Speaking at the recently-concluded Short-term Rentals Asia Conference (STR) held in Bangkok, Thailand, 17-year-old Jasmine Marshall made a strong case as to how her rising generation is already changing the game when it comes to short-term rental hospitality.
As she put it in her talk: “The ones driving the growth [of the industry] aren't always the ones with their credit cards yet: they're people like me. But in a few years, my generation will be making these bookings independently, and we will be shaping bookings and experiences and deciding which properties continue to thrive.”
At present, short-term rentals (STRs) make up around 24 percent of Thailand’s total accommodation supply, generating almost US$480 million in revenues per annum.
Surprisingly, it is those under the age of 20 who are wielding the most influence when it comes to where their families or friend groups stay when travelling.
As Jasmine puts it: “You might be wondering what a 17-year-old could possibly teach experienced property owners and managers. [My generation] may not always be the ones paying yet, but we are definitely the ones deciding, and we are the primary influencers of billions in tourism revenue.”
Anything but a side hustle
Renting out one’s home as an alternative to conventional hotels and hostels may have started out as a way to earn extra money for some, but it is now more of an established business as opposed to a mere side-hustle.
This is particularly true in Asia, with countries like Thailand clocking in foreign tourist arrivals in the millions per month.
Indeed, STRs and similar alternative accommodations currently make up 55 percent of the total room supply in the continent’s most tourist-centric areas.
But rather than just another place to rest for the night, STRs are also becoming a key driver of economic and cultural growth.
As Jasmine pointed out: “These properties aren't just places to sleep. They are engines of local growth, supporting jobs, wages, and the fabrics of our communities.”
To go by a report from Turno, younger travellers seek the following aspects in the properties they wish to stay in whilst on holiday:
- Property with a purpose This category includes listing eco-friendly properties, those actively engaged in programmes that give back to host communities, as well as those that source their supplies locally to support livelihoods within their neighbourhood;
- Flexibility and personalisation Younger travellers appreciate personal touches ranging from adjustable check-in/check-out times to the placement of guides to the best that a neighbourhood has to offer. Flexibility also covers reasonable cancellation policies;
- Deep-dive immersion In this age of immersive tourism, younger travellers want to experience places the way locals do, hence the need to stay in properties that would give them ample opportunity to do so; and
- Accessibility and inclusivity matter STR listings that offer optimal comfort to those with sensory, mobility, and even neurological issues are much appreciated as opposed to the one-size-fits-all paradigm common to commercial accommodations.
Catering to the Experience Generation
Jasmine likewise explained to participants at the conference that, for her generation, travel isn't just about getting out of school.
She said: “We are the Experience Generation. We want experiences over luxury, meaning over material things, and stories over souvenirs that will probably end up sitting on a shelf. If a property feels staged, we scroll right past it; if it feels real, we save it, we share it, and then we plan a trip around it.”
It is interesting to note that around 70 percent of Gen Z travellers prefer sightseeing and cultural exploration, while only 21 percent let loose and party whilst away from home.
Even more surprising is the fact that, thanks to the Sober Curious movement, Gen Z drinks considerably less alcohol than older generations with numbers declining by ten percent over the past decade.
This is seen as a boon for the STR sector, as sober guests reduce the possibility of a property getting trashed in the process of a party out of control.
Jasmine proudly stated: “We value experience over excess, so when you design for us, you're catering to responsible, experience-focused guests who leave memories and not mess.”
Wellness is another aspect that has driven Gen Z to consider STRs over standard accommodations: they aren’t just looking for bedspace, but more for spaces that support their mental and physical well-being.
As she puts it: “We want to leave a property feeling better than when we arrived. STRs are uniquely positioned to deliver this. You can offer amenities that feel personal and flexible. What does this look like in practise? Authentic design: we can tell when a space reflects its location or if it's just come straight out of a catalogue. Comfort and privacy, too, and full kitchens and private areas, especially private outdoor areas, are non-negotiable. Wi-Fi is important, not just for scrolling, but for working, for planning, and for sharing.”
All the aspects that Jasmine pointed out are what have made STRs the preferred choice for modern travellers, especially families and longer stays.
While the tastes and preferences of Gen Z continue to evolve and as Gen Alpha comes of age, the impact of the STR sector on the growth of the global hospitality sector continues to change the game and will continue to do so in the years to come.
