Research article

Holiday rentals on the rise

How the sector is increasingly competing with hotels


In recent years, holiday rentals have become a commonplace form of accommodation for holidaymakers. Consequently, holiday rentals are now in direct competition with the hotel sector as a growing number of travellers consider short-lets as an alternative to hotels.

The vast majority of respondents (92%) said they were likely to stay in an entire house or apartment in the next three years compared to 67% for a hotel or resort. Additionally, 49% said they were more likely to choose this form of accommodation when compared to the past three years, compared to 29% for a hotel or resort. However, respondents were far less keen on a room within a house or apartment.

Hotels appeal to those after the best service

Despite the rise in short-lets, hotels still commonly offer a higher level of amenities and service than can be found in the majority of holiday rentals and hotel customers place greater emphasis on these factors.

Of those surveyed, people who recently stayed in a hotel or resort placed greater importance on bespoke amenities commonly found within a hotel, such as a restaurant or a spa, than those who had stayed in a short-let property on their last trip.

Additionally, those who recently stayed in a hotel or resort also found the availability of childcare, housekeeping and other special services to be slightly more important, with 25% of respondents considering this important compared to 20% for those who recently stayed in a short-let.

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