Vacation Rental Trends: Summer Slowdown for Hosts in The U.S.
Summary
The summer of 2024 is seeing a slowdown in vacation rental profits and occupancy across the U.S. Hosts should adapt by focusing on dynamic pricing, targeted marketing, and building strong guest relationships to maintain revenue during this challenging period.
Key Insights
- •Vacation rental profits are pacing 9.5% behind last year's figures, occupancy has dropped by 3%, ADR has fallen by 1.8%, and RevPAN is down 9.5%.
- •Shorter booking lead times are a noticeable trend, with guests booking closer to their travel dates.
Action Items
- ✓Implement a strategy that prioritizes occupancy and focuses on attracting guests first, then consider raising prices for high-demand dates.Effort: mediumImpact: medium
- ✓Consider more dynamic pricing strategies that respond to market demand, adjusting prices to meet current occupancy.Effort: lowImpact: medium
- ✓Regularly review and adjust your marketing strategies, including utilizing social media, email campaigns, and partnerships with local businesses.Effort: mediumImpact: medium
Tools & Resources
- →pricing tools and analytics: Utilizing pricing tools and analytics can significantly aid in making pricing adjustments effectively.
Watch Out For
- ⚠Maintaining stable pricing has not translated into increased bookings.
Related News
KB Home bets on built-to-order strategy amid a spec-heavy market
KB Home is shifting its focus to a built-to-order (BTO) strategy, aiming for higher margins in a challenging market. Hosts should pay attention to this trend as it may impact competition and pricing in their local markets, especially if private builders react to the changes.
![An Overview of Dynamic Pricing for Hosts [+5 Tools Included]](/_next/image?url=https%3A%2F%2Fwww.igms.com%2Fcontent%2Fimages%2Fwordpress%2F2022%2F10%2FDepositphotos_dynamic_pricing.jpg&w=3840&q=75)
An Overview of Dynamic Pricing for Hosts [+5 Tools Included]
This article discusses dynamic pricing for short-term rentals, explaining how it works to optimize revenue and occupancy by adjusting rates based on market conditions. Hosts should consider implementing dynamic pricing, using tools that automatically adjust rates, to stay competitive and maximize profits.
United Real Estate CEO Dan Duffy on the roadmap for competitive advantage
This article highlights the importance of data and AI in gaining a competitive edge in the 2026 housing market, emphasizing that hosts who prioritize data-driven decisions and adapt to market changes will thrive. Hosts should focus on leveraging data and AI to make informed decisions about their STR business to capture market share.
Foreclosure Starts Fall 7.6% Nationally, But These Key Counties Show Rising Distress
Foreclosure starts are down nationally, but certain counties are seeing a rise in early-stage filings, which can indicate future pre-foreclosure opportunities. Hosts in Florida, California, Ohio, North Carolina, and Texas should monitor county-level data to anticipate potential distressed property sales and consider how this might affect their local markets.