Outlook 2022: What’s fueling the demand?

Written by Elizabeth Weedon
3.4/5 - (10 votes)

Covid has had a significant impact on vacationer demand for short-term rentals. As that impact begins to wane, however, inflation, labor and housing shortages, higher wages, and energy costs now prevail. This season, travelers are facing significant financial and logistical challenges.

Fortunately, the Cape and Islands continue to present a very attractive option for them. In fact, some of the current conditions are actually continuing to propel demand from vacationers wary of overseas or long-distance travel, and for reasons other than the pandemic.

It does, however, create a need for rental homeowners to take a close look at their expenses this season to figure out exactly where their costs have increased. And then, try to determine: is it a temporary situation due to short-term supply chain or labor issues? Or is it likely to stay high? And can you pass along the price increases to your guests, or do you feel that you might be reaching a tipping point, risking your ability to fill your home fully for the season?

Homeowners are feeling confident

Historically, by this time of year, we see homeowners dropping their rates in order to fill remaining vacancies. Remarkably, however, homeowners haven’t reduced their rates on average at all so far. And this is despite the fact that there is more summer week availability at this point than there was last year. Looking at the most popular summer weeks (June 25 – August 27), the current average Availability % per Week is 15% compared to 10% at this time in 2021.

We do believe there will be homeowners who will need to drop prices for any vacancies, especially if they were aggressive in increases at the outset of the booking season.

What’s continuing to fuel vacationer demand

Vacationers are still not flocking to far-away destinations. In fact, despite improving Covid conditions, more Americans are expected to stay closer to home again this summer than expected.

According to travel technology company, Hopper, searches for round-trip flights from the U.S. to Europe have fallen an average of 9% below expected levels. Reasons include concerns about the costs of flights getting there, as well as worries about safety and energy shortages at the destination sites.

It’s not just financial reasons pushing vacationers to stay closer to home. A new MMGY Travel Intelligence study suggests 62% of U.S. travelers are so concerned about the war in Ukraine spreading to nearby countries that it’s affecting their plans to travel to Europe.

The vast majority of vacationers to the Cape and Islands arrive by car. Are the high gas prices expected to deter them? Apparently, not. In a recent survey, AAA found that as many as 42% of vacationers said they would not consider changing their travel plans regardless of the price of gas.

Despite recent rental price increases, spending a family vacation in a short-term rental home on the Cape and Islands excels at providing a safe, affordable, simple, natural, and fun experience for all ages.

Mitigating the demand

We’ve activated an extraordinary number of new listings this spring – nearly 100 per month for the past 3 months.

And the quality of the homes is improving every year. No longer do vacationers expect the simpler, rustic even, cottages of the past. The majority of new listings coming online are from folks who have recently bought or renovated a home for rental. So, vacationers’ expectations are much more demanding than in the past. This is important to keep in mind when considering your pricing. (Read more about our early pricing advice for 2022.)

What will the Cape and Islands be like this summer

In viewing our Events Calendar , it’s apparent that most of the events that were cancelled the past 2 seasons due to the pandemic will be back this year.

But your guests should be aware that, although things may seem back to pre-pandemic normal, they are not completely the same.

Lingering labor shortages, exacerbated on the Cape and Islands due to the housing crisis, are expected again to cause longer lines at shops, restaurants, events, etc. Businesses everywhere are displaying help wanted signs.

According to the U.S. Travel Association, employment in the leisure and hospitality sector is down by 8.7 percent since February 2020. Among 1.6 million jobs yet to recover, 1.5 million are in leisure and hospitality.

Restaurants will be crowded and some even closed several days a week due to labor shortages, and wait staff will be stretched. Your guests could be reminded to be patient and tip well. Those who are working are likely working well overtime and doing the best they can.

But the pandemic also created new opportunities. Many restaurants have provided more outdoor seating and improved take-out options.

And staying in a vacation rental home is the perfect solution for vacationers who can choose to eat in in comfort, safety, and privacy.

Managing a short-term vacation rental on the C&I is a lot of work, and homeowners have been faced with huge challenges and expenses over the past 3 years. But we are also fortunate to be able to provide such an attractive option to vacationers, allowing them to drive to their destination, dine in if they choose, and enjoy privacy and safety throughout their stay.

About the author

Elizabeth Weedon

Elizabeth Weedon - Although I’ve worked for WeNeedaVacation.com since 2008, I’ve been a loyal homeowner on the site since early 1998, just a few months after the website was launched by the Talmadges. I grew up summering on the Vineyard and managed my family's rental home there since the mid-1980’s. I’m passionately devoted to the Vineyard – and to WeNeedaVacation, which I credit with enabling me to hold onto the special property that has been in our family for nearly a century. An enthusiastic member of the WNAV Homeowner Support Team, I endeavor to keep my finger on the pulse of the Cape and Islands vacation rental industry so that I can provide homeowners advice about how to ensure their booking success with us. With owner Joan Talmadge, I am also responsible for editing and writing much of the text on our website, our monthly newsletters, and Homeowner Blog posts.


  • Very nice summary on the current scenario for homeowners. Incredible numbers of new properties on your site! I think that it’s interesting to see how some people are very drawn to the high end rental companies like Nauset rentals and Delmar. And then there’s also a ton of people who know your site very well and see it as a well recognized brand. We are booked for the summer but still have two weeks in September available and as always that’s a tough time to fill. Someone actually came to look at the house yesterday which is the first time we’ve ever seen somebody come to our house in four years of renting. They have a lot of choices so the competition is steep for September. I just wanted to say how much I appreciate all the work that you do and all the communication that you sent out and all the effort that you extend to helping helping property owners. You make a real difference in what can be a difficult and time-consuming process! We’re very old-school we do all of our own cleaning and most of our own repairs and property maintenance. And I think people really respect that. Thanks again!