Table of Contents
Executive Summary
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- Impact of COVID-19 on holiday rental property
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- Figure 1: Impact of COVID-19 on the holiday rental property market, in short, medium and long term, 1 July 2021
- The market
- After a 40% drop in 2020, 2021 is expected to see record levels of holiday rentals
- Domestic market forecast to continue above pre-pandemic levels throughout 2022-26
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- Figure 2: Domestic holiday rental property volume COVID-19 scenario forecasts, 2016-26
- Figure 3: Domestic holiday rental property value* COVID-19 scenario forecasts, 2016-2026
- Overseas rentals will take longer to recover
- Companies and brands
- Airbnb sees flight to the countryside
- OYO Hotels is the latest global group to enter the rentals market
- Awaze and Sykes both report double-digit growth in UK holiday cottage bookings
- The consumer
- Over one in five consumers expect to stay in holiday rental property in 2021 …
- … and future growth potential is strong
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- Figure 4: Types of holiday accommodation used in the last 3 years, 2021
- OTAs are extending their reach in the rentals market
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- Figure 5: Booking channels used for last holiday rental property stay, 2021
- Pandemic pooches trigger a rise in pet-friendly properties
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- Figure 6: Important factors when booking a holiday rental property, 2021
- Pools and hot tubs add significant value to properties at home and abroad
- Quirky properties and premium stays have strong prospects
- Pent-up demand for family celebrations
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- Figure 7: Preferential factors when booking a holiday rental property, 2021
Issues and Insights
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- Selling the #Cottagecore lifestyle
- Garden designs
- WFH, WFA and holiday rentals
- Senior moments
- Try before you bike
The Market – Key Takeaways
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- UK holiday rentals down 40% in 2020 but bounced back in summer
- Country and coastal cottages fared better than city rentals
- Record levels expected in staycation year 2021
- Domestic market expected to remain above pre-pandemic levels from 2022-26
- Overseas rentals recovery expected to be slower
Market Size and Performance
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- Impact of COVID-19 on holiday rental property
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- Figure 8: Impact of COVID-19 on the holiday rental property market, in short, medium and long term, 1 July 2021
- A strong summer helped to sweeten the overall slump in 2020
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- Figure 9: volume and value of the market for domestic holiday rental property, 2016-20
- City break apartment rentals fared the worst
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- Figure 10: Volume of domestic holiday rental property, by property segment, 2015-19
- Overseas holiday rentals fell by around 75%
Market Forecast
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- Domestic property rentals expected to reach record volume and spend in staycation year 2021 …
- … remaining above pre-COVID levels from 2022-26
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- Figure 11: Volume forecast for the domestic holiday rental property market (prepared on 23 June 2021), 2016-26
- Figure 12: Value* forecast for the domestic holiday rental property market (prepared on 23 June 2021), 2016-26
COVID-19 Scenario Performance
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- Mintel’s approach to predicting the impact of COVID-19
- Fundamental differences in how COVID-19 is affecting consumer markets
- The risk of vaccine-resistant strains of COVID-19 adds huge uncertainty
- Likely impact of the rapid recovery/extended disruption scenarios on holiday rentals in 2021
- A setback to COVID-19 recovery could curtail the expected long-term growth trend
- A rapid COVID-19 recovery would drive further spending on UK stays, but bring more competition from overseas trips
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- Figure 13: Domestic holiday rental property volume COVID-19 scenario forecasts, 2016-2026
- Figure 14: Domestic holiday rental property value* COVID-19 scenario forecasts, 2016-2026
- Overseas rentals are expected to recover more slowly …
- … but a faster opening up of international travel could see full recovery by 2022-23
- COVID-19 market disruption: risks and outcomes
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- Figure 15: Summary of Mintel scenario expectations and the impact on the holiday rental property market, June 2021
Market Drivers
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- #Cottagecore trend can benefit rural property rentals
- WFH, WFA and holiday rentals
- The social impact of holiday rentals is under growing scrutiny
- A new wave of second home purchases may increase market supply for holiday rentals …
- … but will also raise pressure on brands to act responsibly
Companies and Brands – Key Takeaways
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- Global intermediaries continue to drive sales
- Airbnb has seen a big shift to countryside rentals
- OYO Hotels is the latest group to expand into the rentals market
- Awaze and Sykes are seeing double-digit growth in bookings for 2021
- New launches include eco-friendly & nature-discovery rentals, and ultra-luxury rentals
Key Players
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- Global intermediaries
- Airbnb
- Booking.com
- Expedia/VRBO
- TripAdvisor Vacation Rentals
- OYO Vacation Homes
- Holiday cottage specialists
- Awaze
- Sykes Holiday Cottages
- Other domestic holiday cottage companies
Launch Activity and Innovation
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- Google’s new combined search will drive more consumers to property rentals
- Back to nature rentals
- Eco-friendly rentals
- Ultra-luxury rentals are blurring the lines with hotels
- Making P2P rentals safer
The Consumer – Key Takeaways
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- Over one in five adults could stay in holiday rental property in 2021
- Rental property has bigger growth potential than other holiday accommodation
- Airbnb is market leader but other OTAs have gained UK market share
- Beach, pub/restaurant & parking are the most important factors
- Off the beaten track properties sought by one in five guests
- Consumers likely to splash out on premium rentals after COVID-19
- Pent-up demand for larger gatherings and family celebrations
Impact of COVID-19 on Consumer Behaviour
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- A mood of cautious optimism
