Insights into the UK holiday let market in 2023

Economic factors

The economic situation in the UK is showing a promising outlook for the revival of the holiday rental market in 2023. With the economy on the road to recovery after a few challenging years, factors such as a growing employment rate are fueling the demand for short-term rentals. The Bank of England's decision to postpone the interest rate increases in September 2023 shows potential relief from inflation. According to AirDNA's 2023 study on the UK holiday let market, although inflation remains relatively high compared to Europe and America, there are indications of it easing. Even though the UK has not yet fully recovered, the future of travel looks positive.

The influence of international travel

In the summer of 2023, 62% of all UK stays were made by British travellers, indicating a return to pre-pandemic levels. The remaining 38% were accounted for by international guests, of which 10% were Americans. The data was gathered by AirDNA, revealing the resurgence of foreign visitors as previous restrictions and costs diminished. Interestingly, American tourists preferred destinations such as Edinburgh, London, and the scenic rural regions of the Highlands.

Travel budgeting trends in 2023

In 2023, many travellers are looking to save money and plan their trips ahead of time for better deals, as shown by Booking.com's research. Also, this trend is expected to continue until the beginning of 2024. But there's also a good number of travellers who make last-minute bookings due to sudden plans, work needs, or the hope for late discounts.

Last-minute travellers can be accommodated by keeping some availability close to the date and offering competitive rates for these bookings. Airbnb and Booking.com usually have deals such as last-minute discounts and mobile rates to help hosts fill available dates, which can help their listings appear quickly on high searches. Offering easy check-in and flexible cancellation can also attract more guests.

As a Travelnest customer, we suggest you open your calendar and create pricing for 12-18 months ahead, but also consider the last-minute travellers. Make sure to mention in your listing description any unique features of your property, its availability for immediate bookings, and any special deals for those bookings at the last minute. This could attract more guests and boost your bookings. If you're not a Travelnest customer but are looking to advertise your holiday home on more websites, you can simply create an account with us for free.

Travel behaviour in 2023

Travellers in 2023 are seeking companionship and enjoyable experiences on their vacations. More than 50% of global searches are made by couples looking for romantic escapes, while families and groups also search for the perfect accommodation. To make your property stand out, highlight unique features that appeal to different types of travellers. Moreover, consider updating your stay restrictions to offer both shorter stays (1-2 nights) and longer stays (4+ nights) to cater to a broader audience, given the popularity of shorter breaks and last-minute bookings.

Understanding supply and demand in holiday lets

The holiday rental market in the UK reached a new peak in August with 346,000 listings, of which 280,000 were entire properties including houses, cottages, apartments, treehouses and yurts. However, new regulations in Scotland and proposed planning permission changes in England may pose potential challenges. These rules have already caused a decrease in supply in areas such as Glasgow, Aberdeen, and Argyll and Bute in Scotland, raising concerns of a supply drop similar to that which happened in Amsterdam, where listings fell by 64% from their previous high in August. These insights are based on research conducted by AirDNA.

In conclusion, as the holiday let market in the UK continues to evolve, it's crucial for hosts to stay informed and adapt to changing trends. At Travelnest, we are committed to providing you with the latest insights and strategies to help you thrive in this dynamic industry.

If you're ready to maximise your bookings and offer unforgettable experiences to your guests, don't hesitate to create a free account with us to advertise your property on over 30 top travel booking sites.