Denmark: Andrew Martyn, co-founder and CEO of vacation rental software solution Your.Rentals outlines some of the “shock” travel trends that are emerging in the short-term rental space following the outbreak of the coronavirus earlier this year.
Forecasting travel is a difficult activity at the best of times, however the Covid-19 shock has meant throwing the rulebook out the window.
At Your.Rentals, we’re constantly analysing the latest short-term rental booking trends in order to understand and plan for the recovery and post-recovery.
Let’s compare some of the trends in the two months before we saw a significant Covid-19 impact in Europe [January and February] with the period since April where things started becoming clearer for travellers.
1. Bookings are more domestic according to Your.Rentals
As predicted, travel has become more domestic. Pre-Covid-19, we saw 29.9 per cent of bookings for travel within the same country, and since April we are seeing 65.8 per cent.
2. What travel corridors?
So far, we cannot see any clear impact of people taking advantage of European “travel corridors” [essentially bilateral agreements for tourism between countries]. Guest origin and destination appears to be largely independent of the corridors that have been announced so far. However, Greece is starting to show a higher booking growth over the past two weeks – perhaps as a result of their charm offensive to healthy travellers. We’ll continue to monitor this in the coming weeks.
3. Longer stays, same number of guests
The average length of stay of bookings made has increased by 20 per cent from pre-Covid-19 levels [4.6 nights] to recovery [5.6 nights]. At the same time, the average number of guests per booking has remained stable at an average of 3.9 guests.
4. A shift in rental type
People are clearly focused on “getting away from the lockdown” into more spacious environments as we’ve seen bookings for apartments fall from 67 per cent to 56 per cent of total bookings and houses / villas grow from 24 per cent to 36 per cent of bookings.
5. Booking demand vs pre-Covid-19 forecasts
While demand in January and February was at 113 per cent of forecast, we saw it drop to 25 per cent in March, five per cent in April, and then start to recover in May with 27 per cent of pre-Covid-19 forecast. June is tracking towards 40 per cent so we continue to be confident of a sustained recovery through the summer.
For more information, visit the Your.Rentals website here.
Andrew Martyn is the co-founder and CEO of Your.Rentals, based in Denmark. The company is now based in Sweden, Vietnam and Gran Canaria. It works with property managers in hundreds of locations worldwide in multiple different languages.