Vacation Rental Trends for Peak Season 2022
As we approach the mid-way point of 2022, conversations about the pandemic’s negative impact on the hospitality industry are starting to fade. The vacation rental industry in particular, has been doing exceptionally well. Travelers are more eager than ever to visit new places and are consistently choosing short-term rentals over hotels.
Demand for vacation rentals in 2021 was already 10% higher than pre-pandemic levels in 2019. In 2022, that number has continued to rise, with Lodgify predicting healthy growth for vacation rental hosts throughout the year’s peak season.
You’ve probably caught on to some of the vacation rental trends mentioned below. If you haven’t, don’t worry, there’s still plenty of time to readjust and capitalize. Prep your listings to avoid missing out on the following opportunities to boost your rental’s revenue this summer.
Early Bookings
In the summer of 2021, travelers for both business and leisure had trouble securing rentals when booking closer to their travel dates. This was in large part due to guests who, given their increased work flexibility, decided to book lengthier stays.
Guests have caught on to this trend and are choosing to book their extended stays well in advance, allowing them to secure their ideal vacation home and dates. In an effort to adapt to increased lead times, hosts have started to offer flexible cancellation and rebooking policies.
If you haven’t already, make a note to update your listings and offer guests more flexibility. You should also use social media and email marketing to promote peak season amenities featured on your property such as an underground pool, fully-stocked bbq deck, or on-site playground. These amenities are more attractive than ever before given the following trend.
Longer Stays
As mentioned above, guests are booking earlier due to many guests booking longer stays. AirDNA reports that the average length of a stay will continue to increase throughout 2022. Given that summer vacation is officially in session across the country, hosts can expect this trend to grow throughout peak season.
When compared to 2019 numbers, the average length of a stay in 2022 has doubled and even tripled in some markets. Guests are combining work with pleasure and are booking longer stays as a result. An extended stay allows guests to enjoy a series of activities—perhaps more activities than they would if they only had a weekend or a few days off.
Keeping this in mind, hosts should find ways to cater to remote workers and digital nomads who are likely to stay for extended periods of time. Although these kinds of travelers are usually thought to be singles in their mid 20’s, many remote workers are married, have children, and are looking to take their loved ones on the road.
Lock in longer stays by promoting property features that serve this demographic well. Many vacation rental managers have already started shifting their strategies to accommodate this new kind of guest.
Rise in ADR
The last trend to capitalize on in the summer of 2022 doesn’t require much effort on behalf of hosts, just awareness. With the demand for short-term rentals increasing across the board, prices are naturally going up. The average daily rate (ADR) of a vacation rental home is up 40% year-over-year in the U.S. Now is the time to raise your daily rate if you haven’t done so already.
An increase in ADRs is expected during peak season, especially in the summer. However, ADRs this year are particularly high. This is largely due to the continued success of larger, rural properties welcoming families and large groups. These kinds of properties are ideal among travelers looking for a relaxing getaway with a touch of luxury.
If you’re interested in outsourcing any aspect of your vacation rental business, don’t hesitate to reach out to MB Experiences. We’re a full-service property management company helping hosts run highly successful vacation rentals. Call us today to get started!
