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2023 Vacation Rental Trends

We were recently invited to listen in on a webinar where some of our industry’s leading experts and brightest minds discussed 2023 vacation rental trends.

Before we share their conclusions for what's ahead, looking back on 2022, we’re pleased to report that itrip again outperformed our local Gulf Coast rental market by more than 10 percentage points, with respect to Adjusted Paid Occupancy (APO), with itrip at 67.8% for the year vs. 57% for the local market as a whole.

Looking ahead to 2023, current conditions indicate we are in for a weaker year in the vacation rental market. Supply is growing while discretionary spending, which includes travel and vacation, is shrinking. People will indeed travel, and vacation rental managers that are strategic with rates will be able to capture those travelers. The drive-in markets are expected to fair far better than fly-in markets, and fortunately, we have a very strong drive-in market along the Gulf Coast. Budget properties, which include one and two-bedroom properties, are seeing a significant drop in occupancy and average daily rate. Additionally, luxury properties are starting to soften, indicating that average daily rates will need to be adjusted appropriately. Management companies will need to drive occupancy early and pay close attention to pacing to be successful in these market conditions.

Currently, itrip is outpacing occupancy through early July 2023. We'd be honored to speak with your investment clients to share information on the current vacation rental market conditions and our award-winning program. Please reach out to Kathy Harr anytime or get more information here.

I’m always happy to discuss any of this with you further. Please reach out to me for more information on our referral program or property management program.

Kathy Harr

alabamabeaches@itrip.net

251-422-3546