AirDNA: Bright summer outlook expected in Europe
Europe / US: The latest data released by short-term rental data and analytics provider, AirDNA, has hinted at a bright summer outlook, especially in Europe, where demand has been pushed up by revitalised confidence in travel.
According to AirDNA, demand in Europe in April rose three per cent higher than in 2019 [+97.4 per cent vs 2019], with more than 27.7 million nights stayed in the month, driving European occupancy to hit a record high for the month [55.4 per cent].
Last month, the 50 largest markets in Europe saw 169.1 per cent more demand than last year, compared to 87.4 per cent in all other markets. The largest growth across all markets was in private room properties: private rooms show a 121.5 per cent growth from last year, compared to +94.4 per cent for entire homes, which pushed average daily rates [ADRs] down as private rooms and shared rooms typically charge less.
While still 8.2 per cent below April 2019 levels, supply of available listings in the month was up 6.1 per cent year-over-year as hosts capitalise on the opportunity to service growing demand by adding listings to the market.
As of 9 May, the European continent is pacing +82 per cent for the summer [June – September] from the same time last year, and +2.6 per cent from 2019, with all top 20 countries up from last year such as Greece [+237.3 per cent], Croatia [+209 per cent] and Portugal [+200 per cent].
Pacing in the 50 largest markets is up +227 per cent from last year, with strongest increases in Porto in Portugal [532.3 per cent], and Venice [414.8 per cent] and Florence in Italy [410.4 per cent].
Across Europe, rates for the summer are up only 0.1 per cent and looking similar to last year.
The highest increases are in Denmark [+15 per cent], Germany [+ eight per cent] and Poland [+ eight per cent], while rates in Finland are down 25 per cent. Larger cities such as Barcelona [+33 per cent], Belgrade [+31 per cent] and Munich [+27 per cent] are seeing the largest increase, after a couple of years with significantly reduced demand.
AirDNA’s full European review can be read at this link.
Whereas in the United States, April occupancy was below last year’s highs due to new supply.
Large cities are beginning to see a boost after a hard couple of years, with occupancy up year-on-year in cities such as Washington DC [+37.5 per cent], Boston, Massachusetts [+24.1 per cent] and New York [+19.7 per cent], whilst still up to 50 per cent below 2019 levels.
Average rates in April 2022 grew 11.6 per cent from last year, with the highest growth in large cities, where they are up 15 per cent thanks to the increased demand.
However, we expect rate inflation to stall into the summer, with rates currently pacing 7.3 per cent higher than last year. Spurred by strong booking activity at the start of the year, ADR growth is highest in coastal destinations, currently at 12.7 per cent higher than last year.
Bookings on the whole are up 16 per cent from the same time last year, with urban areas seeing the highest increases in demand for the summer [+45 per cent], though still 31 per cent below 2019 levels.
The full US review can be found at this link.