Rental market in Greece rises in competition

Greece: The increase in Airbnb and HomeAway listings has led to a rise in competition in Greece’s short-term rental market.

The news was revealed in data presented at the BnB Guest Conference in Athens last week.

Tom Caton, chief revenue officer at AirDNA, which records data from Airbnb and HomeAway, said: “Word has got out among the Greek people that there is money to be made in short-term rentals and they have flocked to providing listings across Greece.”

What does the data say about listings in the rental market in Greece?

According to data from December’s off-season in Greece, available listings on the platforms grew by 21 per cent to 72,114 compared to the same month in 2017. However, the average daily rate dropped by 17 per cent to 126.44 euros in December and the occupancy rate fell by 13 per cent year-on-year to 46 per cent of all listings.

Meanwhile, revenue per available rental (RevPAR) declined by 28 per cent to 58.28 euros in December 2018, from 80.68 euros during the same month in 2017.

Caton said: “This is competition coming, so this is not universal, but people made much less in general in Greece in December 2018 then they did in December 2017.

“Do not worry because this is overall, it is not universal at all,” he added.

The island of Lefkada was in the lead of the top five markets with RevPAR growth in 2018 with a rise of 167 per cent last year.

Caton said that hosts must understand the short-term rental market if they are thinking of expanding their portfolios.

He said: “Understanding which markets are on the rise is very important because what is happening in these markets is that demand has risen far more than supply, where when we look at Greece overall, supply has risen more than demand in the country in December.”

The number one destination in terms of overall listings in Greece for both Airbnb and Homeaway is Crete, followed by Athens and Corfu.

Why is professionalism important when it comes to rental market competition?

Caton underlined the importance of professionalism in the short-term rental market.

He said: “People’s expectations are really rising as why they should stay in a short-term rental. The real key to success is for a host to continue offering a more professionalised product.”

He also advised Greek hosts to “listen very carefully” to the trend of professionalisation in the market.

He said: “What you did last year, will not be good enough for next year. If you don’t improve your performance, the quality of your property, the quality of your listing, the quality of your pricing, someone else will move and improve ahead of you so you can’t rest on your laurels even if you had a great previous year.

“RevPAR is down in Greece but it’s not down for everyone, because if you’re competitive with your pricing, if you understand exactly who your competitors are in your neighbourhood and how you can price better than them, understand what available supply is, understand the booking lead times, then you can outperform your competition and outperform the market,” Caton added.

What is the BnB Guest Conference?

The BnB Guest Conference, organised by SmartPress, is aiming to establish itself as an information hub for everyone involved in the short-term rental market and to provide them with opportunities to offer better services as well as the chance to maximise their benefits.