The Fall 2024 UK Seasonal Report from Key Data offers a valuable overview of recent trends in the short-term rental market across the UK, covering occupancy, daily rates, RevPAR (revenue per available room), booking patterns, and strategies to optimise performance during slower periods.
Occupancy rates and RevPAR
As autumn (or fall!) progresses, occupancy rates have seen a decline compared to the peak summer months, a trend typical of the post-summer period. However, the impact on RevPAR is cushioned by the fact that average daily rates remain robust. While there is a slight dip in RevPAR, it remains within healthy bounds, indicating that strategic pricing is helping sustain revenue levels despite the seasonality.
In terms of specifics, in September, daily rates were £158, £3 higher than last year. For November through December, rates are pacing much higher than last year, but managers should expect to see average rates decrease as we move through the booking window, as bookings made early tend to be for larger units at higher prices.
It is worth noting that rates in Scotland were 10% higher than last year – most likely a result of shrinking stock due to the controversial licensing scheme. England commanded rates 6% higher than last year at £185, while daily rates in Wales increased by 3%.
Booking windows and stay durations
The report highlights an interesting trend in booking windows and length of stay. Booking windows – how far in advance guests are making reservations – have shown stability, suggesting that guest planning habits are relatively steady for the autumn period. However, the average length of stay has shortened, reflecting a preference for shorter getaways rather than extended holidays. This shift aligns with the seasonal trend where autumn travel is often linked to weekend trips and shorter city breaks, especially given that school terms and work routines are in full swing.
At 4.6 days in September 2024, stay lengths were slightly longer than last year but shorter than in 2022. And though the change from 2022 may seem slight, the decrease in occupancy paired with the decrease in length of stay means that property managers need to work harder to book stays just to keep occupancy consistent year-on-year. Additionally, stay lengths are pacing longer than last year in October, but shorter than last year for stays in November. With nightly rates increasing and stays becoming shorter, these changes are an important indicator of changing consumer behaviours.
September’s average booking window in 2024 was roughly 67 days; one day longer than in 2023, and 11 days shorter than in 2022. The UK's annual booking windows in 2022 and 2023 were 52 and 49 days, respectively. This trend was similar to the US, where booking windows decreased from 61 days to 57 days.
Guest demand and strategic recommendations
The demand for short-term rentals in the UK remains steady overall, but property managers are advised to take proactive steps to maximise occupancy and revenue as they approach the shoulder season. Some recommendations include:
1. Adjust minimum stay requirements: With shorter stays becoming more popular, adjusting minimum stay requirements could increase bookings. This strategy is especially useful for attracting weekend travellers looking for a quick getaway.
2. Leverage last-minute pricing: Introducing last-minute discounts can attract spontaneous travellers. With economic conditions being a key factor, last-minute deals can be a compelling option for those looking to book affordable stays.
3. Target holiday season bookings: Even though autumn may see a drop in overall demand, the lead-up to the holiday season represents an opportunity. Property managers should actively market their listings for festive stays, focusing on cozy, seasonal appeal.
4. Marketing and seasonal appeal: The report underscores the importance of strategic marketing during slower seasons. Showcasing seasonal activities, local events, and the unique autumn appeal of the location can make listings stand out. Highlighting cozy aspects like fireplaces, scenic views, and proximity to seasonal attractions can increase guest interest.
5. Stay competitive in pricing: The report also advises property managers to stay competitive in pricing while remaining aware of average daily rates in the local market. Price adjustments based on local competition can ensure properties remain attractive to budget-conscious travellers while maximising profitability.
Looking ahead
With Christmas and New Year approaching, the report encourages property owners and managers to be well-prepared for the surge in demand that typically accompanies the festive season. A strong holiday marketing push, coupled with tailored pricing strategies, can help maximise bookings during this peak period.
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