Greece: As the summer vacation rental season reaches its peak, data provider Key Data and Greek rental management association STAMA have offered a comprehensive look at the performance of Greece’s vacation rental market.
Following an unprecedented summer travel season last year, Greece remains a popular destination for tourists, particularly in renowned hotspots like Mykonos, Santorini, and Rhodes. With August being a prime time for both international tourists and locals on annual leave, the latest data reveals how summer 2024 is shaping up across Greece and its regions.
Summer is defined as arrivals in June, July and August, confirmed bookings as at 16 June 2024.
The paid occupancy rate, a key metric indicating the percentage of occupied vacation rentals, shows that Greece is pacing only one per cent behind last year for summer 2024. While Athens and Attica are experiencing declines of 11 per cent and seven per cent, respectively, Crete and Peloponnese are experiencing occupancy rates one per cent and three per cent ahead of last year.
The overall supply of vacation rentals in Greece has increased by 13 per cent, while guest nights have risen by six per cent. The growth in supply has outpaced demand, creating a slight decrease in occupancy rates.
However, with many bookings occurring within 30 days of travel, there is still potential for occupancy to match last year’s levels.
Greece’s average daily rate [ADR] for short-term rentals stands at €209, reflecting a five per cent increase compared to last summer. The trend is consistent across various regions, with Peloponnese seeing the smallest increase at four per cent. Thessaloniki experienced the largest increase in ADR at eight per cent.
As we progress through the booking window, rates are expected to adjust, as reservations made further in advance can typically command higher prices. For optimal pricing strategies, property managers are encouraged to monitor rates based on market, property type, and size.
Revenue per available rental [RevPAR], which balances occupancy and rates, is pacing four per cent ahead of last year in Greece, primarily driven by the rate increase. Regions like Crete and Peloponnese, where both paid occupancy and rates have risen, are seeing RevPAR increase by seven per cent compared to last year.
Conversely, Attica and Thessaloniki are experiencing declines in RevPAR, as their rate increases have not compensated for significant occupancy drops.
Despite the slight dip in occupancy rates due to faster supply growth over demand, the Greek vacation rental market remains robust. Higher average daily rates and strong RevPAR indicate a lucrative season.
[Data source: Key Data, OTA scraped data, summer arrivals in June, July and August, confirmed bookings as at 16 June 2024]
