Lodgify unveils summer 2023 STR industry report

Spain / US: Vacation rental software startup Lodgify has released a seasonal report delving into the latest trends and forecasts shaping the US short-term rental industry this summer. 

Based on over 740,000 bookings from Lodgify customers in the United States between January 2021 and June 2023, the report sheds light on the key industry changes that property managers should be aware of, along with helpful insights to boost their profits and occupancy during the peak travel season.

A few highlights from the summer-specific report include:

• Summer occupancy rates have dropped by eight per cent: With more short-term rentals available this year compared to 2022, the increase in supply and competition may be contributing factors to the slump.
• Guests are booking shorter stays: The average length of stay between this June to August is 3.5 days. However, 56 per cent of longer-stay reservations [eight days or more] are booked direct, providing an ideal revenue opportunity for hosts with their own websites.
• Last-minute bookings are still a trend: This past June, 48 per cent of bookings were made within three weeks of the arrival date, following the same trend from 2022, meaning there is still plenty of time for summer rentals to fill up.
• Fireworks for Independence Day: Despite an overall drop in average daily rates [ADR] this summer, Fourth of July daily rates increased by 4.6 per cent from 2022, potentially due to increased travel activity with the holiday falling on a Tuesday this year.
• Giving love for Labor Day: 38 per cent of Lodgify bookings for Labor Day Weekend are direct bookings.

The full report, which includes tips for property owners to enhance their offerings and capture more bookings during the season, can be viewed and downloaded for free in the Lodgify blog.

Lodgify COO Alex Vuilleumier said: “Our latest research showcases invaluable insights that will help property managers navigate the evolving landscape of the vacation rental industry. We are proud to equip our valued customers with actionable data to stay ahead in this competitive market.”

Lodgify’s software, which is currently available in five languages — English, Spanish, French, Italian, and German — has also released reports with local data from each of the regions to support its global customer base. The company secured $30 million in Series B funding in November to accelerate its product development, customer support, and global expansion.

Founded in 2012 in Barcelona, Lodgify seeks to empower small property owners and managers with tools to start and grow their businesses independently. The platform also enables hosts to create their own website, accept direct bookings and payments, and synchronise all of their property data, reservations, and guest communications across major OTA channels.