As European countries lifted pandemic-era restrictions just in time for summer, travel demand was expected to soar for holiday lettings markets across the continent. However, at the same time travel costs rose significantly, inflation reached new highs, and a possible recession loomed. So how did holiday rental summer markets do in Europe?
At Beyond, we have extensive market data that allows us to get a clear picture of how 2022 performed when compared to previous years. Let’s take a look at performance in summer destination markets across Europe, and compare them to performance from last year and 2019 (the last non-pandemic year).
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A Busy Summer Across Europe
Overall, most markets in Europe were very positive. Revenue per available night, RevPAN, was up 5% compared to 2021, and up 22% compared to 2019.
Both average daily rates (ADR) & occupancy levels increased compared to last year too, even though we see a small decrease in occupancy for September. Across most European markets, ADRs were up 3% vs last year and up 19% compared to 2019. Occupancy levels increased 7% compared to last year, a 20% increase from 2019.
This is a strong indication that the holiday lettings market is returning back to a healthy and steadily growing industry after the pandemic. As a report by ForwardKeys indicates, July and August 2022 saw more air travel this year than in summer 2019. This was a big travel trend this summer in the southeast of Europe, particularly countries such as Greece, Turkey, and Albania.
Highest RevPAN Recorded in Spain
International tourism was back in a huge way for Spain during the summer of 2022. As international travel to Europe increased and countries re-opened and made it easier for travelers to enter, Spain was again, one of the leading European countries in terms of tourism. It reached 90% of pre-COVID levels in its summer visits despite inflation.
Holiday rental hosts and managers in Spain recorded their highest RevPAN ever for the summer, increasing by 17% vs 2021 and 21% vs 2019. ADRs also increased, +3% vs last year and +5% vs 2019. Occupancy levels were off the charts, increasing by 18% vs 2021, 17% vs 2019.
France Reached its Highest Occupancy levels
In 2019, France was the most visited country in the world (reaching 90 million tourists). Despite a dip in July 2022, France also saw great results this summer. Holiday lettings saw their highest occupancy ever in France this summer, even with rising costs. RevPAN for holiday lettings in France was up 4% compared to last year and up 40% compared to 2019.
We did see that ADRs dipped slightly compared to 2021, at 9% lower. However, ADRs were up by 14% compared to 2019. Occupancy levels remained stellar throughout the summer. We saw a 14 % vs last year, which is also a 44% increase from 2019.
The UK Beat Its 2019 Performace
As expected, financial performance in the UK was slightly negative compared to 2021. RevPAN was down 14% compared to 2021, but was still 18% higher than in 2019.
As more English citizens flew abroad, we did see lower occupancy and ADRs, but these levels still beat 2019 – a great sign for the overall growth of holiday lettings across the UK. ADRs were slightly lower than 2021, at -1%, however, ADRs were up 15% vs 2019. Occupancy levels were down 13% compared to last year, but up 10% compared to 2019.
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