Revenue growth in key destinations: DMOs track short-term rental streams in their market
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Today’s article is the last in a series of three painting the picture of short-term rental growth in the globe’s largest vacation rental cities.
Assembling the pieces of vacation rental supply and demand growth across key markets together, we have calculated the revenue growth. In effect, presenting our readers with visibility over vacation rental impact and growth in these markets. With KPIs from over 17 million listings across major OTAs (Airbnb, Booking.com, Vrbo, TripAdvisor), our expert team reveals the revenue growth in key destinations as DMOs track short-term rental streams in their market.
Short-term rental revenue growth in key destinations & property dense markets
Revenues in destinations with highest supply of 2023
Measure vacation rental revenue & RevPAR in your market
Short-term rental revenue growth in key destinations & property dense markets
Based on the scale of their vacation rental inventory this June, we chose the specified markets. In our analysis, the average across all destinations amounts to +35%. The median in this case is +30%, both data points alluding to a generally positive trend.
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Marrakesh garnered +97% short-term rental revenue growth. In contrast, Houston is the only market on the list experiencing a shrinking in revenue, generating 16% less than in August 2022. Considering this, the Houston booked nights rate in August 2023 was up by +7.5% compared to August 2022 and a +2% inventory growth in June 2023 over June 2022. Since our previous analysis found that Houston inventory has grown 2%. This revenue drop could logically be attributed to a drop in average performance of these listings - either in ADR or occupancy.
Revenues in destinations with highest supply of 2023
Pivoting from growth, what were the actual total booked nights revenues across each market? London, Paris and Kissimmee stood as the three highest ranked markets by their revenues this August. Specifically in the USA, Kissimmee, Los Angeles, and San Diego are the top three revenue generating cities this year.
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Measure vacation rental revenue growth & RevPAR in your market
The need for destinations and DMOs to track revenue and engage in comparative analysis cannot be overstated. These metrics serve as useful for gauging impact and hospitality, or tourism market share. Insights can demonstrate value and the reality to stakeholders including government bodies, investors and local businesses. Not to mention, with revenue optimization in tourism, decisions can be made at low risk, avoiding uninformed strategies that hinder their destination's development. Furthermore, evaluating revenue through the year gives an indication of seasonality and economic sustainability. It can also play a part in assessing compliance.
Know whether your revenue is in line with your short-term rental projections, make optimized business decisions and embrace seasonal tourism revenue trends that are crucial for DMOs. As a result, remain relevant and effective in your roles as stewards of their destinations' economic health. So, access vacation rental KPIs to understand travel industry earnings and visitor attraction revenue by booking a call with our team and discover how our data will help your organization, or by exploring all the benefits of the Lighthouse Destination Insight dashboard below.