The growing popularity of holiday homes
The popularity of vacation homes has become a key trend in the travel and hospitality industry, especially in Dubai. Tell us about it.
With the rebound in the travel industry and the emergence of new traveler demands and expectations, the serviced apartment (vacation home) sector is doing well in the hospitality industry.
This hosting category is part of a market that will be worth $101 billion in 2023, according to Euromonitor, or 12% of the total global addressable hosting market. Meanwhile, a recent report by JLL notes that the alternative accommodation sector – including short term serviced apartments and branded accommodations – has undergone transformational change over the past decade. The report concludes that it is now such an essential part of the industry that the term “alternative” should be replaced.
Dubai, in particular, has recently seen a surge in visitor numbers and city-wide occupancy rates. Expo Dubai 2020 attracted more than 24 million visitors, while the emirate welcomed 5.1 million visitors in the first four months of 2022, an increase of 203% compared to the same period in 2021 There are an estimated 10,000 active vacation rental listings in the city. , with a large margin of growth in this sector of the future. Indeed, Dubai has quickly adapted to trends and welcomes more technological, flexible and intelligently designed accommodations that modern travelers are increasingly demanding.
Tell us about Sonder and its vacation home operations.
As a next-generation hospitality company, we are redefining the guest experience through technology and design. Our properties offer apartment-style residential units, with more space and flexibility than typical hotel rooms, and come with services such as housekeeping and a 24/7 concierge. Customers can book stays from one night to multiple months directly in the Sonder app, hassle-free. High guest satisfaction and robust occupancy rates underscore the relevance of this rapidly growing category among today’s modern travelers.
Sonder’s portfolio of properties in Dubai, which includes Sonder Downtown Towers, Sonder JBR The Walk and the latest addition, Sonder Business Bay, which opened this month, caters to both business and leisure travelers .
What opportunities does the company offer owners and developers in Dubai?
In an increasingly complex and ever-changing world, property owners and developers, as well as hotel operators, need to ask themselves how they are future proof. By partnering with extended stay operators such as Sonder, owners and developers can diversify their asset base with more flexible options for shorter rentals, cash flow advantage, transfer of management responsibilities daily life and a significant reduction in operating costs.
Customers have ever-changing needs, and the next generation of Millennials and Gen Z travelers will be an increasingly large cohort in the post-pandemic years to come.
We enable owners to reduce the risks of their business activities throughout the life cycle of their assets. We partner with complete residential properties, reducing rental time and costs while eliminating the risk of vacancy. It also limits day-to-day management and operating costs for partners across their portfolios.
Dubai is one of our biggest markets, but the flexible and tech-friendly accommodation options in the city are still significant. By continuing to offer accommodation options that are resolutely forward-looking, giving visitors choice, freedom and flexibility, the city will remain one of the premier destinations to visit in the world.