View Do you see the new vacation rental regulations as a positive or negative impact on destinations moving forward?

Is short-term residential rental a necessary evil for hotels and the local housing markets?

Airbnb, VRBO, and vacation rentals did surprisingly well during the pandemic. Many travelers choose to stay in home-sharing or vacation rental facilities over hotels for a reason. That shows how strongly consumers demand a new type of lodging product.

Linchi Kwok
View by Linchi Kwok, Professor and Department Chair, CAL Poly Pomona

Hotels have put efforts into improving their offerings in extended-stay hotels and luxury residences. Some have also entered the home-sharing market, debuting their version of vacation and short-term private residence rental services. To some extent, short-term residential rentals have pushed more innovations and changes for hotels as the incumbents try to defend their market share.    

Travelers would like to see more competition. A variety of accommodations in the market usually offers more options to meet different needs and purposes of their trips. Competition could also mean lower prices for consumers.

I encourage local governments to also pay attention to the positive consequences of the booming tourism and lodging markets. When more people stay in the city center, either in hotels or residential rentals, local governments can collect more tourism taxes and have a lower unemployment rate. Besides adding more restrictions on short-term residential rentals, governments may find ways to collect more taxes to support additional affordable housing projects.

Lastly, we should also assess the potential of empty office and retail space in metropolitan areas. For example, can converting some vacant buildings into hotels, short-term residential rentals, or affordable housing facilities make sense to meet the demand?

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Linchi Kwok
Linchi Kwok
Professor and Department Chair, CAL Poly Pomona

Linchi Kwok is a Stanford/Elsevier World's Top 2% Scientist, Department Chair, and Professor at The Collins College of Hospitality Management at Cal Poly Pomona. A recognized thought leader in hospitality and tourism, he conducts research on hospitality management, service marketing, and emerging technologies, with work published in leading academic journals and cited by major media outlets.

CAL Poly Pomona
School-University

As the oldest and largest four-year hospitality management program in California, The Collins College of Hospitality Management offers students a vibrant education firmly rooted in hospitality management theories and real-world applications. With an engaging curriculum, our renowned faculty members bring their hospitality industry expertise right into the classroom.

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