ADR (Average Daily Rate) Drop and Last Minute Bookings

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ADR (Average Daily Rate) Drop and Last Minute Bookings

Ray J.
SC · Member since 2020 · 66 posts · 42 votes

Hey BP!!

Wondering if in your markets for your STRs (Short Term Rentals) are you seeing the ADRs (Average Daily Rates) a lot lower than what you were originally forecasting for the year, and are the majority of your bookings done last minute?

For our STRs here Myrtle Beach this seems to be the case, and not quite sure if it is one of the below factors or potentially all of them:

1) the economy

2) increase in STR supply for the area

3) less demand

Interested to hear everyone's thoughts and experiences.

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Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
3y

Huge supply increases alongside normalizing demand back to more sustainable levels.  Gonna be a rough year until supply starts moving back off and supply/demand level back out again.

Cosmic Vacations4.9174 Reviews
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  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    3y

    Huge supply increases alongside normalizing demand back to more sustainable levels.  Gonna be a rough year until supply starts moving back off and supply/demand level back out again.

    Cosmic Vacations4.9174 Reviews
    WebsiteView Page
    3Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    I'm usually booked up so last minute is  ot possible very often. This is for our Lake House.

    We have a larger mountain cabin and it to books in advance as large groups and the Vrbo crowd tend to be planners.

    Both properties do very little with Airbnb and these people tend to not be planners.

    I have been raising prices at the lake and getting it.

    We have also raised prices some for the mountain cabin and only lower it some if the month isn't filling up.

    2Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Our ADR is fixed so nothing there.

    We get bookings months in advance like @John Underwood. We are booking 2024 right now.

    I will say we have had a few cancellations but they were filled in by last minute bookings.

    Overall we are just a bit under the last 2 years occupancy at this time. I expect to have those extra dates filled in as the season progresses.

    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    I've been definitely hearing mixed thoughts on this topic. My honest option...guests are expecting more out of a STR. If your property doesn't offer what they're looking for, guests move on to a different property that has more amenities, edgier design, better location or views, concierge service, etc.

    [email protected]330-557-3021
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  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    I think all of these things are factors right now. It’s definitely a different summer…not pandemic but not quite pre pandemic yet either…maybe even slower than normal in some pockets. Also listings with status (that have been around a few years) are going to book first.

    1Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    I am seeing wayyy more last minute bookings 

    2Reply
  • Ray J.
    OP
    SC · Member since 2020 · 66 posts · 42 votes
    3y

    @Sarah Kensinger - I completely agree with you!

    1Reply
  • Ray J.
    OP
    SC · Member since 2020 · 66 posts · 42 votes
    3y

    @Michael Baum Thanks for the insight! I'm wondering are a lot of your guests repeat guests that have stayed at your propeety before, or do you see a lot of your bookings coming from new guests?

    1Reply
  • Chris Merchant
    Member since 2023 · 216 posts · 133 votes
    3y

    @Ray J. is the property in Myrtle Beach or NY?  I can say myself unless I am going on a long planned vacation I am guilty of doing my booking reservations sometimes as little as the day before (though I generally use hotels in that instance). 

    I am not sure how you market the property, if you market it as a short term rental and/or vacation rental but if you target vacationers maybe try notifying travel agents of the property as it may boost interest, they will generally (I believe) want some sort of kickback or concession if their clients rent the property but that is a small price to pay to have it rented instead of vacant.

    For vacationers:

    As for the reason for the late/last minute bookings, I think many people feel the later they wait the better deal they can find so they purposely wait knowing that in the event they don't find a cheaper rate they will still be able to secure a place so there is really nothing to lose for them, it's not like the price will go up the closer it gets to their arrival date.  So to combat that you need to offer something at your rental that other rentals in the area don't make your place be in higher demand.

    1Reply
  • Brian Barch
    Member since 2022 · 272 posts · 253 votes
    3y

    I have only gotten last minute bookings in the last 8 months. By last minute, most are 1-2 weeks out, max of 3. I am in an inexpensive, driveable market.


    for the most part, last minute bookings is really another way to say ADR drop/demand drop. Guests are waiting to get lower rates and aren’t feeling the need to fight for dates 

    2Reply
  • Robert DaltonPro Member
    Property Manager · Waikoloa, HI · Member since 2023 · 30 posts · 10 votes
    3y

    We are in Hawaii. Seeing good ADR, but occupancy is slightly down which should be expected, and the booking window has decreased. 

