A recent survey found that 53% of those involved in coordinating travel say their companies allow them to book vacation rentals. This indicates a growing trend in the travel management industry towards accepting vacation rentals as accommodations. Sabre’s Global Distribution System lists over 400,000 accommodations beyond hotels, and the booking volume for vacation rentals is seeing high double-digit growth compared to the previous year. The interest in vacation rentals from agency partners is increasing, leading to more supply being added in this category based on their needs.
BizAway, a corporate travel and technology company, noted a trend of increasing preference for short-term rentals among travelers. This trend is driven by a desire for flexibility, which has become more prevalent with the impact of the pandemic on office and corporate travel culture. Travelers want to extend business trips or work remotely from different locations, and vacation rentals can help meet this growing demand. A survey of over 50 business travelers who stayed in short-term rentals last year found that 58% are very likely to book another short-term rental in the next year.
The potential benefits of vacation rentals for corporate travelers include convenience, comfort, and cost savings. Travelers are opting for rentals for longer stays due to the location and comfort they offer. This is particularly popular for extended stay-type hotels and appeals to business travelers who can stock a fridge, have a desk, and not have every meal out. Some short-term rentals may also be cheaper, which is another consideration for business travelers looking to establish cost efficiencies for their organizations.
While corporate travelers are increasingly interested in booking vacation rentals, there is a discrepancy between company policies and traveler preferences. While 53% of decision-makers permit vacation rentals on business trips, 74% of corporate travelers claim that their companies allow vacation rentals. This discrepancy could be due to some companies not explicitly outlining a policy regarding vacation rentals, allowing employees to book them independently. Safety and being able to track employee whereabouts are priorities for companies, with duty of care responsibilities influencing travel policies.
One of the main obstacles for vacation rentals in corporate travel is reliability. Business travelers need to know they will get a decent accommodation when booking a short-term rental, as time is of the essence for them. Travel managers are concerned about potential risks that come with booking vacation rentals, including the quality and reliability of the accommodations. Companies are implementing minimum requirements for travelers to ensure duty of care is maintained, allowing for the expansion of vacation rental policies.
Moving forward, platforms like Airbnb are focusing on providing higher quality listings to cater to the growing interest in vacation rentals from business travelers. Airbnb’s Guest Favorites feature has been popular among business travelers, as reliability is crucial for them when booking accommodations. The future of vacation rentals in corporate travel will depend on more widespread acceptance by travel managers and booking platforms. Platforms like Sabre are optimistic about expanding offerings in this category to meet the needs of travel agency partners and address duty of care requirements for travelers.
