Vacation rental receptionists have thankfully been quite busy as bookings are rebounding back to pre-covid levels across the US and occupancy in most markets is starting to get back on track after a rough Spring. However, are we still getting the same type of bookings we got last year as we rush to fill vacant homes and condos? We’ve touched on the impact of Covid on average daily rates (ADRs) previously (here), but want to understand the impact across a diverse portfolio of bedroom sizes and markets.
It comes as no surprise to any veteran Property Manager that the effects of social distancing and “quarantine bubbles” of individuals/groups would directly affect the communal and collective nature of summer vacation. We took a look at how ADRs, made since the Covid outburst in mid-March, for reservation in June and July of this year have been impacted not just by overall waning demand, but a shift in appetite of large vs. small when compared to 2019.
In nearly all markets year over year ADRs are down as property managers and individual hosts look to shore up their cash flows by backfilling their listings with guests as quickly as possible. Smaller listings (defined here as 2 or less bedrooms) have fared better than their larger counterparts in terms of less drastic cuts to ADR.
Due to Covid, the average guest count is smaller so the relative fall in demand has been less for small listings. Conversely, larger sized listings are having more trouble finding traveling groups that need its size, and are having to discount more in response. Larger size listings in South Florida Gulf Coast and Myrtle Beach have been hit excessively hard, while places like Hilton Head and Tahoe have seen a more balanced reduction in ADR.
If you’d like to learn more or want to see how your portfolio is performing check out our free Insights or reach out directly.