Wondering how your holiday rentals are faring so far this summer? You are not alone. With changes in travel trends, countries opening up, inflation rising, and COVID rates up and down, all of these factors can make it hard to see what is going on, and even more difficult to predict how the summer will shape up for holiday rentals.
Thanks to our access to data at Beyond and our expert revenue management team, we can get a good view of what the holiday rental market looks like right now and make some accurate predictions for how the summer will turn out. Starting with some overall trends, we’ll get into what we’re seeing in urban, rural, summer, and UK markets.
Overall Trends
- Average daily rates (ADRs) and occupancy levels are up across Europe compared to both 2019 and 2021.
- Booking lead times are approaching pre-covid trends. Some might be anxious (especially in the UK as pacing is behind last year), but the reality is that this is the usual trend.
- Reservation volumes are mostly increasing. Some countries, such as France, are already back to 2019 levels.
Urban Markets are Fully Recovered
With urban markets mostly fully recovered, we are seeing a similar booking pace compared to 2019, and a clear improvement since the beginning of 2022. However, not all the markets are recovering at the same speed. Additionally, the war in Ukraine seems to have not hurt Europe travel overall, except for neighbouring areas.
Rural Markets
Rural markets became very popular during COVID lockdowns and periods of high restrictions due to the fact that they are mostly drive-to destinations. With gas prices rising and the surge in international travel, we predict that demand for these markets will reduce as travellers look to book more traditional summer destinations. Classic summer destinations for local travellers will still be strong, but we predict that these rural regions will see a decrease in bookings year over year.
A Strong Market for Southern Europe and Middle East Destinations
As we can see in the graph below, bookings per listing since the beginning of 2022 is stronger than ever. Looking back at 2021 and 2020 we can see that the spikes in the number of bookings were made mostly at the end of May and the beginning of June. This means that the booking lead times were way shorter for summer, most likely due to shorter and cheaper travel. However, looking at 2022, we can see a considerable increase in the number of bookings since the beginning of the year, probably related to international travel (with longer booking lead times). This level of activity during Q1 was unusual during COVID, so we should expect a super-strong summer season in these countries.
We also see that weekly stays are booked well in advance and are the most popular length of stay during the high season. However, these weekly stays end up being only 35% of the total nights booked. Two-, three-, and four-day stays make up to 45% of the total reservations in the market. And during shoulder and low season, weekly stays are not at all popular. So, having more flexibility in your minimum stay requirements as we approach high season is key to securing any last-minute bookings.
UK Booking Trends Reaching Pre-COVID Levels
Booking lead times in the UK are trending towards to pre-COVID era trends. We have heard from property managers and owners in the UK who are anxious because they are pacing behind last year. However, the reality is that the market is returning to a more “normal” trend. The percentage of bookings for summer was incredibly high last year, and this year’s trends are in line with 2019.
Summer destinations in the UK, however, are showing a bit of a different story. These markets are pacing behind slightly due to the fact that travelling out of the country is back on the table again. We recommend that property managers and owners adjust their strategies quickly to capture existing demand. While some scored amazing bookings with high ADRs eight months ago, it’s time to think about the market in its current state. With pacing slowing down, it’s best to lower your rates slightly (still ensuring that it’s a profitable booking) to capitalise on existing demand, rather than hold out for 2021 level rates.
We hope this gives you a better understanding of your market and how to respond to the trends. Utilizing this data to understand the differences can guide your business to make the right decisions and grow. Beyond prices more than 340,000 accommodations in 7500 cities around the world in France, Spain, the United Kingdom, Belgium, Switzerland, Italy, Dubai, Morocco, and many more.
Not using Beyond or new to dynamic pricing? Get all your questions answered and even see what Beyond can do for your business by contacting us.
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