Vacation Rentals Across the Middle East Seems to Exploit “Revenge Tourism”
Luxury Explorers has properties like Villa Botanica in the exclusive Emirates Hills, often referred to as “Beverly Hills” in the UAE.
Luxury Explorers’ Collection
DUBAI, United Arab Emirates – In the Middle East, a new breed of exclusive vacation rental companies are striving to meet the needs of today̵[ads1]7;s travelers – who have very different preferences after the pandemic.
The global vacation rental market – valued at $ 22.7 billion by 2020 – will exceed $ 111.2 billion by 2030, according to a Precedence Research study late last year. The research talked about a “revenge tourism” trend with millennials and the younger generations driving the growth in the first years after the coronavirus pandemic.
According to analysts, this is mainly driven by the growing awareness among travelers about the extra space and comfort offered by vacation rentals, not to mention, in some extreme cases, the “extras” such as high-tech gyms, private movie theaters, smart home appliances, and personalized services. companions, butlers and even cooks.
One company that wants to make money on this is the Dubai-based travel agency Luxury Explorers. During the pandemic, the company saw which way the wind was blowing and took a leap into the premium holiday home industry, establishing the Luxury Explorers’ Collection in mid-2020.
The company owns properties such as Villa Botanica in the exclusive Emirates Hills, often referred to as “Beverly Hills” in the UAE. Luxury Explorers’ Collection CEO Mohammed Sultan told CNBC: “The idea really started in 2018 when we found out that some of our VIP clients who worked with our agency were keen to spend their holidays in luxury holiday homes and villas when traveling around the world. . “
“At that time, Dubai did not have the level of premium vacation rentals that these customers experienced in the south of France, Italy and Los Angeles – areas that are well developed when it comes to renting shorter stays.”
“That was when we decided to take the lead in pioneering the development of the local market by offering sophisticated properties that are not only visually stunning, but at the same time rich in exclusive benefits and personal concierge services.”
Overcame the pandemic storm
The company is a remarkable success story in the UAE. It has 20 properties in Dubai – mainly large villas in prime locations or beautiful apartments in iconic buildings such as the soaring Burj Khalifa – and is expanding rapidly with five properties opening in Mecca in Saudi Arabia, and one in Abu Dhabi. Its wealthy clients include the very wealthy, celebrities, sports personalities and politicians.
Meanwhile, the rental company Maison Privee has gained recognition in the Middle East with its portfolio of luxury villas, penthouses and apartments. Dubai’s Deluxe Holiday Homes also reported a 150% increase in the real estate portfolio last year, despite the pandemic’s travel stoppage, and short-term rental operator Kennedy Towers has spoken of solid demand in the region.
Globally, rental housing performed better than hotels during the pandemic, according to a joint study from 2020 conducted by the research companies STR and AirDNA.
The study covered 27 international markets and found that while demand for both hotels and short-term rentals was severely affected by the health crisis, the rental pandemic fared better, primarily due to preferences for larger living areas, full-service facilities and the need for social distancing.
Leading holiday home companies confirm that they have actually had a consistently high occupancy rate since the beginning of the pandemic. “We have been averaging 92% since its inception in August 2020,” Harrison Moore, CEO of Key View Vacation Homes Rental in Dubai, told CNBC.
He added: “So far in 2022, we have seen a 33% year-on-year increase in our average daily rate. One of the main drivers for this has been that Dubai is one of the leading innovators when it comes to security protocols related to Covid-19. “
Enter hotel marks
Not surprisingly, major hotel brands have entered the holiday rental game. One such investment is Marriott’s rental service called Homes & Villas by Marriott International, which now boasts rental homes in over 100 destinations.
Marriott’s expansion into this area began after the pilot project in 2018 for renting out homes, called Tribute Portfolio Homes, revealed that the average guest stay was more than tripled by a typical hotel stay.
On the more budget-friendly side, Airbnb has also been booming in the Middle East for several years, with some Insta-ready homes for rent. These include everything from an ancient riad in Marrakesh – with a courtyard with an emerald green pool – to a traditional wooden hut in the mythical mountains of Lebanon.
