AirDNA: Rates and travel patterns normalise in record European summer
Europe: According to short-term rental data provider AirDNA’s European review for August, the summer of 2022 saw a full recovery from the pandemic in Europe, with 3.5 per cent more nights stayed in a short-term rental in June, July and August than in 2019.
Demand even surpassed 2019 levels in August, the strongest month for Europe, with revenue this summer up 22 per cent from 2019.
Average rates in August were only 1.2 per cent higher than last year, as growth slows and bookings move back towards urban apartments and smaller properties which typically charge less – though prices remain 16.5 per cent higher than 2019.
Occupancy has been pushed up again by low supply increases, reaching 76.5 per cent in August – 4.3 per cent higher than last year – buoyed by high demand and low supply: available listings remain 10.8 per cent below the same period in 2019.
All of the top 20 countries saw year-over-year increases in summer demand, with the strongest growth in Norway [+71.2 per cent], Hungary [+65.8 per cent], and Greece [+61.8 per cent]. Greece even beat pre-pandemic levels, with Germany [+24.8 per cent], Greece [+24.1 per cent], and France [+21.9 per cent] seeing the highest growth from 2019. However, only nine of the top 20 countries saw growth from 2019.
Norway saw the strongest growth year-over-year in both demand [+71.2 per cent] and supply [+39.4 per cent], with demand driven by coastal destinations like Bæerum [+202 per cent], Tromsø [+135 per cent], and Oslo [+135 per cent].
August stays were booked on average 72.9 days in advance, which is six per cent closer to arrival than in 2019, but 11 per cent longer than last year, as guests take advantage of relieved travel restrictions to book further in advance.
Bookings for the rest of the year are pacing 6.6 per cent higher than at the same point in 2019.
There is also strong booking activity compared to last year [+36.6 per cent], with the strongest growth in Italy – six of the top ten growth destinations are Italian. Munich is seeing the strongest gains over last year [+164 per cent], as Oktoberfest is back after two cancelled editions.
Meanwhile, Porto, Lisbon and Athens were all popular destinations in the first part of of the year, and they will continue to the end of the year with all three cities seeing over 120 per cent more bookings than at the same point last year.