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Would investment in Vacation Rental Platform be profitable for 2020?

Would investment in Vacation Rental Platform be profitable for 2020?

It’s no secret that the short-term rental investing market has exploded in recent years. Since 2008, when Airbnb was founded, more than 7 million properties have been listed worldwide and a whopping 500 million trips booked. On average, about 2 million people stay in Airbnb every night.

But that’s just one platform.

More than a decade later, the playing field is much broader. It’s not just Airbnb and one-off real estate investors getting in on the game but hospitality chains, multi-family asset holders and large-scale institutions too.

With this evolution has come change, in both the competition investors face and what renters look for in the properties they stay in.


Here’s what you need to know about the vacation rental platform market going into 2020.

If you decide to invest in a vacation rental platform, it’s essential to analyze the market and learn about the top short-term rental locations. It would be easy if you do this Airbnb clone!

In the past decade, short-term rentals have emerged and solidified their position as the more profitable rental strategy in the majority of markets across the globe. The main reason for this is the high demand for vacation rentals from travelers and the ability to charge a higher nightly rate than with traditional, long term rental properties. At the beginning of 2020, savvy real estate investors are wondering how to take advantage of this lucrative real estate strategy. The best way to do this is to buy an Airbnb clone.

What makes for the best markets to invest in an Airbnb clone?

There are a few different factors that have to come together in order to produce a top location for investing in a vacation rental platform.

First, of course, is the demand for leisure tourists and business travelers. Naturally, busy cities with a booming economy and numerous tourist attractions welcome the most guests. As a result, they experience a high occupancy rate, which is one of the most important features for a high return on investment with this rental strategy.

Second, the best cities for Airbnb clone business are those which bring real estate investors a high return on investment. Such locations offer not only above-average occupancy rates but also high nightly rates. There are many different ways to measure profitability in real estate investing and we focus on the capitalization rate or cap rate for short. The cap rate is one of the most popular metrics of return on investment in real estate which allows for easy comparison between different markets to decide on the best one to buy an Airbnb clone.

Last but not least, the top locations for buying a vacation rental platform are those which place no or very few restrictions on renting out on a short-term basis. After the emergence of Airbnb and other similar home-sharing platforms, many have started introducing severe restrictions on the operation of short-term rental properties in order to protect the local housing market and residents from the influx of out of state investors and visitors. Rules and regulations have been particularly restraining for non-owner occupied short-term rentals.

If you want to invest in a vacation rental platform, knowing the best vacation rental market is an essential step. It is important to check the main market research and forecasts before you decide to invest.

The best places to buy a vacation rental platform often share these three common factors:


When these factors come together, your chances of finding good investment opportunities are high.

The vacation rental platform is extremely lucrative and has been growing at a rapid rate in the last few years, thanks to new integrated apps and software. Many people are taking benefits through Airbnb Clone.

Research says vacation rental platform is expected to topple the hotel industry by the year 2020.

Take a look at the growth and segmentation of users in the vacation rental platform:

Vacation Rental Users Over Time

The market for Airbnb clone is expanding fast — and with the rise of IoT across the world, more and more people are turning to innovative options in all areas of their lives.

As we get into 2020, further growth of these new wave vacation rental platforms is expected (both nationally and worldwide) — especially as some major built-to-spec developments finish up.

According to a recent survey from the brand, 64% of investors expect to put either significantly or slightly more capital into these real estate assets in the next year, while 30% plan to keep current investments steady.

Stay on top of what’s happening in the industry, and know who you’re up against. While you might not be able to compete with those big investors and large-scale asset holders, you can up your game in terms of amenities, make smart location choices and ensure your rental properties align with current renter trends.

The Bottom Line

It’s impossible to know exactly what’s in store for 2020, but one thing is clear: The vacation rental platforms market is changing. 

On the whole, entrepreneurs and investors would do well to look toward real estate in the coming year. The market has been growing, and it doesn’t look ready to stop anytime soon. As always, due diligence is crucial to keeping your capital safe, ensuring you earn profits and keeping yourself clear of dispute and legal issues.

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