Travel in July remained strong in Europe, with total demand for overnight stays on Airbnb reaching 57.6 million nights, up 17.7% year-on-year.
July is usually the month when supply peaks in Europe.
According to AirDNA data available beds Last month, they reached a new record of 4 million in Europe, up 15% year-on-year and 5% since June.
The resilience of demand has made it possible to maintain the occupancy rate in positive territory, which last year stood at 68% on average on the European continent, up 0.3% year-on-year.
Despite strong supply, demand and occupancy, last month was also the first month – out of twenty – that Europe saw the annual average daily rate (ADR) fall.
After nearly two years of steady growth, ADR fell 1.5% year-on-year last month.
Airbnb in Europe X-rayed in July
- Available beds stand at 4 million, up 15% year-on-year (YOY)
- Demand reached 57.6 million, up 17.7% year-on-year
- Average daily prices (TJM) amount to an average of €174, down 1.5% over one year
- The average occupancy rate was 68%, up 0.3% year-on-year and down 2.8% compared to 2019.
- Revenue per available rental (RevPAR) decreased by 1.2% over one year to €119
- Reservations increased by 23.2% year-on-year
Prices are falling
Over the past five years, average daily prices have been rising steadily in Europe. However, this trend appears to have stopped in July.
Not all European countries recorded a year-on-year decline in ADRs. Among the top 20 European countries, nine saw a decline, with Greece recording the highest rate at 9.8%. They were followed by Croatia at 7.8% and Hungary at 6.8%. In contrast, the largest increase was recorded in Denmark at 13.8%, Austria (6.9%) and Germany (6.4%).
As the report highlights, for countries such as Norway, Sweden and Greece, year-on-year declines in ADR have consistently coincided with falling occupancy rates, driven by supply growth far outpacing demand growth.
Airbnb Booking Window
Airbnb’s analysis of the booking window (the time between the property’s closing date and the check-in date) for short-term rentals showed a compressing trend, with fewer guests booking far in advance, while more are booking at the last minute.
Over the past five years, there has been a significant decrease in the percentage of bookings made more than 60 days in advance, as well as a notable increase in the percentage of stays booked less than 14 days in advance.
Booking times can also vary by location. European cities tend to have longer lead times because they primarily cater to international travelers who book their accommodation in advance.
Last year, the median booking time for the 50 largest European cities was 27 days. The median booking time for destinations outside the 50 largest European cities was 23 days last year.
Optimistic predictions
With current booking trends pointing to shorter lead times, Airbnb owners can’t get a clearer picture of how traffic will change during the fall and winter seasons.
This also means that bookings for winter holidays could be slower than in previous years.
It is important to note that shorter lead times do not necessarily mean an overall decrease in bookings.
The current demand rate for Europe shows strong year-on-year booking growth from September to the end of the year. European demand increased by 14% year-on-year through December.
September and October saw demand increase by 15% year-on-year, while November and December bookings also suggest that European STR demand could end this year on a high note.