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Cheshire
Thursday, April 3, 2025

How technology has impacted tourism and local communities

It’s no secret that the rise of the internet and faster connections have changed the way in which people book their holidays. But the growth of apps and sites like Airbnb and Instagram in recent years has transformed hospitality in even bigger ways.

The increase in short-term holiday rental options has also had a large impact on the wider community, with the housing market in popular cities across the world skyrocketing due to bigger demand and boosts to the local economies.

We’ll explore both the positive and negative effects that this has had on tourist hotspots throughout the world.

The ‘Airbnb effect’

While the rise of Airbnb and similar property lets across the globe has created a positive impact on the local economy, leading to a growth in hospitality jobs as well as increased investment in an area, it has also had some negative effects.

As well as pushing residents out of the property market by raising house prices, popular tourist hotspots have led to landlords deciding to move away from long-term rentals to the short-term market. The significant price difference means that listing their property on Airbnb can often be more lucrative than letting a home out longer-term. This has led many to believe that such sites are ruining local communities, particularly in rural and appealing locations.

How are landlords adapting?

If landlords continue to switch to the short-term market, this could leave a shortage in the private rental sector, pushing up prices even further. However, with many hoops through which to jump to be able to let out a property long-term, it’s understandable that landlords are attracted to other ways of listing their homes.

While landlords need a licence to be listed as a host property, there are other documents they should also consider such as commercial landlord insurance, to help protect their assets, and an approval from a mortgage company. Many still view short-term renting as an easier way to make money.

Although some local areas have implemented a 90-day limit on rentals, many cities don’t currently implement this, leaving the door wide open for longer-term listings, and the potential to attract more tourists.

The influence of social media

As many hotel providers turn to social media to promote their business, the development of apps has led to a greater audience reach for holiday bookings. Platforms such as Instagram now incorporate holiday-booking features into their apps, meaning that businesses can promote their brand through images and encourage users to book directly through the site.

VR technology allows customers to see exactly what their holiday will look like, before booking and without leaving their home. The use of such devices is likely to change how people book holidays as well as where they stay, especially if they’re able to access more remote areas of the globe before committing to booking.

It remains to be seen if the use of ever-changing technology will affect the way in which consumers holiday in the long-term, but there are signs that traditional breaks are becoming a thing of the past.

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