As the summer holiday rental season reaches its peak, Key Data, a leading data provider for property managers, destination management organisations (DMOs) and short-term rental professionals, offers a comprehensive look at the market performance in Greece this summer.
After an unprecedented summer travel season last year, Greece remains a popular destination for tourists, especially in famous hotspots such as Mykonos, Santorini and Rhodes. With August being the best season for both international tourists and locals on annual leave, the latest figures reveal how the summer of 2024 will be shaped across Greece and its regions. Summer is defined as arrivals in June, July and August, based on confirmed bookings up to 16 June 2024.
Increased supply brings down occupancy rates
The occupancy rate is a key measurement that relates to accommodation bookings. Key Data data shows that for the summer of 2024, Greece is only 1% behind last year. While Athens and Attica show a decrease of 11% and 7% respectively, Crete and the Peloponnese show occupancy rates increased by 1% and 3% compared to last year.
The total supply of rental accommodation in Greece has increased by 13%, while visitor nights have increased by 6%. This increase in supply has outstripped demand, creating a slight decrease in occupancy rates. However, with many bookings being made within 30 days of travel, there is still the potential for occupancy to reach last year’s levels.
Rising prices bring more revenue
The average daily rental rate (ADR) for short-term rentals in Greece stands at 209 euros, up 5% compared to last summer, according to Key Data data from Airbnb and Vrbo. This trend is consistent across regions, with the Peloponnese showing the smallest increase of 4%. Thessaloniki showed the largest increase in ADR by 8%.
As we move deeper into the season, prices are expected to adjust, as bookings made earlier can usually result in higher prices. For optimal pricing strategies, property managers are encouraged to monitor prices based on market, property type and size.
Revenue per available rental (RevPAR), which balances occupancy and prices, is 4% higher than last year in Greece, mainly due to price increases. Regions such as Crete and the Peloponnese, where both occupancy and prices have increased, are seeing RevPAR increase by 7% year-on-year. On the contrary, Attica and Thessaloniki show a decrease in RevPAR, as their price increases did not compensate for the significant drop in occupancy.
Despite the slight dip in occupancy rates due to faster supply growth over demand, the Greek vacation rental market remains robust. Higher average daily rates and strong RevPAR indicate a lucrative season.
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