There has been a significant increase in demand for short-term rental accommodation in Greece for summer 2024. In fact, according to data provided by AirDNA to BnBNews.gr, data recorded until May 7th shows reservations for check-ins between May and August are up 21% compared to the same period last year.
May 2024 proved to be the most notable change with 1,023,477 nights booked, marking a 28.2% increase compared to May 2023. June records 1,003,621 nights booked which is in excess of a 20.5% increase, data for July indicates a more than 15% increase with 1,087,211 nights booked, and finally August climbs back up to a 21.7% increase compared to last year with 1,055,759 nights booked.
Decreased revenue
Despite increased demand and the average daily rate (ADR) showing a slight upward trend in general, in July we see ADR decrease slightly.
Let´s look at the numbers; May 2024 records a 4.3% increase in ADR going from €193 in May 2023 up to €202 this year. We see a smaller jump in the numbers in June but an increase of 1.8% nonetheless, with ADR going from €238 last year, up to €242 in 2024. However, in July we see a 1.2% decrease in ADR in 2024, from €266 last year down to €263 this year. Interestingly, August remains stable with an average daily rate of €261.
However, Airbnb´s figures for summer 2024 in Greece are quite worrying, in terms of revenue per available room (RevPAR). June is the only month that we see YoY growth albeit of just 2%, which reflects an increase from €76 in 2023 to €77 in 2024. In contrast, both July and August 2024 are reporting decreases in RevPAR. We see the average income drop by 8% in July from €97 last year to €90 this year, and August has a smaller, but still worrying decrease of 2% in RevPAR down to €89 compared to €91 for the same period last year.
The cause of underperforming short-term rental accommodation in Greece this summer is a combination of two main things. One is the increase in supply, which dilutes occupancy levels across the board, and the other is the pressure for property managers to keep their prices low due to operating in such a competitive short-term rental market.
There are of course other factors to consider, such as the introduction of a series of additional fees that squeeze already tight profit margins for the property manager even further. These new charges which affect both guests and hosts have been implemented this year and include climate resilience fees, per-accommodation fee for legal entities and transient fees.
Now more than ever, having a carefully considered pricing strategy in place becomes a necessary component of successful short-term rental management. Another critical consideration for property managers is the properties that make up their portfolio. What type of property will bring the best returns in the current short-term rental climate and beyond?
