It's been another major year of growth for the vacation rental industry as Homeaway was acquired by Expedia in November and Airbnb hitting a valuation of over $25 billion.
Both the number of listings and the number of people deciding to stay in short-term rentals has grown tremendously over the last year. We wanted to take the chance to analyze demand for one of the year's most profitable nights for hosts all over the world: New Year's Eve.
So where are Airbnb and vacation rental guests staying this year as the clock strikes midnight?
Beyond Pricing crunched all the data and scoured over 120 markets worldwide where Beyond Pricing helps hosts and owners figure out how much to charge for big events like New Year’s, and we found four of the biggest types of destinations:
- The snow-packed slopes of major US ski resorts
- The warmer climates of Hawaii
- Cities know for partying
It doesn't come as a surprise that the combination of Christmas and New Year’s brings flocks of travellers to some of our most popular mountain markets, like Lake Tahoe and Big Bear in California, and Aspen, Vail and Telluride in Colorado. The resorts with the most snow seem to get the most visitors! Big Bear, at a lower elevation and with less snow, still has 35% of listings still available.
Families and snowbirds alike turn to vacation rentals in the Hawaiian Islands to celebrate their holidays. We see some of the highest demand of the year for Oahu, Kauai, Maui, and The Big Island as travellers opt for the warm and sunny Christmas and New Year's climate offered by Hawaii during New Year's week. Unlike more urban destinations, the ski and beach towns see the peak season extend all the way from Christmas through New Year’s. If you’re planning a last minute trip, though, head to the Big Island where demand (and prices) aren’t so crazy!
In the world’s major party cities, New Year’s Eve is the chance to let it all loose with tens of thousands of revelers. In cities like Berlin, Sydney, Miami, New Orleans, and Las Vegas, as hotel prices sky rocket, vacation rentals are packed. You’ll be tough-pressed to find a place if you haven’t already scored a place to ring in the New Year here. Interestingly, Vegas is laggard among these top party cities, as more people are likely opting for hotels in this hotel-centric city.
Finally, in one of Airbnb’s fastest growing regions, it seems like supply just can’t keep up with demand. New Year’s Eve in major cities like Hong Kong and Tokyo is off the charts, with less than 20% of rooms still available in Tokyo. But even secondary Japanese markets like Kyoto and Osaka are seeing big peaks.
As we saw last year, while NYE is big in places like London, New York, and Paris, there are still thousands of Airbnb’s and vacation rentals left with only a week to go. So if you’re headed there, you’ll have a fine selection to choose from.
Beyond Pricing provides automatic, demand-based dynamic pricing software for homeshares, vacation rentals, and Airbnb and HomeAways. Our team of experienced revenue management gurus have helped thousands of hosts and owners make 10-40% more revenue.
Want to learn more about how Beyond Pricing can help maximize revenue on your Airbnb? Demo your listing for free using our dynamic pricing software!