A lust for luxury
Why Rich Americans Are Ditching Their Fancy Hotels On Vacation
As travelers spend less on cheap Airbnbs, high-end vacation rentals are booming.
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The Lede
Owners of short-term rentals across the country are sharing stories of declining revenues over the past few years as the market was flooded with new rentals. On one end of the market, however, it's a different picture. While cheaper rentals are slowing down, luxury, niche, and themed stays are filling their place. Meanwhile, Airbnb alternatives are jumping into the market to cater to the growing demand. A lust for luxury is propelling the short-term-rental market to new heights.
Key Details
- While overall demand for short-term rentals rose just 1.8% in 2023, according to AirDNA's data, demand for stays priced at $1,000 or more increased by nearly 8%. For stays over $1,500, demand jumped 12.5%.
- Among high-income travelers, who made up an increasingly large share of vacationers this year, hotels are on the way out.
- Part of the shifting demand stems from people viewing luxury rentals as a destination unto themselves — if the place you're staying is cool enough, you don't need to get out much.
