Short-term housing rental market expansion on Avito Travel projected to surge by 22% by year-end 2025
In the ever-evolving landscape of the short-term rental market, a significant shift is underway. Industry trends are pointing towards a move from selling just a service to creating a comprehensive client experience and selling impressions, according to recent insights.
This transformation is evident in the growing use of mobile apps developed by companies in the sector. These apps empower guests to unlock doors, adjust temperature, communicate with support, and access additional services, all at their fingertips. For property owners, these apps offer the ability to monitor revenue dynamics, bookings, and services, ensuring a smooth and efficient rental process.
The Russian tourism market is also showing promising growth. Avito Travel forecasts a 22% year-on-year growth in the short-term rental housing market volume by the end of 2025, reaching 549 billion rubles. This growth is expected to be mirrored in the number of booked nights, which is anticipated to increase by 9.5% year-on-year by the end of 2025.
However, this growth comes with increased competition. As tourist flow slows and the need for property promotion efforts arises in Russia's short-term rental market, companies are turning to technology to stand out.
International players in the real estate management industry are also embracing this trend. The Simon Property Group, a leading US real estate fund manager active in Germany, recently acquired 50% of the Jamestown Group. This move underscores a focus on digitalization to enhance sustainability and building experience prior to completion. Other global players like Deka Immobilien, known for their high-standard, LEED-certified buildings, and investors leveraging alternative financing sources are also implementing ESG measures and property upgrades amid market challenges.
The segment of short-term rental of country houses is also experiencing growth. The supply has increased by 32%, and the number of available objects this season stands at 500,000, up from 400,000 last year.
To stay competitive, it's crucial for players in the short-term rental market to adopt a more thoughtful approach to choosing objects, make internal changes to meet the target audience's requests, and optimize pricing. Avito Travel Director Artem Kromokhkin emphasizes these points, suggesting that the market requires qualitative changes for professional and financial growth.
As the competition heats up, technological platforms are increasingly being seen as a solution to increase the attractiveness of objects and their occupancy. Vacasa, a property management company managing 35,000 properties in North America, is a prime example of this, with up to 95% of its bookings coming from external platforms.
In conclusion, the short-term rental market in Russia is witnessing a surge in growth, driven by technology and a focus on creating exceptional customer experiences. As competition intensifies, it's clear that companies that embrace these trends will be best positioned to thrive in the future.
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