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Holiday Rental Property - UK - June 2017

“There are significant opportunities for the incorporation of value-added products beyond basic bricks-and-mortar accommodation, and better integration of property rental within a more holistic holiday experience – in the shape of extra services within the property as well as activities (provided by professionals or peer-to-peer networks) within the destination itself.”
– John Worthington, Senior Analyst

This Report discusses the following key topics:

  • Premium property potential
  • Room for specialist seniors brand
  • Budget families book four- to six-day breaks
  • Cross-selling/long-haul opportunities
  • Mixed-location, high-contrast holidays
  • Local food can help build bonds

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Table of contents

  1. Overview

    • What you need to know
      • Covered in this Report
      • Executive Summary

          • 7 million domestic holiday rentals in 2016
            • Figure 1: Volume forecast for the domestic holiday rental property market, 2012-22
          • Overseas rentals spending up 15% in 2016 but slowdown expected
            • Figure 2: Annual percentage change in the total number of overseas holidays taken by UK residents, 2011-Q1 2017
          • Big brands consolidate market power
            • Figure 3: Leading holiday rental property providers in the UK market, by number of listings, May 2017
          • One in four adults rent holiday property
            • Figure 4: Types of holiday accommodation used in the past three years, April 2017
          • Airbnb surge takes market share to 17%
            • Figure 5: Sources used for booking last holiday rental property, April 2017
          • Visuals are the biggest influence on booking
            • Outdoor space, pool and ‘localism’ are key extras
              • Figure 6: Popular extras when booking holiday rental property, April 2017
            • What we think
            • Issues and Insights

              • Premium property potential
                • The facts
                  • The implications
                    • Room for specialist seniors brand
                      • The facts
                        • The implications
                          • Budget families book four- to six-day breaks
                            • The facts
                              • The implications
                                • Cross-selling/long-haul opportunities
                                  • The facts
                                    • The implications
                                      • Mixed-location, high-contrast holidays
                                        • The facts
                                          • The implications
                                            • Local food can help build bonds
                                              • The facts
                                              • The Market – What You Need to Know

                                                • Both domestic and overseas segments rise in 2016…
                                                  • …but flatter outlook for 2017, particularly for rentals abroad
                                                    • Independence day…
                                                      • …but security concerns are affecting travel flows
                                                        • South West/Spain dominate UK/overseas segments
                                                          • Sharing economy faces tighter scrutiny
                                                          • Market Size, Forecast and Segment Performance

                                                            • UK domestic rentals up by 3% in 2016
                                                              • Figure 7: Type of accommodation stayed at on holiday in the UK in the past 12 months, May 2017 versus March 2016
                                                              • Figure 8: Trends in the volume and value of the market for domestic holiday rental property, 2012-22
                                                              • Figure 9: Volume forecast for the domestic holiday rental property market, 2012-22
                                                              • Figure 10: Value* forecast for the domestic holiday rental property market, 2012-22
                                                            • Overseas rentals up 6% in 2016
                                                              • Figure 11: Type of accommodation stayed at on holiday abroad in the past 12 months, May 2017 versus March 2016
                                                            • Long-term growth prospects stronger in overseas segment
                                                              • South West accounts for one in four domestic holiday rentals
                                                                • Figure 12: Number of domestic holidays taken in holiday self-catering* property, by region, 2012-16
                                                            • Market Background

                                                              • Households begin to feel the squeeze
                                                                • Figure 13: UK average weekly earnings (excluding bonuses)* vs CPI inflation, percentage change year on year, January 2014-April 2017
                                                                • Figure 14: Expected impact of UK vote to leave the EU on wider economy and personal finances, February 2017
                                                              • Pound’s fall has had little impact on travel patterns
                                                                • Figure 15: Spot exchange rate, Pound Sterling versus selected currencies, May 2016-May 2017
                                                                • Figure 16: Trends in the number and value of domestic holidays taken by UK residents, 2011-16
                                                              • Overseas growth curve likely to flatten in 2017
                                                                • Figure 17: Trends in the number and value of overseas holidays taken by UK residents, 2011-16
                                                              • Independent travel to Spain surges by 14% in 2016
                                                                • Figure 18: Trends in the number of independent overseas holidays, 2011-16
                                                              • Security concerns could affect city break apartment sector
                                                                • Figure 19: Top 10 independently booked overseas holiday destinations, by number of trips, 2011-16
                                                              • Pressure mounting to regulate P2P property
                                                                • Urban listings could decline
                                                                  • Tax relief also under threat
                                                                    • Airbnb’s ‘buydeology’ stance
                                                                    • Companies and Launch Activity – What You Need to Know

                                                                      • Consolidation and globalisation
                                                                        • Airbnb hits 3 million listings and launches Trips product
                                                                          • HomeAway given marketing push
                                                                            • TripAdvisor makes fifth rental property purchase in nine years
                                                                              • Booking.com rental property listings up 48% in past 12 months
                                                                                • Wyndham stakes out territory in urban and premium sectors
                                                                                  • Tour operators ramp up presence in property rental space
                                                                                  • Market Share

