VRMA Administrator
A little-known fact is that more than half of all vacation rental properties lie empty each night. This oversight represents billions of dollars in lost revenue annually. It’s an easy detail to overlook during the tourist high season when bustling travelers fill popular destinations, but what about the off-peak months when tourist numbers ebb? For smaller cities reliant on seasonal visitors, this can pose significant challenges.
Off-peak seasons often mean fewer customers for restaurants and local attractions, leading to stark fluctuations in employment levels. This seasonal volatility, one of the most significant barriers for tourist cities, can jeopardize the sustainable growth of local economies. It impacts not only the labor market but also the local citizens’ attitudes toward tourism. With high seasonality, economies heavily reliant on tourism are precariously balanced. The volatile cycle of boom and bust disrupts commercial and economic operations throughout the year.
Redefining Last-Minute Travel
It’s time to dispel some common misconceptions about last-minute travelers. Far from being irresponsible planners or potential troublemakers, recent studies show that last-minute planners are often millennials, comprising young professionals, families, and deal-savvy shoppers. And this rapidly growing demographic now accounts for 40 percent of online leisure travelers. They prefer booking trips closer to the travel date and destinations within driving distance. The rise of hybrid and remote work models affords them greater flexibility in their plans, as seen in the surge in undated searches and a preference for remote work-friendly accommodations.
The face of last-minute travel is evolving. Embracing spontaneity is now part of the cultural zeitgeist. According to a Forbes article published in April 2023, Americans are spending 30 percent less time planning trips compared to pre-pandemic 2019, with nearly two-thirds making same-day bookings. Whimstay’s data corroborates this, showing 35 percent of users booking stays within a week, and 25 percent within the next seven to 14 days. These travelers are also spending more on travel than in previous years, signifying a deeper appreciation for investment in experiences, even those planned at the drop of a dime.
The Positive Ripple Effect of Last-Minute Travel
The benefits of last-minute travel extend far beyond just increased tourist spending, especially during slower seasons. It acts as a catalyst for local economies, spurring economic growth and development. Each dollar spent by a tourist sets off a ripple effect that stimulates various sectors of the local economy, from restaurants to retail to the creative arts.
Boosts in last-minute visitors often fuel overlooked infrastructure development. Increased travelers during off-peak seasons provide resources needed to support the development and upkeep of local infrastructure. Airports, roads, public transport systems, parks, and public spaces all get a face-lift to accommodate the upswing in activity. Small towns and rural areas, particularly those at risk of natural disasters that can strain local economies, benefit significantly from this.
Increases in last-minute tourism also exert a considerable influence on the job market. The World Travel and Tourism Council reports that tourism supported one in 10 jobs worldwide in 2019. This is particularly vital in the United States, where the leisure and hospitality industry has the highest percentage of part-time workers who often face reduced hours during slower seasons. Encouraging last-minute bookings during off-peak seasons can help alleviate this uncertainty.
Increased tourism, facilitated by tapping into the last-minute market, does more than just bolster the local economy. It also helps preserve and promote local culture and heritage. Tourists often appreciate the unique history, arts, crafts, and traditions of the area, leading to renewed interest and preservation of these cultural treasures. This cultural exchange fosters a broader sense of community and understanding of our diverse country, going beyond the economic impact.
Harnessing the Power of Spontaneity
In an era where sustainable travel practices are gaining traction, vacation rental managers and platforms have a unique opportunity to foster responsible tourism. By welcoming new audiences and adapting to their evolving values, they can advocate for responsible practices. Numerous online travel agencies have launched initiatives to provide startups, nongovernmental organizations, and other groups with the resources and financial support they need to enhance the social impact of travel. By harnessing the potential of next-generation travelers, we can enact beneficial measures for destination communities, stimulate regional growth, and foster resilience.
Last-minute travel isn’t just a trend; it’s a golden opportunity. By filling vacation rental vacancies during slower periods, we can generate additional revenue for property owners, support local businesses, and offer savings for budget-conscious travelers. But, more importantly, we’re building a sustainable support system for communities otherwise dependent on seasonal crowds, paving the way for more consistent growth and stability.
Welcoming a new generation of spontaneous travelers into our communities does more than just promote the unique offerings of our regions. It also contributes to a more equitable and sustainable tourism model. The trickle-down effect of these benefits underpins the sustainability of communities, local businesses, and property owners alike. By embracing these shifts in travel behavior, we’re not merely adapting to change; we’re paving the way for a more inclusive and responsible future for the vacation rental industry. By capitalizing on the power of spontaneous travel, we can redefine the future of tourism, ensuring it is both economically prosperous and socially sustainable.
Noël Russell is the CXO and a founding team member at Whimstay, an online travel agency specializing in boosting last-minute bookings and making travel more affordable. With 20 years of creating globally recognized content and campaigns, she also serves as an adviser and mentor in the tourism and outdoor industries.
