2021 Summer Review: Leisure Vacation Rentals Surpass Expectations
For many US vacation rental homeowners and managers, the 2021 summer season was likely the most profitable they have ever experienced. Although 2020’s summer performance varied greatly between destinations—luxury, drive-to leisure markets prospered while urban areas continued to struggle—Summer 2021 brought growth to almost every US destination.
In 2021, pricing power grew as demand surged, and rates increased accordingly. In the most popular leisure-based destinations, every canceled reservation was soon replaced by a new one.
As is always the case, the extent of growth varied by region and city. Whereas some key performance indicators (KPIs) —like occupancy and average daily rate (ADR)—followed similar trends across most of the country, other KPIs—like the average booking window—differed.
Let’s recap 2021’s summer season using data from professional property managers around the country. The following data sets represent approximately 391,000 properties managed by 2,360 vacation rental management companies.
Adjusted Paid Occupancy: June 1 – August 31
The adjusted paid occupancy rate (occupancy) measures the number of guest nights out of the nights not taken up by owners or holds.
In the US, the national average increased by 22 percent between 2019 and 2021, and 2021’s summer’s occupancy rate was 72 percent.
Of the regions featured here, California experienced the largest increase at 43 percent. Even more exciting is the recovery and growth of rentals in Hawaii, where occupancy was extremely low last summer (2020).
Mountain destinations like those in Colorado (+27 percent) and the Southern Appalachian Mountains (+26 percent), a region that includes North Georgia, Western North Carolina, and the Tennessee Smokies, also performed well.
The Gulf and South Atlantic coastal markets saw slightly less year-over-year growth, but that is most likely a factor of summer occupancy usually being quite high in those regions.
The growth in the overall occupancy rate reflects the increase in demand for vacation rentals that has occurred in the last year and a half.
Average Daily Rate (ADR): June 1 – August 31
The increase of the average daily rate (ADR), which is the average rental revenue generated per guest night, has been one of the most astounding trends of …….