In Q1, our tracked continents registered positive vacation rental reservations with respect to pre-covid levels for the first time. The headline: short-term rental demand has exceeded pre-pandemic levels. We wipe the slate clean to look at demand trends facing vacation rental property managers in 2022. To mark this moment, we have launched a brand new vacation rental data tracker. It’s a free resource, where you can explore more of the insights below.
So, it’s 2 years since that pandemic announcement in March 2020, where is the short-term rental industry now?
Demand trends facing property managers in 2022 from our new vacation rental data tracker
So first, how are current vacation rental rates?
The first important observation is the growth in ADR since the pandemic. Globally, property managers have consistently made the decision to lean into existing demand and use heightened daily rate to compensate for reduced reservations. Looking at how 2022 has begun, short-term rental rates remain a huge 24% higher than in 2019. This knowledge, and further insight specific to your market (or segment) is critical in ensuring that your prices are optimized and you leave no money on the table.
Length of Stay
Looking at the huge uptick in length of stay in March 2020, it is clear to see the immediate impact of COVID-19 on the type of trip people were booking.
Furthermore, this trend has proven to last. Even now in 2022, number of days stayed per reservation sits 12% higher than for the same 2019 period. A combination of these longer stays and the reactive higher ADR (see above) fuelled a stronger rebound for short-term rentals relative to hotels. You can also explore booking window.
Here we explore what % of guest in each given nation have travelled domestically vs internationally. It stands to reason that the % of domestic travellers rose sharply as COVID-related restrictions came into play. Indeed, that is what we see in the next chart:
The most interesting thing about this analysis, is the disparity in the persistence of this trend in domestic guests from country to country. China for example reports a sustained increase in domesiticity, with levels around 10% higher than 2019. Contrast this with Spain and you see that while levels there also peaked during lockdown, international travel looks to have more than recovered. Knowing where your guest hails from is important in tailoring marketing, distribution and pricing. You can also find a breakdown of reservations across different market types in our new vacation rental data tracker.
And finally for this article, we come to demand as a whole: How is vacation rental demand looking 2 years on?
Reservations relative to the same week of 2019 have seen a steady recovery globally. The Americas, where restrictions have been less stringent, have seen quicker and more absolute recovery; especially compared with Asia and Oceania. As mentioned previously, we have finally seen bookings exceed pre-pandemic levels globally. In the full tracker you are able to view bookings charts by country also!
New vacation rental data tracker
Our new tracker is available to you for free by clicking here. Not only can you track the charts above as they update frequently, but you can explore further insights including supply too.