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The 'bleisure' travel era has emerged as a result of remote and hybrid work trends, blending business and leisure elements on work-related trips. The work landscape has undergone significant transformations with the prevalence of remote and hybrid models, causing ripple effects across various industries, from commercial real estate to downtown restaurants. Workers, freed from office attendance requirements, are now planning their travels differently, extending work trips to include leisure activities or working during their leisure trips, often referred to as "bleisure travel," "laptop lugging," "workations," or simply "blended travel."


 

This trend challenges the traditional demarcation between leisure and business travel and is already impacting the travel lodging industry. Existing options, especially hotels, may fall short in meeting the needs of bleisure travellers. This has created an opportunity for short-term vacation rentals, such as Airbnb, to thrive. According to a 2023 report from AirDNA and STR/CoStar, demand growth for short-term rentals has surpassed that for hotels since the first quarter of 2022, reflecting changing traveller preferences and the agility of short-term rental hosts in responding to these shifts.

The growth in supply of short-term rentals has consistently exceeded 15% year-over-year from the first quarter of 2022 through the second quarter of 2023, compared to below 5% growth for hotels, as reported. The rise in availability and the preference of travellers for short-term rentals are influenced by the flexibility they offer, with many remote workers choosing them for extended stays. The ability of short-term rentals to provide home-like conditions, discounts for prolonged stays, and amenities like kitchens and workspaces adds to their appeal.

This new kind of travel is not a temporary phenomenon but a sustained trend. A fall 2023 survey by Deloitte indicates that more than a third of workers plan to do some work during holiday season trips, up from 26% in the 2022 holiday season. Remote employees, planning to work during their holiday trips, expect to extend their stays by nine days due to increased schedule flexibility, emphasising the profound implications for the lodging industry.


 

Bleisure travellers are reshaping travel patterns, seeking larger accommodations outside major cities for extended rentals. The shift in preferences towards suburban and rural areas, as well as mountain and beach destinations, is evident in the changing supply dynamics reported by AirDNA and STR/CoStar. Larger homes are experiencing increased demand, favoring short-term rentals over traditional hotels. Economic headwinds hindering new hotel development suggest that these trends are likely to persist, underscoring the transformative impact of bleisure travel on the industry.