The Effect of COVID-19 on the Tourism Industry
Due to COVID-19 Australian short-term rentals we were hit with quarantine restrictions that had immediate and devastating effects on Australian tourism and the short-term rental market.
Travel bans, social distancing and self-isolation caused overnight havoc. The tourism industry took one of the biggest hits the industry has ever seen with tours, flights and accommodation cancelled, Australian borders closed, restaurants and cafes shut down and many other businesses relying on tourism forced to close their doors. Many short-term rental owners as well as other businesses in the industry were left without any income at all.
One thing that became very apparent was a decline in short term rental bookings. This decline meant that owners were transferring their properties to permanent rentals and willing to take a cut in rental return for the stability of a longer- term rental agreement.
Data industry analyst, AirDNA indicated that in 3 months to March 31, 2020 there were 36,000 active short-term listings in Sydney compared with just 19,000 in the first half of June- 47% decrease since before COVID-19.
In an article from Accom News, they mentioned that AirDNA also indicated that short-term rentals in regional Australia are experiencing a promising rise in demand post coronavirus, showing a 189% increase in bookings as Australians were bi-passing cities.
Short-term Rental homes have an edge over hotels
With social distancing becoming “the norm”, it is clear that holiday home rentals have an advantage on hotels and Resorts. People are still on high alert with their surroundings and are looking for the space, safety and comfort that a holiday home offers.
There are a few reasons why holiday home rentals are more resistant to the impact of COVID-19 than cruises, hotels, resorts and airlines.
These include:
• Homes being in more remote locations or scattered through suburbia with less exposure to other holiday makers.
• Guests renting holiday homes generally visit destinations within driving distance of where they live. This allows them to bypass public transport and the potential risks that come with this form of travel.
• Holiday home rentals are generally booked in advance and more planning has gone into the trip which means trying to cancel can be harder so they stick to their plans.
Promoting your Short-term holiday rentals
Tourism recovery begins locally. With international travel out of the question for quite possibly the next 2 years, now is the perfect time to leverage the powers of digital marketing and increase your visibility within your more local area.
With State borders being closed again, a marketing campaign directed to the drive to destinations such as “stay local for a weekend getaway” may be extremely beneficial to your business.
How you can make the most of this current climate:
• Re-evaluate your business strategies
• Keep prices reasonable to attract your local market
• Show guests that you are following strict COVID-19 cleaning principles
• Actively market your properties and locations- to enhance the guest experience.
There are plenty of things you can do in your agency at the moment, but the number one thing is to be pro-active with your marketing.
Contact Sherlock Software’s digital marketing team for more information on how you can market your short-term rental agency.
