According to new research from Sykes Holiday Cottages, a third (31%) of Brits will enjoy a staycation in Scotland in 2021 – with three quarters (76%) of Scots also holidaying in their own country this year.

The inaugural Scotland Staycation Index 2021 analyses Sykes Holiday Cottages’ booking figures, consumer research and revenue data to reveal all about Scottish staycations, while also showing the numbers turning to holiday letting as an investment.

With foreign travel restrictions still in place, Sykes’ Index highlights a 22% uplift in Scotland holiday let bookings for this summer compared to 2019, and a 46% increase for autumn and winter – a silver lining for holiday let owners after a difficult year.

The Index also reveals that, prior to the pandemic, the average Sykes owner in Scotland earned £16,000 in revenue per year from their holiday let, a number that is expected to jump dramatically this year thanks to the rise in bookings.

In fact, Sykes reports an impressive 92% occupancy rate for its Scottish holiday lets over June, July and August 2021.

And with income potential rising, the pandemic has also fuelled a 65% increase in enquiries from second homeowners and investors looking to get into holiday letting versus last year.

Plus, a quarter (24%) of Scots say the pandemic has made them more likely to consider holiday letting as a means to providing extra income at some point in the future.

For those weighing up where to invest, the Highlands & Islands is reportedly the most lucrative destination for holiday let owners in Scotland, with an average revenue of almost £19,000 for a three-bedroom property annually. It is also the most popular region for travel in Scotland in 2021, according to Sykes’ booking data.

Perth & Kinross and Aberdeenshire follow closely behind as top-earning regions, with both also featuring in the list of popular destinations for bookings this summer.

Sykes’ analysis compared its owners’ rental income with Scottish government rental figures, along with house price data from Home.co.uk, to reveal the areas with the strongest return of investment (ROI) in Scotland.

The Ayrshires came out on top, with an average ROI of 12% for holiday lets in this area compared to an average of 5% for longer term buy-to-let properties.

Meanwhile, holiday let owners in Fife could see a potential ROI of 11%, compared to buy-to-let investors whose returns in this region average 5%.

In terms of what people want from a holiday let in Scotland, proximity to walking routes, restaurants and lochs come out on top, whilst almost a quarter (24%) of Brits would consider a ski trip in Scotland this winter.

Sykes also reports that guests are looking for a little luxury in Scotland, with the holiday let agency seeing a 59% increase in bookings to its more luxurious properties compared to prior to the pandemic.

Graham Donoghue, CEO, Sykes Holiday Cottages, said: “As a proud Scot myself, it’s easy to see why Scotland is a firm favourite amongst holidaymakers.

“And with the appetite for staycations in Scotland reaching new heights, our holiday let owners are generating more revenue than ever before. The growing attractiveness of this investment opportunity is also fuelling more and more new owner enquiries for properties based in Scotland by the day.

“A stronger staycation market in Scotland will likely remain a fixture for years to come, meaning the long-term revenue opportunities for those considering entering the market now could be substantial.”

Susan Hunt, owner of a two-bedroom holiday home in the Highlands, added: “It’s obviously been a challenging year for the entire travel industry, but we can’t believe just how much bookings have bounced back. This year is set to be one of our busiest yet, with back-to-back bookings over summer and 2022 bookings already rolling in.”