Forecasts suggest that the travel industry will continue to grow in 2016, with signs that the popularity of vacation rentals won’t slow down.
Spending more money on travel
A 3.4 percent rise in U.S. travel expenditures is forecast for 2016, according to the U.S. Travel Association’s U.S. Travel Forecast. If travelers are spending more, they’ll likely be more interested in protecting their trip costs by purchasing travel insurance. Partnering with CSA Travel Protection can make that easier for you and your guests.
Hotel issues that could benefit vacation rentals
- Hotel room rates in North America are forecast to rise 4.3 percent in 2016, according to the 2016 Global Travel Price Outlook. Vacation rentals only become more attractive as the cost of staying at a hotel continues to rise. “As hotels continue looking to maximize ancillary fees, we’re seeing them begin testing different terms and price points for amenities such as WiFi,” according to the report. With amenities such as internet access often included with vacation rentals at no extra cost, this could be another reason travelers choose rentals over hotels. It also indicates that hotels “have begun to enforce more stringent cancellation policies,” which may bring them closer in line with common vacation rental cancellation policies. And, if your guests are ever worried about your cancellation policy, CSA’s travel insurance with coverage for Trip Cancellation might ease their worries.
- The American Express Global Business Travel Forecast 2016 suggests that while hotels are in the process of boosting their inventory, “limited increases in inventory fail to keep pace with the growing global appetite for travel.”
- Vacation rentals are a growing sector of the lodging industry and continue to take more market share, according to EY’s Global Hospitality Insights 2015 report on the hotel industry. “In a year, Airbnb, a company that enables people to rent out lodging, added more listings to its existing inventory than the largest hotel companies introduced as new units combined over the same period.” That same report referred to the growing competition from vacation rentals: “Customers are increasingly seeking unique, authentic experiences anchored in the destination they are visiting. Part of the appeal of the shared economy concepts has been their ability to cater to those specific needs.” Vacation rentals should continue to capitalize on providing authentic local experiences that differentiate them from hotel lodging.
CSA Travel Protection can help you cater to your guests’ needs—you can offer them Vacation Rental Damage Protection and travel insurance. And, you can earn commission for plans your guests purchase, which can become an additional revenue stream for your business.