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MARKET OVERVIEW

1.1 Definition and scope of study

Seasonal rental refers to the rental of proprieties for a limited time period. In Italy the activity is often distinguished in regards to the length of the stay into: long stays, short stays and weekends stays. The market brings together the different platforms that allow the rental of accommodation for a short period - most often between private individuals - and concerns different types of housing: houses, villas, apartments, rooms or even bungalows and caravans.

The global market is growing and closing the gap with the turnover levels generated by the hotel industry. Similarly, European regions are also benefiting from the rise and popularity of this untraditional accommodation type, especially in the big cities and around touristic attractions. The Italian market – counting in 2018 a forecasted 1 million seasonal proprieties - is steadily increasing throughout its whole territory on the other hand, registering among the highest percentage growths in Europe (+18% in 2019); driven by the overall positive boost of the real estate market as a whole and the increasing tourist flows. In the short run, the market was strongly impacted by the Covid-19 pandemic.

Short stays rentals are attracting both actors of the value chain, property holders are starting to find it more convenient and profitable – as shown by an estimated 30%-40% higher turnover - than traditional rentals, and individuals – especially certain generations – are willing to travel more for shorter time frames. Seasonal rentals though are heavily influenced by price increases, as the supply catches up with the demand, customers begin to leverage on their higher purchasing power. Additionally, competition is intense between professional players in the hotel industry and private individuals who use a platform to rent out their property. The legislative framework is also decisive for the future growth of the sector.