2024 End-of-Year Summary: Shelter Island Online Vacation Rental Market

The Shelter Island online vacation rental market faced continued headwinds in 2024, with slight improvements in some areas but persistent declines in key metrics such as bookings and revenue. While total bookings saw a modest rebound compared to 2023, overall booking amounts and nights booked continued to decline, emphasizing the need for strategic adjustments to attract demand. However, stable nightly rates and revenue per property point to opportunities for property owners focused on premium pricing.

Key Highlights:

• Total Bookings:

  • 2024 ended with 1,094 bookings, marking a modest 2% increase YoY from 2023 (1,071) but still significantly down from 2021 and 2022 levels (-15% from 2021).
  • This minor rebound indicates a slow recovery in demand after the steep 17% drop in 2023.

• Booking Revenue:

  • Total booking revenue declined by 2% YoY to $4.62M, continuing a three-year downward trend (-16% since 2021).
  • This reflects challenges in sustaining high-value bookings despite steady rates.

• Average Booking Amount:

  • The average booking amount declined by 4% YoY to $4,222, following a strong 13% increase in 2023. The decline suggests potential pricing adjustments or shifts in traveler spending behavior.

• Nights Booked:

  • Total nights booked decreased by 3% YoY to 5,645, continuing the trend of shorter stays and declining extended bookings.
  • Nights booked are now 20% lower than 2021 levels, reflecting increased competition or evolving traveler preferences.

• Average Nightly Rate:

  • The average nightly rate rose slightly to $818, a 1% YoY increase, maintaining a gradual upward trend since 2021 (+5% overall).

• Available Properties:

  • The total number of available properties fell by 3% YoY to 187, reversing earlier growth trends.
  • Booked properties increased by 4% YoY to 121, reflecting improved property engagement and demand recovery.

• Revenue Per Property:

  • Revenue per property declined by 6% YoY to $38,175, after a strong recovery in 2023 (+13% YoY). This reflects decreased booking amounts and fewer nights booked per property.

• Booking Duration:

  • The average number of nights booked per property decreased by 7% YoY to 47 nights.
  • Average nights per booking remained steady at 5 nights, maintaining consistency in traveler behavior patterns.

Trends Over the Years (2021-2024):

• Bookings peaked in 2021 and 2022 but have since declined by 15% over three years, with a slight stabilization in 2024.
• Booking revenue has steadily decreased, falling 16% since 2021, emphasizing the impact of fewer nights booked.
• Average nightly rates have increased by 5% since 2021, helping offset some revenue losses.
• Available properties grew through 2022 but declined in 2023 and 2024, with booked properties following a similar trend.

Looking Ahead:

The Shelter Island vacation rental market shows signs of stabilization, but sustained growth will require targeted strategies to boost bookings and revenue. Property owners can focus on:

• Enhancing property amenities to attract higher-value bookings.
• Leveraging marketing campaigns to drive demand during off-peak periods.
• Exploring incentives for extended stays to counter the decline in nights booked.

StayMarquis is uniquely positioned to help owners outperform the market, as we consistently do. By utilizing advanced revenue management tools, real-time booking data, and tailored marketing strategies, StayMarquis empowers owners to maximize revenue while ensuring their properties stand out in a crowded marketplace. Our comprehensive services, which include property preparation, marketing and booking services, revenue management, and concierge-level guest support, make it easier than ever for owners to tap into the Hamptons' lucrative rental market.

While challenges persist, Shelter Island's gradual increase in nightly rates and stable booking patterns provide a solid foundation for recovery in 2025.