Beyond – the global revenue management system for the vacation rentals industry – has released data showing occupancy levels pacing behind summer 2023 in major short-term rental hotspots, including the UK, US, and parts of Europe.
There has been a summer slowdown in the UK, with occupancy levels dipping 9.5% compared to last year. Beyond’s data team said higher prices were likely causing the decrease in demand and advised hosts and property managers to aggressively discount and promote their properties in the short-term.
It’s a similar story in the US, where occupancy has also slowed by 9.5% year-on-year. Back in spring, summer occupancy was pacing ahead of 2023 – but the story has changed markedly over recent months, with shorter booking times and stubborn rates contributing to underperformance. Beyond’s advice is to adjust rates according to demand. By building an occupancy base first, hosts will be able to increase prices around high-demand dates in order to maximise revenue.
Two countries bucking the trend are Spain and Portugal. In Spain, occupancy is pacing 15.4% ahead of 2023 on the back of flat daily rates compared to last year. Despite higher occupancy driving overall revenue, property managers are still advised to focus on selling any last-minute inventory over the next two weeks, while high-demand properties should have an increased pricing strategy for the next 1-3 months, especially compared to last year.
Portugal can be considered the leader of the pack, with occupancy pacing a whopping 19.4% ahead of 2023. Like in Spain, rates have remained flat, with hosts encouraged to increase their prices over the next few months in order to maximise returns.
In France, the Paris Olympics is helping to drive revenue in August – but the rest of summer is falling behind 2023 figures. Lower daily rates in July and September are leading to revenue falling by 18% as things stand. Beyond is advising hosts to focus on high demand dates but not disregard shoulder dates.
In Italy, there is a mixed picture, with revenue down 8.49% in July. Higher occupancy levels in August and September are helping the annual figures remain steady, however. Fewer guests are making last-minute bookings in Italy, making it difficult for property managers to keep up with last year’s occupancy levels. Hosts are advised to focus on increasing occupancy levels in advance to build strong foundations before the end of summer.
Beyond
Since pioneering dynamic pricing for the vacation rentals market a decade ago, Beyond has supported millions of listings globally and helped customers increase their annual revenue by an average of 40%. Beyond’s unparalleled access to, and analysis of, real-time data for the vacation rental industry powers its ability to drive revenue, maximise profitability, and save time for hosts and property managers around the world. Beyond also provides a vast number of free resources for hosts and property managers on its website – click here to find out more.
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