We share only the poignant and juicy bits, so you don’t have to scroll your way through reams of text to stay on top of what’s happening in the vacation rental industry.
Summer 2022 is sizzling hot so far, but clouds are gathering…
Hopefully, you’re reading this with an Espresso Martini in hand to celebrate Summer 2022, which by all accounts, appears to be shaping up very nicely for vacation rental hosts.
Looking at May and June booking data from Airbnb and Vrbo, Summer 2022 is going swimmingly well so far, according to vacation rental data provider, AIRDNA.
What does ´going well´ mean exactly?
Well, overall demand in the U.S. is up 12,8% as of early June compared with Summer 2021, and up 21% compared with Summer 2019, according to the latest AIRDNA market review.
So, what about rates? Are they up too?
Yup, (Average Daily Rates) ADRs are on the rise – with the average nightly rate this summer increasing to $351, up 8% from last year, according to AIRDNA.
Where is demand the highest?
As the fear of COVID subsides, travelers definitely seem to be up for city breaks again, with large cities seeing the biggest increase in demand – up 32% in May, compared to 2021, as quoted in the AIRDNA report.
Kind of. In Europe, overall demand on the books is up 56% from 2021, and 5% higher than at the same time in 2019. Not all markets are doing equally well, though, according to AIRDNA´s market review for Europe.
Out of 20 top regions, 11 are up on 2019 figures, while 9 are seeing declines in demand.
For example Germany (up 36 %), Greece (up 27% and Austria (up 16%) are top performers, while the Czech Republic (-36%) ,Hungary (29%) and Ireland (-22%) are lagging behind.
So far ADR is pacing toward a rise of 1.3% across the European continent.
What´s this about storm clouds?
High energy prices, high inflation and the war in Ukraine could have an impact on demand in the longer term. An increase in supply could also affect the vacation rental economy in the future.
We´ll just have to wait and see…
And also this… A legal challenge to a controversial ban!
Nothing to do with reproductive choices, this one, but another restrictive law – Bill 41, which was used by the Honolulu City Council to slap a ban on vacation rentals across the island of Oahu in April.
Not everyone thinks so. Short term rental industry representatives claim the process for Bill 41 happened behind closed doors and favor the hotel industry.
So, who is challenging this?
Property managers and owners have filed a federal lawsuit against the City and County of Honolulu, the Honolulu Department of Planning and Permitting and the DPP Director in response to the recently passed bill.
They claim the bill is unconstitutional and takes away owners existing property rights.
Why should I care?
The regulatory issue is one that concerns all vacation rental owners, and the last thing they need is an example of an effective clampdown by a city council to add to the constant threat of property right restrictions hanging over their heads in many parts of the country.
By the way, the party is over… for good this time.
Airbnb Inc announced it will make permanent its temporary ban on parties introduced in homes listed on the platform. (They have also tried down to clamp down on revellers in other ways in the past)