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- đ 2025 Outlook from Key Data
Welcome to this weeks newsletter. It has been fun reviewing and pulling together some insights from the recently released report from Key Data. Read on for more detailsâŚ
See you next Saturday at 5pm?
Phil
Founder, My Holiday Guide
IN THE NEWS
Abolition of FHL Tax Allowances
No specific new news this week whilst your trade associations continue to pursue further meetings with HM Treasury to try and gain a pause and further concessions.
With the budget looming, PASC, the ASSC and other associations are requesting meetings with the DCMS and MHCLG (Ministry of Housing, Communities and Local Government).
Statutory Registration Scheme
The new scheme is still going trough initial testing.
The compulsory national scheme looks like it will be a set price rather than local councils allowed to set their own price, with owners needing to provide basic safety related information such as fire risk assessment, etc. (similar to the Visitor Ready scheme from VisitEngland?!) as part of the registration process.
Other News
Buy-to-let landlords are setting up limited companies in record numbers according to this article
Empty Airbnbs to be used to house domestic abuse survivors
Scotland sees fresh surge in international visitors
PASC & ASSC have been working closely for a number of years and last week the two associations formalised their relationship with a MoU (Memorandum of Understanding). This isnât a merger but just more formalises their partnership which can only be of benefit to UK holiday let owners.
LISTING PERFORMANCE & GROWTH
Tips and strategies to enhance the visibility and attractiveness of your holiday let.
Key Data 2025 USA Outlook - What Can We Learn?
Key Data have released a 32 page report that examines the projected growth, challenges, and trends shaping the vacation rental market in the United States in 2025.
Although the report is US-centric; what key trends and challenges can UK hosts and property managers take away from the report?
Positive Growth, But Challenges Exist: The US market expects modest growth in both revenue and occupancy rates in 2025. While two-thirds of US property managers expect some revenue growth, over half anticipate modest growth, and only 11% project significant growth.
This suggests that the growth in the UK market may also be moderate, urging UK owners to manage expectations and adapt strategies accordingly.
Economic Slowdown Concerns: A significant concern among US property managers is a potential economic slowdown, with 89% of respondents citing it as a challenge.
This apprehension underscores the need for UK owners to consider economic uncertainties and their potential impact on the demand for holiday lets.
Owner Retention and Communication: The report emphasises the critical role of owner retention and communication in driving revenue growth. Almost half of US property managers believe that better owner retention and communication strategies are crucial for revenue growth.
This highlights the importance of fostering even strong relationships with owners and ensuring clear communication regarding market trends and performance.
Pricing Power: Optimising pricing strategies is paramount for success in a competitive market. Nearly three-quarters of US property managers believe that setting better or more optimal rates is vital for achieving growth objectives.
Dynamic pricing models that respond to demand fluctuations, seasonality, and competitor pricing can be invaluable. We have created a list of dynamic pricing and optimisation software within our extensive resources directory.
KPI Focus: US property managers prioritise ADR (Average Daily Rate), APO (Adjusted Paid Occupancy) and RevPAR (Revenue Per Available Room) as key performance indicators (KPIs) for assessing portfolio performance.
Understanding and tracking these metrics can provide valuable insights into the effectiveness of your strategies. We have written an article titled How Do I Measure The Success Of My Holiday Let? that looks at which are the most important KPIs to track.
Marketing and Technology Advancements: US property managers plan to expand their businesses by adding new units to their inventory and increasing marketing efforts(77% of property managers indicated their intention to increase or expand their marketing efforts), with 74% planning to add new owners/properties to their inventory in 2025.
Optimising Channel Distribution is seen as a key strategy as a crucial strategy for driving revenue growth in a saturated market.
Competition and Owner Retention: The US report highlights increasing competition within the vacation rental market. 55% of US property managers anticipate a modest or significant increase in competition in 2025. This trend likely extends to the UK market.
UK owners should differentiate their properties through exceptional guest experiences, attractive amenities, and strong marketing strategies to retain owners and secure bookings.
Technology Adoption: The adoption of new technologies is a global trend impacting vacation rental management. However, the report also notes that 34% of US property managers are not planning to add any new technologies in 2025. This suggests that technology adoption should be strategic and aligned with specific business needs.
To support growth, UK owners could explore and implement property management software, dynamic pricing tools, and marketing automation platforms to streamline operations and maximise revenue.
While acknowledging that the US market will not mirror the UK market, I thought a summary of the Key Data report would be of some benefit to you and help provide some insights as you start to consider your plans and tactics for 2025.
FEATURED RESOURCE
Highlighting useful tools and resources for your holiday let.
Free Welcome Book Template
Sneak Peek đ! We are in the final stages of creating a FREE welcome book template that will allow you to create a modern welcome book PDF.
As with our digital welcome guide app, you will have a free 14 day trial in which you can create and download your welcome book PDF. Access and amendments to the PDF after the 14 day trial will require a paid subscription.
You can view an example of how the PDF looks by clicking on the button below.
If this is of potential interest hit reply and let me know and I will add you to the list of initial users.
PROPERTIES OF THE NEWSLETTER
We all love looking at and getting inspiration from other properties so hereâs our top pick for this edition.
NO FOMO
Missed last weeks newsletter? Hereâs one thing you might like.
Key factors that impact guest satisfaction
In last weeks newsletter we looked into actual factors that impact guest satisfaction.
You can read the full article here :