What You Should Know About: 2023 VRM Market Conditions

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

For 2023, 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 still 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.

In order to be successful in these market conditions, we will need to drive occupancy early, pay close attention to pacing, and be flexible with Average Daily Rate. (ADR)

Currently, itrip is outpacing our local market in bookings through July 2023.

January: up 16% over our local market

February: up 20%

March: up 11%

April: up 1%

May: Even

June: up 3%

July: up 5%

*data provided by KeyData