February 2019 might feel like a long time ago, but could the long awaited resurgence of travel finally be upon us? Our new data tracker allows you to monitor demand growth for vacation rentals, but below we go one step further by publishing our forward looking, on the books occupancy. And Summer 2022 vacation rental data shows unprecedented demand.
See the growth below and what it means for property manager strategy, or reach out to us for insights and trends more specific to your location and segment. You can read an overview of US markets here.
Summer 2022: vacation rental data shows unprecedented demand in world regions
Looking from week 10 of this year, we can se how much of a demand surge has been experienced for Summer across all world regions
Asia, which typically sees shorter booking windows, still has the lowest on the books occupancy, yet has seen the biggest increase year over year (compared with 2019). Europe on the other hand may have seen lower growth over 2019, but its occupancy on the books sat highest (32%) in week 10 by some margin.
Summer 2022: vacation rental data shows unprecedented demand in European markets
Here we drill down into European countries and their Summer 2022 outlook. The improvement in demand levels compared with pre-pandemic 2019 is marked. Pent up demand and a first ‘free’ Summer are leading to unprecedented appetite for short-term rentals throughout Europe.
While Denmark presents on a par with 2019, every other nation is experiencing at least a 40% increase in on the books occupancy for the Summer. Lithuania (112%), Finland and Ireland (both 85%) top the charts, with Estonia, UK and Italy also coming in in excess of a 75% increase.
So what about when we drill down to individual markets?
…in specific destinations
In mid-May, Paris was sitting at 33% occupied for August 15th. This compares with just 10% by the same point in 2019. To put that into context, that’s 3x more demand than what Paris was seeing pre-COVID. This is especially impressive given the leaning of demand towards non-urban destinations this Summer.
Lisbon meanwhile is already 45.4% occupied – up from 17.7% (156% increase). Similarly, in Spain, Donostia (San Sebastian) and Mallorca are both pacing well above Summer 2019 (85% and 128% respectively).
The reality for property managers & the power of vacation rental data
Pent up demand and a first ‘free’ Summer are proving a perfect storm for the highest occupancy ahead of Summer that we’ve seen. So, what does this demand shift mean for short-term rental property managers and revenue managers?
The headline when demand is strong is optimize your rates. If you are not up to speed with how occupancy is pacing for certain dates, or how your competitive set are pricing, then you could be leaving the vast majority of your potential ADR on the table.
Take Mallorca for an example: in this climate of heightened demand the current average daily rate advertised for 15th August across the market is 384€. ‘Property manager X’ is currently advertising that night for just 264€ – while their occupancy is at a huge 94%. Property manager X manages 281 properties. Their total revenue whilst booking 94% occupancy at 264€ is a massive 26% lower than with the market averages (70,000 vs 88,000€). That’s for just 1 night – imagine what that looks like across a Summer or even a year.
That example really lends some weight to the importance of consulting market data and factoring it into your pricing strategy. Now, with demand stronger and less predictable than ever, this visibility has never been more important.
Explore the power of vacation rental data: