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Brazil: Short-term Vacation Rental Market Performance

Hoca

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Key Takeaways​


The PriceLabs’ World STR Index data provides insights into the market performance of short-term vacation rentals in Brazil from January 2021 to January 2024.

  • The highest Average Daily Rate (ADR) witnessed was BRL 647 in December 2023, while at its lowest in May 2022 at BRL 321. The trend for Revenue per Available Room (RevPAR) mirrored that of ADR, touching its highest at BRL 299 in January 2024 and being the lowest at BRL 64 in May 2022.
  • The occupancy rate varied between 18%-49%, hitting its peak in January 2024.
  • The average booking count was relatively stable, varying from 1 to 2.4 throughout.
  • An interesting aspect was the growth of active listings, increasing from 262,677 in January 2021 to 535,426 in January 2024, highlighting an expanding market.
  • The peak months for ADR, RevPAR, and Occupancy were generally at the turn of the year (December-January), possibly due to increased travel during the holiday seasons. The data reflects cyclical trends with high peaks during year ends and low troughs mid-year across most parameters.

ADR Summary​

Average Daily Rate (ADR) for STRs in Brazil – Month on Month from January 2021 to January 2024

Average Daily Rate (ADR) for STRs in Brazil – Month on Month from January 2021 to January 2024

The historical trend for the Average Daily Rate (ADR) in Brazil (BRL) shows some seasonality and fluctuation from January 2021 to January 2024.

The year 2021 started with an ADR of BRL 515 in January. It declined considerably in the following months, reaching BRL 365 in March. April saw a slight increase to BRL 385, but the ADR remained relatively stable around BRL 370-390 until August, with few exceptions. Toward the end of the year, December saw a significant spike to BRL 581.

The year 2022 saw a similar trend, with the ADR starting at BRL 522 in January and then declining in the following months. However, unlike the previous year, the lowest point was BRL 321 in May. A gradual recovery followed, culminating in another spike in December, with the ADR reaching BRL 577.

In 2023, the ADR trend seems similar to earlier years, starting high in January at BRL 547 and then falling and fluctuating throughout the year. This year, the lowest ADR was in May at BRL 342. As in the previous years, December witnessed a significant jump in the ADR, reaching BRL 647.

The Average Daily Rate (ADR) is a crucial metric in evaluating the market performance of short-term vacation rentals. From this analysis, a seasonal trend is apparent, with ADR values typically starting high at the beginning of the year, decreasing during the year, and then spiking toward the year-end in December.

Moreover, comparing the initial and final values reveals a general upward trend, with the ADR increasing from BRL 515 in January 2021 to BRL 607 in January 2024.

RevPAR Summary​

Revenue Per Available Room (RevPAR) in Brazil – Month on Month from January 2021 to January 2024

Revenue Per Available Room (RevPAR) in Brazil – Month on Month from January 2021 to January 2024

The historical trend in Revenue Per Available Room (RevPAR) for Brazil showcases fluctuations from January 2021 to January 2024, indicating market performance dynamics.

In January 2021, RevPAR was BRL 198, subsequently decreasing to a low of BRL 64 in May 2022. From there, it gradually increased, peaking at BRL 258 in January 2023. It then fluctuated over the year, reaching a low of BRL 74 in May 2023 before steadily climbing back to BRL 132 in October 2023. A significant rise was observed in November 2023 to BRL 172, reaching its highest level of BRL 299 in January 2024.

The figures suggest a possibility of a seasonal trend, with RevPAR typically reaching a peak at the start of the year (January) before gradually decreasing and then showing a significant increase at the end of the year. This pattern of high RevPAR in January and substantial increases towards the end of the year seems to prevail consistently indicating peak seasons of the hospitality industry in Brazil.

Read here: How to Calculate RevPAR.​

Occupancy Rate Summary​

Occupancy Rate for STRs in Brazil – Month on Month from January 2021 to January 2024

Occupancy Rate for STRs in Brazil – Month on Month from January 2021 to January 2024

The Occupancy in Brazil showed a fluctuating but generally upward trend from January 2021 to January 2024. The year 2021 started with an Occupancy of 39% in January which decreased significantly to 29% by February, reached its lowest at 18% in April, then steadily rose to its peak at 39% by the end of December.

