Skift Travel News Blog

Short stories and posts about the daily news happenings around the travel industry.

Short-Term Rentals

U.S. Vacation Rental Demand Is ‘Quickly’ Decelerating: Report

2 months ago

Traveler demand for vacation rentals in the U.S. is still growing, but the pace has “started to decelerate quickly,” according to a report from property manager Evolve.

Property manager Evolve’s office, as seen in 2017. Evolve

That was a major finding in Evolve’s report, Vacation Rental Industry Trends: Summer 2022.

While vacation rental demand was up 32 percent year over year in January 2022, it slowed to 9 percent growth in May, the report found.

At the same time, supply of vacation homes in the U.S. is holding steady, if not accelerating. Evolve said vacation rental supply growth stood at 10 percent in January 2022, and in May it notched 12 percent growth.

“This means the economic environment is beginning to impact summer travel demand, and there will be more vacation homes vying for fewer guest bookings overall,” Evolve stated.

Asked whether the slowing demand growth might cause Evolve to do a restructing, including layoffs, co-founder and CEO Brian Egan said there have been no layoffs.

“No, quite the opposite, we’re continuing to grow rapidly,” Egan said. “Relative to any pre-pandemic time period, 2022 has been an incredible year for demand, and the impact of the macroeconomy is showing up in modest ADR (Average Daily Rate) compression year over year. It’s not threatening the fundamentals of occupancy that really drive the economics of our business.” 

Online Travel

Booking Holdings Faces a Challenge Because of the Euro’s Fall

3 months ago

Much of the attention regarding the euro’s historic fall has focused on Americans getting cheaper vacations in Europe — and the converse for EU residents — but the euro’s reaching parity with the U.S. dollar obviously has business consequences too — and Booking Holdings will likely have to deal with a material adverse impact.

In a research note Wednesday, Jake Fuller of BTIG wrote that he expects an “11 point headwind” to Booking’s growth in bookings in second quarter results and through the rest of 2022 because of volatility in the euro and British pound.

Eleftherios Venizelos International Airport source reuters
Passengers of a flight from Amsterdam wearing protective face masks arrive at the Eleftherios Venizelos International Airport, following the easing of measures against the spread of coronavirus disease (COVID-19), in Athens, Greece, June 15, 2020. Reuters/Alkis Konstantinidis

BTIG estimated that Booking Holdings generates about 55 percent of its bookings in Europe. The company doesn’t break out the percentage. “Within Europe, we assume an 85-15 split between the euro and British pound,” the note said.

Booking Holdings’ exposure to the euro “is likely material, should impact the 3Q guide, and does not appear to be reflected in consensus numbers for the year,” the research note added.

Geography has played a major role in how various online travel agencies fared during the pandemic.

Expedia Group benefited throughout much of the pandemic when the U.S. domestic travel market boomed, particularly for stays in vacation rentals.

On the other hand, Booking Holdings suffered because Europe was slower to rid itself of lockdowns than the U.S., and now Booking has to cope with the euro falling to a low it hasn’t seen in two decades.

From a variety of reports, Booking Holdings appeared to be gaining market share in June, but the euro crisis could blunt some of the progress.

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