The emergence of the sharing economy and its continuous growth are shaping the rental industry. The model for this development is the introduction of Airbnb. It has expanded into a global force, from a small San Francisco start-up first named “Airbed and Breakfast.”
However, the industry shift was much more significant than that. A considerable percentage of key short-term leasing providers and investors now offer over one million properties.
In response, the hospitality industry has moved with the times and has wholly evolved itself from a small sector. Hundreds of auxiliary businesses are emerging, providing innovative amenities and unique methods for traveling guests and visitors.
These advances generate possibilities and struggles. Some adopt these trends. While some do their utmost to dismiss these innovations or make them disappear. However, one thing for sure, this industry will be here to stay.
Here are some reasons why short term rentals are a booming industry:
1. The Sharing Economy
Several new dynamic mass-consumer products and services evolved as the fruits of a different era. Nowadays, everyone can access the services of any specialist anywhere. Since technologies, including the internet and machine learning, have impacted industries. The way we communicate and exchange products and services have shifted to an improvement.
The ability to generate network impact is at the core of the short term rentals economy. It is all about the communication between providers to customers. As simple as it may seem, but the brilliant strategy is the convenience of establishing such a system. And also allowing individuals to take part and ultimately mobilize local industries.
Reasonably priced smartphones, secure cloud service applications, and a speedy internet have altered people’s way of connecting and transacting. On the ground surface, the authority has always been with individuals. The culture of sharing has just provided us a medium to blast off this financial uprising.
3. Big players
The sharing economy’s shining beacon is Airbnb. When two roommates discovered how hard it is to afford their lease in San Francisco, they placed out a few airbeds in the living room. They offered meals and accommodated travelers for around $80.00 per day.
They developed a platform instantly and enabled travelers to book a place for the night for as low as $80, while hotels charged almost twice that. This concept of matching service providers like taxi drivers and passengers, housekeeping experts and tenants, has done wonders not just in Silicon Valley but in many key industries.
The principle of adopting a genius premise and putting it to practice is why companies thrive in the sharing economy. That is typically followed by changing the company profile to fit local culture and laws.
Hence, these structures not only produce a lot of income for the domestic market via taxes. But they also generate significant volumes of direct and indirect employment. It’s also helpful, especially for the tourism industry.
One advantage of short-term renting your estate is you can occupy it whenever you need to. You could use the premise unless customers book it. Or you can block the estate for yourself, family members, or friends for private use.
Whichever way, the market will be here to remain, and the way it works now and into the coming years has already been formed by the sharing economy.