    For us people were booking a year out from rollovers from Covid so the booking window is just now normalizing.  

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y
    Quote from @Ray J.:

    @Michael Baum Thanks for the insight! I'm wondering are a lot of your guests repeat guests that have stayed at your propeety before, or do you see a lot of your bookings coming from new guests?

    Most are new guests. We get a couple of repeats but not a ton. I would love to get more return, but it is what it is.
    1Reply
  • Robert DaltonPro Member
    Property Manager · Waikoloa, HI · Member since 2023 · 30 posts · 10 votes
    3y

    Yeah, not having a lot of repeat business makes it a little more difficult.

    1Reply
  • Ray J.
    OP
    SC · Member since 2020 · 66 posts · 42 votes
    3y

    @Chris Merchant The STRs are both in Myrtle Beach. We are seeing bookings generally either the week of or within 2 weeks of the date they are booking for.

    1Reply
  • Robert DaltonPro Member
    Property Manager · Waikoloa, HI · Member since 2023 · 30 posts · 10 votes
    3y

    Yeah, and from what I hear Florida and the surrounding areas have had a significant increase in rentals. 

    0Reply
  • Chris Merchant
    Member since 2023 · 216 posts · 133 votes
    3y
    Quote from @Ray J.:

    @Chris Merchant The STRs are both in Myrtle Beach. We are seeing bookings generally either the week of or within 2 weeks of the date they are booking for.


    Okay so it seems, your target group is vacationers? Sorry if the questions seem weird, I don't do STRs so not sure if vacation rentals fit into the STR category or a category of their own... I am interested in the vacation rental market.

    0Reply
  • Ben Scarborough
    Realtor · Gulf Shores, AL · Member since 2020 · 153 posts · 76 votes
    3y

    I would say ADR has dropped some, but not a significant amount by any means. I think what is most stressful is that booking lead times seem to have more than halved across all of our properties. This makes things more hands on to make sure you are staying higher in the search results, and more reason to think about the possibilities of hiring cohosts or VAs to help make sure your listing is staying towards the top of the search results. Additionally, this means it is very important to make sure you have a healthy direct booking platform you work off of as well.

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    In general I think we are down about 15% (west coast FL area) from last year.  In FL we had an insane bull run during and immediately post COVID, so that trajectory was impossible to sustain.  This is due to increased supply, economy/inflation, as well as cost of airfare IMO.  We used to be able to get flights from NYC or Chicago area for under $100 each way and now I see them at $300-400 each way! Our properties that are nicer and offer more amenities are doing fine, but the clients we have that took shortcuts and are not now upgrading are struggling a bit.  We also hired a revenue manager through our pricing provider and having someone looking at pricing data daily has helped significantly as the market has softened.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
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  • Ray J.
    OP
    SC · Member since 2020 · 66 posts · 42 votes
    3y

    @Andrew Steffens Very interesting info! Thank you for sharing. What I have noticed is properties specifically condos where I invest that those that have been upgraded and have various amenities are booking quicker than those that aren't.

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y
    Quote from @Ray J.:

    @Andrew Steffens Very interesting info! Thank you for sharing. What I have noticed is properties specifically condos where I invest that those that have been upgraded and have various amenities are booking quicker than those that aren't.


     Exactly - Units large or small that are more desirable via design and finished and/or amenities will still book at a good rate.  Less desirable will suffer a drop in occupancy, ADR, or both.  Almost anything will rent for the right price, so being on top of pricing is paramount in today's market.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    1Reply
  • Mark H. Porter
    Investor · SC NC, VA · Member since 2020 · 1k+ posts · 756 votes
    3y

    Here in MB I projected my 2023 growth of the 2021-2022 growth.  Wrong move.  Last year was a fluke that wasn’t expected to be replicated due to the rising costs not stretching the vacation dollar as far.

    1Reply
  • Ray J.
    OP
    SC · Member since 2020 · 66 posts · 42 votes
    3y

    @Mark H. Porter That is very helpful information! I have been seeing a trend where people are saying the ADR's are quite a bit lower this year.

    0Reply
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