– The short-term rental market in the United States declined sharply in the first half of 2023.– Revenue per Available Rental (RevPAR) increased globally, with a 5.7% jump to $49 due to increased occupancy.– American hotel brands are struggling due to a cost-of-living crisis and a larger supply of available rentals.– RevPAR in the US dropped by 3.3% to $89, with Average Daily Rates (ADRs) also decreasing by 2.3% to $260.– Occupancy in the US fell by 1% to 34%, and the average booking window decreased from 45.1 days to 41.2 days.– Inflation in America reached 4% in May, year-over-year.– RevPAR in Europe increased by 5.4%, while the United Kingdom saw a 9.2% jump.– RevPAR in the US is expected to increase by 1.3% in the third quarter.
As seen in the coverage by a recent report by data specialist Key Data, the short-term rental market in the United States has experienced a sharp decline in the first half of 2023. This is in contrast to Europe and the global market, where Revenue per Available Rental (RevPAR) increased by 5.7 percent to $49, thanks to a rise in occupancy offsetting a slight increase in Average Daily Rates (ADRs).
While hotel companies outside the U.S. have been thriving, American brands are facing challenges due to a cost-of-living crisis and a larger inventory of available rentals. In the U.S., RevPAR declined by 3.3 percent to $89 in the first half of the year, with ADRs dropping by 2.3 percent to $260. Occupancy also decreased by one percent to 34 percent. Additionally, the average booking window fell from 45.1 days to 41.2 days, and inflation in America reached four percent in May compared to the previous year.
Melanie Brown, the Executive Director of Key Data, stated, “The U.S. really has been the sick man of the short-term rental industry during the first half of 2023.” She further explained that the U.S. market has been impacted by increased competition due to a significant increase in supply over the past few years. It will take time to recover from this situation, and any deterioration in the economic landscape will amplify the effects of this increased competition.
In contrast, Europe experienced a 5.4 percent increase in RevPAR, with occupancy decreasing by 4.8 percent to 26 percent and ADRs rising by 10.7 percent. The United Kingdom saw a RevPAR jump of 9.2 percent, with a 0.9 percent decrease in occupancy at 34 percent, offset by a 10.1 percent rise in ADR.
During the second quarter, RevPAR weakened in the U.S. and globally, while it strengthened in Europe and the U.K. However, the short-term rental market’s RevPAR trajectory in the U.S. is expected to climb by 1.3 percent in the third quarter, with occupancy increasing by 4.3 percent.
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Topics From This Article to Explore:– Short-term rental market in the U.S.– RevPAR trends in Europe and the U.K.– Impact of increased competition on the short-term rental industry in the U.S.– Economic factors affecting the short-term rental market– Outlook for the short-term rental market in the U.S. in the third quarter of 2023
Source: [TravelPulse](
