Summer is in full swing in the northern hemisphere, and Italy is one of the top destinations for tourists. We took a look at how the vacation rental markets are faring across the country, and what property managers need to keep an eye on to ensure they’re on top of their game.

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Key Takeaways

• In Rome, market pace is mostly in line with 2019 with a few select weeks pacing ahead
• Both the Florence and Milan markets’ pacing shows that a shorter lead time trend is likely to continue through the summer as travelers are booking last-minute more than ever.
• The Tuscan countryside’s booking pace is ahead of 2019, starting the first week of August and continuing through September, with occupancy showing slight opportunities for October.
• The Lake Como market is exceeding 2019 last-minute bookings with more guests booking closer to their arrival dates in 2021. Improved patterns compared to a “normal” year of pick-up.

Within Italy, for example, the chart above displays the average number of bookings that have been made per listing over the past 21 days, for both 2020 and 2021.

In Rome, Florence, Milan, Tuscany Countryside, and Como Lake the charts below display all bookings that have been made over the past 21 days by their check-in week. Additionally; the same values for 2019 are included to provide pacing context for each market. Using 2019 pace data helps provide insight into how 2021 is performing so far compared to a “normal” year.

Rome

For the Rome market, 2021 booking pace is mostly in line with 2019 with a few select weeks pacing ahead. Booking lead time of 3-4 weeks out climbs ahead of 2019 while 1-2 months out has some growth opportunities. There are a few differences week to week but, in general, the Summer is picking up at the same pace it was in 2019.

Overall occupancy for the Rome market is behind compared to 2019 and Property Managers should keep an eye on their latest booking lead time data as the market heads into the end of summer and last-minute bookings drive occupancy.

Analysts advise that summer is anticipated to perform in line with pick up, but travel demand for the market is not at full recovery compared to 2019 data.

Florence & Milan

In Florence and Milan markets, the last-minute booking pace for the next five weeks has surpassed the same time period in 2019. Both markets have historically experienced shorter booking lead times that have sustained since the start of the pandemic and now have increased slightly since the start of summer; however, pacing shows that a shorter lead time trend is likely to continue through the summer as travelers book last-minute more than ever.

As booking pace recovers, property managers that have not seen an increase in bookings for September and October this year need not worry as the market is pacing well in line with 2019 data.

Both markets appear to be keeping up with the 2019 booking pace in the short term; also due to the fact that short-term rental pricing is considerably lower now with 1-2 bedroom properties. Be sure to stay on top of your pricing strategy to stay competitive in the near term and take advantage of increased travel demand in the future.

Analysts advise that summer is anticipated to perform ahead of pick-up trends, but travel demand for the market is not at full recovery compared to 2019 data. Property managers should keep an eye on their latest booking lead time data as the market heads into summer and last-minute bookings drive occupancy.

Tuscan Countryside

The latest Tuscan Countryside booking pace looks a bit different than other markets, with booking pace ahead of 2019 starting the first week of August and continuing through September, while pacing behind 2019 for October.

Overall, this market is booking up two or more weeks out. We can see that this is a similar pattern compared to a “normal” year already exceeding 2019 in some periods. That being said, property managers that have not seen an increase for bookings in October this year need not worry yet as the market is pacing well in line with 2019 data.

Lake Como

In the short term, the average booking lead time for the Lake Como market is exceeding 2019 with more guests booking closer to their arrival dates in 2021. At this same time in 2019; more guests were booking 1-2 months out. This is likely due to high post-covid travel demand for Italy.

Overall, the Lake Como market is booking up in the next three weeks with an additional bump in pickup for October. We can see that this is an improved pattern compared to a “normal” year and already exceeding 2019 in some periods. That being said, property managers that have not seen an increase in bookings in September this year need not worry yet as the market is pacing well in line with 2019 data.

With government regulations changing, be sure to stay on top of your pricing strategy in order to maintain current market demand and prepare for the future. With changes in Italy’s travel restrictions and access to vaccinations, changes in travel demand are on the horizon.

To see how your portfolio is performing, request a free demo today!

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