Making Sense of the Rising Demand for Extended Nightly Stays
Whether you’re out for business or pleasure, you deserve worry-free travels. It’s pricey enough having to get to where you’re going, stay fed, and make the most out of the time you have—the last thing you need is to run into trouble when booking a hotel.
Short-term rental spaces aren’t doing much better, as the industry faces legal challenges from homeowners and city officials around the world. All told, people looking to visit an urban hub for a week or two at a time often find their options limited.
In light of this, there’s a growing preference for extended nightly stays at medium-term listings for rent—a growing preference that could be very profitable for property owners. We’ve compiled three of the most compelling drivers of the shift in preferred format, and our findings are a lot more intuitive than you might think:
Taken from Hotel-R.net
1. Cost Efficiency
While the hotel industry can admittedly be great at providing guests with a taste of luxury and 24-hour service, practical travelers know better than to spend on attendants and amenities.
A week-long trip to San Francisco, for example, will have the average person leaking money if they choose to go for a hotel stay. Back in 2015, the city had the distinction of having the world's most expensive nightly hotel rates; while we don’t have a clear picture of today's rankings, we can tell you that prices haven't gone down by much since then. In fact, the current average rate for San Francisco hotels plays around the range of $200 to $300 a night.
This is exorbitant compared to the average extended nightly stay listing in the same area: units are available starting as low as $80 and they average out at around $120 for a fully furnished, single bed, single bath rental space.
The same rule holds in Santa Barbara and Downtown LA, where travelers can enjoy considerable savings on booking their accommodations when choosing extended nightly stay listings over local hotels.
More and more travelers are wisening up and making the distinction between traveling and vacationing. Extended stay hosts, on the other hand, are waiting to catch the best of the windfall with open doors.
If the hardest part of running a rental property is finding tenants, then extended stay hosts are in for a much easier time with the rising demand.
Taken from blog.digital-trip.com
There’s a big difference between luxury and comfort. As we’ve mentioned, hotels excel at providing upmarket experiences: room service, unbelievably soft bedding, and other hallmarks of opulence. These are great for vacationers looking to hit the off-switch for a couple of nights, but not so much for a traveler with a purpose.
Comfort, on the other hand, is a matter of functionality. A spacious apartment unit for rent provides the level of creature comfort needed for a relaxing night’s sleep without distracting travelers from the professional or experiential tasks that led them to travel in the first place. They navigate the fine line between homely and unfamiliar: affording a modest sense of security and stability without ever sacrificing that priceless sense of terra incognita that comes with exploring the unknown.
For people on business trips, a rented apartment means never breaking from the routine of self-sustainability that makes for productive work. Pampering can lower productivity and motivation, along with a host of other psychological hindrances to getting a job done.
For those looking to see the world and learn a little about what it means to be a native in places away from home, an apartment setup provides unparalleled immersion. It means living as the locals do: without candy on their pillows whenever they retire after a night out.
Extended stay hosts are learning to maximize the popularity of sensible, practical travel accommodations without sacrificing basic comfort—and they’re making a healthy living as a result.
Taken from healthytravelblog.com
One final consideration would have to be the amount of space offered by an apartment for rent versus a hotel suite. Unless we’re talking about a pricey deluxe room, hotel rooms are likely to fit the average traveler’s needs (i.e. their bags, and themselves).
We’ve said our piece about the ills of excessive luxury, but staying in a cramped space for weeks at a time while trying to excel or explore is a recipe for disaster in its own right. Psychologists warn about the dangers of cramped living spaces over a long enough period of time. There’s no consensus on how long before crowded living space begins to take a toll on one’s health, but the danger is there.
Apartments for rent have the advantage of size: they’re typically more spacious than your average hotel room. A week’s stay at a hotel room in the Bay area can cost upwards of a thousand dollars, but extended stay hosts offer larger rental units for under half the price.
Living space is one of the few “hidden” considerations that can make or break a traveler’s decision to book normally encourage spending for, which makes the low cost and high value of rental units a genuine blessing for the world's travelers. A whole lot of elbow room at a fraction of the typical price is no small deal --but it is a great deal for the traveler booking the unit, and for the extended stay host renting it out.
If you were to ask us about travel accommodations before the digital revolution, we'd have told you that hotels are the only way to go. Times change, however, and the traditional end of the hospitality industry is finding itself in its own niche: one fit for vacationers of particular means and with a relaxed agenda.
2nd Address is dedicated to providing modern travelers with spacious, comfortable, and affordable spaces for short- and medium-term rent.
When you're given the opportunity to make the most out of an investment property, it pays to pick a strategic rental model. Consider hosting guests for a minimum of 7 nights or longer, check our listings and see if the format is just as profitable for you as it is for the rest of our hosts.