All Forum Posts by: Ross Gallo

There are a number of STR markets that do very well in recessions. I manage vacation rentals in the Gatlinburg, TN area. Our occupancies do not vary much, regardless of the national economic environment.

What we DO see is a shift in where our guests are traveling from:  In an economic expansion, travelers are visiting the Smoky Mountains from up to several thousand miles away.  Folks will often fly in for their vacations.  In economic recessions, travelers are, more often, driving to the Smokies, from places like Nashville, Atlanta, and Charlotte.  

If you are operating a STR in what is primarily a "fly-to" destination, your downside in a recession is much greater, simply because airfare can dominate a travel budget. If families can jump in the car instead of head to the airport, they've probably saved several $ thousand on their vacation.

Hey @Ross Gallo, our experience is that we get more bookings as things trend down. We had our best years during the pandemic and this year is just as good.

I was a bit concerned that we would get some cancellations due to fuel costs but so far, nada.

Our home is 36 miles down lake from Coeur d'Alene, Idaho so it is pretty far out there but people love it and fuel costs don't seem to be an issue.

As far as moving forward into 2023, I have bookings now just starting to come in for summer. If you keep it affordable for families to visit, they will find a way to come and have a good time.

My 2 cents.

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