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The Stay Hub | May financial update



The second quarter of the year is shaping up to be just as successful as the first! Over the period of April and May, our entire portfolio has seen an average occupancy of 90%, while our Average Daily Rate (ADR) increased 34% from this time last year, achieving $254 across the board.

On the basis of bedrooms, we achieved an occupancy of 94.8% with an ADR of $151 for one-bedroom properties, with two-bedrooms taking in an occupancy of 92.4% and an ADR of $229. For properties with three-bedrooms, we saw an average occupancy of 91.6% and an ADR of $307. Four or more bedrooms sat at 72.8% and $492 respectively.




HOW DO WE COMPARE TO THE WIDER MARKET?


In the latest reports available on AirDNA, one of the world's leading short-term rental data platforms, the wider Auckland market across Airbnb and Vrbo has an average occupancy of 76.4% from January to April of this year. In contrast, The Stay Hub has seen an average occupancy of 95.3% across all property types during the same period. Likewise, we have held an ADR of $342 from January to April, while AirDNA data shows a wider market ADR of $220.



EXPEDIA TRAVEL TRENDS

The Expedia Group, a global travel and short-term rental conglomerate, has released their latest Traveller Value Index for 2023. The report seeks to uncover the gap between traveller expectations and industry perceptions, with research from 11,000 travel consumers and 1,100 industry professionals across 11 global travel markets.


KEY TAKEAWAYS


Concerns over cleanliness and Covid-19 have receded from previous years, but still remain a key focus for a large number of travel consumers.


While the pandemic took a heavy toll on the economy, it also gave birth to a new era of travel demand, with many people moving away from crowded hotels and preferring to opt for the intimate environment a short-term rental provides. Along with the rise in demand for remote workers, travelling while working, and business trips, this has played a key role in the market's speedy recovery from the impacts of Covid-19. Just last year, Airbnb CEO Brian Chesky reported that the platform "wouldn’t have recovered so quickly from the pandemic had it not been for millions of people working from Airbnbs”.


Expedia has found that 35% of travellers still prioritise minimising exposure to Covid-19, while 51% state cleanliness and safety as a top priority. 57% believe the experience travel offers is worth the cost, while 46% of travel consumers have stated that travel is now more important to them than it was prior to the pandemic.


The report also indicates a strong return for business and international travel, with 1 in 3 travel consumers stating they are planning an upcoming business trip, and 1 in 2 reporting that they are likely to travel internationally within the next year or that they have already booked travel. This is a huge contrast to mid-2020, when only 12% of travellers indicated plans to travel.


Top Motivators Driving Travel:

- 49% are motivated by physical and mental health benefits

- 49% are motivated by a change of scenery

- 46% are motivated by the desire to make up for lost time


Another interesting find throughout the report is the importance travel consumers and industry professionals place on reputation. 48% rank guests reviews ahead of family travel recommendations and travel booking websites when deciding whether or not to book. Further to this, nearly half will choose the option that has the best customer reviews over the best value. Over 52% of industry professionals are now changing their businesses due to customer feedback.


The value of listing your short-term rental with an experienced and well-established professional property management company should not be overlooked. When you join The Stay Hub, you are joining a business that comes with the likes of an established Superhost ranking on Airbnb, along with five-star reviews on the many global travel platforms your property is marketed on. Our solid reputation for success and five-star service has also meant bagging a partnership with Homes & Villas by Marriott International - an expertly curated rental platform showcasing premium and luxury properties to a global audience of over 157 million Marriott Bonvoy® members.


If you are interested in reading the full report, you can download a copy from the Expedia Group.



If you have any questions for our property experts or you'd like a FREE appraisal to discover your income potential with short-term rentals, please get in touch with us below.

* Call 0508 STAY HUB (782 9482) * Complete our rental appraisal form on our website * Reply to this email * Click on the button below to book a 15 minute discovery call at your convenience - discover how much you can make!


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