Digital nomadism on the rise
Airbnb reported record earnings this quarter, but the their earnings report captures a trend in how US travel is evolving.
Guests continue to stay longer on Airbnb. In Q2 2022, long-term stays of 28 days or more remained our fastest-growing category by trip length compared to 2019. Long-term stays increased nearly 25% from a year ago and by almost 90% from Q2 2019.
Digital nomads are leaving the home office behind to work from anywhere, and the trend is still growing. They’re traveling abroad while they meet deliverables from a new location with strong wifi. Since these traveling professionals are still working full time and the logistics of moving from place to place can still be chaotic, they’re staying in one vacation rental unit for a longer period of time.
And there are LOTS of them! According to research listed in the Harvard Business Review, the number of digital nomads increased to nearly 11 million in 2020. That figure has almost certainly increased since then.
It’s creating a fast evolving hybrid travel/housing model.
While there are many companies innovating on this trend to provide long term rental units in travel destinations, the local communities that didn’t prepare for an influx of long-term traveling workers will bear the brunt of its negative effects.
We’re already seeing it happen.
Mexico City. According to reporting from the Los Angeles Times, Mexicans are fed up with the number of Americans moving to Mexico City, causing gentrification and an increase of English spoken across the city. Signs around Mexico City say, “New to the city? Working remotely? You’re a f—ing plague and the locals f—ing hate you. Leave.”
Portugal. The government suspended its golden visa program in large cities, which had offered residency to foreigners who buy expensive property, because so many Americans took advantage of it. According to the LA Times, many Portuguese people are upset they can no longer afford housing in the capital, Lisbon, and other large cities.
So is there a way to ethical travel while working remotely? Digital nomads must take responsibility for not disrupting the communities in which they reside. Here are a few steps digital nomads should take before leaving home.
First:
Relocate to destinations where you already have familial/community ties. Following this step creates the least amount of disruption to destinations because the traveler is more likely to become integrated into the existing community. Speaking the language and understanding local customs go a long way.
Seek travel destinations that have remote work visa programs. Destinations like Barbados with its Welcome Stamp program have government approval to welcome foreigners in exchange for the financial benefit of long-term tourism. Once the programs are established, we trust local governments to have systems in place to ensure travelers won’t disrupt commodity supply chains and housing markets. As in Portugal’s case, the government can slow down or end the program if there’s too much interest, which brings me to my final recommendation…
Don’t go if a lot of digital nomads are already there. If every influencer is telling people to move there, scratch it off your list. More than likely, the destination is already experiencing disruption.
Then:
Stay in properties owned by people who are native to the destination & that are on par with local housing expectations. Staying in investor-owned properties with tons of amenities will change the market and drive up rental prices long term
Immerse yourself in local culture: communicate in the local language to the best of your ability. Buy from locally owned markets, restaurants and shops.
Leave American exceptionalism at home. This should go without saying, but American ideas of customer service, price points and time should never travel with you.
Leaving the United States to travel or live in another country is an extreme privilege. Before taking another step, it’s imperative to ask, “How will my next move impact the local community?”