Reek & Dalli

The Covid-19 impact on the short-term rental market

The Covid-19 impact on the short-term rental market

The Covid-19 pandemic has taken the world by surprise, with all movement and economic activity restricted, the economy has suffered greatly. As the number of tourists on the Costa del Sol came to a grinding halt, we, like many others have had to endure three months of severely restricted business activity and only now are we experiencing work as usual.

As you can imagine, the coronavirus crisis has had a massive impact on short-term rental markets around the world, including and specifically in Spain. With help from data provided to us by Airbnb and other online travel agencies (as well as our own back end analytics) we have been able to adapt to the necessary trends. 

The supply of rentals have remained stable throughout the crisis with owners keeping their listings live regardless of the travel bans, lockdowns and restrictions.

However, we see a much different story on the demand side. Up until around mid-March bookings were going as expected and then suddenly a significant drop occurs that levels off up until recently.

While all of the world experienced different levels of severity and time periods with respect to the virus, the travel restrictions imposed by different countries did all begin around the same time, which would explain why the short-term rental market in the majority of countries have acted in similar ways.

With Spain being one of the countries hit first and hardest by the virus, and then subsequently implementing one of the strictest lockdowns, active cases have diminished substantially, especially along the southern coast where we have returned somewhat back to normality. The activity in the upcoming months will be crucial for countries that were hit later by the virus as they can use us as an example of what’s to happen next.

We have seen an increase of inquiries for our available villas as many families are still cautious about crowded spaces and sharing public amenities. Therefore, they are opting for more intimate alternatives that limit their exposure to other people, unlike a hotel.

As August approaches, people across the world have spent almost a third of the year in quarantine, and are getting desperate for a change of scenery. Holiday rentals have quickly become a popular option for those who are tired of being home and want a well-deserved getaway.

Book your stay with us today for a five star guest experience in some of the best properties of the Costa del Sol!

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