Booking.com is gaining ground in the US short-term rentals market, with recent data showing the platform was responsible for 8% of all bookings during the second quarter of 2024. This marked a 21% jump for the platform – and it’s mostly at the expense of Vrbo, which saw its market share drop to 22%, down 9% compared to the same timeframe in 2023. Airbnb accounted for 43% of all reservations to continue its dominance of the US market, with this figure marking a 7% year-on-year increase. Direct bookings in the US accounted for 27% of reservations – a 1% rise.
The figures were revealed by Key Data in its Summer 2024 US Short-Term Rental Quarterly Report.
The report provides a detailed overview of the US market, including news of stagnant rates and declining occupancy: “Thus far in 2024, the performance of the United States vacation rental industry has continued to decline, although not as dramatically as last year. Occupancy has been slightly lower than in 2023 due to increasing supply and softening demand. Rates have been relatively stable, and revenues have dropped slightly. The ongoing question has been, ‘when will supply and demand stabilise, causing occupancy declines to stop?’. The year-over-year stabilisation did not come in July, but the fall [autumn] travel season is pacing well.”
Occupancy
In July, calendar occupancy was 4% lower than in 2023 and 7% lower than in 2022. Looking forward, August is pacing 1% behind, while September is pacing alongside last year, and October is pacing 3% ahead. This suggests the gap between supply and demand is decreasing.
Average daily rates
In July, daily rates were $401, $2 higher than last year and $27 lower than in 2022. For August and October, rates are pacing higher than last year. However, expect to see average rates decrease as you move through the booking window.
RevPAR (revenue per available room)
RevPAR has been declining because occupancy decreases have outweighed rate increases. At $197 per active property per night in July, revenue decreased by $14 from last year. Looking forward, RevPAR is pacing $5 behind last year in August and September, but even with last year in October.
Average length of stay
July’s average stay length was about 4.5 days, 0.1 days shorter than in 2023 and 0.2 days shorter than in 2022. August’s stay lengths are pacing alongside last year, but September and October are pacing 0.2 and 0.3 days shorter than last year, respectively.
A Key Data spokesperson said: “Property managers have to work harder just to keep occupancy rates consistent with the previous year. To influence longer stay lengths, try offering ‘stay more, save more’ discounts or enacting length of stay minimums.”
Southwest success
Occupancy rates in the southwest increased by 2% but fell in every other region, including in the Hawaiian Islands, where they dropped by a whopping 12%. The southwest region also achieved an average daily rate of $239 – which marked an increase of 4%. Daily rates were generally up or flat across the board; apart from in the Hawaiian Islands, where they were down by 11% to $370 per night.
The Hawaiian Islands also suffered decreasing RevPAR by 26%. The Rocky Mountain states, southeast states, and western US also suffered falls in RevPAR, while the other regions flatlined or achieved small increases.
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