In the world of temporary rentals, it is common to confuse the terms “holiday home” and “tourist accommodation”. However, it is important to understand the differences between the two concepts, as they have significant implications in terms of legal requirements, management, rental duration and profitability.

In this article, we explain in detail the characteristics of each type of home and how to optimize your investment.

‍What is a holiday home?‍

A holiday home is a property intended for temporary rental for tourists. This type of property it is rented independently, without the need to offer additional tourist services, such as daily cleaning or reception.

Holiday homes are, generally, private properties that landlords decide to rent for a certain period. They are not subject to the same strict regulations as hotels or tourist accommodations, making them an attractive option for many homeowners looking to make their properties profitable without complications.

‍What is tourist accommodation?‍

A tourist accommodation or Housing for Tourist Use is a type of accommodation offered for short stays, usually days or weeks.

Unlike holiday homes, the tourist apartment is usually registered as a tourist establishment and is subject to stricter regulations in terms of safety, health and administrative control.

Touristic housing offers additional services that may include cleaning, reception and maintenance, which are classified similarly to the hotel model.‍

The differences between holiday homes and tourist accommodation

Understanding the differences between a holiday home and a home for tourist use is key to deciding which option is most suitable according to the needs of the owner and the market.

Below, we explore some of the key differences:

1. Purpose of the rental:

- Tourist accommodation: It is more oriented to offering an experience similar to that of a hotel, with a focus on providing a series of additional services and amenities. These properties are designed to attract tourists who prefer a level of service closer to that offered by a hotel, but with the advantages of privacy and space of an apartment.

Services may include daily cleaning, changes of sheets and towels, customer service available 24/7, amenities (such as Wi-Fi, cable TV, air conditioning, etc.), and in some cases, additional services on demand such as transportation or guided tours.‍

- Holiday home: In this case, a holiday home is generally rented to tourists or to people who want to spend a longer period in a specific destination, but without the additional services normally found in tourist accommodations such as hotels. This type of rental is designed for those looking for a more independent and often cheaper experience.

2. Length of rental:

- Tourist accommodation: They are primarily designed for short-term rentals, usually from days to a few weeks. This rental model is aimed at tourists looking for a temporary accommodation option during your holidays, weekend getaways or short visits to the city.

Due to the short-stay nature, tourist apartments can adjust their dynamic pricing to maximize profitability during peak seasons, so incomes may fluctuate more compared to long-term rentals.

However, they require a more intense management, since they involve frequent changes of tenants, cleaning between stays, continuous maintenance and availability to check in and check out on a regular basis.

‍- Holiday home: Holiday homes are generally oriented to medium or long-term rentals. This type of rental is ideal for tourists or visitors looking for longer stays, such as families on long holidays, professionals on extended business trips or people who are in the process of relocating.

With medium and long-term rentals, landlords are not as exposed to tourist market fluctuations or low seasons, providing a more stable and predictable source of income.

‍3. Regularity:

- Tourist accommodation: These properties are subject to stricter local or state regulations that establish minimum quality and safety standards. This means that owners or managers must provide services on a regular and consistent basis.

In addition, these are often subject to regular inspections by local authorities to ensure that they comply with all current regulations. This regularity in the provision of services and regulatory compliance is essential to maintain the tourist operating licence.

- Holiday home: In contrast, they are more flexible in terms of service offerings. These properties are not subject to the same strict regulations as tourist accommodation and, therefore, are not required to provide services on a regular basis.

This flexibility means that homeowners can choose to: offer only essential services and customize the offer according to the type of guest or the length of stay. However, this same flexibility may mean less control over the guest experience, which can impact reputation or ability to attract certain types of tourists.

4. Legal requirements:

- Tourist accommodation: In this regard, they are subject to specific local tourist regulations that vary depending on the autonomous community or country where they are located. These regulations require owners or managers of tourist accommodation to obtain the necessary licences to operate legally. This involves a process that may include the submission of detailed documents about the property, its condition and its suitability for tourist use.

Failure to comply with these regulations can lead to economic sanctions, closure of the property for tourist use, and even the revocation of the licence. Therefore, the regulation of tourist flats involves a series of legal responsibilities that require in-depth knowledge of local and state regulations.

- Holiday home: On the other hand, holiday homes must also comply with certain legal regulations, but these are generally less strict and less complex compared to the others. Regulations for holiday homes tend to focus more on aspects of general habitability and basic security, without specific tourism-oriented requirements.

This lower legal burden means less costs and less red tape for holiday homeowners, making them an easier option for those who want to rent their property on an occasional basis or for specific periods of the year without the complexity of managing a tourist business.

‍5. Management and services:

- Tourist accommodation: A higher level of professionalization is required due to the additional services and standards it must meet to offer an experience comparable to that of a hotel. This implies an increase in operating costs, since homeowners invest in aspects such as regular maintenance, cleaning services for each tourist accommodation or customer service and, in some cases, additional services such as transportation or excursions.

For our part, through our basic supply management software for owners and managers of tourist homes, bills for supplies such as water, electricity, gas, telephony or internet, among others, can be digitized to optimize consumption and associated costs. In addition, we have a team of experts who work on supplier management, claims for disproportionate costs, or any other reason, and on finding the best rates in the market for each particular case. All of this entails a reduction not only of money, but also of time, simplifying the administrative burden and identifying savings opportunities in the long term.

- Holiday home: In comparison, managing a holiday home can be less complex and generally involves lower operating costs. Since holiday homes are not subject to the same service and standardization requirements as tourist accommodation, homeowners may have more flexibility in terms of the services they offer. This can translate into lower investment in maintenance and additional services, as well as less need for specialized personnel.

6. Profitability:

- Tourist accommodation: Touristic housing has the potential to offer higher profit margins due to the high daily rate that can be charged for short stays. The daily rate of tourist accommodation is usually higher than that of a holiday home, as it is aimed at tourists looking for comfort and additional services during their short stay.

This can result in significant revenues if the property is in high demand and is kept busy most of the time. However, it is important to consider that this higher potential return is accompanied by higher management and maintenance costs.

- Holiday home: In contrast, a holiday home offers more stable long-term income with lower management requirements and lower operating costs. By renting the property for medium or long-term periods, homeowners can enjoy a more predictable and less fluctuating source of income.

However, monthly rental rates may be lower than the daily rates of the tourist accommodation, so the gross return may be lower. However, stable revenues and lower management costs can balance this difference and provide solid and sustainable returns over time.

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‍The choice between a holiday home and tourist accommodation:

Choosing between a holiday home and tourist accommodation depends on the owner's needs and the type of management desired. Holiday homes offer stable incomes and require less management, ideal for those looking for simplicity. Tourist accommodation, on the other hand, can generate higher revenues through higher daily rates, but they entail more intensive management and additional costs.

For optimize the profitability of a property, is It is key to implement appropriate strategies and use consumption monitoring tools. With the Polaroo software and the team of experts, we facilitate this task in order to detect incidents and reduce the costs associated with the consumption of each supply. If you want to know more about how it works, request a demo and let's talk about your case.