Short term rentals ruled the tourism market all around the world and even more in Europe where traveling between different destinations is easy.
Before, people were used to book hotel for their holidays. Now, our way to travel and to visit cities has changed a lot. First with AirBNB which facilitated properties short terms rentals. In other words, usually, accommodations were obtained from hotels. But this is slowly changing, as many tourists are now turning to monthly rental apartments. They now prefer fully furnished apartments to hotel rooms. But the way of traveling is still evolving.
From short term rental to monthly rental
The monthly rental market is growing a lot this past few years as traveling customs are evolving. This give an opportunity to create new business model based on midterm apartment rental.
One of the reasons of this space for new business is evolution of peoples' habits.
Slow tourism emergence
Tourism doesn't necessarily mean visiting a place and leaving the place after a short period. People are rediscovering the benefits of visiting a country or a city for a longer period of time.
Indeed, stay for one month or more in a city let you discover better the culture, the food, and it let you discover a specific destination life. You can now visit a place and live there for a long time, enjoying everything about the location.
This is known as slow tourism, although it isn't yet too popular, people are now getting more and more into this type of tourism. It could be the next big trend, as hiddenscottland media revels that "83% of people prefer slow travel to tick box tourism".
Slow tourism allows tourists to connect with the location by living there for a while. Tourists can now enjoy the culture and tradition of a place, without worrying about leaving too quickly. Monthly apartment rentals are the perfect form of accommodation for people partaking in slow tourism. These apartments allow for a stable home while on this slow form of tourism. So, tourists can now enjoy their stay without necessarily renting a permanent apartment. Staying in hotels is not an option for tourists, as it can get really expensive for a long stay. All these make monthly apartment rentals the perfect form of accommodation for tourists who are on a slow tour.
With more and more 100% digital jobs, the number of digital nomads has increased in recent years.
Nomads are people who move from one place to another without a permanent home. You may think that nomads are from a long time ago and that it is no longer being done. The modern world has brought a new twist to this with the introduction of digital nomads. Digital nomads are people who move from place to place using temporary homes while still working.
They usually take jobs that can be done online, so they can do the job from anywhere with telecommunication technology. These forms of nomads are people who want to see new places while still being connected to the modern world. In other words, they are still tourists with a little twist. If some are staying in guest houses or hostels, most of them make use of monthly apartment rentals which give them space and privacy.
After pandemic remote workers
The pandemic has caused a lot of changes in the world. One of these changes includes the fact that many workers can now work remotely. They can now work wherever they are, making them able to go wherever they want. There is no need for them to go to work physically, as they work remotely. Temporary homes are now perfect for them, as they can now visit wherever they want. Monthly apartment rentals are perfect for these remote workers, so they go for such apartments.
AirBNB tourism is not welcome anymore
Some cities in Europe like Barcelona are fighting short term rental and mass tourism. AirBNB is not welcome anymore and rulers try to make it more and more difficult for people to rent their property without any limit or regulation.
Where there is a constraint for some, there is an opportunity for others. Some companies like Ukio enhance monthly rental, and they find growth, due to their business model, a perfect alternative to mass tourism.
If they started to rent apartment in Barcelona, it is not the only city in Europe where short term rental platform are not welcome anymore: in France or in Italy, the regulation is getting more and more strict about this private rentals.
Why? Because this kind of practice causes the price of rents to increase, to such an extent that it becomes difficult for locals to find somewhere to live. The same is true for those wishing to buy an apartment.
This, in addition to making access to housing difficult, empties the most central neighborhoods of its inhabitants and its basic and essential stores.
Monthly apartment rentals are now popular due to the increasing interest that tourists have in them. A lot of reasons make them more appealing to a more digital and slow kind of tourisms.
Local rules also make it more difficult for landlords to rent their apartment on a short term period. This has led to the development of a tourism offer more adapted to digital nomads, remote workers, as well as to slow tourism.
All in all, this is an excellent opportunity for the tourism industry to develop new growth levers, and for travelers who now have means to explore countries without having to run from one place to another.