VRMA Administrator
The United States has overtaken Europe in 2022 for the largest regional share of short-term rental (STR) bookings. Europe's decline is expected to continue due to economy- and war-related headwinds, as well as tougher regulatory restrictions in key markets. Asia-Pacific witnessed a sharper decline in share of STR bookings in 2021 because of strict pandemic lockdown policies, although the region is projected to rebound and exceed 2019's share level by 2026 as the rental markets recover and mature. The rest of the world will lose share as all major markets are predicted to strengthen. A lack of inventory was the biggest challenge for many STR markets as demand boomed from mid-2020 through mid-2022. With a recession now looming, people are looking to STRs as an additional income source, further boosting supply. A sudden drop in demand would leave a glut and plunging average daily rates (ADRs), while strong demand could cause high ADRs to price many travelers out of the market. The STR market is expected to see persistent post-pandemic traction in the coming years.
PhocusWire (12/12/22)
