Short-term rental has dominated the tourism market worldwide and even more so in Europe where it is easy to travel between different destinations.
Before, people used to book a hotel for their vacation. Now the way we travel and visit cities has changed a lot. First with AirBNB which facilitated short term rentals of properties. In other words, usually accommodations were obtained in hotels. But that is slowly changing, as many tourists are now turning to monthly rental apartments. They now prefer fully furnished apartments to hotel rooms. But the way of traveling is still evolving.
From short-term rental to monthly rental
The monthly rental market has been growing strongly in recent years as travel habits change. This gives the opportunity to create a new business model based on medium-term apartment rentals.
One of the reasons for this space for new business is the changing habits of people.
Slow emergence of tourism
Tourism does not necessarily mean visiting a place and leaving it after a short time. People are rediscovering the benefits of visiting a country or city for longer.
Indeed, staying a month or more in a city allows you to better discover the culture, the gastronomy, and this allows you to discover a specific life destination. You can now visit a place and live there for a long time, enjoying everything about the place.
This is called slow tourism, although it is not too popular yet, people are turning to this type of tourism more and more. This could be the next big trend, as HiddenScottland media reveals that “83% of people prefer slow travel to tick box tourism”.
Slow tourism allows tourists to connect with the place by living there for a period of time. Tourists can now enjoy the culture and tradition of a place, without worrying about leaving too soon. Renting apartments on a monthly basis is the ideal form of accommodation for people who practice slow tourism. These apartments allow for a stable home during this slow form of tourism. Thus, tourists can now enjoy their stay without necessarily renting a permanent apartment. Staying in hotels is not an option for tourists as it can be very expensive for a long stay. All of this makes monthly apartment rentals the ideal form of accommodation for slow-traveling tourists.
Digital Nomads
With more and more 100% digital jobs, the number of digital nomads has increased in recent years.
Nomads are people who move from place to place without a permanent home. You might think that nomads are from a long time ago and not done anymore. The modern world has brought a new twist to this with the introduction of digital nomads. Digital nomads are people who move from place to place using temporary homes while working.
They usually accept jobs that can be done online, so they can do the job from anywhere through telecommunications technology. These forms of nomads are people who want to see new places while staying connected to the modern world. In other words, they are still tourists with a little twist. While some stay in guesthouses or hostels, most of them use month-to-month apartment rentals that give them space and privacy.
After the pandemic, teleworkers
The pandemic has caused a lot of changes in the world. One of those changes includes the fact that many workers can now work remotely. They can now work wherever they are, allowing them to go wherever they want. They don’t need to go to work physically, as they work remotely. Temporary houses are now perfect for them, as they can now visit wherever they want. Monthly apartment rentals are perfect for these remote workers, so they opt for such apartments.
AirBNB tourism is no longer welcome
Some cities in Europe like Barcelona are struggling with short-term rentals and mass tourism. AirBNB is no longer welcome and executives are trying to make it increasingly difficult for people to rent out their property without any limits or regulations.
Where there is a constraint for some, there is an opportunity for others. Some companies like Ukio improves monthly rentaland they find in growth, thanks to their economic model, a perfect alternative to mass tourism.
If they started renting an apartment in Barcelonait is not the only city in Europe where short-term rental platforms are no longer welcome: in France or Italy, the regulations are becoming increasingly strict on these rentals between individuals.
Why? Because this kind of practice increases the price of rents, so much so that it becomes difficult for locals to find accommodation. The same goes for those who want to buy an apartment.
This, in addition to making it difficult to access housing, empties the most central neighborhoods of its inhabitants and its basic and essential businesses.
Conclusion
Monthly apartment rentals are now popular due to growing interest from tourists. Many reasons make them more attractive for a more digital and slower type of tourism.
Local rules also make it more difficult for landlords to rent their apartment for a short period. This has led to the development of a tourist offer more suited to digital nomads, teleworkers, as well as slow tourism.
All in all, this is an excellent opportunity for the tourism industry to develop new levers of growth, and for travelers who now have the means to explore countries without having to run from place to place.
picture by Patrick Perkins on Unsplash
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