Turbulent Hawaii Vacation Rental News As Vacasa Plummets

Turbulent Vacation Rental News in Hawaii as Vacasa Lands

First, if you don’t know the name Vacasa in terms of Hawaii vacation rentals, you should. They are one of the largest managers/suppliers of vacation rentals in Hawaii, with an inventory of nearly 1,200 homes and apartments in Hawaii.

This week, shares in the stock market’s beloved rental fell 48% “due to poor sales and cost overruns.” Altogether, it’s down more than 80% in the past year. What does that mean for the Hawaiian rental sector, Vacasa, and more importantly for you? Let’s talk about Vacasa, then back to the bigger repercussions.

How is Vacasa different from Airbnb and Vrbo.

While Airbnb is the household name in Hawaiian vacation rentals, Vacasa has staked its claim here on a slightly different basis. Unlike Vrbo or Airbnb, Vacasa is a full-service property management company that also lists its rental inventory. These other companies (Vrbo and Airbnb) do not provide management, leaving that to private or professional managers. On the other hand, Vacasa creates local teams responsible for a myriad of items, including check-in/out, cleaning, customer service, and repairs.

Vacasa charges around 30% for its listing and property management services. The concept worked, or they wouldn’t have amassed such a large number of Hawaiian rentals in their pool in just the last few years.

Vacasa went public last year with the potential for exponential growth.

Many Hawaii vacation rentals on Airbnb and other websites are managed by Vacasa. It offers up to 100 booking sites on which properties you manage can be found.

VACA shares fell first in the stock market decline, and then again on its own merits this week.

And now, there appears to be considerable doubt about whether Vacasa can achieve its desired goals. That relies on lower-than-expected earnings and, more importantly, the guidance he gave that momentum could fade as the company fails to deliver third-quarter earnings. So despite selling more rental nights and at higher rates, they faced significantly higher costs than expected which resulted in much lower adjusted earnings than they expected ($46 million vs $55-60 million).

What does this mean for visitors to Hawaii who prefer vacation rentals?

1. Expect more availability going forward for Hawaii vacation rentals.

2. Price increases are likely to stop, and vacation rental costs should moderate in the future.

3. Promotional periods shall reappear during off-peak times such as Winter, Spring and Autumn.

What’s the next step in the Hawaii vacation rental sector?

Vacasa also said that total booking per rental may decline due to a weaker-than-expected economic environment. It depends on consumers traveling and/or spending less on future (Hawaii) vacations. Here’s the big news in terms of Hawaii vacation rentals. As it applies to Vacasa, it will likely go into the Hawaiian vacation rental industry.

Reading Hawaii rents is no longer the “cheap” alternative.

What does the state report on September rents indicate?

Interestingly, the number of Hawaiian vacation rentals on the market has decreased significantly since 2019, averaging 27%. The state’s September report already showed lower occupancy rates even with fewer units available. But at the same time, and in particular, significant increases in rates remained (at least for the time being).

There was an average occupancy rate statewide of just 59%, down more than 9% compared to pre-Covid. The average daily rate was $283, which is +46% compared to 2019.

With massive price increases and an upcoming drop in demand, visitors are likely to see better times in the future for vacation rentals.

Maui rentals.

Maui, which has the most vacation rentals, had an average of $333, +46% compared to 2019, and 64% occupancy, -8% compared to 2019.

Honolulu vacation rentals.

Average rental rates in Honolulu were $214, +34% compared to 2019, 61% occupancy, -12% compared to 2019.

Vacation homes for rent on Big Island.

Big Island vacation rentals averaged $225, +54% compared to 2019, 50% occupancy, -8% compared to 2019.

Kauai vacation rentals.

Vacation rentals on Kauai averaged $377, +56% compared to 2019, 59% occupancy, -7% compared to 2019.


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