US: Data released by short-term rental property management platform Guesty suggests that travel is “normalising” as pre-Covid booking habits return ahead of the 4 July Independence Day and Thanksgiving celebrations.
The platform believes that consumers are starting to feel more comfortable booking shorter stays and making reservations more in advance rather than at the last minute, while it also provided a more optimistic outlook for the return to urban cities too.
In the USA, the share of domestic travel, which has always remained relatively high, is up 12 per cent this year compared to where it stood pre-Covid, with more than 90 per cent of reservations in the country being made by domestic travellers. This made it easier for property management companies and professional hosts to pivot to domestic travellers as many were already targeting this audience, while easing restrictions and an accelerated vaccine distribution has resulted in the country recovering more quickly than others.
Meanwhile, the remainder of US 2021 Summer reservation volume [July to September] is currently 270 per cent higher when compared to the same time frame in 2020 volume, and 80 per cent higher than what was seen pre-Covid in 2019. This is a significant sign of recovery, with no signs that bookings will slow down and reservations look set to increase.
Reservations will in general cost 30 per cent more in the USA compared to last year, and 28 per cent more compared to 2019, largely due to the pent-up demand for travel and the widespread lifting of restrictions.
For the majority of the season, stays will be 14 per cent shorter compared to last year: 4.3 nights in 2021 vs 5.0 nights in 2020. This Summer’s length of stay is almost the same as pre-Covid 2019’s average length [4.1 nights] signalling a recovery.
In general, shorter stays signal recovery, with travellers not sheltering in place for longer periods of time as they did during the height of the pandemic.
- July 2021: Reservations cost 29 per cent more compared to July 2020, and 29 per cent more than July 2019. Stays this year are 14 per cent shorter than July 2020, and the same length as they were in July 2019.
- August 2021: Reservations cost 30 per cent more compared to last August, and are 26 per cent more compared to August 2019. Stays are 19 per cent shorter compared to last August, and the same as in 2019.
- September 2021: Reservations cost 30 per cent more compared to last September, and are 34 per cent more compared to September 2019. Stays are seven per cent shorter compared to last September, and five per cent shorter compared to 2019.
According to Guesty, the most popular property types being booked in the USA in summer [June, July and August 2021], starting with most popular, are: house, apartment, condo, cabin, townhouse, tent, and treehouse.
The Summer holidays are also a highlighting a recovery stateside, as Memorial Day outdid Covid and pre-Covid numbers, and 4 July looks to be heading in the same direction.
- Memorial Day weekend reservation volume was 71 per cent higher compared to 2020, and 43 per cent higher compared to 2019. 2021 stays cost $226 per night – 71 per cent more than 2020 stays and nine per cent more than 2019 stays.
- 4 July weekend reservation volume is 140 per cent higher today compared to what was seen in 2020 for the holiday at this time last year, and 47 per cent higher compared to 2019. 2021 stays cost 17 per cent more than in 2020 [$318 per night], and cost 15 per cent more than 2019 stays. Prices will likely rise as we continue to inch closer to this holiday. During Covid, last-minute reservations were very prominent for this holiday, but now, with the virus dying down, consumers are booking more in advance.
Comparing bookings in Summer 2020 [1 June – 31 August 2020] tp the same time period in Summer 2021 also provides optimism for the return to urban US cities, with Guesty seeing the following increase in tourists heading to metropolitan cities:
- Chicago: 283 per cent increase in summer bookings compared to last year
- Houston: 45 per cent increase in summer bookings compared to last year
- Phoenix: 221 per cent increase in summer bookings compared to last year
- Philadelphia: 294 per cent increase in summer bookings compared to last year
- San Antonio: 133 per cent increase in summer bookings compared to last year
- San Diego: 104 per cent increase in summer bookings compared to last year
- Dallas: 82 per cent increase in summer bookings compared to last year
- Austin: 71 per cent increase in summer bookings compared to last year
Later in the year, a surge in bookings is expected for the Autumn / Winter holidays, with current booking data outperforming pre-Covid numbers in volume and prices.
2021 November and December reservation volume in the USA is 157 per cent higher than November and December 2020, and already 80 per cent higher than November and December 2019. Those numbers will only increase as we move closer to both months, coupled with successful vaccine distribution and the desire to see family and friends in person over Thanksgiving and Christmas.
For Thanksgiving, reservation volume is up by 56 per cent compared to 2020, and 39 per cent more compared to 2019. The average nightly rate is three per cent more than last year at $475 per night [in 2020 it was $461], and 59 per cent higher compared to 2019.
It also appears that travellers are planning on staying four days per trip on average for their Thanksgiving getaways.
It comes as short-term rentals in Miami, Nashville and Philadelphia recorded month-to-month increases in occupancy, according to May 2021 data published by data benchmarking, analytics and marketplace insights provider, STR.
The occupancy levels in those cities continued to be higher than those reported by hotels in each market.
In Miami, May occupancy increased by 0.3 per cent to 83.3 per cent, but ADR and RevPAR fell slightly below previous months. For comparison, May occupancy for Miami hotels came in at 74.2%.
In Nashville, May occupancy increased by 2.3 per cent to 65.9 per cent, its short-term rental ADR was its highest for any month since December 2019, while RevPAR was the highest since November 2019. Hotel occupancy in the market was only slightly lower in comparison, at 61.4 per cent.
In Philadelphia, May occupancy was up 8.2 per cent to 76.9 per cent, its highest since October 2019, while the RevPAR level was the highest since November 2019. The market’s hotel occupancy was 54.8 per cent.
