The Rise of the Staycation
Travel and tourism has been hit exceptionally hard this year. However, as lockdowns across the globe start to lift, and those who have been home for a long time yearn for some form of break, an interesting phonemana is emerging. The rise of the staycation.
Staycations were already gaining popularity prior to the Covid-19 crisis. As consumers become more aware of their carbon footprint, vacationing in their home country has started to become more appealing. According to research by Savills, in 2019, 46.4 million holiday trips were taken in England, a 2% increase on the previous year according to Visit Britain.
However, the uncertainly around overseas travel has seen an explosion in demand for short term lets across the globe, with holiday makers choosing to remain in their country of origin.
For many individuals, the risks involved in travelling overseas are putting many off choosing breaks abroad due to concerns surrounding quarantine rules, insurance, and potential cancellations.
In the UK, the strong demand coupled with the stamp duty holiday is already seeing investors starting to capitalise on the trend – expanding their portfolios into both coastal and prime city centre locations.
In the USA – demand for luxury properties as holiday homes is seeing higher than usual occupancy rates across a number of states. Indeed, domestic tourism has always been popular in the States, with Americans taking 2.29 billion domestic trips each year (compared with 93 million international ones). However Covid concerns are driving further interest.
While people are still keen to get a break, the impact of Covid-19 means that, for many overseas travel is off the table, and may be so for some time.
The appeal of an apartment or condo break
In addition to holidaymakers choosing to stay in their home country, due to concerns over shared facilities and crowded hotels and their impact on social distancing, many are turning to breaks where they can at least have an apartment or condo to themselves, even if facilities such as pools are shared.
Staying in a domestic dwelling has held appeal for families for many years, giving them the opportunity to enjoy their vacation free from worries surrounding separate rooms, and increased costs when travelling with several children.
The domestic tourism opportunity for investors
As every investor knows, diversification is key to sustaining a well performing portfolio, and this year this has proved more true than ever. As a global crisis has transformed how we live work and travel, those at the forefront have already started to adapt their investment strategies to fit in with the new normal.
And for those who wish to take advantage of domestic tourism, now is very much the time to consider strategic locations that lend themselves well to short lets in this market.