Covid-19 impact on APAC luxury villa rentals
The Asia Pacific market declined by about 38% in 2021, due to various travel restrictions and lockdowns across the region.
It reduced market size by about US$27m from US$440m in 2019, according to the latest research by travel platform Villa Finder.
It cites a downward trend in villa supply, occupancy and average rate across markets, although there were some exceptions where strong domestic travel demand kept it buoyant.
Bali, which is the second largest market after Sydney, decreased by 66%.
It says average rates have fallen by a third to less than US$150/night.
The Danang holiday villa market saw the largest decline (79%) with a 68% decrease in international arrivals.
Despite intermittent lockdowns, there were some positive signs for domestic travel in Australia, as Byron Bay, Perth and Sydney saw a double-digit increase in villa supply.
Sydney is now the biggest market, reaching US$58m. Byron Bay grew by a massive 80%. The number of overall listings, rates and occupancy all went up.
New trends have emerged across the region to respond to closed borders and sluggish demand.
The villa market in Niseko, Japan is seeking to extend its normal seasonal peak to offer year-round deals, while Bali has been forced to focus on the domestic market.
There is also the emergence of ‘Corona deals’ targeting digital nomads and long stayers.
The domestic market will likely remain the focus through 2021.
"Travel in the region won’t resume until at least Q4 of this year, and we probably won’t see any proper recovery until the second part of 2022," said Daniel Rouquette, Managing Director of Villa Finder.
However there is optimism and the market is resilient.
According to research by AirDNA, short-term rentals are weathering the Covid-19 impact much better than hotels
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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