Reflections on 2024: The UK Short-Term & Hospitality Rental Market Trends and AirFreedom’s Journey
As 2024 comes to a close, it’s time to look back and reflect on the trends, challenges, and triumphs that have shaped the short-term and hospitality rental market in the UK. This year has been a whirlwind of change, with evolving guest preferences, dynamic shifts in pricing, and an ever-increasing emphasis on sustainable and pet-friendly stays. At AirFreedom, we’ve not only navigated these changes but embraced them, ensuring our properties and services remain at the forefront of the market.
Insights shared by Beyond Pricing’s 2024 UK Market Report offer a compelling look at how the industry has evolved over the past year. These trends, when aligned with our operations, reinforce our commitment to delivering an exceptional guest experience while maintaining strong occupancy rates and competitive pricing.
Harnessing Data for Strategic Growth
At AirFreedom, we’ve always believed that data is a powerful ally in crafting superior guest experiences and driving sustainable growth. That's why we use tools like Beyond Pricing, PriceLabs and Wheelhouse. The 2024 market trends provide a wealth of insights that will shape our strategy moving forward. For instance, the increased demand for larger properties reflects a desire for social connection and shared experiences—a trend that aligns perfectly with our larger city-centre properties.
The emphasis on accurate pricing during high-calibre events reinforces a lesson we’ve already implemented: guests value fairness. By harnessing data from dynamic pricing tools, we ensure that our properties remain competitive while still delivering excellent value. This strategic approach doesn’t just fill our calendar; it builds guest trust, resulting in higher review scores and repeat bookings.
Embracing Pet-Friendly Stays: A Perfect Match for AirFreedom
One of the standout trends this year has been the surge in demand for pet-friendly stays, now accounting for 22% of all guest searches. This aligns beautifully with AirFreedom’s philosophy of inclusivity and catering to all members of the family—furry ones included!
At AirFreedom, we’ve turned pet-friendly stays into an art form. Guests can pre-book everything they need for their pets through our guest area, from crates and bowls to toys and even emergency pet food. This focus on creating a seamless and welcoming experience for pet owners has not only strengthened our niche market presence but also differentiated us from competitors.
This year, we noticed a trend where families and couples travelling with pets sought accommodations that combined comfort with city-centre convenience. Thanks to our carefully curated portfolio, we’ve been able to meet these demands while exceeding guest expectations.
Larger Properties in Demand: A Shift in Social Dynamics
Another key takeaway from this year’s report is the rising preference for larger properties, driven by guests prioritising social gatherings and shared experiences. This trend has been a great advantage for AirFreedom, as our larger properties have consistently performed well, offering groups a chance to connect in comfortable and stylish surroundings.
While some of our larger properties may be outside the bustling city centres, they are always conveniently located close to amenities and attractions. This balance allows us to cater to varying guest preferences while maintaining our hallmark standard of quality. By offering flexible spaces equipped with everything a group might need, we’ve positioned ourselves to thrive in this growing segment.
The Role of Location: Why City Living Matters
The data confirms something we’ve always known: location is king. Guests increasingly seek authentic experiences that immerse them in the heart of a city. At AirFreedom, this has been our strength from day one.
Our properties are carefully chosen for their proximity to amenities, cultural landmarks, and vibrant local scenes. This year’s report highlights the growing preference for city-centre living, and we’re proud to say that AirFreedom properties deliver on this front. Even our larger properties outside the city centre are selected with guest convenience in mind, ensuring easy access to everything they need. Guests staying with us can easily explore local landmarks, indulge in nearby culinary delights, and immerse themselves in the vibrant culture of these cities. This strategic positioning has been key to maintaining our high occupancy rates, even during periods when the market faced challenges.
Sustainability and Electric Vehicle Charging Points
Sustainability has become a significant factor in the decision-making process for guests, with properties featuring electric vehicle (EV) charging points seeing a rise in demand. While not all our properties are equipped with EV charging facilities, those that are have proven highly popular among eco-conscious travellers.
This insight has reinforced our belief in the importance of integrating sustainable features into our offerings. Whether it’s through EV charging points, eco-friendly cleaning practices, or encouraging guests to explore on foot or by public transport, AirFreedom remains committed to making a positive impact.
Dynamic Pricing: A Smart Strategy for Guest Satisfaction
A noteworthy insight from this year’s market data is the impact of dynamic pricing strategies on occupancy and revenue. In a year where average daily rates and occupancy rates in the UK saw some decline, AirFreedom’s commitment to accurate, value-driven pricing has kept us ahead of the curve.
Many operators struggled with cancellations linked to inflated prices during major events. At AirFreedom, we avoided this by pricing our properties at fair market value. This approach ensured that our guests found good value for money and avoided the frustration of cancellations. By consistently delivering on our promise of exceptional service at reasonable rates, we’ve fostered trust and loyalty among our guests—a strategy that has paid off with a higher-than-average occupancy rate of over 75%.
