What is short-term renting and how has it changed after the pandemic?
Short-term rental refers to accommodation services provided for a period of one, several days or several months. This method is an increasingly popular and attractive alternative to long-term rental.
The rental market has changed considerably after the pandemic era. Particularly when looking at short-term rentals, we can see its different paths of development. Considering the Kraków market in pre-pandemic times, not all properties were suitable - sold profitably with short-term rentals. This was often linked not only to the standard of the flat, but also to the location being unattractive and too far from the centre for tourists visiting the city. However, this trend is now changing and flats not only in the city centre are very popular. More and more people are travelling with the growing trend of remote working and are willing to stay in the city for a few weeks. Another type of potential customer choosing a flat away from the centre is the business client, e.g. an international corporation, whose number, in Krakow and other Polish cities, is increasing year by year. The priority in this case is not proximity to the centre, but a place to work, a meeting place or a parking space.
But is it still worth it?
According to the Central Statistical Office, tourism facilities were used by 22.2 million tourists with 62.8 million overnight stays in the previous 2021. Comparing to 2020, this was 24.2% more tourists and 22.3% more nights provided. The 2022 reports are, of course, not yet available for presentation, but Hostly's occupancy figures from the first quarter of this year comparing with the same period of the previous year appear as in the chart below.
From the graph above, we can see how the percentage of occupancy is increasing. There are certainly more reasons, but at this point we can definitely see that the number of occupied nights is increasing as the restrictions are loosened.
The coronavirus pandemic has certainly hit the accommodation industry hard, which at this time, its booming again, is a great opportunity to start your adventure. Dedicating your property to short-term rentals is a great opportunity to increase your investment returns. The events of the past two years can be taken away as a concern, but also as a huge opportunity for success, thanks to the changes in travel trends. And are you ready to start your short-term business?
