AirDNA: Travellers secure spring / summer stays in Europe boom
Europe: Data provider AirDNA’s latest report on the European short-term rental market reveals strong growth in demand and changing trends in seasonality, with February 2023 seeing a 47.3 per cent increase compared to the same period in 2019, and 26.6 per cent higher than last year, despite being a typically low demand period.
It marks the second consecutive month of supply coming in above pre-pandemic figures, with available listings also increasing 2.8 per cent relative to 2019, and 13.7 per cent from 2022. The average daily rate [ADR] paid rose by 13.7 per cent year over year, resulting in a record high revenue of $3.7 billion, up 43.9 per cent year-over-year.
Greece, Norway and Portugal experienced the highest growth rates in demand, with year-over-year increases of 60 per cent, 52.7 per cent and 44.1 per cent, while the largest increases in available listings over last year were seen in Norway, Sweden and Poland [up 54.2 per cent, 36.7 per cent, and 35.9 per cent respectively] indicating a willingness by hosts to meet the incoming demand.
Countries such as Switzerland, Finland, the United Kingdom and Ireland achieved balanced occupancy levels compared to last year, whereas Hungary, Poland, Sweden and Norway saw a growth in demand, but their occupancy levels declined due to the increased supply of available listings.
The AirDNA report also highlights the impact of regulatory changes, as Ireland and Portugal ended their respective Golden Visa programmes, and Spain may be the next country to end its own scheme.
Looking ahead, AirDNA is forecasting a strong spring and summer season for the short-term rental industry, with demand pacing up by 32.8 per cent year over year and 24.5 per cent compared to 2019, and all but one of the top 20 countries [with Denmark the exception] trending toward double-digit growth in total nights booked between March and August. Travellers are more than eager to secure their summer accommodations, as bookings for June, July and August are up by more than 30 per cent over 2019.
Read the latest AirDNA report in full at this link.