Our use of dynamic pricing tools has been instrumental in balancing revenue per available night. By constantly analysing market trends, seasonal demand, and local events, we’ve fine-tuned our pricing to reflect real-time market conditions. The result? A steady stream of bookings and happy guests who appreciate the value they receive.
The Rise of Unique Amenities: Pools Over Hot Tubs
An intriguing trend in the 2024 report is the shift in guest preferences from hot tubs to pools. This change could be attributed to the warmer-than-usual weather the UK experienced this year. While AirFreedom doesn’t currently manage properties with pools, we’ve taken note of this trend for future opportunities. We are launching our management services for Country properties and we cannot wait to get something on offer.
In the meantime, we continue to offer unique amenities that resonate with our guests. From beautifully designed interiors to thoughtful touches like premium linens, smart TVs, and fully equipped kitchens, every detail of an AirFreedom property is curated to enhance the guest experience. By focusing on what we do best—creating spaces that are as functional as they are beautiful—we ensure our properties remain highly sought after.
The Shift Towards Longer Stays
The report notes an uptick in demand for extended stays, particularly among remote workers and families. This trend is nothing new for us, we have a solid market for medium term stays from professionals working in the area and it aligns with our focus on flexible accommodations that cater to diverse guest needs. Our ability to adapt our offerings—whether it’s adding workspace essentials, adapting a cancelation policy or providing family-friendly amenities—ensures we stay ahead of the curve.
The Importance of First Impressions
Guests are increasingly influenced by the quality of photography and online listings. At AirFreedom, we’ve always invested in professional photography to showcase our properties in the best light. This strategy continues to pay off, with high-quality visuals driving clicks and conversions. Our photographers are not cheap, but they are worth every penny.
Direct Bookings: Our Strenght
The report highlights the growing importance of direct bookings for independent operators. AirFreedom’s direct booking platform has been a cornerstone of our success, reducing reliance on OTAs and allowing us to pass savings on to our guests. By investing in SEO and user-friendly design, we’ve created a booking experience that’s both seamless and cost-effective.
Adjusting to the Shifting Market: A Team Effort
Despite the challenges posed by fluctuating market conditions, 2024 has been a year of resilience and growth for AirFreedom. We owe this success to our dedicated team, whose hard work and commitment to excellence have been the backbone of our operations.
This year, we launched AirFreedom Cleaning Services, a testament to our commitment to raising standards across the industry. Under the capable leadership of Alina, Dino, and their team, this new venture has not only enhanced our own properties but also provided top-tier cleaning solutions to other operators. This diversification has positioned AirFreedom as more than just a property management company—we’re now a full-service provider.
Positive Growth Despite Market Challenges
While the UK market saw a slight reduction in average daily rates, AirFreedom managed to buck the trend by maintaining steady revenues. By focusing on guest retention, direct bookings, and dynamic pricing, we’ve continued to grow even in a challenging landscape. Our direct bookings strategy, which emphasises creating a seamless booking experience through our website, has played a key role in reducing reliance on online travel agent (OTA) commissions.
Teamwork Makes the Dream Work
Behind every successful booking is a team dedicated to excellence. AirFreedom’s success in 2024 is a testament to the hard work of our cleaners, maintenance staff, and support team. The launch of AirFreedom Cleaning Services by Alina this year has been a pivotal step, allowing us to expand our expertise while maintaining the high standards our guests expect.
Our cleaning teams, led by Alina and Dino, have been instrumental in ensuring that every property shines. Their attention to detail, combined with the use of eco-friendly products, has elevated our service and earned glowing guest reviews. This focus on cleanliness and comfort is what keeps our properties in demand, even as market conditions fluctuate.
A Look Ahead to 2025
As we move into 2025, AirFreedom is poised to build on the successes of 2024, 2023, 2022, 2021... With a strong foundation, a committed team, and an unwavering focus on guest satisfaction, we’re ready to embrace new opportunities and tackle any challenges that come our way.
We’re particularly excited to expand our pet-friendly services and explore sustainable upgrades to our properties. Our focus on dynamic pricing and direct bookings will continue to be a cornerstone of our strategy, ensuring that AirFreedom remains a leader in the short-term rental market in Cardiff and Newport.
Thank You for a Memorable Year
To our valued guests, property owners, and team members, thank you for being an integral part of AirFreedom’s journey in 2024. Your support and trust have been the driving force behind our success. As we look to the future, we remain committed to delivering the exceptional service and memorable experiences that define AirFreedom.
Here’s to a fantastic 2025!
Warm regards,
Pedro Reis
Founder, AirFreedom
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