During the year, when summer is not yet here, vacationers can mostly hibernate, but many tourists and retirees still use the slower months to enjoy some free time or longer holidays in a short-term rented accommodation. Owners of properties used for vacation rentals may also find that now is a great time to renew their listing or increase their ownership, allowing them to fully prepare for the summer season.
WHAT ACCOMMODATION IS PREFERRED?
Domestic and overseas tourism is thriving – which is great! With such a beautiful backyard, why not explore it? No wonder many locals prefer a traditional family vacation – jumping in the car and going away for a few nights. The demand for holiday apartments is growing rapidly every year.
IBISWorld research reveals that it is estimated that in the five years to 2017-18 the temporary accommodation industry increased its revenues by 5 percent, reaching billions of dollars in profit.
For those looking to expand their vacation property by purchasing apartments for rent, this may be the incentive you need to get started. That and the fact that more growth is projected over the next five years.
If you’re in the serviced housing market, you’re also doing well. IBISWorld records further growths reaching billions of dollars in revenues. Given the number of new units being built in the capitals, this could be a great opportunity to purchase the kind of accommodation that is attractive to tourists, business travelers and more.
WHY DO PEOPLE TRAVEL?
Perhaps people are becoming more and more connected and need more freedom in life. Traveling to visit friends, for example, has dominated the surge in holiday activity last year.
In addition to visiting friends, business travel is another major area of development in the tourism industry. In fact, the number of vacation or leisure trips with an overnight stay has actually slightly decreased compared to last year. Which shows that our priorities can change. Of course, that doesn’t mean domestic travelers don’t enjoy the sights or a few sightseeing tours by visiting friends or doing interstate business.
WHAT IS THE BUSINESS SENSE IN THIS?
IBISWorld notes that offers like serviced apartments fill this nice niche between campgrounds and expensive holiday resorts that are perfect for such practical types of excursions. As an offer in the middle of the road, they provide adequate amenities, a good location and a relatively low cost of accommodation.
If you are an investor looking to enter or expand your vacation real estate portfolio, now might be a very good time to do so. In addition to low interest rates and other favorable economic conditions, the number of overnight stays in many countries is reaching new heights.
Visitors also stay longer. Furthermore any increase in the number of excursions corresponds to a great increase in the number of overnight stays. The combined spend of these travelers has risen to records of billions of dollars over the year.
If you’re wondering what your next investment property should be, a serviced apartment or other type of vacation accommodation may be high on your list of options.