Perdido Key Resort Management - Seasonal Insights April 2024

Perdido Key Seasonal Insights

Seasonal Update

Overview

The SE Region, particularly the Gulf Coast, is experiencing notable trends in the vacation rental market for 2024. With strategic adjustments and a focus on occupancy, we at PKRM can capitalize on the evolving landscape. Here’s a summary of key data and actionable insights for the SE Region/Gulf Coast.

Key Trends and Data

1. Occupancy Rates

   • Spring 2024: Slight year-over-year decline in Q1 occupancy. The SE U.S. saw a minor 1% decrease compared to 2023.
   • Summer 2024: Occupancy is pacing 6% ahead of the same period last year, indicating strong demand and effective pricing strategies.

2. Average Daily Rates (ADRs)

   • Spring 2024: Rates were up by 2% in Q1 compared to last year, despite a generally competitive market.
   • Summer 2024: ADRs are trailing behind Summer 2023 by 3%. Lowering rates has been a strategy to drive higher occupancy earlier in the season.

3. Revenue Per Available Night (RevPAR)

   • Spring 2024: RevPAR saw a slight decline of approximately 2% year-over-year in Q1.
   • Summer 2024: RevPAR pace is down about 4% compared to 2023, but maintaining high occupancy is expected to boost revenue above last year's levels.

4. Guest Booking Behavior

   • Spring 2024: Average booking windows shortened, with guests booking closer to their travel dates. March’s booking window was around 49 days.
   • Summer 2024: The average booking lead time decreased by 23% over the last 12 months, indicating a trend of last-minute bookings.

Actionable Insights for PKRM

1. Maximize Occupancy

   • We will slightly reduce ADRs where necessary to boost occupancy rates.
   • The focus is on filling available nights to surpass 2023 revenue levels.

2. Optimize Pricing Strategies

   • We continue to implement dynamic pricing to adjust rates based on real-time market data.
   • The plan is to hold rates steady during high-demand periods, particularly as summer approaches.

3. Enhance Marketing Efforts

   • We have deployed target marketing campaigns to peak seasons such as April and May for beach destinations.
   • There is a strong push to utilize feeder market data to focus on regions where most guests are coming from.

4. Encourage Longer Stays

   • Offer discounts for longer stays (“Stay More-Save More”).
   • Implement minimum stay requirements to maximize revenue per booking.

5. Leverage Technology

   • We use advanced revenue management systems to analyze data and adjust strategies in real-time.
   • The setup of market pacing reports to track key performance indicators such as occupancy and RevPAR are driving the decisions.

Conclusion

We are poised for a strong vacation rental season in 2024. By adapting to market trends, focusing on occupancy, and employing strategic pricing and marketing efforts, we at PKRM can optimize our revenue and provide excellent guest experiences while remaining agile to make the most of the evolving vacation rental landscape.

JD Hallam
GM - Perdido Key Resort Management
Broker/Owner - Perdido Key Resort Realty