Malaysia’s multicultural society celebrates a wide array of festivals—Hari Raya Aidilfitri, Chinese New Year, Deepavali, and Christmas, to name a few.
These festive seasons are significant cultural milestones and key demand drivers in the short-term rental market.
With increasing interest in short-term accommodations through platforms like Airbnb, Agoda Homes, and Booking.com, festive seasons can substantially change rental demand, pricing strategies, and booking behaviours.
Understanding these trends can be a game-changer for property investors and hosts in boosting yields and optimising property usage throughout the year.
How Do Festive Seasons Impact Rental Demand?
1. Increased Demand for Short-Term Stays Outside Major Cities
During festive holidays like Hari Raya and Chinese New Year, many urban dwellers balik kampung (return to their hometowns), temporarily reducing rental activity in metropolitan centres like Kuala Lumpur.
However, this shift simultaneously boosts demand in secondary cities and tourist destinations. Families take advantage of long weekends and public holidays to plan domestic getaways. For example:
- Airbnb reported a 25–40% increase in bookings during the Hari Raya period in locations like Penang, Langkawi, Ipoh, and Kota Kinabalu.
- Hotels and homestays in Melaka often report near 90% occupancy during public holiday weekends and festive breaks.
Local tourism authorities also confirm a steady surge in domestic travel during festive seasons, contributing to short-term rental activity across heritage towns and coastal destinations.
2. Seasonal Pricing Adjustments
Short-term rental hosts often adjust their pricing dynamically to reflect supply and demand. During peak festive periods, there are two pricing behaviours:
- Price Surge in Tourist Areas: In-demand spots such as Genting Highlands, Langkawi, or Desaru Coast often see 20–50% price hikes as domestic tourists flood the market.
- Price Drops in the City Centre: With many Malaysians leaving the city, urban hosts may reduce rates by 10–30% to attract international travellers or expats staying behind.
According to AirDNA, average daily rates (ADR) in Kuala Lumpur dip during Hari Raya week, while those in beach towns and island destinations sharply increase.
3. High Demand for Spacious Homes
Festive seasons are synonymous with family reunions and large group gatherings. Instead of multiple hotel rooms, many opt for spacious landed homes or multi-bedroom Airbnb units.
- Top-performing units during festive periods tend to have at least 3 bedrooms, large kitchens, and common areas ideal for hosting meals or open houses.
- Properties with Muslim-friendly amenities (e.g., sejadah, halal kitchens, prayer spaces) are desirable during Hari Raya.
- In areas with a Chinese majority, homes with traditional design elements or feng shui appeal also perform better during Chinese New Year.
Pro Tip for Investors: During festive periods, properties that are family-centric and can accommodate 6+ guests tend to outperform studio or 1-bedroom units.
Best Locations for Short-Term Rental Investments During Festive Seasons
When considering short-term rental investments, it’s crucial to understand how each festive season affects different regions.
✅ Tourist Hotspots
These areas consistently perform well during every festive period:
- Langkawi – Ideal for beach holidays and island getaways
- Melaka – Cultural tourism spikes during school and public holidays
- Penang – Famed for food, heritage, and festive street celebrations
- Genting Highlands – Popular for cooler weather and family entertainment
📈 Fact: Langkawi Airport sees up to a 60% increase in arrivals during Chinese New Year and Hari Raya holidays (Malaysia Airports Berhad).
Source from: Pear Anderson, The Moodie Davitt Report
✅ Urban Business & Expat Hubs
These areas offer consistent occupancy, especially for international visitors or ex-pats:
- KLCC & Bukit Bintang – Despite residents leaving the city, tourist traffic keeps bookings steady
- Mont Kiara – There is a high concentration of Japanese, Korean, and Western ex-pats
- Bangsar – Boutique stays and family homes for locals who choose to celebrate in town
📊 Tip: Adjust marketing for international guests during festive seasons when locals travel. Highlight proximity to malls, restaurants, and transit.
✅ Family-Friendly Suburban Homes
These areas attract family groups returning home or those hosting open houses:
- Shah Alam – Malay-majority, spacious homes ideal for Raya reunions
- Setia Alam – Gated communities and landed properties popular for gatherings
- Cyberjaya & Putrajaya – Convenient location for city getaways with family-friendly spaces
Other Notable Observations
- Advance Bookings Spike 3–4 Weeks Before Major Festivals, especially in Melaka and Penang, where families book early to secure the best properties.
- Shorter Booking Windows in KL – During festive seasons, bookings may happen within 1–3 days prior as last-minute staycations are planned.
- High Turnover & Cleaning Needs—During peak periods, Property managers should be prepared for faster turnovers and higher guest expectations.
Conclusion
Festive seasons in Malaysia bring more than cultural cheer—they unlock opportunities in the short-term rental market. For investors, the key lies in understanding which locations thrive during which festivals, how to price your units accordingly, and the types of properties that best meet holiday travellers’ needs.
Whether you’re targeting tourists in Penang, families in Shah Alam, or expats in Mont Kiara, staying ahead of seasonal trends can lead to higher occupancy rates, increased rental yields, and more substantial returns on investment.
Plan ahead, price smartly, and invest wisely—because in Malaysia, festive seasons aren’t just for celebration; they’re prime time for property gains.
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