Short-term rental data story
The story of Q1 2023 in short-term rental data. Scroll to read through animated chapters on on the outlook, OTA platforms, industry growth & evolution vs hotels
Vacation rentals are still cheaper than hotels...but catching up
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 most expensive 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).
Longer booking windows mean that occupancy on the books is higher for short-term rentals
1bdr short-term rentals across key cities for the remainder of the year have 22% occupancy on the books on average. Paris and London are particularly strong, while Bangkok and LA are less so, perhaps explaining the larger chasms between sector pricing in these markets.
Hotels have just 8% occupancy on the books for the remainder of 2023. Orlando is on top (14%) but Dubai is only 4% booked. Characteristic of much shorter booking windows, hotel occupancy on the books is not as comparatively bleak as it sounds. With a different occupancy model and often more sophisticated pricing strategies, hotels usually ultimately secure more occupancy - something for STR operators to learn from!
The differences in current occupancy for the rest of the year are most pronounced in Paris and Dubai. Orlando and Singapore on the other hand present the least disparity.
Occupancy on the books is higher for 2023
At this point in 2022, booked nights for Q2-4 were in much better shape than in 2021 with noticeable reserved nights in excess through the summer and over the December holidays. But what's the outlook for 2023?
In fact, we see -2% booked nights on the books for Q2 this year vs. the same point last year, but +17% more for the last half of the year. The end of the year is especially positive with respect to 2022 (Christmas and New Year +31%) as people have become more at ease booking further in advance once again.
Grow with vacation rental data
Transparent, an OTA Insight company powers effective decision-making around the short-term rental industry with business intelligence from 45 million Airbnb, Booking.com & Vrbo listings worldwide. Leading property managers, destinations, hotels, investors & more utilize our data & analytics solutions to shape their strategy & optimize performance.