14 Leaders Reveal the Future of Short Term Rentals (ASTRA - Here to Stay)

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The Accommodation Show - Hospitality Success Series! 1h 18m 13 speakers 8 chapters transcribed 28 days ago
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Why is the “flight to quality” more important than luxury for short‑term rentals in 2026?

Bart Sobies 0:12
Hey everyone, we are back. And we are back with the incredible Tim Rosalio from Expedia Group. How you going, bud?
Tim Rosolio 0:18
Uh I'm a little tired, but I'm glad to be uh in the Gold Coast. It's my first time here.
Bart Sobies 0:24
We uh we were at VRMA together a couple of days ago in uh Las Vegas. When did you get in?
Tim Rosolio 0:29
Um two hours ago.
Bart Sobies 0:31
Oh well Yeah. How's the jet lag?
Tim Rosolio 0:33
Uh I think the coffee opens at three o'clock and then go in there at three.
Bart Sobies 0:39
So um uh folks we're gonna be a asking hard hitting questions of Expedia for the next twenty minutes uh just to see how it holds up. No no no. We're gonna ask um one of the questions that I've been asking everyone. It's more about uh trends and what people are seeing going forward in the future. I I'm really interested in your take because you've got a a global perspective. You see the industry in a much different light to what most people would in their lives, which is amazing. So I really wanna kind of get your thoughts as to what people should be thinking about for for next year within their own businesses so they can be more successful.
Tim Rosolio 1:11
Yeah. Um I think the big thing that comes to mind is quality because I think uh really over the past five years there's been a lot of supply that's come on the market, whether that's individual owners or perhaps property managers that don't quite know what they're doing, that don't necessarily deliver the goods and the standard that the traveler really wants. And that's that's like beyond um That's beyond just cleaning the house. It's also like making sure that you have the right software in place to make sure you never cancel, you're always accepting bookings, you're delivering a consistent experience. You are combining that technology with the right ground game that makes people feel like this is the right hospitality.
Tim Rosolio 1:53
Yeah. Um so I think that in a market where there's so much supply out there and a more discerning track. And I can tell you the OTAs recognizing these trends, it's more important that you deliver quality than ever before.
Kevin Liu 2:08
Yeah.
Bart Sobies 2:09
I love it. Can you can you just uh elaborate a bit what you mean by increased supply? Is this a US thing, a European thing? Is this an Australian thing, a worldwide thing? And what does that look like on a kind of a bit more of a practical level?
Tim Rosolio 2:23
I think uh increased supply, I think it's a trend that we're seeing everywhere with people thinking that they can get rich in short term rentals or they can own that second home that they perhaps didn't think they could ever afford, which is great. That's one of the exciting things about that category. If you can deliver the goods in terms of quality and hospitality. In particular in America, we had a the trend of sort of insatiable demand during the pandemic. Sure. Insatiable growth of supply shortly thereafter. Yes. And now we're in this weird spot of imbalance. There's an oversight So I would say that uh from a uh American perspective, uh we're right in the thick of this flight to quality.
Bart Sobies 3:05
And then when you talked about quality, um, one of the things that's kind of bringing my ears is uh brand. Um and it's kind of a brand standard, right? So we make sure that we respond to our clients within X amount of time. We do it in a certain way, we clean our properties in a certain way, we use certain products in our property, and we bring everything together as uh to be consistent to deliver the same uh quality of experience. experience and to me that really lends into brand itself as well. Do you think that's an important play in the on when we're talking about quality is having sort of alignment through what you're doing because Different quality can be it can be different for different niches, right?
Bart Sobies 3:44
So you can have a budget brand, but still have quality within that brand. Consistent. It doesn't need to be luxury. Correct. Consistent. Because that's what I want to differentiate, is what we're talking about. Because quality people might be thinking luxury, right? But that's not what you're talking about. The majority of this business.
Tim Rosolio 4:01
Is not The um X thousand dollar a night villa on the beach.

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