Memorial Day Madness: STR Booking Trends and Tips for Hosts

Key Takeaways

• Memorial Day Weekend sees a significant surge in short-term rental bookings, with bookings up 13.8% year-over-year.
• Mountain, lake and coastal destinations are drawing the highest STR demand for Memorial Day Weekend this year.
• Hosts should be prepared for extended stays beyond the traditional weekend, as booking activity for Tuesday and Wednesday following Memorial Day is higher than years past.

As Memorial Day Weekend approaches, Americans eagerly anticipate the unofficial start of summer and the opportunity to honor the nation's fallen heroes. Beyond its significance as a day of remembrance, Memorial Day Weekend has evolved into a beloved holiday marked by outdoor festivities, family gatherings, and travel adventures. 

For short-term rental (STR) hosts, this bustling holiday presents both opportunities and challenges. In this comprehensive guide, we'll explore the latest booking trends surrounding Memorial Day Weekend, delve into popular destinations, and provide essential tips for Airbnb hosts to successfully navigate the high demand around this festive time.

The Unofficial Start of Summer: Celebrating Memorial Day Weekend

Memorial Day Weekend, observed annually on the last Monday of May, marks a poignant moment in American culture. The holiday honors the brave men and women who made the ultimate sacrifice while serving in the United States Armed Forces. 

Originally known as Decoration Day, it originated in the aftermath of the Civil War to commemorate Union and Confederate soldiers who perished in battle. Over time, it evolved into a day of remembrance for all American military personnel who died in service to their country.

For many Americans, Memorial Day Weekend signifies the unofficial start of summer, a time for outdoor gatherings, barbecues, and family reunions. Communities across the nation come together to pay tribute to fallen soldiers through various ceremonies, parades, and memorial services. 

It's also a popular time for travel and leisure, as families take advantage of the long weekend to embark on vacations, road trips, and beach getaways. Additionally, Memorial Day Weekend often coincides with other cultural events and festivities, adding vibrancy and diversity to the holiday experience.

Short-Term Rental Demand Soars During Memorial Day Weekend

Without a doubt, Memorial Day Weekend is one of the most popular times of the year to travel and vacation. As such, it’s no surprise that bookings for short-term rentals like Airbnb and Vrbo tend to skyrocket around this seasonal weekend.

Nationally, booking activity for the Friday-Sunday night weekend in 2024 is up by 13.8% compared to last year (as of April 22nd). This uptick in pacing indicates a growing trend of travelers seeking accommodation options for their Memorial Day getaways.

Of particular note is Saturday, May 25th, which emerges as the peak night for bookings during Memorial Day Weekend. With a staggering 559,000 nights already reserved, Saturday boasts the highest number of bookings. May 25th exhibits the fastest pace of the entire weekend, clocking in at approximately 15% above last year's figures. 

A Growing Trend: Extending the Vacation

Beyond just the traditional long weekend, there's a noticeable shift towards extending Memorial Day vacations into the following week. Data shows that pacing for Tuesday and Wednesday following Memorial Day Weekend is even higher, with increases of 16.3% and 20.7% respectively compared to 2023. 

This uptick in booking activity suggests a growing inclination among travelers to prolong their holiday and take advantage of extra time off. This trend underscores the evolving nature of Memorial Day as not just a brief holiday escape but as an opportunity for an extended vacation.

Memorial Day Weekend's Growing Distinction

Memorial Day Weekend is increasingly standing out from earlier, less prominent dates on the calendar. 

When comparing it to the weekend prior, Memorial Day Weekend pacing is up nationally by an impressive 17.1%. In contrast, 2023’s data shows that Memorial Day Weekend saw a more modest uptick of only 12.5% compared to the weekend preceding it. 

Average ADR is Higher than in 2023

Nationally, the average ADR, or nightly rate, is 7% higher year-over-year (YOY) for Memorial Day Weekend. ADR averaged to $318.50 for Friday, Saturday and Sunday night of Memorial Day Weekend in 2023.

Location Matters: Memorial Day Weekend Interest Varies by Region

When it comes to Memorial Day bookings, not all locations are experiencing the same level of interest. 

Aggregate data reveals that urban and mid-size cities aren’t seeing a significant boost in bookings around Memorial Day Weekend this year. However, the story is quite different for mountain towns, coastal getaways, and rural areas. 

Mountain and lake resorts, along with small towns and rural areas, emerge as the frontrunners in Memorial Day weekend bookings, with a remarkable increase of 41.9% and 30.8%, respectively, compared to the preceding week. 

