Hi Vacation Rental & Revenue Managers! I’m Talia Lockard, from Rented, and welcome, this is our first weekly booking pace update, where weekly we will share with you the current state of demand and market variance as provided by Rented’s Revenue Managers, and Art: our Automated Rate Tool. Let’s dig into the August 30th update details, or check out the video here!
For nearly every market, we’re seeing booking pace slow and the booking window contracts a bit. Before getting too concerned about a slow down, I’d advise Property Managers to look at historical seasonality and current occupancy/ADR trends in their market (excluding 2020) to see if they’re returning to more typical seasonality and/or if they’re in line or ahead of the market.
Some markets are seeing general contraction but those in my experience are limited to locations with serious Covid rise that is making national news. Most other markets may be slowing from 2020 but are performing well compared to historic seasonality trends. Most of our clients are continuing to outperform their markets even with some contraction on occupancy/demand.
We’re still seeing 2022 bookings in destination markets but we’re seeing the bulk of fall bookings land within 30 days. But when evaluating US holidays we are seeing that despite the slowdown in demand the past two weeks, there is still a large demand for Labor Day and most markets are close to, if not sold out.
For our properties under revenue management, we are holding high on rates and anticipate a full sell-out. Fall months are following the market trends with overall slowdowns in demand through pre-Thanksgiving dates. Depending on the market, demand is mirroring 2019 levels for the fall in terms of occupancy.
Here’s a couple of insights from our Revenue Management Team:
- We are seeing softer occupancy numbers than the prior year, 2020
- Property Managers need to remember that most schools and also work are in person once again, and anticipate how this is going to impact their performance
- In markets where this past weekend is still considered peak season, the 27th through 29th were either booked weeks ago or were last-minute booked at a high rate. But for markets where last weekend is considered mid-peak (or back to school), we have seen the last 10 days drop in booking pace dramatically
Be sure to follow Rented on LinkedIn where we will share our Booking Pace Update weekly, and join me for The Art of Pricing Live every Wednesday at noon Eastern. Learn more about a free revenue management account with Art, our Automated Rate tool here!