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- Figure 16: Level of concern* about COVID-19, 2020- 21
- Holiday booking remains well below pre-COVID levels
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- Figure 17: Holiday booking and intentions, August 2019-June 2021
- Staycation plans have eclipsed intentions to travel abroad
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- Figure 18: Holiday booking destination plans in 2021
- Domestic tourism could see a long-term boost from damaged confidence in overseas travel
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- Figure 19: Changes to holidaying frequency once the coronavirus outbreak is over, by destination, 2021
Previous Use of Holiday Rental Property
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- Over one in four adults use holiday rental property
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- Figure 20: Types of holiday accommodation used in the last 3 years, 2017-2021
- One in seven adults stayed in a rental property between January 2020 and May 2021
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- Figure 21: Date of last stay in a holiday rental property, 2021
- Demographics of holiday rental property
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- Figure 22: Age profile of holiday rental property guests, by property type, 2021
Future Interest in Holiday Rental Property
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- Holiday rentals have the biggest growth potential of all accommodation types
- Female interest in future rentals is especially high
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- Figure 23: Types of holiday accommodation used in the last 3 years, versus future interest, 2021
Holiday Rental Property Plans in 2021
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- Over one in five adults expect to stay in holiday rentals in 2021
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- Figure 24: Plans to stay in holiday rental property in 2021 (as of May 2021)
- Seven out of 10 expect to take a UK holiday in 2021
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- Figure 25: Expected location of next holiday rental property stay, 2021
- COVID-19 has increased the trend towards rural stays …
- … but lack of overseas visitors offers a window of opportunity for London holiday rentals
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- Figure 26: Expected holiday type for next holiday rental property stay, 2021
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- Figure 27: Expected holiday type for next holiday rental property stay, by expected location, 2021
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- Figure 28: Expected holiday type for next holiday rental property stay, by gender and age, 2021
Holiday Rental Property Booking
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- Airbnb and other specialists account for 43% of bookings …
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- Figure 29: Booking channels used for last holiday rental property stay, 2021
- … but generalist OTAs are gaining market share
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- Figure 30: Booking channels used for last holiday rental property stay, 2021 versus 2019
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- Figure 31: Booking channels used for last holiday rental property stay, by type of property, 2021
- Age split shown between the Airbnb generation and older cottage holidaymakers
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- Figure 32: Booking channels used for last holiday rental property stay, by age group, 2021
- Staycation opportunity for travel shops
Important Factors When Booking a Holiday Rental Property
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- Beach, local pub/restaurant & private parking are the top three factors
- Rising pet ownership is driving demand for pet-friendly properties
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- Figure 33: Important factors when booking a holiday rental property, 2021
- Gardens can add value for a new generation of enthusiasts
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- Figure 34: Important factors when booking a holiday rental property, by type of property, 2021
- Parking is a critical factor for older guests …
- … but rental platforms could do more to promote drive-free stays
- The importance of food and drink also rises with age
- Women are more likely than men to see the beach as a key factor
- Entertainment technology and home design are important for under-45s
- One in four families rate ‘baby/toddler-friendly’ as important
- Rising demand for specialist properties for the over-75s
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- Figure 35: Important factors when booking a holiday rental property, by age group, 2021
Other Preferences & Opportunities for Holiday Rental Property
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- Six in 10 overseas renters prioritise a property with a pool
- Over a third of guests are more likely to book an unusual/quirky property
- Four in 10 countryside renters are more likely to book a farmhouse-style cottage
- One in four guests prefer a property ‘off the beaten track’
- Solo retreats
- Rising potential for premium rentals …
- … but rentals still seen as less luxurious than hotels
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- Figure 36: Preferential factors when booking a holiday rental property, 2021
- Other opportunities
- Toys for the boys
- Pent-up demand for larger gatherings
- Add-on experiences for younger generations
- Capitalising on the COVID-19 bike boom
Appendix – Data Sources, Abbreviations, and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix: Central Forecast Methodology
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- Market forecast and prediction intervals
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- Figure 37: Lower bound, central and upper bound volume forecast for domestic holiday rental property stays, 2021-26
- Figure 38: Lower bound, central and upper bound value* forecast for domestic holiday rental property stays, 2021-26
- Market drivers and assumptions
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- Figure 39: Key drivers affecting Mintel’s market forecast, 2020-24 (prepared 12 March 2021)
- Forecast methodology
Appendix: COVID-19 Scenario Performance Methodology and Assumptions
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- Scenario performance
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- Figure 40: COVID-19 scenario forecasts for the volume of domestic holiday rental property stays, 2016-26
- Figure 41: COVID-19 scenario forecasts for the value* of domestic holiday rental property stays, 2016-26
- Rapid COVID-19 recovery, central and extended COVID-19 disruption scenarios outline
- Scenario methodology
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