Looking in the rearview of 2021, we wanted to know what lessons short-term rental property managers learned this year. And going forward, what are they expecting for 2022? We polled a few experienced veterans of the industry and heard everything from big bets for 2022 to thoughtful lessons learned to expert advice for property managers.
Ed Bray, General Manager at Beach Properties | Hilton Head, SC
In 2021, demand during COVID-19 periods fluctuated quickly, both positively and negatively. Occupancy levels were at all-time highs last year— which had a tremendous impact on our staff. For this year, I would advise short-term rental managers to pay closer attention to your occupancy levels. If you see similar trends in 2022, be sure to adapt your strategies to handle those levels with an appropriate level of staff.
In 2022, the first eight months of the year will equal or exceed 2021 in terms of occupancy and average daily rate (ADR), however, a market correction will begin sometime in the 3rd or 4th quarter of 2022. Once the market correction begins owners will need to adjust their strategies to ensure that they remain competitive in the market. Owners who offer value-added amenities will have a competitive edge over their competition.
Stefani Warnick, Revenue Management & Hospitality Services at Bluewater Vacation Rentals | San Diego, CA
Similar to 2020, we had to face the uncertainty and unpredictability of 2021, and it kept us on our toes! The year started off with COVID numbers surging and more travel restrictions that forced us to continue to be flexible with our policies and our pricing strategy. As the year went on and reservations picked up, we faced the issues with sourcing inventory and vendors, but operationally we cannot always keep up with demand. Ultimately, the biggest lesson we learned is that we need to stay flexible and continually communicate with guests and owners to set their expectations according to this very unpredictable market!
The City of San Diego (along with dozens of other areas in the country) is in the process of creating restrictions on short-term vacation rentals. Nothing is set in stone yet so it’s hard to say what 2022 will hold. This, with the addition of the aforementioned resourcing issue, makes 2022 feel pretty unpredictable. However, we were already able to secure some pretty solid bookings and revenue for our shoulder and busy seasons so I’m looking forward to it nonetheless!
Jeremy Clayton, Managing Partner at Padre Escapes | North Padre Island, Texas
I would say that looking back at 2021 we learned that there is so much value in knowing our market and trusting the data.
We knew that before but it just went up to a whole new level in 2021. It allowed us to capitalize on a lot of opportunities and see upcoming obstacles before they got to us. For example, knowing the booking habits of our guests and the dates people were actively searching for allowed us to push higher rates when that prime booking window hit. At the same time, we saw a drop-off coming for fall, and we were able to pivot and reach out to traveling nurses to fill our fall nights with monthly stays.
For 2022, I believe the sky’s the limit. We’re already starting to see this come to life with summer 2022 bookings starting to trickle in as early as November 2021, earlier than ever before. Currently, 2022 is 119% ahead of last year at this time, March-July is up 145%.
For us, I don’t see anything we won’t continue but I do have one bet I will throw out there. At a recent industry event, I saw a stat that said roughly 50% of property managers were NOT using dynamic pricing. I bet the percent of property managers using dynamic pricing changes dramatically by next year for 2 reasons:
- The non-users realize they’re missing the boat and get onboard quickly.
- They are out of business because they lose all their inventory to PMs with dynamic pricing.
What are you keeping in mind for 2022? With Insights from Beyond, you can gain a deep understanding of your market and stay on top of industry trends. Plus it’s free to all owners and property managers. Learn more and request a demo today!