The global short-term rental market is at a critical crossroads, according to Key Data’s presentation at the Short Term Rentalz Summit in London. Changes in occupancy, prices and revenue per rental in 2023 show different dynamics across continents, while the trajectory of 2024 shows that next year requires special attention from owners and managers.
Annual occupancy by continent
Numbers are recovering, with fluctuations by region. Annual occupancy for 2023 exceeded 2019 levels, presenting generally favorable conditions, but with significant variations:
Europe: Steady growth, with occupancy at 40% in 2023 and a slight increase of +2% in 2024.
Asia: After a positive course since 2021, occupancy reached 55% in 2023. However, early forecasts for 2024 show stagnation.
South America & Oceania: Occupancies peaked in 2022, dropped by 50% in 2023 and have a slightly more positive +3% increase in 2024.
North America: The only region with a downward trend since 2021, recorded an occupancy of just 35% in 2023. A small increase of +2% is expected to be recorded for in 2024.
The forecast for 2024 is modest, with occupancy holding steady or showing low single-digit increases in the global short-term rental market.
Average Daily Rates: Opposing Trends by Continent
Prices shape visitor expectations as well as owner margins.
Europe: Despite peaking in 2022, prices showed a slight increase in 2023, with a positive forecast for 2024.
Asia: Showed a downward trend since 2021, with average prices not following the broader positive picture.
North America & Oceania: After reaching their highest levels in 2022, prices decreased in 2023.
South America: Prices remained stable in 2022, with a slight increase in 2023.
For 2024, the forecasts show a positive course for Europe, North America and Asia, while Oceania and South America remain stagnant.
RevPAR in the global short-term rental market
All regions recorded higher revenue in 2023 compared to 2019, but the momentum was not the same:
Europe & South America: Recorded positive annual growth since 2021, with optimistic forecasts for 2024.
North America, Oceania and Asia: Revenue peaked in 2022, but declined in 2023.
2024 forecast: Europe, North America and South America are on an upward trend, while Oceania and Asia continue their downward trend.
Challenges and Opportunities for 2024-2025
The next two years require strategic moves, as the factors influencing the market vary:
- Guest expectations are ever-changing and guests demand more value for their money, which requires owners to maintain strong returns without increasing prices too excessively.
- Occupancy remains stable, but high daily rates in the summer may prove to be an obstacle.
- Understanding the market through data analysis, benchmarking, and studying booking trends is essential.
- Economic and legislative developments act as “headwinds”, with the market having to adapt to changes.
2023 showed that the global short-term rental market can recover dynamically, but the challenges for 2024 and 2025 have been, and will be plentiful. Owners are urged to invest in strategic management, using data to better understand guest trends and preferences, in order to maintain their competitiveness.
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