BLOG TOPICS

MarketMinute: Unlock The Secrets To Rental Success in Austin

January 22, 2024

As one of the fastest-growing tourist destinations in the US, Austin's vacation rental market is thriving. This MarketMinute review is your ultimate guide to the market trends and insights you need to succeed in the industry.

‍

Whether you’re a seasoned property manager or just dipping your toes in the rental game, our analysis of Austin’s rental market is here to help you. Get ready to unlock the secrets to rental success in the Lone Star State.

‍

Looking for actionable short-term rental data about your market? We've got you covered!

‍

Average Occupancy: 58%

Austin is keeping pace with the national average of 58% when it comes to vacation rental occupancy rates. As the rental market becomes more competitive, maintaining an occupancy rate that matches or exceeds the national average is key. To succeed in Austin’s vacation rental market, property managers need to focus on marketing efforts and creative approaches to property management to ensure that their homes are always in demand.

‍

Average RevPAN: $138

The Revenue per Available Night (RevPAN) is the most effective way to evaluate the overall success of your vacation rental strategy. With a RevPAN of $138, the market rate in Austin is competitive. By analyzing pricing data and adopting dynamic pricing strategies, property managers can drive up RevPAN. Additionally, implementing revenue management software can help to maximize profits by forecasting demand for future dates accurately.

‍

Booking Lead Time: 50 days

The average booking lead time in Austin comes in at 50 days, which is slightly shorter than the national average of 55 days. This provides great opportunities for special offers like discounts and incentives to encourage bookings. However, property managers should also analyze booking data to identify higher demand periods and maximize rental revenue for high-season dates.

‍

Top Distribution Channel: Airbnb

Airbnb commands 30% of the Austin market. This offers a great opportunity to expand Airbnb listings to alternative channels and improve online property listings to attract more guests. By utilizing a multi-channel distribution strategy, property managers can tap into the benefits of different platforms to maximize bookings.

‍

Average Number of Reviews per Listing: 34

Vacation rental guests in Austin are more active reviewers compared to the national average of 26. This presents a great opportunity to leverage positive ratings to increase future bookings and revenue streams. By enhancing the guest experience, through the personalization of check-in, in-house amenities, and speedy response to complaints, vacation rental owners can drive more guest bookings, cementing favorable reviews, and ultimately grow revenue-generating repeat business.

‍

Average Length of Stay: 3.8

Operating in a market with shorter stays can be a challenge, so having a positive impact on the guest experience counts more than ever. This requires that property managers offer a warm welcome, provide a delightful accommodation, and make guest departure a memorable event. By setting realistic expectations, providing a clean and comfortable experience, and being approachable and responsive, guests are more likely to return for future stays and also recommend the property to family and friends.

‍

Austin's vacation rental market continues to impress with strong rates of occupancy and a competitive RevPAN while average booking lead time and the number of property reviews per listing is better than national averages. With the right approach to pricing and revenue management, property managers can maximize their rental revenue on special events and during high-occupancy periods.

‍