As we all know, 2023 presented the short-term rental space with some headwinds in our local market. These headwinds, of course, included the decrease in demand the industry experienced nationwide. There were a variety of contributing factors—most notably the sharp increase in international travel during the first half of 2023. Apart from the changing demand picture, there was also the increase in supply of vacation rentals that have entered the space over the past few years.

The fall-off in revenue wasn’t immediately apparent, as a significant number of reservations were made at the peak of the market in 2022 for arrival dates in 2023. They were booked at much higher rates, which helped inflate Average Daily Rates (ADR) for the entire year. Perhaps it shouldn’t come as a surprise that we’re now seeing a much shorter booking window compared to previous years.