Short-term rental rates in Scandinavia are up for 2023: summer outlook

Summertime in Scandinavia draws in thousands of guests each year to experience sightseeing and local industries in full swing. The Scandinavian countries and their capital cities are experiencing increased growth in supply, demand, & profitability. As summer draws near, we revisit an outlook analysis on 2023 short-term rental rates in Scandinavia for…

  • Copenhagen & Denmark
  • Helsinki & Finland
  • Oslo & Norway
  • Stockholm & Sweden

Previously, in our 2022 winter outlook, we investigated how STR rates have recovered since 2019/20. Today, we present the 2023 Scandinavia summer outlook, covering the current performance of the short-term rental market in this part of the world. 

Occupancy on-the-books in Scandinavian countries

On average, yearly summer demand has risen 7-9% in all of the nordic countries we examined. Globally guests are attracted to these sparsely populated areas, leading to increased surges in bookings. 

Furthermore, this year Sweden has the highest advertised occupancy rates, followed by Denmark, Norway, and Finland.

Advertised ADR (2 bedroom) in Scandinavian countries

In line with steady economic increase in Nordic countries according to Reuters, ADRs are increasing as well. On average, summer pricing for two bedroom listings has also risen since last year in all countries.

Denmark and Sweden see the highest growth in ADR, up by 18% and 15% respectively. Moreover Finland and Norway follow with a 6% and 4% increase. Prices have also risen since last summer to meet this growing demand.

While the higher prices run the risk of serving as an incentive for some travellers to look into alternative destinations, DMOs must monitor all of these metrics, promote affordable pricing and continue to offer unique experiences to sustain these numbers. 

Occupancy on-the-books in Scandinavian capitals

Bookings in capital cities have been particularly outstanding this summer as sought-after destinations among tourists. Occupancy on-the-books for each of the Scandinavian capitals investigated rose by 34-38%. Copenhagen takes the cake with the highest occupancy on the books so far for this summer at 52%. As for most growth, Oslo leads with 38%.

Capital city properties range from cozy apartments in the city centre to villas with stunning waterfront views– and evidently tourism management companies are implementing the right, innovative, and informative marketing campaigns that promote an environment for profitable lifestyle experiences.

Advertised ADR (2 bedroom) in Scandinavian capitals

Despite pricing in countries and demand in their capital counterparts rising on average overall, only one capital city tells another story. Oslo, with the largest jump in occupancy out of the Scandinavian countries, decreases in average daily pricing for two bedroom listings by nearly 9%. 

Copenhagen, Helsinki, and Stockholm, on the other hand, all have higher ADRs this summer compared to last summer. So, if your vacation rental listings lie in one of these capitals, see this as an opportunity to adopt innovative pricing strategies to leverage yourself against the competition.

2023 short-term rental rates in Scandinavia: supply listing count

In our last outlook on Scandinavia, we reported an approximate 23% increase in supply from October 2019 to October 2022. Last, we compare the growth from April 2022 to April 2023, discovering a larger increase in a shorter amount of time.

The percent increase from last April to this one is a staggering 52%. Furthermore, we can concur that the majority of this growth happened after October 2022.

Implications for destinations

Finally, a broad range of factors are at play in today's STR environment, including markets, competition, consumer preferences, economic growth, seasonal business patterns, and revenue streams, among others. For this reason price changes impact and are responsible for boosting tourism and managing the local economy– tracking them granularly is a good idea.

Destination management organizations should focus on introducing advanced tracking and planning to minimize and capitalize on the shocks of market changes. Overall, collecting data on vacation rental prices, demand, guest origins, and competitive landscape can assist in establishing thresholds and proactively preparing for fluctuating demands and rates. To conclude, explore all of our products here or click below for our Transparent BI tool to unlock historical & forward-looking market data to track and build performance, set up custom and automated reports and invest and prospect effectively.

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