2024 holiday rental trends indicate that occupancy is slightly down for the summer, prompting short-term rental hosts and managers to consider what actions they can take to salvage the season.
At Beyond, our unparalleled access to short-term rental market data affords us an early glimpse of what the summer looks like for short-term rentals across the UK. Our early holiday rental data for summer 2024 offers a preliminary insight to aid short-term rental hosts and property managers in optimising their revenue management strategies. Here's what you need to know to strategise effectively for the upcoming summer season.
Summer 2024 Strategy Overview
Summer occupancy rates are pacing slower in 2024, decreasing by 3 percentage points compared to last year, indicating a slightly lower demand for holiday rentals. Average daily rates (ADRs) are following the global trend of increasing prices, but they are higher by only 3%. Given these not-very optimistic trends before the peak season, Revenue Per Available Night (RevPAN) also sees a downturn, declining by approximately 14% this summer.
Bookings in urban destinations have shown that short-term rental occupancy rates are very similar to the previous year, with a slight increase of +1%.
Bookings in rural areas have decreased by -4% similar to the previous summer season.
Occupancy pacing rates in summer destinations are down by -5%
While these figures might seem concerning at first glance, there are strategic ways for vacation rental operators to use these insights and optimise their revenue.
Understanding Vacation Rental Market Trends
The trend towards slower occupancy pacing reveals a significant shift in how holiday rental managers navigate the market.
The decrease in the booking lead time, now at 32 days, having fallen by five days from the previous year, indicates a change in guest booking behavior. However, the length of stay remains at four days, similar to the previous year.
Our data suggests the onset of a pressing situation: properties unbooked during what is normally a period of high booking activity could be due to high nightly rates and shorter booking windows.
Those professionals who managed to secure early demand by leveraging competitive pricing as their prime strategy has guaranteed their occupancy rates and set the stage for a competitive summer season.
In a competitive market, holding out for a higher rate is not the correct course of action. Based on the data, it’s crucial to price appropriately now to capture the bookings during those shorter planning windows. A lack of action, in the short term, will lead to few if any bookings, and a fire sale situation in the future as you attempt to recoup losses with dramatic last-minute discounts.
The key to dominating this summer's market lies in understanding these trends and dynamically adjusting pricing strategies to stay ahead of the competition when visitors search for bookings.
Pricing Strategies for Maximum Revenue
The lesson here is invaluable - in a market as volatile and competitive as short-term rentals, the ability to adapt pricing in response to current trends can make the difference between a good summer and an excellent one. Given the current data, holiday rental managers must act and revise their pricing strategies as we rapidly approach the summer months.
- Properties already experiencing higher occupancy (due to lower early season rates) might consider incrementally raising their prices, especially as we edge closer to the peak of summer.
- Properties still struggling to match last year's occupancy figures may need to further evaluate their competitive positioning within the market. Are there unique benefits or advantages that can be highlighted or added to justify a rate revision or to improve occupancy?
Leveraging Technology for Optimal Pricing
To remain agile in response to fluctuating market trends, adopting a comprehensive revenue management system can provide holiday rental managers with the data-driven insights needed to make informed pricing decisions. These systems analyse vast amounts of market data in real-time, offering recommendations on pricing adjustments based on current market conditions, demand forecasts, and competitive pricing strategies.
Most holiday rental managers don't have the luxury of time to dedicate to this level of analysis and action, and other tools that claim to help barely touch the surface in terms of sophistication needed for making informed decisions. Without the right revenue management solution, missed opportunities, poor bookings, and watching competitors take away potential guests might become a new reality. Today’s market is fiercely competitive, it’s time to use a system that keeps you two steps ahead.
Final Thoughts
The early indication that the 2024 summer season is shaping up to be a period with similar demand to this year means it's time to make decisions. The challenge will be in attracting bookings in a competitive market by navigating the ADR and RevPAN headwinds to ensure that this demand translates into increased revenue.
Successful holiday rental managers will use strategic pricing, backed by sophisticated market analysis, to attract bookings at optimised rates and adjust these as booking trends evolve closer to summer.
Remember, the key to maximising your vacation rental revenue isn't merely about filling your calendar but doing so in a way that strategically balances occupancy and rates to drive the most significant return. Keeping a close eye on industry trends and remaining adaptable in your pricing strategy will be essential in coming out on top in the competitive summer 2024 vacation rental market.
Ready to see how much Beyond can help you do just that? Sign up today!
.png){kind=small}
.png){kind=small}
