The competition intensifies for vacation rentals in Florida as the holiday approaches. Businesses are expected to capitalize and increase during this time of the year since the influx of tourists is guaranteed. Hence, visitors are in for some exciting offers from various hotel chains and vacation houses, Star Tribune reports.
— Florida Trip Guides (@FLTripGuides) November 14, 2017
The Battle Of Vacation Rentals In Florida
In a mounting turf battle over Florida’s tourists, some vacation-rental owners say they want the right to rent out their houses or rooms as they see fit, while the hotel industry says such home sharing is a big business that needs more oversight. State and local lawmakers are considering proposals that include limiting the number of short-term rentals a person or company can own.
The vacation rental industry was at an incipient stage, and no one knew that it could make such a significant impact in the home-sharing industry. As the industry continues to evolve, it’s essential to have proper legislation to ensure equal distribution of the home-sharing economy.
Does Vacation Rentals Have A Future?
The hotel industry has dominated the scene for quite a while, but as people’s desire to travel increases, they would like to maximize their budget, even if that includes checking in a less luxurious suite. As a result, the entry of vacation rentals has reduced the hotel industry’s market share significantly.
It wasn’t so long ago that vacation rentals were reserved only to pop shops and moms, then the advertisements are constrained only by word of mouth, a few bulletins, and local ads. Today, the vacation rental business is worth about $100 billion, and is relied upon to surpass $160 billion by 2019.
Some hotel brands have discovered that vacation rentals are stealing a big portion of their market share. This forced them to acquire vacation rentals, in other to monopolize the market once again. They feel that purchasing vacation rentals would help them recover their market loss. However, the hotel industry is unique from vacation rentals; the hotels lack the real local experience that the vacation rental offers.
The comfy, homelike feeling in a vacation rental setting is the main reason why families choose vacation rentals instead. A vacation rental gives clients the local vibe, and food are more affordable.
The Bottom Line
— Guy Montag (@kevinaom) October 1, 2017
As vacation rentals continue to grow, state governments and hotel industry will continue its legal battles when it comes to taxes and regulations. The trend-setting business increase in valuation may be inevitable should this trend continue. It may not come as a surprise if it soon disrupts a 5-star hotel earnings the way other sharing economy did. Think of what Uber did to transportation services.
Would you prefer affordable vacation rentals in Florida over luxury hotels? Let us know in the comments section below.
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