                                                                                    • Market continues to consolidate
                                                                                      • Figure 20: Leading holiday rental property providers in the UK market, by number of listings, May 2017
                                                                                    • Airbnb hits 3 million listings
                                                                                      • HomeAway benefiting from Expedia marketing clout
                                                                                        • TripAdvisor growing incrementally through acquisition
                                                                                          • Booking.com has instant booking advantage
                                                                                            • TUI launches new villa site
                                                                                              • Wyndham dominates UK cottage and lodge sectors
                                                                                                • Other domestic companies
                                                                                                • Product Innovation

                                                                                                    • Airbnb evolving into full travel provider
                                                                                                      • Luxury rentals and P2P-plus
                                                                                                        • P2P future possibilities
                                                                                                          • Wyndham lodge brands go back to nature
                                                                                                            • New villa package focus from leading tour operators
                                                                                                            • The Consumer – What You Need to Know

                                                                                                              • Rentals is second-largest commercial accommodation sector
                                                                                                                • AB bias supports industry move towards premium rentals
                                                                                                                  • Airbnb is single largest booking channel
                                                                                                                    • Flexibility of duration is key
                                                                                                                      • Power of images
                                                                                                                        • Outdoor space, pool and localism are key incentives
                                                                                                                        • Use of Holiday Rental Property

                                                                                                                          • One in four adults have stayed in rental property in past three years
                                                                                                                            • Figure 21: Types of holiday accommodation used in the past three years, April 2017
                                                                                                                          • Holiday property has higher AB proportion than hotels
                                                                                                                            • Figure 22: Demographic profile of holiday rental property customers versus hotel leisure guests in the past three years, April 2017
                                                                                                                          • Room-only accounts for 7% of rentals
                                                                                                                            • Figure 23: Type of property stayed in for last holiday, April 2017
                                                                                                                        • Holiday Rental Property Booking

                                                                                                                          • Airbnb accounts for 17% of all holiday rentals
                                                                                                                            • Data points to sharp rise in use of third-party brands
                                                                                                                              • Figure 24: Sources used for booking last holiday rental property, April 2017
                                                                                                                            • Potential for third-party senior brand
                                                                                                                              • One-week booking still most popular but sector is adopting greater flexibility
                                                                                                                                  • Figure 25: Duration of last holiday property rental, April 2017
                                                                                                                                • Four- to six-night breaks for families on tighter budget
                                                                                                                                  • Over one in three short break rentals made via Airbnb
                                                                                                                                  • Holiday Rental Property Locations

                                                                                                                                    • One in five renters have been beyond Europe
                                                                                                                                      • Strong UK/overseas crossover
                                                                                                                                        • Figure 26: Holiday property rentals in the past three years, UK and overseas, April 2017
                                                                                                                                      • Clean air breaks
                                                                                                                                        • Dual-location opportunities
                                                                                                                                          • Figure 27: Location type of last holiday rental property, April 2017
                                                                                                                                        • Almost one in four rentals are in Spain
                                                                                                                                          • Figure 28: Destination of last holiday rental property abroad, April 2017
                                                                                                                                      • Holiday Rental Property Influential Factors

                                                                                                                                        • Photo/video is critical selling factor
                                                                                                                                          • Figure 29: Important factors when booking a holiday rental property, April 2017
                                                                                                                                          • Figure 30: Factors rated as ‘very important’ when booking a holiday rental property, April 2017
                                                                                                                                        • Customer review is king but official ratings are still of value
                                                                                                                                          • Women prioritise local amenities, men prioritise indoor tech
                                                                                                                                          • Holiday Rental Property Features and Services

                                                                                                                                            • Outdoor space is most popular feature
                                                                                                                                              • Importance of localism
                                                                                                                                                • Figure 31: Popular extras when booking holiday rental property, April 2017
                                                                                                                                              • Urban professionals under 35 keenest on activities
                                                                                                                                                • Family explorers
                                                                                                                                                  • Breaks for burn-out parents
                                                                                                                                                    • 21% of customers offer huge added-value opportunity
                                                                                                                                                      • Figure 32: Number of extra features/services selected, April 2017
                                                                                                                                                    • Staycation food packs
                                                                                                                                                      • Pet-plus properties
                                                                                                                                                        • Figure 33: Popular extras when booking holiday rental property, by domestic versus overseas renters, April 2017
                                                                                                                                                    • Appendix

                                                                                                                                                      • Definitions
                                                                                                                                                        • Abbreviations

                                                                                                                                                        Companies Covered

                                                                                                                                                        To learn more about the companies covered in this report please contact us.

                                                                                                                                                        Holiday Rental Property - UK - June 2017

                                                                                                                                                        US $2,583.33 (Excl.Tax)