Across the majority of US cities, accommodation prices skyrocket as New Year’s Eve partygoers let loose and celebrate the end of the year.
The number of property listings and the number of people who choose to stay in short-term rentals continues to grow across the US. So, where are short-term rental guests spending the most as they look to ring in the New Year with style?
Transparent have analyzed last year’s data of 1, 2 and 3 bedroom accommodation on New Year’s Eve compared with the year’s ADR to discover where revelers have spent the most, shedding light on how the most profitable cities for Property Managers compare at this time of year. Last year, US cities had an average nightly rate above $300.
The variety of New Year’s Eve activities attracts crowds of revelers to some of the US’ most expensive city markets; Key West, Jersey City, Nashville, Atlanta, Las Vegas, New Orleans, New York and Miami. All of which cost over $300 a night.
Key West’s annual “Drag Queen Drop” put the city in first place with the highest ADR last year. It increased by 70% with a median price of $457 as the city’s most famous drag queen reeled in viewers, riding a huge high-heeled shoe.
No New Year’s Eve holiday is more stereotypical than watching Dick Clark in Times Square and the infamous ball drop. As over 1 million people crowd into the square, it comes as no surprise that New York featured in the top highest ADRs in the US, increasing by 44% with a median rate of $350. However, prices soared last year in Jersey City as tourists attempted to escape the New York havoc, increasing by 23% with a median price of $428, placing Jersey City in second place.
Nashville’s ‘Music City’ reputation put the city in third place with an average price of $409, increasing by 46%. Atlanta is also a hotspot for travellers at this time of year and was close behind increasing by 46% at $396 for the night. Atlanta hosts an eclectic mix of New Year’s Eve traditions, which guarantees to have something for everyone.
In Las Vegas, where the choreographed fireworks display on the Vegas strip is a must see for those hoping to ring in the New Year, Vegas Style, the median one-night rate had the highest price surge increasing by 113% and a median price of $365.
NOLA has emerged as having the 6th highest ADR for lodgers on New Year’s Eve with rates increasing by 41%, at $358. Jackson Square’s fleur de lis drop is a major attraction and viewed as the the New Orleans’ version of Times Square.
ADR means average daily rate. In the context of this analysis, ADR includes all fees (service fees, cleaning fees, etc.). We compared the median ADR of 2017 with the median rate of December 31st, 2017 to find the biggest price increase and the highest rates.
So, what’s the best New Year’s Eve strategy for your vacation rental?
During this time of year, it is particularly important that Property Managers manage their pricing efficiently and effectively. Transparent is the global leader in providing data intelligence to empower and enhance Property Manager’s knowledge of the vacation rental industry.