US / Barcelona: To complement its US Monthly Reviews, short-term rental data and analytics provider, AirDNA, has released its inaugural European Monthly Market Review to give industry insiders a holistic view into the short-term rental market performance on the continent.
AirDNA tracked more than 42.3 million nights sold in Europe in August 2021, the highest figure since the start of the pandemic. This was still 21 per cent lower than 2019 levels, but higher than August 2020.
CEO Scott Shatford said: “Holiday rentals in Europe represent a strong market share, so we want to report consistently on what’s happening as they cross firmly from recovery into expansion territory.”
Domestic travel driving recovery
The countries which were able to stimulate significant domestic demand have performed best during the pandemic. Countries such as France, the UK and Russia had more than 50 per cent of their short-term rental demand generated by domestic travellers pre-pandemic, and have performed relatively well during the first half of 2021.
In contrast, cross-border traffic accounted for more than 90 per cent of total demand in Portugal, Hungary, and the Czech Republic, and those countries have struggled to generate anywhere close to the demand levels they saw in 2019.
A strong autumn despite weak supply?
While the outlook shows demand as of September for the following months is around 19 per cent lower than at the same point in 2019, it is significantly better than in 2020, and trending in the right direction.
Weak demand over the last 18 months has also led to many listings leaving the short-term market: as of August, Europe has lost as much as 20 per cent of its active listings compared to the same time in 2019. This supply / demand imbalance pushed occupancy higher on the remaining properties, however, reaching a record high of 73.6 per cent in August 2021.
AirDNA VP of research, Jamie Lane, said: “With Covid-19 cases declining, vaccination rates high and relieved restrictions opening Europe up to international travel again, we’re projecting demand for both Germany and the UK to come in well above 2019 levels for the next few months, and other countries to begin to follow suit.”
To read the report in full, follow this link.
AirDNA’s head of data solutions, Alejandro Gomez Losada, joined ShortTermRentalz’ RockSTRz webinar on “Meet the property managers: Will urban tourism return?” this week, along with speakers from The Urban Butler, ABAL Consulting and Urbain Hospitality Group. To watch back the webinar on-demand when it goes live, follow this link to our YouTube channel.