Short-Term Rental Bookings Jump for Labor Day

27.08.2024 - 16:25 / skift.com / Paula Twidale / Dawit Habtemariam / Bram Gallagher

There has been a surge in bookings for short-term rentals this Labor Day weekend.

Over 2.4 million nights have been booked on short-term rental platforms for the four-day period ending on September 1, up 13% from last year, according to AirDNA. In 2023, bookings for Labor Day weekend were up only 2.4%.

Short-term rental room rates are also up for Labor Day. The average daily rate was $329, up 13% from last year.

Bookings for rural/small city and beach destinations rose 20.7% and 15.1%, respectively, from last year. Urban destinations rose only 1%.

The reason for the slowdown in urban destinations is New York City. Bookings there are down 57% – a law went into effect after Labor Day last year that imposed tough new rules and dramatically reduced supply. “There’s essentially no more short-term rentals in New York,” said Bram Gallagher, economist for AirDNA.

Jersey City saw the biggest jump in bookings at 36%. Napa Valley and Washington D.C. also saw big gains, each having grown 33.5% from last year.

The steady economy is helping support the gains, said Gallagher: Inflation has come down and the economy has thus far avoided a recession.

Labor Day weekend is expected be a record in terms of air travel. The Transportation Security Administration projects it will screen over 17 million people — the highest in its history.

According to AAA Travel, domestic travel is projected to be up 9% from last year while international will be down 4%. To save money, more Americans are choosing to travel domestically, said Paula Twidale, senior vice president of AAA.

Over the past few years, Americans have warmed up to short-term rentals. Travelers choosing short-term rentals over hotels rose from 7% in 2020 to 11% in 2023, according to Skift Research’s State of Travel report.