
- The likely motivations behind domestic travel
- Changes in search interest from international to domestic travel
- Guest booking trends
- Top markets and property types appealing to domestic travelers
- How to capitalize on this new trend
Motivation behind domestic travel
In late-April, we wrote how the pandemic would forever change travel. We identified a few ‘travel sticking points’ guests were likely to ask themselves. This led us to conclude we were likely to see domestic travel rise as shelter-in-place and lockdown measures taper off. Now let’s fast-forward to mid-May. Some US states, and a few Canadian provinces, are re-opening their economies and relaxing travel restrictions. However, cities remain infection hotspots. Amidst all this, we have potential travelers who juggled homeschooling while working from home, with limited activities outside the house. They kept their jobs (and their disposable income), but now they need a vacation. These factors, combined with international border closures and questions regarding air travel and physical distancing, leaves North American travelers with only one viable vacation option: domestic travel. And since cities (and their main attractions) remain shut down, the only real option left for travel is the getaway accessible by car (i.e., cottages, cabins, beaches, and nature retreats).Domestic travel search interest
So how does a change in travel behavior affect the vacation rental industry? For starters, search interest in domestic travel has spiked in the last 90 days. Google searches with the term ‘vacation rentals’ have almost doubled since the start of shelter-in-place measures:

Search interest: digging a bit deeper
Google and Airbnb data are good starting points, but the vacation rental industry is a nuanced landscape. To provide additional clarity, HomeToGo shared the following based on user search interest on their platform:


- Nature isn’t closed which means hiking, or playing and relaxing outdoors are still options.
- Lower population densities make it easier to stay physically distanced from others.
Occupancy rates are low, but there’s movement
If domestic travelers are looking to travel, how does that translate in booking patterns? AllTheRooms looked at trends in future occupancy rates and came up with this graph:



Top markets attracting domestic US travelers
Knowing that the 2020 hospitality season will pivot around domestic travel, there’s bound to be certain sub-markets that will be more popular with guests. To help understand this trend, Beyond Pricing looked at which spots attracted the most reservation volume:


Tactics to capitalize on the rise in domestic travel
Understanding market trends is critical to making the best of the pandemic. However, if your property portfolio is positioned for domestic travelers, you’re likely to face stiff competition from two players:- Solopreneurs and gig economy hosts: their low overhead costs gives them the flexibility to drop nightly rates. If a race to the bottom starts in your area, you might not be able to keep up. Nor is it appealing: unlike a part-time host, you also have to take into account maintenance.
- Other vacation rental company owners and managers: they’ve taken the same hit you have and are repositioning their operation for the upcoming domestic travel season. However, there’s only so far updating listings and pictures will get you on the major distribution platforms.
Expand your multi-channel distribution efforts:

- Build a direct booking site: Building your vacation rental website can give you an edge by tapping into search engine traffic (instead of relying solely on vacation rental listing sites).
- List on all the major sites: According to our data, most medium-sized vacation rental companies rely on 2-3 vacation rental listing sites to drive bookings their way. So why limit the pool of potential guests? Advertising your properties on all the major booking sites will bring in additional income streams and boost your company’s independence from the major sites.
Retarget former guests for a free marketing boost:
Another tactic vacation rental companies can use to boost occupancy rates is to retarget former guests. After all, it’s much easier (and cheaper) to reach out to a known customer than to attract a new one. Owners and managers can also offer discounts to increase the odds of conversion. These discounts don’t necessarily have to be monetary in value. For example, if properties are generally vacant mid-week, the offer could extend the stay for a free night.Reach out to local tourism stakeholders outside the hospitality industry:
Local tourism boards, business associations, high-end restaurants, and tour operators can sometimes be a great source of referral traffic. A phone call, or a quick email, can be all it takes to get their attention.What to do if you’re not in a rural, cabin or beach area
So far, all the data for the 2020 holiday forecast points to beach or nature destinations. But what are you supposed to do if you’re operating in a city center? The options are limited, but there are a few tactics available:1. Focus on your strengths and lean into them for branding
Identify what’s unique about your properties. You can do this by going over guest reviews, or asking a fresh set of eyes for an opinion. From there, you can build a brand for your vacation rental properties that’s consistent across all your distribution channels. Branding will bridge the gap between the professionalism, consistency, and cleanliness of a hotel chain, and the unique benefits of a vacation rental. In the current environment, that extra edge will set you apart from your competition.2. Expand the reach of your channel distribution
Owners and managers that relied on one or two sites can take advantage of the downtime and duplicate their listings on the other distribution channels. The more sites your vacation rental is listed on, the more chances you will have to convert a booking. This is where great property management software can make a big difference.3. Capitalize on last-minute travel
As we previously saw, guests are making vacation plans on short notice. You can take advantage of this behavior and increase your odds of converting a booking by decreasing the response time after an inquiry.4. Change your minimum night stay
Guests may be visiting your area for a short duration. Maybe they’re passing through and need a place for a night, visiting a relative, or on business but want to avoid hotel chains. Lifting your minimum night stay will increase your pool of potential guests.5. Solve the guest’s ‘travel sticking point’
The virus is on everyone’s mind. Taken from the perspective of potential guests about to travel to a city, hygiene and staying healthy are at the top of their mind. Address that concern the second the guest looks at your listing by documenting and showcasing your new cleaning procedures:- Make your pictures eye-catching in contrast to your competition. You can do this two ways. Either add a watermark at the bottom of each photo, or include a full-size picture showing that you take cleaning at heart:


- Update the listing text with your new cleaning measures. Those details should be at the top of the text, followed by your standard description of the property. If guests are worried about staying healthy, your listing should reassure them before anything else.
6. Reach out to nearby hospitals and health authorities
To limit the spread of the coronavirus to their own families, some health professionals are opting to physically distance by living in short term housing. In some cities, vacation rental properties near hospitals saw an increase in bookings from such guests. To tap into this stream of potential guests, contact the non-emergency number of nearby hospitals and health authorities. Explain that you’re a vacation rental owner or manager looking to rent out your properties at a discount for health professionals.About the contributors



HomeToGo has become the fastest-growing distribution channel for vacation rentals worldwide. Immediate payout, direct guest communication and fast integration – that’s how HomeToGo helps property managers maximize bookings and diversify their revenue streams. All of this and much more is now available at a few clicks away to all Hostfully clients. Activate your properties today and display your brand on more than 20 websites including HomeToGo and Wimdu.
