June 15, 2017

The Future of Travel is Changing the Real Estate Market

Posted in Keith Knutsson, Real Estate tagged , , , at 7:41 pm by Keith Knutsson

The world of travel is rapidly changing.  However, as we head towards the future, the way that we travel will undergo a further wave of change. As mobile phone capabilities are being increased, new technology makes traveling easier and more frequent. The future of travel will be revolutionized by technologies and applications that allow us to experience new destinations in new ways.

Modern technological advancements are especially prevalent in smartphones. Travel Apps are now allowing users to listen to audio when on a walk in a new location. The audio includes historical information, accounts from locals, and recommendations on where to dine. However, these “tour apps” are not alone in revolutionizing the travel industry.

The emergence of the vacation rental industry and its success provides insight on the future of travel. Companies such as “Airbnb” are offering travelers alternatives to hotels, at a much lower price. Other companies specializing in vacation rentals include but are not limited to; Tripping.com, FlipKey, HomeAway, VRBO, and HouseTrip.

“More and more people are making investments into properties that could be used as vacation rentals” said Keith Knutsson of Integrale Advisors. More competition in the industry is great for consumers, providing more freedom to choose which properties and price fits best. Here is a look at a few companies that are revolutionizing the vacation rental industry;

·       Tripping.com

Founded in 2009, Tripping.com is a leading search engine for vacation rentals with over eight million properties in 150,000 destinations. The company was the first vacation rental website to feature online booking. Tripping.com collaborates with other companies in the industry, allowing information to be shared across websites.

·       FlipKey

FlipKey provides clients domestic and international properties, with approximately 300,000 listings in over 160 countries. The company offers the ability to browse listings based on certain parameters such as cost, number of rooms, luxury, and amenities.

·       HomeAway

HomeAway has been dominating the vacation rental industry for many years now. The company continues to top the list of Google searches for most popular rental sites. It is also the parent company to other successful vacation rental sites such as VRBO and VacationRentals.com. HomeAway property owners can make upwards of $50,000 annually per listing.

The vacation rental industry has been growing faster than ever before. Approximately one fifth of U.S. Lodging market revenue is now coming from vacation rentals. People are beginning to focus real estate investment into properties with the potential to generate profits from travelers and getaway-seekers. The following benefits both owners and consumers by creating an environment where supply and demand for rental properties is happily met.

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