The future of tourism and STRs

[Collin Hays]

There is a lot of talk about the future of tourism during and post-COVID and how it will affect the behaviors and choices of vacationers.  This is a great article.  It make the case the "drive to" spots are going to become increasingly popular due to the perception of greater safety.  The theory is that vacationers will increasingly want their space and breathing room.  That is bullish for places like national and state parks, bearish for urban and crowded areas.  It seems also to be bullish for STRs, and bearish for high-rise hotels.

https://www.yahoo.com/news/coronavirus-create-kind-tourist-130039607.html

Of course, there is another driver not in this piece that will be bullish for drive-to STRs: Budget constraints. COVID-19 is going to hit most families financially. So for a typical family of four people, there will probably be a lot fewer willing to spend $5-10,000 on a vacation with flights and car rentals. A drive-to vacation, where the biggest expense is the STR rental, is going to be preferred by many.

All of this is very bullish for those who own STRs in the "drive to" destinations across the U.S. and Canada.