Pre-summer heatwave leads to record occupancy in Europe
Europe: Inflation and airport delays are showing no signs of dampening the pent-up demand for travel in Europe this summer, according to short-term rental data and analytics provider, AirDNA.
Demand for European short-term rentals in May was 11.4 per cent higher than the same month in 2019, the fifth consecutive month of higher demand than 2019, with 31.5 million nights stayed during the month.
As of mid-June, bookings for the summer are pacing five per cent higher than at the same point in 2019, though rates are beginning to drop.
Average daily rates [ADRs] in May were actually slightly lower than last year [-0.7 per cent], which can be attributed to changing demand mix moving back towards smaller units and urban areas, with huge growth in demand for private and shared rooms and one- to two-bed properties.
Occupancy reached a record 53.4 per cent across the continent for the month of May, thanks to high demand and low supply. Available listings were down 4.8 per cent from 2019, though this is the closest it has been to pre-pandemic levels since the pandemic began.
Although listings are picking up in some destinations, high interest rates could hold back new buyers, while second-home owners may rent out to generate more income and cover mortgage costs.
In May, Hungary saw the strongest increase in demand year-over-year, with 143.4 per cent more nights stayed, though this still lagged behind May 2019 [-31.1 per cent].
The Netherlands saw 15.7 per cent more demand in May 2021, which represented the weakest gain in the period, followed by Switzerland [29.6 per cent], Finland [32.7 per cent], and United Kingdom [35.4 per cent].
On the other hand, the largest gains vs 2019 were in France [43.5 per cent], followed by Germany [33.1 per cent], and Greece [32.1 per cent].
Supply was up from 2019 in Germany [21.4 per cent], followed by Austria [19.0 per cent], and France [18.6 per cent], but recovery is taking much longer in the Czech Republic [-33.5 per cent], Ireland [-30.6 per cent], and Hungary [-26.8 per cent].
The full report can be read at this link.
