Short-term rental data story Q1 2023 – OTAs, growth & outlook vs hotels

You’re in the right place for our quarterly short-term rental data story with animated chapters on the OTA platforms, industry growth & outlook vs hotelsclick to read the full story.

Some highlights are below:

Short-term rental data story – Chapter 1: OTAs

In our first chapter, we discuss comparative data on the industry’s top OTAs. How does supply and its distribution vary across Airbnb, and Vrbo? What about pricing, booking window and duration? We even dive into Airbnb host churn. Below we take a sneak peak at global listing distribution per platform to whet your appetites…

How listings on the top platforms are distributed globally

In our full animated version, we layer the platforms to compare the distribution, which shows a more even spread of Vrbo listings worldwide than for the other platforms. Airbnb on the other hand is weighted towards Europe and most significantly North America. In contrast, sees the majority of its stock listed in Europe and secondarily in Africa and Central America.

These distributions in turn impact average stay characteristics such as seasonality and duration, as well as stay revenue. Of course this also varies more specifically from country to country, and it’s important for all stakeholders to understand platform shares and distribution in their markets.

Short-term rental data story – Chapter 2: Growth

This chapter contains a deep dive into the evolving world of vacation rentals. Whilst we cover the progression of supply, rates, domesticity and professionalisation from 2019 to present day in the full story, here we highlight demand growth by looking at a top supply country ranking…

Q1 2023 demand

All top nations are enjoying increased demand. Predictably, top supply nations such as the US attract the most booked nights. The exceptions are Australia and Canada, who break into the top 10 for demand, beating the larger supplies of Greece and Croatia.

Now turning our attention from absolute booked nights (demand) to growth in booked nights over the last year, we start to understand destinations currently in favour.

In general, booked nights were up 16% in Q1 over Q1 2022 on average for the top 25 countries. In contrast to, and maybe partially attributable to, its lack of supply growth, Thailand enjoyed the biggest jump in demand, with 64% more booked nights than in 2022, and Turkey is close behind on 63%. All nations showed demand growth except Switzerland where booked nights were stable. You can also track this demand ‘live’ for key countries and regions in our Global Vacation Rental Data Tracker.

Short-term rental data story – Chapter 3: Outlook

The final chapter of the short-term rental data story concerns the outlook for the rest of 2023. In addition to booked nights over the coming months, we also contrast the outlook for STR and hotels.

2023 vacation rental prices compared with hotels

As demand lines continue to blur between hotels and short-term rentals, mutual visibility over sector strategy is increasingly relevant. The average advertised nightly rate for a 1bdr short-term rental across key cities for the remainder of the year is $207. New York City and London predictably pull this average up with operators currently advertising $302 and $299 ADR respectively.

The average across hotels meanwhile is $225, making them 9% more expensive than their 1bdr rental counterparts on average. The dearest markets are the same, as is the cheapest – Bangkok.

The standout differences are LA, where hotels are 65% more expensive, and Dubai, which is one of only 2 markets where an STR will cost you more than a hotel (along with Sydney). Read the story of occupancy on the books in both sectors.

The story of Q1 2023 in short-term rental data. Click to read through animated chapters on on the outlook, OTA platforms, industry growth & evolution vs hotels – trust us, if you don’t you’re missing out!

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