Will 2024 be another 2023? (Ep 605)
Summary
This podcast episode discusses the STR market outlook for 2024, drawing on data from AirDNA and the Darm conference. It predicts a stable market with slightly increased ADR and RevPAR, but emphasizes the importance of focusing on guest experience to stand out.
Key Insights
- •In 2023, the U.S. STR market saw a 6.6% increase in demand, a 12.8% increase in supply, a 5.3% decrease in occupancy, a 0.5% increase in ADR, and a 4.9% decrease in RevPAR.
- •AirDNA predicts that in 2024, available listings in the U.S. will increase by 10.9%, demand will increase by 10.7%, ADR will increase by 2%, and RevPAR will increase by 2%.
- •In Q1 2024, demand pacing is up 6% and in Q2, 7.5%. ADR pacing is up 5-6% for both quarters, but supply is pacing 9% higher. This suggests flat/slightly down performance.
- •Mid-sized cities are predicted to perform best in 2024, with a 5% increase compared to 2023. Urban and coastal markets are expected to see a small decline in performance.
Action Items
- ✓Review your market data and pricing strategy, considering the predicted trends for your specific location type (urban, suburban, mid-size city, etc.).Effort: mediumImpact: medium
- ✓Evaluate your guest experience and identify areas to improve, focusing on creating a positive customer journey.Effort: mediumImpact: high
Tools & Resources
- →AirDNA: The episode references data and predictions from AirDNA.(airdna.co)
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