EVOLVE UNVEILS LATEST VACATION RENTAL INDUSTRY TRENDS REPORT
Winter '22-23 performance data shows that despite a volatile market, short-term rentals remain a strong investment
DENVER, April 3, 2023 /PRNewswire/ -- Evolve, the fastest-growing vacation rental hospitality company in North America with more than 25,000 properties in 750 markets, just unveiled its seasonal analysis of important trends in the vacation rental industry from winter 2022-23. With the market landscape constantly changing, Evolve's insights and metrics provide useful tips for short-term rental owners looking to maximize their home's performance.
"No market looks the same as last year — and with unpredictable patterns, it's more important than ever to stand out from the crowd," said Eric Schueller, Executive Vice President of Revenue at Evolve. "As we look forward towards spring and summer, which are peak travel seasons for many regions across the U.S., now is the time for owners to proactively adapt to industry trends and keep their home competitive to help earn as much revenue as possible."
Key takeaways and recommendations from Evolve's Vacation Rental Industry Trends Report:
Market supply and demand are both growing, but supply continues to outpace demand.
- Demand for vacation rentals is at an all-time high (up 9% from 2022, and 70% from 2019) — meaning more guests are booking than ever before. In fact, when Evolve asked travelers about their 2023 plans, 82% said they want to stay in a vacation home. However, supply is up 22% year over year (YoY), and this growth is causing total revenue per property to be down YoY.
- With more rentals vying for bookings, it simply makes things more competitive — and it requires owners to get more aggressive with their optimization strategies if they want to convince guests to choose their home over the many options available.
Even with the market shifting, vacation rental investments continue to be a smart move for owners.
- Years like 2020 and 2021 were such anomalies that businesses often evaluate vacation rental industry trends and statistics against pre-pandemic times to avoid a skewed look at performance.
- When compared to 2019, total revenue growth still remains strong at the per-property level. Total revenue per property for Evolve homes is up 28% vs 2019.
- It's also following expected growth rates that likely would have been present had the pandemic — and subsequent rebound from — not caused the extremes that it did. This shows that a vacation rental investment has been a smart move for owners.
It's essential to align with how the market is performing today.
- Unpredictable factors at play — like sky-high inflation, more interest rate hikes, expensive airfare, and abnormal weather patterns from coast-to-coast — are shifting both booking behavior and the destinations people are interested in visiting.
- Booking windows continue to show guests are planning ahead, so owners should lower average daily rates (ADRs) earlier in order to encourage upfront bookings (60+ days out from travel).
One-size fits all is the wrong approach.
- Offering highly-sought-after amenities can be the difference between your home being chosen over someone else's in such a competitive market.
- From tricking out your outdoor living space with features like a hot tub, fire pit, or fully furnished deck to adding indoor must-haves like high-speed internet, AC, and in-home laundry, it's worth investing in items guests are looking for when booking trips.
- While ADRs are a strategic lever you should pull regularly, there are others available — including flexible cancellation policies, providing five-star guest support (and soliciting guest reviews), and strategically designing property listing content to show up in guest searches so they know your home is a solid option.
Evolve's full seasonal trends report, including regional considerations, is available at www.evolve.com/industry-trends/winter.
About Evolve
Evolve 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.
Media Contacts:
Julia Marvin
[email protected]
720-201-4801
SOURCE Evolve
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