Vacation Rentals, Average Daily Prices Rising

Vacation Rentals, Average Daily Prices Rising

  • Tomoya Tsuruhara
  • 06/1/22

Hawaii vacation rental occupancy was 72.4% in April of this year, according to the latest data from the Hawaii Tourism Board and the state's Department of Business, Economic Development and Tourism.

According to the monthly Hawaii Vacation Rental Performance Report released last week, occupancy rates in April were down slightly from April 2019, when statewide vacation rentals were 73.1%. Nationwide vacation rental unit supply was 630,800 unit nights last month, down 25.5% compared to April 2019. Unit demand was 456,400, down 26%. Compared to the United States, it can be said that the demand in Hawaii is high.

The average daily rate (ADR) jumped significantly, up 42% to $291 compared to April 2019.

Comparing key metrics to 2021, all categories recorded gains. Unit occupancy rose 6% compared to last year, reflecting a 10% surge in supply and a 20% increase in demand. ADR increased by 23% compared to April 2021.

The report defines vacation rentals as “rental homes, condominium units, private rooms in private homes, and use of shared rooms and spaces in private homes,” but does not distinguish between permitted and unlicensed properties. The report uses data compiled by Transparent Intelligence and covers properties listed on Airbnb, Booking.com, HomeAway, and TripAdvisor. This month's report includes data for 28,104 units and 48,438 bedrooms.

Hotels in Jeonju last month had an occupancy rate of 76% and an ADR of $371.

Of the counties, Hawaii Island was the only county to see an occupancy increase last month compared to April 2019, at 69%, an increase of 4 percentage points. All other islands show a small drop in occupancy rates of around 2-3 points. Maui County had the highest overall occupancy rate at nearly 77%.

The Big Island of Hawaii also had the highest ADR of $242, up about 49%, while Kauai had the highest overall ADR of $386.

In terms of supply and demand, the decline was noticeable on all islands, but Oahu seemed to have the most severe decline in both items. On Oahu, supply fell 38% to approximately 179,900 unit nights, while demand fell 41% to 123,450 unit nights. Compared to the same period in 2019, the occupancy rate in April decreased by about 8 points to 72%. Cumulative supply decreased by about 26% to 2.21 million unit nights, while demand decreased by 31% to 1.6 million unit nights. Year-to-date ADR is $295, up about 39% from April 2019.

 

Source:Pacific Business News

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