This surge in demand underscores the appeal of quieter, more scenic destinations for Memorial Day getaways. The data speaks for itself–Large City Urban (-9.8%) and Mid-Size City Markets (-6.7%) actually see a decrease in demand for Memorial Day Weekend compared to the previous weekend. 

Travelers are making a point of escaping the hustle and bustle of urban life to immerse themselves in nature and tranquility. 

It’s possible that year-over-year growth in Memorial Day Weekend Airbnb bookings could be capturing more broad growth dynamics. However, it's worth noting that all locations—except urban areas—are seeing double-digit growth year-over-year. 

This indicates that Memorial Day Weekend travel is becoming increasingly popular across diverse destination types. Mid-Size City markets, for instance, are 20% more popular in terms of Memorial Day Weekend demand than they were in 2023.

Top Destinations for Memorial Day Getaways

The top 10 markets for short-term rental demand looks at markets who see the greatest boost in demand in comparison to the weekend prior. 

When looking at these top 10 markets, one fact is clear: travelers are flocking to lakes and mountains! Mountain and lake resorts comprise a whopping 7 of the top 10 markets in 2024. This data brings into focus seasonal markets whose popularity ebbs and flows according to the holiday calendar and the weather, and who are therefore heavily affected by the holiday weekend.

There might also be more to the story for some of the cities topping this list. Indianapolis is among the top 10, which might be because the city is hosting the popular Indy 500 during Memorial Day Weekend. Similarly, Detroit—known for its famous techno scene—is hosting the Movement Electronic Music Festival this Memorial Day Weekend, which could explain why STR demand is particularly high for the city.

If you look at the data through the lens of demand growth, that is, which markets have seen the biggest increase in booking activity compared to Memorial Day Weekend in 2023, Detroit comes in at #1 and Indianapolis at #3. While Telluride, Colorado has seen a more than a 500% increase in STR bookings compared to the weekend prior, it's YOY demand growth is a more modest 16%.

Note: Keep in mind that we’re only assessing markets with 1,000 or more listings, so many small towns and rural areas could be excluded from this assessment.

Tips for Airbnb Hosts During Memorial Day Weekend

As Memorial Day Weekend approaches, short-term rental hosts can take proactive steps to ensure a smooth and successful experience for both themselves and their guests.
Here are some valuable tips to navigate the bustling holiday weekend:

• Plan Ahead: With increased demand during Memorial Day Weekend, plan and prepare your property well in advance. Ensure that your listing is up-to-date, including accurate availability, pricing, and property amenities. 
• Update Your Pricing: Depending on your area, the high demand around Memorial Day Weekend could empower you to raise your prices or leave you facing fierce competition and needing to lower your prices to compete. Use a dynamic pricing tool to make sure you’re optimizing your pricing to maximize revenue for the long weekend.
• Up Your Communication Game: Clear and prompt communication is key to providing excellent guest experiences. Respond promptly to inquiries and booking requests, and provide detailed information about check-in procedures, house rules, and local attractions or events happening during the weekend.
• Maintain Property Standards: Make sure your property is clean, well-maintained, and stocked with essential amenities to meet guests' expectations. Pay attention to details such as fresh linens, toiletries, and kitchen supplies. Consider adding festive touches to your decor to create a welcoming and celebratory atmosphere.
• Set Clear Expectations: Set clear expectations with guests regarding house rules, occupancy limits, and noise policies, especially considering concerns about parties during the holiday weekend. Communicate your expectations upfront to prevent any misunderstandings or disruptions during their stay.
• Stay Informed: Stay updated on local regulations and guidelines, including any restrictions or requirements related to short-term rentals, noise ordinances, or public health measures. Be prepared to adapt to any changes or developments that may impact your hosting operations during Memorial Day Weekend.

Airbnb’s Party Policies

In the past, Airbnb has implemented strict measures to prevent unauthorized parties and gatherings at rental properties, particularly during holiday weekends like Memorial Day.

In 2023, for example, Airbnb implemented its AI-powered party prevention system. The system works by identifying potential high-risk one-night and two-night booking attempts made by guests seeking to reserve an entire home. Upon flagging one of these high-risk booking attempts, the system prevents the guest from reserving the home. If a guest was permitted to make a reservation during the holiday weekend, they would be required to attest that they understand Airbnb’s policy banning parties. 

While the specifics of the anti-party crackdown may vary from year to year, hosts should familiarize themselves with Airbnb's policies and guidelines regarding party prevention to make sure they’re compliant. Stay informed about any updates or announcements from Airbnb regarding their stance on party regulations, and take proactive steps to mitigate the risk of unauthorized events at your property.