Market Pulse: Florida Keys

A continued increase in demand is expected for most markets in the United States through the Summer as domestic travel demand remains higher than usual, and the Florida Keys are no exception. While some metrics like booking pace and last-minute bookings are still lower than pre-pandemic levels, occupancy rates and demand have risen.

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Key Takeaways:

• Overall occupancy for short-term rentals in the Florida Keys is back to pre-pandemic levels, with some weeks ahead of where we were in 2019
• Fewer last-minute bookings are being made this July compared to the same time in 2019
• We expect booking pace to pick up steam for the latter part of summer, so don’t worry if you’re not yet fully booked

In the Florida Keys market, for example, the charts above display all bookings that have been made over the past 21 days by their check-in week. Additionally, the same values for 2019 are included to provide pacing context for each market.

Vacation Rental Inventory Shortage Contributing to Slower Booking Pace

In the near term, we can see that short term rentals in the Florida Keys are pacing a bit behind when compared to the same period in 2019. This means that more last-minute bookings were being made at this point in 2019 compared to this year.

Leading into the Fourth of July, however, the market saw an increase in last-minute bookings being made this year. Property managers should ensure that their last-minute discounts are properly set to maximize occupancy in the short term where high-priced inventory may go unsold.

Looking at the remaining summer months, we can see that booking pace is slightly behind 2019 for every week in July. Occupancy for July 2021 has already surpassed 2019 levels, however, so it appears that a lack of availability may be contributing to this slower booking pace.

Expect Extended Demand for the Rest of Summer

Looking deeper into the summer, there are weeks that are actually picking up stronger now than in 2019, which is a good sign for extended Summer demand later this year. Property managers and owners who are concerned about booking pace for late Summer and early Fall at this point in the year shouldn’t be worried since there are no major variations in booking pace compared to 2019.

In terms of overall occupancy, the Florida Keys market (and most of Florida) has definitely recovered since the beginning of the year. Monthly occupancy has met or surpassed 2019 levels for the market since the beginning of 2021.

A continued increase in demand is expected for most markets in the United States through the Summer as domestic travel demand remains higher than usual. Be sure to consistently review individual market data to stay on top of the latest trends in your market and how your revenue management strategy should adapt accordingly.

Beyond users can easily see how their portfolio stacks up against the market in our Insights tool:

For a more detailed look of your properties against the market, check out our Insights tool today.