Lodgify Vacation Rental Industry Report (Forecast Q2, 2022)
BARCELONA, Spain – April 5, 2022 – (Newswire.com)
U.S. vacation rental owners and property managers can expect a 23% rise in average daily rates (ADR), as well as extended stays and earlier summer bookings, according to Lodgify.
The vacation rental software company today released its second-quarter (Q2) industry forecast.
The report predicts robust growth in the upcoming months, particularly for businesses relying on direct bookings.
This forecast confirms vacationers seek quality travel experiences as an extension of COVID trends.
The projections are based on over 400,000 bookings, including direct and online travel agency (OTA) bookings, and a comparison with previous reports.
Short-term rentals can expect to see daily rates rise by 23% in Q2 with the highest expected ADR of $295 in June.
Meanwhile, direct booking ADR is expected to increase at a significantly steeper rate (+36%) than the ADR of OTA (+21%) until summer, compared to Q2 2021.
Of the OTAs, Vrbo is expected to see the highest growth in ADR year on year at 32%, compared to Expedia at 30%, Airbnb at 17% and Booking.com at 18%, respectively.
Lodgify data shows travelers are booking longer stays, with the longest stays near the holidays. These findings align with trends that show remote workers having greater flexibility.
The average length of stay (LOS) is expected to increase by 18% from 3.5 to 4.2 days during Q2 compared to the same period last year. The LOS for travelers who book directly is expected to grow by 20% compared to 18% for OTAs.
Mid-stays (4 to 7 days) are expected to rise from 29% of total bookings in June 2021 to 47% in June 2022. These metrics might be affected by last-minute bookings.
More confident travelers are expected to book further in advance, with a booking window 8% larger in 2022 – on average 7 days earlier.
The booking window for direct is expected to be a month earlier at 92 days, compared to an average of 57 days for OTAs.
One in 3 bookings will be made at least 60 days in advance during the shoulder season, representing 27% of total bookings at the beginning of the year – 4 points more than in 2021.
Overall, direct bookings are gaining ground on OTAs, as guests continue to seek quality and personal contact with hosts.
Direct bookings will make up 23% of total bookings in Q2, a 2% increase from 2021. Overall, there is an expected 5% growth for direct bookings for 2022 compared to 2021.
Click on the Lodgify Vacation Rental Report (Forecast Q2) for more details.
Lodgify is a vacation rental software with an all-in-one solution that empowers owners and property managers to create their own website and accept online bookings and process credit card payments. Using Lodgify, owners enjoy stress-free reservation management and synchronization of channels.
Contact: Alberto Fernández ([email protected])
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