In 2022, the trend was similar initially, starting at a higher Occupancy of 41% in January, dipping to 19% in May, then reaching its highest point for the year at 36% in December.

The trend was less extreme throughout 2023 but maintained fluctuations. Occupancy started at 48% in January, decreased to 22% in May, and gradually climbed back up to 41% by December.

By January 2024, Occupancy had reached its highest point in the given data, at 49%. Analyzing the occupancy rate reveals patterns of peak travel periods and fluctuations in demand, which influence short-term rental market performance.

There seems to be a seasonal trend: the occupancy rate is highest at the start and end of the year, particularly around December – January, and lowest around mid-year, especially during April—May. This indicates peak travel or booking periods during the holiday season and a relative lull during the middle months of the year.

Read here: How to Calculate Occupancy Rate.​

Avg. Bookings Summary​

Average Bookings Summary for STRs in Brazil – from January 2021 to January 2024

Average Bookings Summary for STRs in Brazil – from January 2021 to January 2024

The average bookings in Brazil from January 2021 to January 2024 show an overall increment trend, starting from 1.6 and reaching 2. There are monthly fluctuations, but no distinct seasonal pattern is evident.

Throughout 2021, the average bookings hovered between 1.0 in March and April to a high of 2.0 in October. 2021 started and ended with bookings at 1.6.

In 2022, a slight increase occurred, with bookings starting at 1.7 in January and reaching 2.1 by January 2023, the highest average booking throughout the period. Average bookings saw a minor drop to 1.3 in February 2023 but generally remained above 1.5 for most of the year, with a high of 2.4 in November 2023.

Though the data for 2024 is limited to January, it indicates an upward continuation from 2023, with an average booking of 2. The data suggests a slow but steady increase in average bookings over the years but no specific periodic or seasonal trend within the years.

Count of Active Listings Summary​

Active Listings Count for STRs in Brazil – from January 2021 to January 2024

Active Listings Count for STRs in Brazil – from January 2021 to January 2024

The count of active listings in Brazil has experienced a general increase from January 2021 to January 2024 representing growth in market performance. In January 2021, there were 262,677 active listings. This number increased nearly consistently over time, reaching a peak of 535,426 active listings in January 2024. Some months do show slight decreases in the trend, like from 332,457 in June 2021 to 324,843 in July 2021 or from 509,607 in September 2023 to 495,915 in October 2023, but these seem to be temporary blips in an overall upward trend in the number of active listings across the country.

Get actionable market insights from PriceLabs’ Market Dashboards.​

About Short-term Rental Index​


The World STR (Short-term Rental) Index by PriceLabs is a free tool for tracking short-term rental market performance worldwide. It offers data from Airbnb markets worldwide, refreshed monthly. You can access free insights on which locations are gaining or losing popularity. Key features include:

  • Compare: Compare year-over-year metrics like active listings, occupancy rates, RevPAR, and ADR.
  • Trend: Visualize how metrics have changed over the past years.
  • Pacing: Compare upcoming year metrics to the previous year for occupancy, ADR, and RevPAR.

Explore more FREE tools by PriceLabs here.​

About PriceLabs​


PriceLabs is a revenue management solution for the short-term rental and hospitality industry, founded in 2014 and headquartered in Chicago, IL. Our platform helps individual hosts and hospitality professionals optimize their pricing and revenue management, adapting to changing market trends and occupancy levels.

With dynamic pricing, automation rules, and customizations, we manage pricing and minimum-stay restrictions for any portfolio size, with prices automatically uploaded to preferred channels such as Airbnb, Vrbo, and 100+ property management and channel integrations.

Every day, we price over 300,000+ listings globally across 135+ countries, offering world-class tools like the Base Price Help and Minimum Stay Recommendation Engine. Choose PriceLabs to increase revenue and streamline pricing and revenue management. Sign up for a free trial at pricelabs.co today.

The post Brazil: Short-term Vacation Rental Market Performance appeared first on PriceLabs .
 
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