Short-Term Rentals Haven’t Fully Caught On For Business Travel

07.06.2024 - 17:47 / skift.com / Brian Chesky / Elizabeth Casolo

A number of travel management companies and corporations are starting to allow vacation rentals as accommodations, but there’s room for growth.

A recent Mastercard survey found 53% of those involved in coordinating travel say their companies allow them to book vacation rentals.

Sabre’s Global Distribution System lists over 400,000 accommodations beyond hotels. Sabre also manages corporate booking tool GetThere, meaning those going on business trips can stay in these properties.

“The interest from our agency partners on this segment has been increasing, and we have been selectively adding more supply in this category based on their needs,” a Sabre spokesperson wrote to Skift. “The booking volume compared to hotels is still low, but the growth is encouraging and is in the high double digits compared to the same timeframe last year.”

Corporate travel and technology company BizAway spotted a “noticeable trend of increasing preference for short-term rentals among travelers.” 

A desire for flexibility, which mostly started around the pandemic, has impacted office and corporate travel culture. Vacation rentals could help meet this growing demand as some travelers want to extend business trips or “work from anywhere,” said Chad Wallace, global head of commercial solutions at Mastercard. 

Skift Research surveyed over 50 business travelers who stayed in short-term rentals last year. 

Out of these guests, 58% said they are “very likely” to book another short-term rental in the next year.

Location and comfort for longer stays were the top two reasons travelers opted for a rental. 

“We see that extended stay-type hotels are really popular for travelers that are going to be staying in a location more than three or four days,” said Jamie Lane, chief economist at short-term rental analytics firm AirDNA. “And likewise, that’s why short-term rentals can be popular for business travelers. You can stock a fridge. You don’t have to have every meal out, that sort of thing — and also just having a desk.”

BizAway observed how, among its clients, retail chains sending employees to train staff at new stores have gravitated toward short-term rentals. Companies involved in machinery and construction installations do, as well, “due to the lengthy nature of their projects.”

Some short-term rentals may also be cheaper , another consideration for business travelers. 

“Now, travel managers are adjusting their policies to offer more flexible options to not only meet employee demands for more convenient travel options, but also establish cost efficiencies for the organization,” Wallace said. 

While just over half of decision makers permit vacation rentals on business trips, there is a discrepancy. In that same Mastercard survey,