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August 23, 2021
If you are interested in real estate investments, then you should know the multiple vacation rental platforms that help investors position their properties among travelers.
Although these platforms have existed since the mid-90s, they did not have their great boom if not until 2010.
Interest in local experiences rather than grand hotels among tourists paved the way for these platforms and the investors who advertise on them to see their true value.
For the first time in 2020, the occupancy of vacation rentals exceeded that of the hotel industry.
It is estimated that 45% of investment properties are purchased to generate additional income for the investor.
More than 80% of them rent a second, third or fourth property while less than 20% rent part of the property where they currently live.
The growth and value of vacation rentals in a destination like the Riviera Maya could not be more important.
While the hotel industry continues to develop and include new experiences to make guests feel at home, vacation rentals offer flexibility in cancellation and changes, convenience, social distancing and a better price.
In fact, during the pandemic, the number of nights booked doubled, according to reports from VRBO, Airbnb and other platforms.
Expedia-owned VRBO saw huge growth in July 2020, despite the pandemic, with destinations that tourists could drive to as favorites.
However, as the pandemic evolved and people felt more secure in traveling, there was a growing interest in vacation rentals for remote workers seeking to escape the confinement of their homes, to enjoy a slightly longer rich vacation, or simply to leave. a few days with friends and family to forget everything.
Real estate investors began to see the light at the end of the tunnel.
And if there is any doubt about the enormous success of these platforms, just look at the Airbnb numbers. Within a year of its launch in 2008, they had 10,000 users and 2,500 properties listed.
Today, those numbers have grown to 150 million users and more than 6 million properties listed around the world.
Keeping with the trends, Airbnb also launched a series of new experiences that allow the owner to not only rent the space, but to offer tours, classes, meals and more to make the experience more valuable and unique.
As we have discussed in previous blogs, the real estate industry in the Riviera Maya has grown exponentially.
Thanks to these easy-to-use platforms, it has become even easier for owners to manage their own rentals without having to be in the Riviera Maya.
Through the platforms they can organize their rental calendars, collect and do the marketing for their property.
About 40% of the new residences in the Riviera Maya are listed in one of the platforms as a business strategy, according to AMPI.
And this is not surprising, given that in 2018, the average annual income for the user was $ 68,300 MXN, and just under 1 million travelers stayed at Airbnbs throughout Quintana Roo.
These platforms are key to creating a high income for those looking to rent their properties as a business.
The Riviera Maya, although affected by COVID-19, saw a great opportunity to welcome tourists seeking to escape the cold northern winters or escape their reality.
And while many industries were brought to a halt by the pandemic, the real estate industry maintained incredible investment interest.
It’s easy to see why: The investments are long-term, and although the pandemic put the world on hiatus for a year, it had to come back eventually.
Investors who took a chance were ready to receive the big waves of tourists in their vacation rentals when the world took off again.
In 2021, the average price per night on these platforms is estimated to be $ 111.12 USD worldwide.
In fact, in 2020 the price was higher than in 2019 and continued to grow throughout the year. Tourists were ready to pay a lot as long as they could travel.
Now imagine what this means in a destination as desired as the Riviera Maya. You could be receiving a very high return on investment right from the start.
But none of this is magic nor is it an automatic process.
Work should be done to adapt your property to the needs of travelers in 2021.
They look for private properties that allow them to have social distancing and take care of themselves.
In fact, 62% of VRBO users reported that they are looking for a property that has an outdoor space (such as a rooftop with a pool and garden).
Although they are looking for comfortable spaces that feel like home, they are also looking for a certain level of luxury.
If you are investing in a condo-hotel or in a property with concierge service, you are already one step ahead.
And with that, comes the location, too. The Riviera Maya has a clear advantage in that, but considering the area in which you are going to invest can also influence the success of your rentals.
This, of course, goes hand in hand with security.
2021 looks to be a year of survival and using these platforms to shape pricing, service and opportunity strategies is essential.