Short-term rentals outperformed hotels in 27 markets during pandemic
US: Short-term rentals have maintained higher performance levels than hotels during the time of the Covid-19 pandemic, according to the preliminary findings of a joint global analysis by hotel data intelligence and global benchmarking firm, STR[1], and AirDNA[2].
The full analysis will be made available via each company’s website and press release during the coming weeks. Additional preliminary findings will be shared today [23 July] via a Cloudbeds webinar[3] featuring Scott Shatford [AirDNA founder and CEO] and Robin Rossmann [STR managing director].
For the purpose of the analysis, STR and AirDNA looked specifically at the performance of traditional hotels, hotel-comparable short-term rentals [studios and one-bedroom units] and larger short-term rentals [two bedrooms or more]. The analysis used weekly data from March 2019 through the week ending with 27 June 2020.
The analysis revealed that short-term rentals[4] outperformed traditional hotels across 27 global markets throughout the pandemic, reporting significantly higher occupancy rates during the stated period.
Preliminary findings:
- Supply fluctuations remained consistent across the three accommodation types.
- Traditional hotels saw the most severe year-over-year declines in performance as well as the lowest absolute points during the pandemic.
- During the most recent week of the analysis, larger short-term rentals showed the highest occupancy level of 61.4 per cent. Short-term rentals most comparable with hotels came in at 58.2 per cent, while traditional hotels were at 39.2 per cent.
- For most of the time of the pandemic, larger short-term rentals posted the most favourable week-over-week percentage change in average daily rate [ADR]. During the final two weeks of the analysis, however, traditional hotels showed the highest growth of 5.1 per cent and 2.4 per cent, respectively.
- Regional areas are seeing faster performance gains than urban areas across the two accommodation sectors.
AirDNA and STR’s findings support recent wider belief that larger, rural vacation rental properties have been preferred alternatives to hotels during the Covid-19 pandemic as guests seek added reassurances over their privacy and safety.