Short term rentals have taken the Australian property industry by storm, according to accommodation managers, MadeComfy
Short term rental managers MadeComfy have listed five ways that short-term rentals have changed the way people travel and find accommodation.
According to Australia’s Short Term Rental Report short-term rentals generate approximately $1 billion worth of revenue and growing.
Short-term rental properties have significantly impacted the way people travel, with guests and tourists alike having access to a vast range of reasonably priced accommodation options.
At a glance:
• 30,000 more homes being leased on a short-term basis.
• $1 billion in revenue added to the economy due to short term rentals
• Since 2016, the market has more than doubled
The Australian short-term rental industry grew a staggering 47% within the last year, with approximately 30,000 more homes being leased on a short-term basis.
MadeComfy Co-founder Quirin Schwaighofer said the concept of the sharing economy has completely transformed the hospitality industry by offering alternative options to traditional accommodation.
Quirin’s five ways short-term rentals have impacted the Australian property and hospitality industry include:
1. It has given property owners an economic support and flexibility
“Short- term rentals also offer property owners flexibility, especially those living abroad and wanting to use the property when they visit home. We bring a lot of properties back on the market that would otherwise be empty and unused.”
2. It generated a significant economic contribution
“The short-term rental industry has directly contributed to over $842 million in gross domestic product in 2016. Guest expenditure on services and goods within the economy during their stay, as well as a host’s purchase of intermediate inputs has also indirectly added $5,716 million to the Australian economy.3 Since 2016, the market has more than doubled.”
3. It created new jobs and employment for thousands of Australians
“Within a small period of time (short term rentals have) significantly contributed to the Australian job market, giving over 40,800 people full-time employment, over $1,041 million in wages and salaries during 2016.”
4. It encouraged more tourism to suburban and regional areas
“The home sharing economy has empowered remote areas and suburbs, as they are now able to profit from tourism spending, which previously only benefited central cities with large hotels.”
5. It increased guest expectations
“Guest expectations are continuously rising, therefore property owners need to ensure their property stands out from the crowd and is priced accordingly to earn the best returns and give guests a 5-star experience.”
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