Furnished Rentals can be the Next Powerhouse of the Travel Market
The traditional hotel stay was once the standard for families on vacation, young professionals on a business trip, and weekend getaways in an exciting new city. This is quickly changing, and the hotel business is suffering for it. Serviced rental apartments are now seen as the savvy, intelligent choice for travelers, as they offer all the comforts of home at a price that can be a fraction of the expense of a comparable room in a nice hotel. Instead of being cramped in a tiny room with minimal service, patrons of this quickly rising industry are treated like valued, long-term tenants as they cook meals and enjoy spacious accommodations. So how did the hotel industry start to fall into decline? How are furnished rental companies able to offer these luxurious units at a lower price than their competitors?
Some experts have pointed to hotels enjoying an extended period of time as the unrivaled kings of the travel industry and a lack of competition within their field. This theory states that because hotels had no relevant contenders to unseat them for such a long time, they lacked the motivation necessary to make improvements to their business model. Hotels were able to get away with charging large amounts that tended to exceeded their service and the quality of their accommodations. While specific hotels had to deal with competition from within their own market, the industry standard was set and these companies were able to set their own pricing.
Dynamic Competition Arises
It was only a matter of time before true competition did arise, and this upcoming challenger to the hotel throne is, unquestionably, furnished apartments. Clever property managers and business owners such as Toronto Luxury Suites were able to see that they could provide a better service at a lower cost while still earning a profit on their investment. The results have been astounding, as demand for serviced apartments and their rapid ascent in consumer popularity makes them true and formidable competitors for hotel corporations, which is something that hasn’t been seen in a very long time.
So how will this change the landscape of the travel industry? The results can already be seen in a soaring demand for furnished rentals and an increase in the number of these models that are available to customers. Some are predicting that we will see a redesign of entire office blocks in order to keep up with consumer interest. Furnished, short-term rentals are the clear choice over hotels at the present time, and this does not appear to be changing anytime soon. A better question to ask would be how will hotels respond to such fierce competition? Because if they fail to change their ways, there will be a new king of the industry.