Fourth International Conference on Tourism and Leisure Studies

Abstract

The purpose of this study is to evaluate existing literature documenting the benefits and drawbacks of vacation rentals on destinations. Vacation ownership rentals and peer-to-peer rentals have increased in recent decades. Destinations often struggle to determine how vacation rentals fit into the market share. It behooves researchers to understand what the available research reveals about this emerging industry. The significance of this study is providing a comprehensive review of the advantages and disadvantages of vacation rentals within destinations. Literature reveals key advantages of vacation rentals as increased room supply, increased visitor stay duration, dispersed distribution of revenue beyond traditional tourist areas and increased resort tax collection. Use of these taxes vary by destination but are often allocated for improving community infrastructure including roads and facilities. A portion of the tax is also often allocated towards marketing to increase tourist visitation to the destination. Literature also reveals drawbacks of vacation rentals as a failure to collect resort tax from peer-to-peer rentals displacing revenue while increasing the strain on community resources. The sense of community and cultural norms can be degraded by commoditizing neighborhoods. Vacation rentals within communities can lead to tensions and conflict between residents, owners, and tourists. Understanding the pros and cons of vacation rentals on destinations can help researchers identify the industry’s impact and assist communities in setting policies, recognizing safety concerns and managing resources. A future question to address is, are vacation rentals providing incremental new business or absorbing the existing market share?