As the 2022 FIFA World Cup ended with Argentina claiming its championship, Christmas and the New Year follow. After researching the short-term rental (STR) occupancy on the books (OTB) and advertised average daily rate (ADR) for these holiday periods, we find that most key markets are seeing higher average rates than 2019. Overall, both STR occupancy and rates during Christmas and New Year’s Eve are recovering and surpassing pre-pandemic dates.
We looked at…
- Christmas and New Years’ Eve occupancy on the books rate growth since 2019
- Heightened ADRs during Christmas and New Year’s Eve
- Takeaways: STR rates during Christmas and New Years’ Eve
Christmas and New Year’s Eve occupancy OTB rate growth since 2019
In our investigation of ten key markets from Los Angeles to Sydney, Christmas occupancy on the books in both short-term rentals and hotels has risen. This holiday demand after the era of lockdowns from guests is amazing news for property managers and is evidence people are more open to travel over the holidays again.
Over New Year's Eve, we find short-term rentals have greater occupancy OTB than hotels (hotel levels are still up 28%). In this case, New York, Sydney, Paris, and London enjoy the highest New Year's Eve occupancy OTB levels across the 10 key markets. Sydney comes in at 70% for STRs, proving that the New Year's Eve celebrations in Sydney are dynamite!
Next, let's take a look at Christmas and New Year's Eve ADRs and see how property managers are optimizing their revenue.
Heightened ADRs during Christmas and New Year's Eve
The blended average daily rates (STR and hotel rates) for Christmas of 2022 are 38% higher than in 2019, more specifically 45% higher for STRs and 31% for hotels. These very pleasant rate increases over the last three years are a win for property managers and the industry as a whole.
We find that average daily rates this New Year's Eve are 35% higher than in 2019, with STR rates growing 45% and 25% for hotels.
If you're interested in hotel and short-term rental performance ahead of Winter 2022 which includes other seasonal events, read our article on the subject, or our article on how STR rates in Scandinavia rising past pre-pandemic levels.
Takeaways: STR rates during Christmas and New Year's Eve
With the holidays in full swing, and excitement in the air, travel has become a priority, and increased occupancy rates and ADRs reflect this. Paris hotels and STRs gain that spotlight of highest occupancy OTB over Christmas, and Sydney hotels garner the highest for New Year's Eve.
STRs have created a unique home-stay opportunity for travelers to experience these once-in-a-lifetime holiday celebrations as well, with the Maldives, New York, and Sydney STRs having increased 37% over 2019 during Christmas, and Sydney a whopping 70% for New Year's Eve.
We wish the new year will bring property managers prosperity and new growth. Let us help you fulfill these wishes, and click below to discover how our data solutions will do this.