For the first time ever, the number of holiday rentals has surpassed hotels in Spain. The findings are based on a recent study conducted by Exceltur, a tourist industry organization in Spain.
The number of available beds in short-term holiday rentals has doubled from 2015 to 2016. In 22 of Spain’s largest cities, there were 362,943 beds available through vacation rentals. The number is 9.76% higher than hotels.
The growth of vacation rentals has been skyrocketing for years. From 2012 to 2016, the number of tourist rentals rose 1,663% in the 22 cities that together account for close to 85% of tourism in the country. However, this is the first time that the supply of vacation rentals has outgrown hotels.
The report’s findings are significant, especially considering that Spain is one of the most popular tourist spots. In fact, according to another report from the World Economic Forum Spain’s tourism sector is the most competitive in the world, with a score of 5.4 on 7 on its Competitiveness Index.
The increasing supply of short-term rentals is changing Spain’s tourism landscape. In cities like Madrid and Barcelona that are saturated with tourists, the growing supply of vacation rentals can help meet the high demand. However, it has also stirred controversy because it risks shoving local residents out of properties to transform them into “tourist apartments”.
Airbnb accounts for a large portion of the available vacation rentals. The rental platform has been growing at almost 100% year over year. Now, over 54.2% of all the tourist rentals in Spain are through Airbnb.
What does it mean for rental properties?
The increasing number of vacation rentals in Spain is just one sign of the industry’s rapid growth. More travelers are seeking to stay in a rental home or property opposed to a hotel room. One reason is the cost-savings, but rental homes also provide additional privacy and unique experiences that differ from traditional hotels.
This growing number of holiday rentals means that competition is high. Airbnb is no longer the new kid on the block. They are a permanent fixture in the hospitality industry. With that said, rental property managers and owners have to focus on giving their listings the competitive edge they need.
At BookingTeam.com, we combine our easy-to-use platform with the expertise of 24/7 on-demand booking professionals to help property managers with every aspect of their business, from listings to guest experiences.