AirDNA: European rentals continue their journey to recovery

Denver / Barcelona: The second monthly review of the European short-term rental market published by short-term rental data and analytics provider, AirDNA, shows demand dropping by almost a quarter [24.8 per cent] in September 2021 compared to 2019, although this is 38 per cent up from September 2020.

The rapid loss of supply at the start of the pandemic continues to keep listings 20 per cent lower than in 2019. In September this year, there were around 2.6 million listings available in Europe, compared to 3.3 million in the same month of 2019.

For the first time since the start of the pandemic, Germany received more booked nights than 2019, though just 0.5 per cent above September 2019. It is the only European country of the continent’s top 20 to perform over 2019 levels, according to AirDNA.

AirDNA
Cities v Rural [Credit: AirDNA]

Some of the findings include:

  • The strong interest in listings outside of the largest cities has led to a growth in demand. On rural listings, there was 17 per cent more demand in September than 2019, whilst still down in the largest cities.

  • The cancellation of the 187th Oktoberfest also contributed to weaker performance in cities. September is typically the strongest month for Munich, but without Oktoberfest, demand was down 75 per cent compared to 2019.

  • The highest demand growth was in coastal and rural areas like Königsberg [Haßberge] [+101 per cent vs. 2019], Friesland [+95 per cent] and Hochsauerlandkreis [+93.8 per cent], all of which have also seen increases in active rentals since 2019.

Overall, those countries that depend mostly on foreign visitors are still struggling to recover demand. This is the case of the Czech Republic [-57 per cent from 2019], Hungary [-56 per cent], and Norway [-51 per cent].

  • In 2019, around 65 per cent of guests were travelling internationally in Europe, and in September 2021, this figure was 50 per cent, a substantial increase from the 17 per cent in February this year.

  • Average daily rates [ADRs] in September remained 26.1 per cent higher than in 2019, and 16.3 per cent higher than 2020.

  • This looks set to continue as for the remaining months of 2021, ADRs are pacing 26-38 per cent higher than in 2019.

With lead times about 30 per cent lower than 2019 levels, last-minute bookings will remain a theme for the rest of the year.

Click on this link to read the full AirDNA report.