during these turbulent times a significant number of new entrants have not been deterred from chasing the dream of a rentals business, as one in ten stated it was their primary business,’ the report concludes.