• Guest Preferences: Properties that offer new and improved amenities continue to attract more bookings. There is an increasing divide in bookings and revenue between dated properties with average amenities and those with high-end finishes and abundant amenities. Additionally, with more options available and high inflation, consumers are becoming more price-sensitive and often delay bookings in hopes of securing lower rates.

• Booking Trends by Source: In Q1 2024, 28% of bookings in the U.S. were made directly with a property management company, a 5% increase from Q1 2023. Nationwide, Airbnb bookings rose by 10% to 44%, while Vrbo experienced a 6% decrease, dropping to 21%. Guests booking stays in urban markets tend to use Airbnb more frequently, while those traveling to rural and resort destinations prefer Vrbo. Bookings through Vrbo and direct channels typically command higher rates, are made further in advance, and result in longer stays. Fortunately, as shown in the pie graph, the most of our bookings come from our website and Vrbo, aligning well with these trends.

• Rate and Revenue Trends: Mirroring the national trends noted above, our Average Daily Rates and Occupancy Rates for May and June are slightly lower than last year. Throughout Q1 and Q2, we’ve been adjusting nightly rates to gain occupancy and attract price-sensitive consumers who have many options. We expect average daily rates to continue decreasing as we progress through the summer booking window and work to secure occupancy for the coming months. Advanced bookings are usually for larger homes and tend to command higher prices. As we move into the summer vacation period, we're closely monitoring booking trends and adjusting rates to optimize demand during this peak time.

• Supply and Demand Dynamics: Supply growth is expected to continue decelerating throughout the year, currently down 9% year-over-year and continuing to fall from its peak of 23% growth in Q3 2022. Despite the slowdown in supply, there is still a mismatch between vacation rental supply and demand, affecting occupancy levels. Data from AirDNA indicate that overall occupancy levels are now below 2018/2019 levels, following the record highs seen in 2021 and 2022. Supply and demand are expected to level out later this year, which will continue to stabilize occupancy trends.

• Performance Benchmarking: When we benchmark our performance against competitors and the industry as a whole, we consistently outperform market predictions and other vacation rental companies operating in our markets. The graphic demonstrates this performance. The market data shown in the red bars is sourced from KeyData, which aggregates information from property managers and provides key insights into market performance. As mentioned above, we’ve adjusted average daily rates (ADRs) to increase occupancy, resulting in a positive aggregate RevPAR. This positive RevPAR contrasts with the broader vacation rental industry, where RevPAR has been negative for the past 24 months, a trend dating back to April 2022.

Looking ahead, although we've seen a steady stream of summer season bookings over the past month, there are still plenty of opportunities to secure bookings. Travel trends indicate that booking windows have shortened substantially, with guests booking closer to arrival and sometimes a day or two before arrival. With heightened cost sensitivity, guests are also opting for shorter stays. We're keeping this in mind as we continue to employ all our marketing and booking strategies to help maximize your rental income.

*Note: The reservation source varies by market. The above graphic depicts reservations across our portfolio.

We've Increased Our Marketing Investment

Like the three major OTAs, Vacation Rental Collective increased our supplementary marketing spending by 20% in the first half of 2024 to boost your property's visibility in a competitive market. Our additional marketing efforts include email marketing campaigns, targeted social media marketing, and Google Ads. By leveraging our extensive list of prior guests, we have reached over 150,000+ former guests through our email marketing campaigns and approximately 415,000 people through targeted social media marketing; collectively, our marketing efforts generated bookings with a return on ad spend of roughly 2,500%. These efforts underscore our commitment to showcasing your rental property to the right guests at the right time.

Travelers typically use between 5 and 8 amenities when searching for properties on top OTA platforms. In a competitive market, homeowners who invest in improvements and offer unique amenities secure more bookings and experience increasing demand year over year. 

We've listed the top five searched amenities below, along with four additional amenities popular with guests during the summer season.