Scandinavian countries are characterized by their winters, architecture, mountains, fjords, beaches, forests, and more. Their beauty and multitude of sceneries leave no traveler indifferent. What we wanted to know was how short-term rental rates (STR) have recovered, specifically during the aftermath of the pandemic. Below we look into short-term rental rates in Scandinavia, as well as occupancy for the past Summer and coming Winter.
We have chosen the Nordic countries of Finland, Norway, Sweden, and Denmark for analysis. Some of the most economically significant periods for these countries are during the summer months and in the last week of December. We have investigated these dates to compare the changes in occupancy, average daily rate (ADR), and supply.
Our findings suggest occupancy and ADR are either steadily recovering since the pandemic or surpassing pre-pandemic levels during the summer months. Furthermore, for the December holidays, Copenhagen is enjoying the highest occupancy on the books. Helsinki is advertising a higher ADR than its neighboring capitals. You can click on the breakdown of findings to visit the analyses below:
- Summer occupancy short-term rental rates recovering to pre-pandemic levels in Scandinavia
- Upward trend in summer ADRs in Scandinavia YoY
- Last week of December occupancy wavers around 50% in Scandinavian cities
- December ADRs in Scandinavia cities
- Supply by listing in Scandinavian countries increased by 23% from 2018 to 2022
- Concluding thoughts on short-term rental rates in Scandinavia
Summer occupancy short-term rental rates recovering to pre-pandemic levels in Scandinavia
Demand is sparking in Nordic countries, with occupancy levels recovering back to pre-pandemic levels. Finland is surpassing its pre-pandemic levels, from 49.5% in 2019, and 53.3% occupancy measured in 2022.
The demand for Scandinavian short-term stays has steadily increased since the pandemic with remote working and rural trends breaking through. As you’ll see next, property managers have taken advantage of this.
Upward trend in Summer ADRs in Scandinavian cities
Summer months in the four Scandinavian countries are seeing increased prices. In 2021, these Summer numbers were all past recovered from the hit in 2020. In 2022, Danish, Finnish, and Norwegian property managers have again raised their nightly prices to averages of €133, €141, and €134 respectively. Sweden remains steady at €112, with only a minor decrease cents apart.
Property managers, as the demand goes up year on year, have been hiking up the prices and enjoying more profit on stays.
Last week of December occupancy wavers around 50% in Scandinavian cities
Pivoting from the focus on the summer, we additionally looked at occupancy on the books in Scandinavian capital cities for the end of 2022, specifically from December 24th to January 1st.
Occupancy on the books in these Nordic capitals is highest in Copenhagen, with over 50% over the Christmas period. Helsinki, Oslo, and Stockholm fall between 40% to 50%. Oslo shows the lowest occupancy on the books. Through this, we can tell a lot of the demand is being directed toward Copenhagen the last week in December compared to other cities. Property managers have the opportunity to capitalize accordingly.
December holiday short-term rental ADRs in Scandinavian cities
Next, let's observe the advertised ADR in the Scandinavian cities during this very crucial time for tourism. Property managers in Helsinki are charging the highest prices, averaging €293. In Copenhagen, we see an average of €205, and Stockholm and Oslo follow suit just under the €200 mark.
This insight can provide direction in revenue management and allow managers to optimize their rates against the competition. For example, Helsinki ADRs are remarkably higher than other cities in this period, and PMs should be considering what their pricing should be in their market based on this kind of data.
If you want to learn more about short-term rental performance ahead of Winter 2022, make sure to read our in-depth article on our Global Hospitality Insights Report ahead of 2023 in which you will also find access to the full report.
Supply by listing count in Scandinavian countries increased by 23% from 2018 to 2022
The supply by the entire home listing count in our studied countries has gone up since 2018, with a 23% increase from approximately 156,000 to 192,300 as of October each year.
Concluding Thoughts on short-term rental rates in Scandinavia
As people begin to plan what's on their 2023 summer itinerary, they think about coastal towns, natural landscapes, village charm, and in-vogue destinations. Ultimately, Scandinavia ticks all of these boxes through their "sommerbyer," or wooden towns.
These short-term rental rates in Scandinavia are a huge win for Finland, Norway, Sweden, and Denmark as more and more industries are resuming their pace of work after the hit from the COVID-19 pandemic. If you want to explore more insights into certain short-term rental markets, and how you can optimize your rates, click below!