“Pandemic” and Vacation Rentals
Thought Experiment:
1. AirBnB was founded in 2008 around the height of the Great Recession. In the past 12 years, the travel and leisure sectors of the economy have exploded. There have been various dips in the economy, but the modern Vacation Rental/STR market has not been truly tested against a major downturn.
Hotels/Resorts have historically taken a large hit during economic decline, BUT do Vacation Rentals get lumped in with hotels OR do they offer a cheaper alternative and continue steady?
2. Markets set aside. The Vacation Rental season is almost upon us (Alaska), and unless you’ve just come back from off the grid, you likely have heard that a COVID-19 “pandemic” is also almost upon us.
As a STR owner myself, I am curious. There is no historical precedence for modern STR's and platforms like AirBnB during a "crisis" event. How will the escalation of COVID-19 affect the STR market? Will it affect an AirBnB IPO in 2020?
***Note: this is not intended to stoke market fears or COVID-19 fears. It is strictly curiosity and the unknown pertaining to the Vacation Rental and STR market.