Economic shifts may benefit vacation rental owners as we head into peak summer season
DENVER, June 7, 2023 /PRNewswire/ — Evolve, the fastest-growing vacation rental hospitality company in North America with more than 30,000 properties in 750 markets, just released its latest analysis of trends in the vacation rental industry from this spring. Evolve’s insights provide vital tips for short-term rental owners looking to maximize their home’s performance in an increasingly dynamic market.
“Vacation rental industry trends are always changing, and this spring has been no exception,” said Eric Schueller, Executive Vice President of Revenue at Evolve. “If owners want to earn as much as possible in today’s market, they need fresh revenue optimization strategies — including strategic thought into the amenities offered — to make sure they win guest bookings over nearby competitors.”
Key takeaways and recommendations from Evolve’s Vacation Rental Industry Trends Report:
Supply continues to outpace demand, but a brighter summer may be on the horizon.
Demand for vacation rentals remains at an all-time high (up 9% from 2022 and 64% from 2019). However, supply continues to outpace demand and is up 21% year-over-year (YoY), resulting in lower total revenue per property YoY.
On the bright side, there have been economic shifts that may benefit owners in the summer months; inflation dropped from 6% in February to 4.9% this April, and domestic flight prices are down 19% from last year.
Additionally, the supply growth rate of new homes entering the market is beginning to stabilize at 22% per month. That, juxtaposed against an increasing demand growth rate of 2-3% per month since January, could be an early sign that the gap between the two may start to shrink.
Nimble rates are key to outperforming the competition.
Competitive rates adapted to today’s market are one of the best ways for owners to lock in harder-to-win bookings. Depending on a region’s activity, this could mean rates should be set differently from last month, last year, or even years past.
Owners should also use booking trends to inform when to lower rates to capture interest from last-minute bookers and avoid having an empty property. While winter showed many guests were planning ahead, the spring break holiday saw more travelers booking on short notice – within 14 days of arrival – when they had the flexibility to wait for deals.
Reviews and amenities turn lookers into bookers.
Owners don’t need to rely solely on lowering rates if their region is getting more competitive – flexible cancellation policies, great guest reviews, and strategically designed listing content can also show guests a home is a great option.
As we head into the summer months, owners can also prioritize the amenities that guests are looking for when booking a stay in their specific region during this time of year.
By leveraging some of the strategies above, Evolve homes earned nearly 5% more base revenue per property than the market. Visit evolve.com/owner/spring-industry-trends for the full seasonal trends report, including regional considerations.
About EvolveEvolve is reimagining the vacation rental experience with our modern approach to hospitality and property management. We help guests rest easy with vetted homes, bookings that give back, and all the support they need for a great stay. We also make vacation rental stress-free for owners, partnering with them to book more and keep more of what they earn thanks to our industry-low 10% management fee. Learn more at www.evolve.com/news.
Media Contacts:Ashley Taylor
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954-498-5752
SOURCE Evolve
