The global vacation rental market is in recovery mode according to the latest data from AirDNA. After reaching a bottom during the week of April 5 with 916,000 bookings globally from both Airbnb and Vrbo, bookings rebounded dramatically to 2.08 million for the week of May 18.
The vacation rental market recovery is correlated to the governmental policies of individual countries. The countries leading the charge in recovery are New Zealand +465%, Germany +367%, United States +202, France +200%, and Australia +189%.
The U.S. is the largest vacation rental market. For the week of May 18, U.S. new bookings soared to 807K from a low of 252K on April 5. This is followed by France 174K, Germany 149K, Australia 56K, and New Zealand 17K.
AirDNA data confirms that U.S. leisure destinations are seeing the most demand. Bookings in beach communities of Alabama, Georgia, Texas, and the Carolina soared by 968%. Bookings in the urban markets lagged, up by 44%.
Noteworthy is that the average distance travel declined by 74% for the 40 U.S. and European cities shown below. U.S. cities like New York, Los Angeles, and San Francisco typically get a large number of international arrivals, which is a key reason for the large year-over-year change.
For Europe, southern Europe saw the largest growth in bookings. The exception is Berlin, which also had strong demand despite being further north. Among the top European vacation rental markets, Germany had the second-highest number of new bookings after France during this period.
According to the data, bookings will ‘return to normal’ by September 2020. Revenues are projected to trend closer to a year ago for the latter half of 2020.