Air Travel Trends and The Effect on Short-Term Rentals
Insights into the Air Travel Industry
Air travel trends will always have a big impact on the owners of short-term rentals, for better or for worse, and taking a look back at how last year fared as well as what the future holds can give you insight into what to expect for your short-term rental in the upcoming months. That’s why we’re giving you the insider’s guide into what 2022 held for the airline industry as well as its prospects for 2023, along with what short-term rental owners can learn from air travel trends of the future.
2022 Air Travel Recap
2022 was not just a roller coaster ride for the short-term rental market–the airline industry also took a beating in the face of rising fuel costs, labor shortages, and other market disruptions.
Overall, the airline industry has not been in good shape since the pandemic, especially in international markets, and it has operated at a loss since 2020 first shook up the market. Unlike the STR market, the airline industry has still not fully recovered from the intense market effects of the pandemic period, and while 2022’s statistics improved over the previous year, air traffic has yet to catch up to the numbers we saw before 2019.
In November of 2022, for example, the IATA reported that while global air traffic was up 41.3% compared to November of 2021, total traffic was still only at 75.3% of November 2019’s levels. However, in North America, things are looking brighter. 2022 brought about significant improvements in the market, especially near the end of the year. November of 2019 saw US domestic air traffic increasing 5.0% year-over-year, reaching 99% of its pre-pandemic numbers.
2023 Air Travel Predictions and Forecasts
2023 is predicted to signal a return to profitability for the airline industry, especially when it comes to North American domestic markets, which are expected to return to 97.2% of pre-pandemic demand levels over the next year according to the IATA. Although concerns about rising inflation, a possible recession in the US, and slowing global GDP growth were foremost on many people’s minds near the end of 2022, so far predictions for the year to come are fairly optimistic, especially since oil price inflation has slowed and costs are expected to fall for travelers.
Overall, it appears that the US domestic air travel industry in particular has improved more quickly than in other markets around the globe, mainly due to the shorter and less-restrictive lockdowns and travel bans. This trend of improvement and the rapid rise back towards pre-pandemic traffic levels is expected to continue for the US airline industry in 2023.
What Short-Term Rental Owners Can Learn From Airline Industry Travel Trends
Greener Air Travel
As we’ve seen in the short-term rental market with the explosion of green or environmentally-conscious homes, the air travel industry is expected to go through a massive shift towards greener travel.
Not only is eco-conscious travel at the top of the list for many people, it has also become a huge priority for airline carriers. To help lower their carbon footprint, airlines are implementing measures like carbon offset programs as well as introducing more fuel-efficient equipment and vehicles into their fleets.
The Takeaway for Short-Term Rental Owners: Hop on the eco-friendly bandwagon and learn some strategies to green your short-term rental to appeal to these environmentally-conscious travelers.
A Flawless Customer Experience and Smoother Operations
Many airlines have gained a fairly negative reputation in the wake of the post-pandemic period due to things like staffing shortages, strikes, and operational errors that have heavily affected the customers of these airlines. One expected trend to fight this stigma in the airline industry is the upcoming improvement of both customer experience as well as more streamlined operational management. To help recover from the reputational damage done over the last few years, these measures are sorely needed and long overdue.
The Takeaway for Short-Term Rental Owners: Providing a five-star customer experience is of the utmost importance in the hospitality and travel industry. Discover how to ensure that your customers have the best vacation rental experience ever.
Find a Short-Term Rental Management Company that Knows the Market
2022 may have been a year of net losses for the global airline industry, but that doesn’t mean that the future of the travel industry is all doom and gloom. Things are looking promising for the upcoming year when it comes to air travel, and the same can be said for the short-term rental industry as well. If you decide to take measures to prepare for the year to come, keep an eye out for greener travel trends and a better customer experience to keep yourself and your business ahead of the game.
For short-term rental owners who are on the lookout for a management company that knows the travel market like the back of our hand, take a glimpse into what it’s like to Go Local. LocalVR has helped hundreds of owners just like you to improve their revenue and property upkeep with intelligent, data-driven technology. Take a look at our Program page to learn more.