Short-term Rental or usually called (STR) are most commonly refers “home-sharing” or “couch sharing” to a rental of fewer than 30 consecutive days, has been facing several hardships in this current situation from the pandemic of COVID-19. Short-term rental is growing up with the trend of people using Airbnb. It's because Airbnb can provide unique home and more type of accommodation choice.
STR is not a new phenomenon in this digitalization era and it’s already a worldwide phenomenon since 2010. Because short-term rent only turn your home into a home-sharing site with hotel facilities.
From that half-pint definition and history of STR, you may wonder how exactly the current situation is all STR facing over the world? And will there be any benefit opportunities for STR after COVID-19 ended? So here the definite explanation below about that.
The Decrease Condition of STR during COVID-19
The pandemic of COVID-19 spreads quickly and become a pandemic phenomenon. This pandemic has an impact to widespread travel and nonessential business restrictions because most of the countries are applied the traveling and tourism activities from or to among other places or countries to minimalize the spreading of Covid-19 through the droplets of people-to-people.
This policy has become an international policy by the UN and WHO which reflects gives a result to the decreasing number of STR booking in March and April were down about 50% and about 85% of existing bookings for this same period were canceled based on the actual counting data from March-April 2020.
Furthermore, the number of nights booked is down by 90% if compared to the previous year, while cancellations of bookings have decreased by 118% year-on-year. ADRs (average daily rates) have fallen by 30% year-on-year, while total booking revenue for April 2020 is currently down by 84% (source from https://www.propertyinvestortoday.co.uk/).
On the other hand, there is still a hopeful-light in the middle of this pandemic which the newest data shows that only a 3% of average percent decline or change listing in U.S. listing as the world popular destination and STR listing in the world. The reason behind the stability of STR listing during this pandemic because not all STR is changing into the full or Long-Term Rentals.
The Bright Opportunity of STR Growth After COVID-19 Ends
While we are now of all tourism and accommodation sectors included property owners have still struggled to facing the impact from the hardship of this pandemic, but on the other side also appears a better future after the COVID-19. Especially for the develop revenue and growth of STR afterward because we know that history often repeats itself.
Furthermore, the demand to travel will return, and, when it does, it will be stronger than ever. STR has a lot of benefit in the return for property business ownership such as more flexibility, higher rental price, tax breaks and deductions, and contribute to the sharing economy. From the pros side of the STR, also the will turn on the hopeful light for the revenue of STR after COVID-19 ends, there are:
The conclusion is there are several benefits for the STR property owners after the period of COVID-19. While for now, you can still do your best with keeping your STR property clean and sterile from COVID-19.
Furthermore, to maintain and increase your low occupancy, you can contact us as long-time expert in short term rental since 2012.
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