After the pandemic upended the short-term rentals market, the sector is cautiously eyeing a recovery this year once the hospitality sector reopens.

The rise of Airbnb and rivals made renting out property as a short-term let or holiday home extremely profitable for some property investors, as well as letting agent agents, but that was until the Covid-19 crisis hit.

However, with Covid infection rates falling, trade body UK Short Term Accommodation Association (STAA) is starting to focus on a potential near-term recovery, and believes that the short-term rentals sector will be fast out of the blocks when lockdown restrictions are eventually fully lifted.

Merilee Karr, chair of the STAA and CEO of UnderTheDoormat, said, “Whilst we all know how tough a year 2020 was for the whole of the hospitality and tourism industries, we now have to focus on making the most of the opportunities to recover this year.”

Recent research conducted with STR’s Global Traveler Panel offers cause for optimism, according to STAA.

The survey asked guests about their attitudes towards different types of holiday accommodation before Covid-19 to how they feel now. The study found that short-term rentals and small hotels (less than 50 rooms) were the only two categories of accommodation where there was a positive net interest (difference between ‘more interest’ and ‘less interest’) now than previously – short term rentals had a +11% positive and small hotels +5%.

Serviced apartments were -4%, B&Bs/guest houses -15% and larger hotels -30%.

Karr commented: “It is very encouraging to see that short-term rentals have shown the highest level of resilience to the unprecedented restrictions the industry has had to bear. The encouraging signs are that customer confidence in booking short-term rentals is positive and, with staycations likely to be the focus for 2021, whether Brits travel to the seaside or explore cities such as London or Bath, we hope to welcome them to a variety of beautiful homes when they venture out for their much-needed holidays later in the year.

“Much of this confidence, I believe, can be traced back to a significant change in consumer preferences that have been accelerated by the Covid-19 pandemic. Over the last five years, we have seen a mushrooming in demand for the ‘home from home’ experience that short-term rentals offer customers but now, with the added requirement for social distancing and high standards of cleanliness and safety, it seems that customers recognise that short term rentals are better placed to deliver this than other types of accommodation.”