As a luxury property manager, much of the standard vacation rental management advice will not apply to you.
After all, there’s nothing “standard” about your business. In the luxury market, you compete with some of the world’s most spectacular properties and established luxury hotel chains.
To succeed in this exclusive space, you must take a unique approach to secure highly lucrative from top-quality guests.
In this article, we’ll use our own luxury property data to explore key trends and help you navigate the luxury market in 2024.
Rentals United is the No.1 channel manager for the luxury market, giving luxury property managers a choice of over 20 specialist luxury channels to list on, and the option to list luxury properties on-request on all the top OTAs.
Book your demo to see how Rentals United can help you market your luxury properties.
What makes a luxury property?
Luxury is complicated to define, but it’s generally accepted that all luxury properties should follow these principles:
- Exclusivity — Luxury properties are at the top tier of the vacation rental market, and not accessible to the average guest. Luxury travellers want to feel like they’re staying somewhere exclusive.
- Attention to detail — Every aspect of a luxury property is meticulously crafted, from the interior design and furnishings to the amenities and products provided.
- Elevated guest experience — Luxury property managers must provide tailored guest experiences, including arranging excursions and extra services.
In this article we draw on our internal luxury property data, defining luxury as properties with an average daily rate of at least $500 per night in order to have enough data of interest to reach relevant conclusions.
Luxury market trends for 2024
Our data uncovered significant differences in the luxury market of the US compared to Europe.
Here are the most significant statistics luxury property managers should know in 2024.
Decreasing occupancy in the USA vs increased demand in Europe
In the US, the supply of luxury properties has outgrown demand, resulting in decreased occupancy rates. Occupancy fell more than 5%, averaging 32% in 2023. Lower occupancy also led to a reduction in rates.
In contrast, European luxury properties saw demand increase faster than supply. Spain and Portugal, in particular, are experiencing rising occupancy rates and prices – Portugal stands out with an occupancy rate of nearly 50% in 2024.
An increase in revenue was seen all across Europe, including a slight increase in the UK.
Booking window changes
Average booking windows increased in the USA, with guests booking further in advance.
The reverse was true in Europe, as booking windows continued to shorten.
Rentals United data showed that 45% of bookings were made over 2 months in advance, and 54% were made 45+ days in advance.
Short-mid term stays
Our data showed a preference for shorter stays.
67% of the bookings had a Length of Stay between 1 and 4 days.
Marriott was the fastest-growing channel
Homes & Villas by Marriott International was the fastest-growing luxury channel in 2023.
The channel’s remarkable growth allowed them to increase their market share by 4 percentage points year on year.
They had the 3rd highest number of bookings from all channels connected to Rentals United.
Luxury bookings through major OTAs
Many lucrative luxury bookings were made through major OTAs.
Rentals United’s two highest-value bookings made to date in 2024 have been made through Airbnb €300k+) and Vrbo (€240k+) respectively, with Marriott taking third place.
Learn how booking requests can enable you to list luxury properties on major OTA’s.
USA luxury destination preferences
Traditional luxury US destinations such as Florida saw a decrease in market share. This may indicate that luxury travellers are seeking new experiences and avoiding overcrowded and mainstream destinations that have lost some of their exclusivity.
European luxury destination preferences
Popular European destinations for luxury travellers included:
- Catalonia, Spain
- Lombardi and Tuscany, Italy
- Ionian Islands, Greece
- Algarve, Portugal
Italian destinations were more diversified, with luxury travellers growing interested in Lombardy, Latium, and Campania.
Marketing your luxury properties in 2024
In light of the luxury trends we discovered, here are some ways to navigate the luxury market in 2024 and maximise your bookings and revenue.
Adjust prices according to demand
US property managers may need more competitive pricing to capture bookings and reach occupancy goals.
As supply outstrips demand, reducing your rates may help secure more bookings.
In contrast, European property managers have an opportunity to increase rates to maximise profits for every booking.
With a tool like Rentals United’s Elevate, you can get advanced insights into your property performance and benchmark against competitors to ensure you’re optimising your rates for bookings and revenue.
Booking windows
In the USA where booking windows are increasing, diversifying distribution channels increases your properties visibility to those early planners, helping you secure advance bookings. Flexible booking policies and proactive communication can keep guests engaged, preventing cancellations.
For Europe’s shorter booking windows, localised campaigns with exclusive promotions can help capture last minute bookings. Highlight your capabilities to facilitate spontaneous trips where guests have less planning time.
List on the right combination of channels
Getting your properties listed on the perfect combination of channels is crucial for success.
Niche luxury channels give you the opportunity to target a specific audience of luxury travellers who are searching for what your property offers.
However, it’s important to also consider major channels, as the data shows that the highest value bookings are still made through major OTAs.
With Rentals United, you can list on 20+ luxury-specific channels, including the fast-growing Homes & Villas by Marriott International. You can also make the most of major channels by listing your properties on a Request to Book basis.
Learn more about our top 19 luxury channels here.
Market your destination
Research shows luxury travellers are moving beyond traditionally popular destinations to explore new areas.
This is a perfect opportunity to use your website and your listings to educate guests about your destination to foster a sense of exclusivity and excitement.
Find more tips on marketing luxury vacation rentals in this blog post.
Get more bookings with the no.1 luxury vacation rental channel manager
As a luxury property manager, you must deliver excellence in all aspects of your property, services, and guest experience.
To get high-value bookings from your ideal customers, it’s important to list on the perfect mix of channels best suited to your brand.
With Rentals United, you can list your properties on 20+ luxury specialist sites, enabling you to attract bookings from affluent customers in the luxury travel segment. You can also benefit from listing on major sites like Booking.com, Airbnb, and Vrbo by using Request to Book to maintain exclusivity.