UK short-term rental rates are pacing ahead of last year for the rest of the summer, with operators holding firm on pricing even as forward bookings soften. KeyData's UK Summer Index shows average daily rates (ADR) up across August and September, keeping revenue broadly stable despite occupancy running below last year's levels.
ADR is pacing ahead across the remaining summer months, up 3% in August at £218 and 5% in September at £146. August's rate marks the seasonal peak and reflects operators maintaining pricing discipline into the busiest tail of the summer, rather than discounting to chase softer demand.
Softer demand is the counterweight
Forward occupancy is running below last year across both months, down 5% in August and September. The softening holds rather than eases as the season continues, pointing to a more measured booking environment than a year ago, even as rates strengthen.
Rate strength keeps revenue broadly stable
Higher rates are absorbing most of the softer demand. Revenue per available rental (RevPAR) is pacing at -2% in August and -1% in September, close to last year despite the occupancy declines. The pattern held through Q2 as well, with ADR rising every month, up 4% in May and 3% in June, keeping RevPAR broadly flat while occupancy eased.
Regional performance split sharply in the second quarter of the year:
- South East England was the only region to grow occupancy, up 2%, and posted the strongest RevPAR growth at +3%
- Northwest England saw the sharpest decline, with occupancy down 7% and RevPAR down 5%
- Higher rates helped offset softer demand across most other regions, leaving RevPAR broadly flat
Direct bookings accounted for 58% of UK reservations in Q2, down from 67% two years earlier, yet still generated 66% of revenue. Airbnb and Booking.com have picked up volume share over the same period, each now close to a fifth of reservations. The gap shows that direct guests remain higher-value even as marketplace channels grow.
"The story for the rest of the summer is one of balanced demand arriving in a different shape," said Sally Henry, VP of market intelligence and insights at KeyData.
"Operators have maintained pricing discipline into August and September, helping protect revenue even as occupancy tracks below last year. At the same time, booking behaviour continues to evolve. While the average booking window has remained broadly stable, it masks a growing split between guests booking well in advance and those making last-minute decisions.
"Property managers who adapt their pricing, marketing and pace management strategies to serve both groups will be best positioned to maximise performance in the months ahead."
The outlook for the rest of 2026 points to a steadier, more competitive market. Demand has stabilised rather than disappeared, but it is arriving in a different shape than in previous years.
Revenue growth will depend less on broad demand trends and more on how effectively operators maintain pricing discipline, manage booking pace throughout the booking cycle, and respond to both early planners and last-minute bookers with strategies tailored to each segment.
