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Q2 stays up 16% globally despite Airbnb’s ‘booking slowdown’ fears

In the US, ADR is down 1.9% but total nights booked for Q2 have risen 10.2% annually while occupancy has increased by 1.6%. The combined effect of these two measures means RevPAR is flat year-on-year at $76.91.

SANTA ROSA BEACH, FL – Contrary to ‘booking slowdown’ fears expressed by Airbnb recently, latest data shows the short-term rental industry has actually strengthened in the second quarter of 2023, Key Data reveals1.

Airbnb’s share price crashed 12% last week despite beating Q1 expectations when it revealed to investors it expected a slowdown in bookings for Q2, partly due to pent-up post-COVID demand affecting the year-on-year comparison.

In its Q1 Shareholders Letter published this month, Airbnb stated, “Nights and Experiences Booked will have unfavorable year-over-year comparisons in Q2 2023 as we overlap pent-up 2022 demand following the COVID Omicron variant. We expect year-over-year growth in Nights and Experiences Booked in Q2 2023 to be lower than our revenue growth during the quarter. Although ADR continues to demonstrate greater than expected resilience, particularly in EMEA and North America, we anticipate a slightly lower ADR in Q2 2023 than Q2 2022.”

However, those fears appear to have proved unfounded. The number of nights booked for global Q2 stays is up 15.9% annually, with 22.6 million more nights sold than at the same point last year2, Key Data can reveal.

While average daily rate (ADR) has only crept up 1.4% over the same period — indicating a heavy fall when adjusted for inflation — occupancy has more than made up for it, resulting in a 17.4% increase (from $36.48 to $42.82) in revenue per available room (RevPAR). Occupancy has risen worldwide by 15.7%.

In the US, ADR is down 1.9% but total nights booked for Q2 have risen 10.2% annually while occupancy has increased by 1.6%. The combined effect of these two measures means RevPAR is flat year-on-year at $76.91.

Across the pond in Europe and the UK, RevPAR has increased dramatically.

In Europe, nights booked for Q2 are up 15.4% and ADR has increased by 13.2% year-on-year, jumping from 125.17 euros to 141.64 euros. Occupancy is up 10.2%, while RevPAR has increased by 24.7%.

In the UK, hosts are enjoying a 15.2% increase in ADR, from £139.06 to £160.20, and a 14.4% increase in nights booked compared to last year. Occupancy has jumped up 9.4% and RevPAR has increased by 26%, now settling at £52.83.

Melanie Brown, Executive Director of Data Insights at Key Data, commented: “Despite Airbnb’s warning of a tougher second quarter, the market has been much more resilient than expected.At the halfway point for the second quarter of the year, the appetite for short-term rentals remains strong, with bookings for Q2 showing double-digit growth across the board. RevPAR in Europe and the UK are the stand-out successes but even in the US, the only place to record lower nightly rates, revenues are still stable.”

¹ Data based on bookings made for stays in Q2 2023 as of 15th May 2023 vs bookings made for stays in Q2 2022 as of 15th May 2022.
2 Bookings made for stays in Q2 2023, as of 15 May 2023, vs bookings made for stays taking place in Q2 2022, as of 15 May 2022.

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

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