Short-term rental demand growth across global destinations

The second in a series of three articles analyzing market growth over the last year, today’s report focuses on assessing short-term rental demand growth. As industry supply and demand are shaped through their own symbiotic connection, we reveal this year’s trends and insights from some of the globe’s most visible and visited destinations.

Read on as we evaluate the August percentage growth and decline in demand of the largest vacation rental markets by supply of June 2023. As a result you will gain a more complete image of the magnitude and development of these markets. Lastly, we discuss what this means for the hospitality industry at large.

Short-term rental demand growth in the most popular destinations of 2023

Average booked nights growth in August 2023 over August 2022 across destinations with the highest supply in June 2023 amounts to +33%. The median falls on 21%, asserting positive health in the following mature markets:

Marrakesh leads with +84% demand growth in the last year. In like manner, Toronto, Kuala Lumpur, Dubai and Batumi follow behind with +78%, +66%, +61%, and +46% respectively. 

On the other hand, the only exception in demand growth is Kissimmee with a -9% decline in reservations.

Booked nights in destinations with highest supply of 2023 

Let's delve deeper into the reservations of the global cities with the highest supply for entire-home vacation rentals this August of 2023. 

Pivoting focus to European markets, since 2022, London has replaced Paris and now represents the destination with the highest August reservations. There was approximately a +42% increase in booked nights in London this year since last year. Moreover, Paris grew by +21% in nights booked. 

Measure vacation rental demand in your market

By and large, tourist destinations can act as crucibles for economic growth, generating revenue streams that sustain local communities, infrastructure development, and employment opportunities. Simultaneously, they demand a delicate equilibrium between the influx of guests and active inventory. 

Equally, we run the same analysis on cities by highest short-term rental inventory growth to paint the full picture on short-term rentals for our readers. In our last article of the series, we will explore the global destinations with the highest revenues.

Given these points, measure and track short-term rental demand in your destination and gain full visibility and insight over reservations (AKA one of the indicators of your destination's health). So, discover exactly the Lighthouse data you need for a comprehensive understanding of inventory, reservations, and revenue or click below to access the Destination Insight dashboard.