It’s been a little over a year since the COVID-19 pandemic began. Lots of change has occurred in many different industries since that time and hospitality is no exception. People stopped traveling as frequently, didn’t go out to restaurants, and many large events like concerts and sports games were cancelled. With vaccines getting distributed, it looks like life is slowly beginning to return to normal. This is great news for property managers, innkeepers, and others working in the hotel, lodging, and rental property section of the hospitality industry. With so many people choosing to not take a vacation over the past year, many experts are predicting a large volume of guests to be booking reservations at properties this coming summer. This blog will explain how travel and guest stays are returning to normal, the emergence of short-term rental properties, and how a new demand for other types of businesses will form.
Hospitality Industry Regaining Strength
Many industry leaders believe that it will not be until 2022 that the hospitality and travel industry fully return to normal. However, we recommend preparing for a gradual increase in reservations and bookings. With the weather beginning to warm, it should be expected that people will be looking to travel away for vacations again. Many in the hospitality industry are predicting that people will travel farther distances and stay for longer periods of time to help make up for lost vacation time from the COVID-19 pandemic. Property managers and innkeepers can help increase booking rates by implementing more flexible cancellation policies since some parts of the country are still experiencing restrictions.
Short Term Rental Properties Will Remain in Demand
Short term rental properties have been in high demand over the past nine months and many people believe that they will become more popular than larger hotels in the long term. Industry leaders project that travelers will prefer staying at smaller properties even after the pandemic has subsided. Vacationers will continue to be in the mindset of staying at places with smaller crowds since COVID-19 has made everyone so aware of social distancing. Short term rental properties should prepare for guests who want to stay at a property that feels like home and is equipped with the same amenities offered at hotels.
Ideas to Improve the Property and Prepare for an Increase in Reservations
Properties should think about upgrading their rooms like having more storage space since guests may be staying for longer periods of time for work or vacations. COVID-19 has led to an emergence of remote work which makes it much easier for people to travel and work simultaneously. This gives them the opportunity to stay at properties for longer periods of time. It is also wise to consider upgrading technology to reduce human contact. This could include a mobile check-in at the property and allowing guests to use Apple Pay and Google Pay for contactless payments. With an expected increase in reservations, it will be important to have extra supplies of linens and amenities. The worst case scenario would be that they don’t get used and have to be stored in a closet for the next season. You don’t want to have such a large number of bookings that there aren’t have enough supplies to keep guests satisfied. That will lead to bad reviews very quickly.
Rise of New Businesses
The COVID-19 pandemic has significantly changed the way office professionals work. Many companies will continue to implement remote working because it can be more cost effective. This will increase the number of people who identify as “digital nomads,” which is someone who uses technology to work remotely and move around from many different locations like coffee shops, libraries, etc. However, some workers may find the environment of their location such as their home difficult to work in due to distractions from kids, pets, and other noises that wouldn’t be found in an office. One example of a new business that is helping with this issue is a platform called Radious. Radious is an online marketplace for rentable home office space. Similar to AirBnB, but for the office industry, Radious can allow everyday people to rent out part of their home during the day to professionals who are looking for a nice, quiet space to work. Less clean-up will be required since bed linens and other amenities found at bed and breakfasts will not be required. Regular bed and breakfasts and rental properties may only see a strong demand during certain periods of the year such as the summer time since many people are on vacation. However, the demand for office space should be consistent year-round because office professionals and companies are working every week of the year. Radious is a great platform if you are interested in getting into the role of renting out part of your home as an office. Their website is https://radious.pro/.
InnStyle Can Help
People will continue to resume traveling and vacationing to help bring demand back to the hospitality industry. However, this pandemic has resulted in many changes that the industry will need to adapt to. People will be looking to travel more frequently now that they are working remotely which will increase demand for rental properties. Also, people will want to rent out office space as more companies continue to work remotely. As your property continues to get more reservations, InnStyle is here for your bed linens, amenities, towels, etc. Please give us a call and speak with our account managers with any questions that you may have. We can be reached at 267-354-6020 or 800-877-4667. Our website is https://www.innstyle.com/.
2 thoughts on “Hospitality Industry Returning to Normal”
This is a good article. I have 3 short-term rental properties on Vrbo.com, 2 ranches and a big house in Austin. I can confirm the truth in your statement that, because of the pandemic and likely continuing, the demand for STRs has gone up and is continuing as the pandemic starts to subside. It’s for the reasons you cited. The 2 ranches have especially excelled. My renters make statements like wanting “extreme social distances.” My Austin property was sensitive to air travel, with lots of cancellations when people stopped flying. But it has now come back strongly with air travel resuming. Thanks for the article.
Thanks for your encouraging comments. We spend time talking to STR owners and property managers to find out what is really going on. It is good news for the smaller hospitality properties!