NEW YORK - Ms Lillian Smith has spent about eight of the last 12 months travelling around the world, hitting France, Morocco, Japan and South Korea. Her cost for lodgings in that time? About one night in a hotel, along with the time she spent walking dogs, watering plants and changing litter boxes.

“I have always dreamed of travelling to Japan but didn’t have the budget for hotels and Airbnbs,” said the 30-year-old freelance designer from Mississippi. Her solution was to agree to house-sit, walk dogs, and care for plants for people around the globe.

Economic activity has slowed in recent months, but many still yearn to quench their thirst for travel that grew out of sitting at home during the coronavirus pandemic.

Travel rates are rising, and are now higher than before the pandemic, but travel-hungry consumers are finding creative ways to save money and still vacation.

Some are taking road trips instead of flying or booking a budget hotel room. Others are more innovative – spending US$100 (S$130) to US$250 for annual memberships to websites that connect them with people who need simple chores done while their dwellings are vacant.

US short-term rental and hotel average daily rates are about 37 per cent and 19 per cent higher, respectively, than in April 2019, according to short-term rental and hospitality analytics firms AirDNA and STR.

Consumers are trading down. Travellers in March booked 21 million short-term rental nights, the highest number of future nights booked on record, according to AirDNA. One-bedroom or studio in-home rentals in 2022 were 26 per cent and 10 per cent cheaper than hotels in large cities and coastal resorts, according to AirDNA and STR.

In April, demand for budget and economy short-term rentals was up 18 per cent and 12 per cent, respectively, compared with the year-ago period, ahead of a 10 per cent increase in demand for luxury rentals, AirDNA said.

As at March, US consumer spending on hotels and motels was up about 7.2 per cent from a year ago, but has dropped by about 4.6 per cent from December 2022, according to the US Bureau of Economic Analysis.

Vacations with chores

Ms Smith said she has house-sat in France, Morocco, Japan and South Korea after spending US$169 on the cost of an annual membership to TrustedHousesitters, a platform that connects pet owners with in-home sitters. She estimates she has saved over US$11,000 in accommodation, even though she must still pay for plane tickets.

“I took care of three cats and 20-plus plants while I was in Morocco, one dog in Tokyo, one dog in Kobe, and two cats in South Korea,” she said.

Britain-based TrustedHousesitters said its membership figures increased 12 per cent to 160,000 in the past quarter, led by growth in the United States.

Paris-based Nomador, a house-sitting platform, saw a 60 per cent increase in new sitters from the last quarter of 2022 to the first quarter of 2023, chief executive officer Mathilde Ferrari said.

TrustedHousesitters said that domestic travel accounts for about 90 per cent of all house-sits in the US, while Nomador said domestic travel accounts for 70 per cent of house-sits globally.

TrustedHousesitters said it advises users to check all immigration requirements before international house-sitting.

Some travellers are also turning to unlimited house-swopping. US company HomeExchange said membership levels in the first quarter increased 77 per cent year over year to 110,000, and exchanges increased 63 per cent.

More travellers on a budget

US travel companies have taken notice, beefing up economy-level options to draw in growing numbers of cost-conscious travellers.

Hotel operator Hilton in January announced a new economy hotel brand, Spark, aimed at budget travellers, and told investors in April it was working on a lower-end extended-stay brand.

The goal is to attract the roughly 70 million to 80 million people who travel in the economy segment, half of whom are “younger people” who can afford only lower-priced hotels.

“We’re not serving many of them,” said Hilton CEO Christopher Nassetta on an investor call in April. “The opportunity is for us to get them hooked on our system early by giving them the best product that they can find in the economy space.”

Travel strategist Toni McCord, 52, started house-sitting on Nomador in 2016 and now suggests the platform to her clients who are self-employed or work remotely.

“People are feeling very limited in their abilities to travel because we’re in a recessive economy, but when I bring up house-sitting, they’re like, ‘Wait a minute, I didn’t realise that I could do something like that.’“ REUTERS