Prague without tourists: short-term rentals at a dead end
Summer, two years ago. Tourism in Prague was enjoying its golden age, and the high number of visitors to the capital brought in plenty of money not only for restaurants and hotels, but also for short-term rental operators, which had proliferated several years earlier. What does the future hold for them now, when some hotels have not even opened at all?
Prague has nevertheless taken several steps to attract tourists to the capital. One of these is, for example, vouchers that guests automatically receive when staying in a hotel for more than one night. These vouchers can be used to visit galleries, museums, the zoo or the botanical garden, and CZK 121 million has been allocated from the city budget for this campaign.
Even so, hoteliers are reporting bad news, with most of them facing a desperate shortage of guests. Due to competition, hotels must also offer comparable booking conditions, so it is not uncommon for tourists to cancel their entire stay just a few days before arrival. Last-minute bookings are also a trend, but these leave hotels in a state of uncertainty, with no indication of what the situation will be in a week, two weeks or a month.
It is therefore logical that the current situation is not rosy for short-term rental operators. “We are genuinely facing different circumstances today, and some owners of these properties need to consider whether it would be easier for them to switch the property to a long-term or mid-term rental, which has different termination conditions and allows owners to be more flexible. We endeavour to provide our clients with the greatest possible assistance in this respect and, based on experience and an assessment of local competition, we can say which option is more profitable or less risky in the long term,” says David Novotný, owner and managing director of the independent real estate company Bohemian Estates International.
As part of its services, the company also offers property management for short-term rentals, taking care of advertising, bookings and guest accommodation on behalf of owners. “This service is particularly appreciated by people who do not have the time to manage it themselves. And I dare say that nowadays it is also a better option for those without much experience. We advertise properties on reputable portals, keep track of developments and know how to ensure that a property remains occupied. However, as I have already mentioned, everything is now subject to agreement, and sometimes we recommend that a client does not rent their property to tourists, at least for a while, but rather to businesspeople staying in the city for work, for example,” adds Novotný.
However, even he cannot predict how the situation will develop or whether tourism will return to normal at least during the coming year. “Short-term rentals may currently be at a dead end, but on the other hand, there is enormous demand for long-term rentals and, in my view, there are many ways to retain a property and keep it earning at least enough to cover all the necessary associated costs, including the mortgage. We are happy to advise our clients in this regard and arrange everything necessary,” concludes David Novotný of Bohemian Estates International.