Data and Insights Show That Changing Economic Environment is Impacting Summer Travel Behaviors
DENVER, July 18, 2022 /PRNewswire/ — Evolvethe fastest-growing vacation rental hospitality company in North America with more than 22,000 properties in 750 markets, has unveiled its “Vacation Rental Industry Trends: Summer 2022” report, offering detailed data and insight into the current state of the vacation rental industry this summer.
“Last year the US vacation rental industry saw record-breaking numbers, building to an unprecedented 33% surge in demand from 2019 to 2021,” said Eric Schueller, Senior Vice President of Revenue at Evolve. “That set the bar pretty high for a lot of short-term rental owners heading into a peak season in 2022. And while summer is shaping up to deliver a much stronger performance than it did prior to the pandemic, the market has changed.”
In 2022, short-term rental owners face several fresh challenges. The changing economic environment–from sky-high inflation rates to exorbitant gas and airline prices–is beginning to impact consumer’s summer travel behaviors and dampen demand, leaving more vacation homes vying for fewer guest bookings overall.
“If owners want to keep ahead of the competition and optimize performance, they need to pay attention to the market and adapt,” Schueller says. “That requires implementing forward-thinking revenue strategies that help make sure homes get booked.”
Evolve’s “Vacation Rental Industry Trends: Summer 2022” report is designed to give short-term rental owners the research and data they need to understand the market, along with Evolve’s strategies to maximize their home’s potential.
Key takeaways from Evolve’s “Vacation Rental Industry Trends: Summer 2022” report include:
- The Pandemic Effect: As COVID-19 pushed people to find new ways to earn passive income, many owners entered the vacation rental industry and, in 2020, the comparable market saw a 13% surge in supply (available listings) year-over-year (YoY) compared to 2019. Supply continued to grow at a healthy, sustainable pace through 2021 and into 2022, especially as guests began traveling again and owners saw more and more revenue opportunities in front of them.
- Guest Demand Rises: Guest demand really shot through the roof in 2021 as travel opened back up and vacation rental became the preferred form of accommodation. In late 2021, 86% of surveyed travelers told Evolve they planned to book a vacation home in the next year.
- A Steady Pace: The second half of 2021 saw vacation rental industry growth settle into a more sustainable pace, which carried into the early months of 2022. However, once reports of inflation started around March, the growth in demand started to slow — although it still sustained YoY progress — and that deceleration continued throughout May 2022.
- Market Challenges: As 2022 continues, supply growth is maintaining a consistent pace, but demand growth has started to decelerate quickly, with supply growth in May up 12% (compared to 10% in Jan 2022) and demand growth up 9% (compared to 32% in January 2022). This means the economic environment is beginning to impact summer travel demand, and there will be more vacation homes vying for fewer guest bookings overall.
“It’s important to remember today’s vacation rental market is quite different from what it was 12 months ago, or even 6 months ago, and it’s different from what it’s going to be a few months from today,” Schueller says. “That’s simply a natural part of being in the vacation rental industry. And despite the headwinds currently facing the economy, Evolve works hard to adjust course as needed to set owners up for maximum success.”
Discover the full results of Evolve’s “Vacation Rental Industry Trends: Summer 2022” report here.
Evolve is reimagining the vacation rental experience with our modern approach to hospitality and property management. We help guests rest easy with vetted homes, bookings that give back, and all the support they need for a great stay. We also make vacation rental stress-free for owners, partnering with them to book more and keep more of what they earn thanks to our industry-low 10% management fee. Learn more at www.evolve.com.