Boom in short-term rental occupancy & rates in ski markets globally

We have run analysis on winter short-term rental occupancy on the books (OOTB) and average daily rates (ADR) in some of the most prolific ski markets around the globe: Chamonix-Mont-Blanc, France; Saint Anton am Arlberg, Austria; South Lake Tahoe, California; Vail, Colorado; Whistler, Canada; and Zermatt, Switzerland.

Through our insights, we identified the following significant findings:

First, we will explore the rise of short-term rental OOTBs and ADRs since 2019 in the aforementioned markets and know what happened, how, and why. Consecutively we will delve first into OOTB in these major ski markets, followed by ADR, to observe how each of these present rates and trends affects the now and future.

The rise since 2019: Ski market occupancy rates and ADR globally

Let’s begin by looking at the percentage increase in both advertised OOTB and ADR in our peak season of December to March 2022 versus 2019. 

You will see all markets have experienced a highly pleasing increase in occupancy on the books during these peak seasons. Chamonix-Mont-Blanc increased by 76% in OTB, and South Lake Tahoe is close behind at 66%. Vail, whistler, and Zermatt teeter around 41%, 46%, and 44% respectively.

Further, the ADR has also risen a staggering amount in Chamonix-Mont-Blanc managed to exceed its impressive OOTB gain, also doubling its advertised ADR for this period (98%). Saint Anton am Arlberg increased ADR by 41% and Saint Anton garners an impressive 41% leap, while the rest of the markets also follow a positive trend. South Lake Tahoe, Vail, and Whistler rose by 27%, 28%, and 31% respectively, and Zermatt increased by 16%. 

There are rising ski industry trends that are paving the way for valuable investment opportunities. The EHL Hospitality Business School points out six of these ski trends currently happening in the Swiss Alps in an article

  1. The number of guests has increased in the summer season. In other words, there is a rise in year-round enjoyment for guests. 
  2. The fitness and wellness industry boom in Switzerland. The demand proves that more lodging-oriented activities are necessary for individuals wanting to take part in those fitness activities.
  3. The post-pandemic effects on the dynamic humans have with nature, and the rebuilding of that connection are even stronger than in pre-pandemic times. 
  4. The rise in quality family time and ski resorts are the ideal place for a family vacation. 
  5. The Alps are not simply for skiers anymore, but offer a variety of high-quality activities such as Michelin-starred restaurants, bike trails, water parks, and retail establishments, just to name a few. 
  6. Individuals are prioritizing a healthier lifestyle since the pandemic, and macro ski markets like Switzerland represent that wholesome way of life.

With the trends combined, we can put together the puzzle and see why and how the majority of these reopened markets in North America and Europe are enjoying noteworthy growth in ADR and OOTB. Let’s dive deeper into what opportunities lie ahead for leaders in the short-term rental property management industry with this growth. 

Ski market occupancy on the books rates stronger than ever ahead of this winter 

Occupancy rates are one of the most useful key performance indicators for revenue management in vacation rental industries. It is a metric that aims to grow as high as possible for long as possible. Below in the chart, we see how the actual occupancy rates of the ski markets have increased anywhere from eight to sixteen percent since 2019. 

Ski markets are getting the most out of their structure and optimizing revenue through their improved demand and occupancy rates. Three years later since 2019, people have grown their interest in new lifestyles, social trends, and markets aware of the trends catering to guests' needs. 

Ski markets hitting higher ADRs than ever before ahead of 2023

Now that we have reviewed how many properties were being sold in 2019 versus 2022, we now focus on the prices at which these rooms are being sold for. The advertised ADR in all locations has seen nice jumps in rate. Notably, Chamonix-Mont-Blanc just nearly doubled the amount. 

As demand and performance go up, these ski markets have capitalized by raising prices and are savoring success.

Final thoughts on short-term rental occupancy & rates in ski markets

We have explored the rise of OOTBs and ADRs since 2019 in several high-yielding short-term rental ski markets and reviewed some key Switzerland ski industry trends fuelling the rise in the market. 

The first thing these markets have done in common is optimized their strategy by taking advantage of the emerging ski market trends and garnering higher demand and occupancy rates. Second of all, the markets have optimized their pricing by hiking up the ADRs and making the most of their higher demands. 

As demand goalposts shift, property managers must reflect on this data to increase the efficiency of their decisions. This will prevent leaving money on the table. 

Improve your performance today by acquiring some fresh data and insights that will optimize your decision-making. Look through our free dashboard and paid solution, and make sure to book a demo to find out what else Transparent can do for you.

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