How We’re Navigating Falling ADRs and Occupancy — And Still Growing

The short-let market across Europe is going through a difficult period.

Average Daily Rates (ADRs) and occupancy are down across many cities and regions. Rising interest rates, inflation, energy costs, and a general cost-of-living squeeze mean guests are more price-sensitive, more selective, and booking later than ever. At the same time, supply has increased — especially from accidental hosts and developers — creating more competition and downward pressure on performance.

But while this shift has caused some operators to struggle, we’re continuing to grow — both in bookings and in revenue.

That’s not luck. It’s not a magic formula. It’s about hard work, adaptability, and doing a lot of things right — all at the same time.

Why Many Operators Are Struggling Right Now

In today’s climate, success isn’t about just listing a property on Airbnb or relying on one or two tactics to carry performance. Many companies were built during the post-Covid boom, when demand was high and operations could be basic. That’s changed.

The reality is: if you’re not evolving with the market, you’re falling behind.

We’ve seen:

• Hosts slashing rates just to stay visible

• Quality listings getting buried due to poor distribution

• Companies losing staff and morale under cost pressure

• Owners pulling out of the market because they think the returns aren’t there anymore

But the returns are still there — they’re just harder to access.

How We’re Holding and Increasing Performance

In this market, maintaining strong ADR and occupancy requires simultaneous attention to multiple levers. And we don’t just talk about these — we action them every single week.

1.⁠ ⁠A Multichannel Marketing Engine

We don’t rely on one or two platforms — our strategy includes:

• Search Engine Optimisation (SEO) – ensuring our listings and website are discoverable through Google and AI-first search

• Geo-targeted strategies – adjusting campaigns by region to capture specific demand patterns

• Direct booking focus – reducing dependency on OTA commission fees

• Email campaigns and remarketing – building loyalty and return stays

• Paid ads – including Google and Meta with strong ROI tracking

• Influencer and media stays – authentic reach, especially in lifestyle and travel press

• PR campaigns – to establish visibility and trust across multiple demographics

This full-funnel marketing strategy builds awareness, drives bookings, and protects revenue.

2.⁠ ⁠Distribution: Going Beyond OTAs

While OTA visibility matters, it’s not enough.

We’ve invested in:

• API connections to all major platforms

• Partnerships with boutique and niche agencies who cater to specific audiences (family travel, wellness, high-end, etc.)

• Custom-built guest funnels to help reduce reliance on third-party commissions

This expanded reach means we don’t panic when demand shifts on Airbnb or Booking.com — we already have other channels working for us.

3.⁠ ⁠Dynamic Pricing That’s Actually Intelligent

Our pricing strategy isn’t set-and-forget.

We combine:

• Leading dynamic pricing tools (Beyond, Wheelhouse, etc.)

• Manual market checks and competitor benchmarking

• Local demand forecasting

• Owner-led goals (we listen to what you want from the property)

The result? We can push rates when the market allows, and pivot quickly when it doesn’t — protecting both ADR and occupancy.

4.⁠ ⁠Treating Our People Like Our Guests

The core of this business isn’t tech or marketing — it’s people.

We look after our team. We pay fairly, we communicate honestly, and we support growth. Because without a motivated, professional, and engaged team, none of this works.

And when our people feel valued, they take better care of our properties and our guests — and that creates a virtuous cycle of performance and satisfaction.

Here’s the Bottom Line

It’s not easy right now.

But the hosts and owners who are working with the right management partners — ones who understand this evolving landscape and actually know how to operate in it — are still seeing strong results.

If you’re seeing a drop in performance and feeling unsure what to do next, let’s talk. Not about empty promises or inflated numbers — just real strategy, based on real experience, in the real market we’re all navigating.

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