In the run-up to the VITUR Summit 2023 in Malaga, Samuel Toribio, the Head of International Markets at Homelike, provided us with an insider’s perspective on the evolving dynamics of the monthly rental market. Homelike, a leading platform in the space, currently operates across nine European markets, managing an impressive portfolio of around 120,000 units dedicated to monthly stays. For those unable to attend the summit, we’ve embedded the full video of the interview in this article for a comprehensive look at the insights shared.
In a recent interview, Samuel Toribio, Head of International Markets for Homelike, shared valuable insights into the evolving landscape of the monthly rental market. Homelike, a platform specializing in monthly stays, operates in nine European markets and boasts around 120,000 units focused on monthly stays.
Monthly stays market trends in Europe (2023)
Toribio highlighted several key trends shaping the industry:
1. The Rise of ‘Plug and Play’ Tenants: Modern tenants prefer a hassle-free experience, desiring everything from rent to utilities included in one bill. This trend is driving property managers to streamline their services and offer all-inclusive packages.
2. The Demand for Affordability: With the effects of inflation impacting global economies, affordability has become a crucial factor for tenants. This shift in consumer behavior is leading to the rise of co-living spaces, offering cost-effective accommodation solutions.
3. The Attraction of Secondary and Tertiary Cities: Digital nomads and remote workers are increasingly seeking out locations that offer a high quality of life. This trend is driving the development of smaller cities, offering attractive alternatives to traditional urban hubs.
4. The Adoption of Data and Technology: Property managers are increasingly leveraging data and technology, using revenue management tools similar to those employed in the hotel industry.
The monthly stay market is different from the short-term rental one
Toribio also shed light on some surprising facts about the monthly rental market:
1. The Market’s Size and Diversity: Contrary to common perception, the monthly rental market caters to a broad audience and has a diverse supply side. It’s not just for expats or working professionals; it serves a wide range of tenants.
2. The Impact on Local Communities: Tenants who stay for several months tend to respect their apartment and community more, contributing positively to the local economy by shopping at local businesses.
3. The Regulatory Environment: The monthly rental market is less impacted by tourism regulations compared to the short-term rental market, making it a safer option for property managers concerned about changing regulations.
Key differences within Europe (varying demand patterns)
Toribio also highlighted the differences in revenue management strategies across Europe. In countries with seasonal tourism like Spain, France, Portugal, and Italy, property managers focus on securing winter bookings and maximizing summer ones. In contrast, in countries with stable demand like Germany, the UK, Nordics, or Eastern Europe, they focus on overall yearly revenue management.
However, these trends are merging due to factors like climate change and the rise of remote work. For instance, summer seasons are extending in Southern European countries, and countries like Germany and the UK are starting to receive more requests from Southern Europeans in the summer. This could lead to a more standardized behavior in revenue management across the continent in the future.
These insights from Samuel Toribio provide a valuable perspective on the future of the monthly rental market, highlighting the need for adaptability and innovation in the face of changing trends and consumer behaviors.