A short-term rental refers to the practice of renting out a property or a room for a short period of time, typically from a few days to a few weeks, to travellers and guests.

The short-term rental industry has grown considerably over the past few years, led by companies like Airbnb and VRBO, and if you weren’t already aware, it is disrupting the hotel industry, and it is here to stay.

This guide will give you a complete overview of the short-term rental industry, its impact on the hotel industry, and what you can do to stay on top of this new competitor.

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.