Short-Term Rental Industry Outlook 2025: Key Trends

The short-term rental (STR) market in 2025 is evolving rapidly, with shifting traveler preferences, regulatory challenges, and tech-driven competition. A recent Skift report, State of Travel 2025, highlights critical data that STR owners and operators should leverage to boost repeat bookings, optimize pricing, and stay ahead of trends. Here’s what you need to know: 

1. Demand Remains Strong—But Competition is Fierce

- Global travel spending has fully recovered, with leisure travel leading the way.  

- Short-term rental bookings are up 18% since 2022, but professional hosts (10+ properties) now dominate, squeezing smaller operators.  

- AI Search is out-performing traditional Google search for short-term rentals. There is a potential for AI to disrupt traditional OTA and distribution channels a lot sooner than originally predicted. Keep an eye on this! 👀

Actionable Takeaways:

1. Differentiate your property with unique amenities to stand out:

   • Early checkin/Late checkout offers

   • EV charging station / Smart Home Tech

   • Pool / hot tub

   • Co-working set-up

   • Local packages (bundled upsell offers) 

2. Ensure your direct booking website is optimized not only for traditional search, but AI search as well. This involves some schema markup in your back-end.

   
   

2. Repeat Bookings Depend on Personalization & Loyalty 

- 55% of travelers prefer rentals that remember their preferences (e.g., welcome notes, custom recommendations).  

- AI-powered dynamic pricing and automated guest messaging and offers improve retention by 30%.  

Actionable Takeaways:  

• Use automated communications like upsell offers and post-stay follow-ups (e.g., discounts for returning guests).  

• Offer personalized local recommendations based on past guest behavior.  

3. Bleisure Travelers Are a Growing Market  

- 35% of business trips now include leisure extensions in business travel—up from 25% in 2019.  

- These travelers seek fast Wi-Fi, ergonomic workspaces, and flexible check-in/out.  

Actionable Takeaways:  

• Market your rental as Work-Friendly in listings.  

• Offer midweek discounts to attract remote workers.  

4. Sustainability Matters More Than Ever  

- 55% of travelers factor sustainability into bookings.  

- Listings with eco-certifications or green features (solar panels, recycling, energy-efficient appliances) see 20% higher booking rates.  

Actionable Takeaways: 

• Highlight sustainability efforts in listings (e.g., Carbon-Neutral Stay).  

• Small upgrades (LED lighting, smart home tech, comprehensive recycling) can make a difference.  

5. Experience-Driven Travelers Want Local Touches  

- Travelers no longer just want a place to sleep—they want authentic local experiences.  

- Rentals offering local recommendations or perks (discounted tours, cooking classes, bike rentals) earn higher reviews and repeat bookings.  

Actionable Takeaways: 

• Partner with local businesses for exclusive guest offers.  (Or simply enable Enso Experiences and earn passive income with zero effort)

• Keep your Guidebooks updated with hidden local gems.  

6. Regulatory Crackdowns Require Adaptation  

- Cities like Barcelona, New York, and Paris have tightened STR laws, reducing available inventory.  

- Licensed, compliant operators now have less competition but higher costs.  

Actionable Takeaways:

• Stay updated on local laws—join STR host associations for advocacy.  

• If operating in restricted markets, consider longer-term rentals (30+ days) to avoid penalties.  

7. Luxury & Niche Rentals Are Winning 

- High-end rentals (private villas, designer homes) are seeing 25% more bookings than budget options.  

- Themed stays (e.g., wellness retreats, pet-friendly cabins) attract dedicated audiences.  

Actionable Takeaways: 

• Consider upscale upgrades (premium linens, high-end coffee machines) and highlight these in your listing.  

• Market to niche groups (e.g., Perfect for Digital Nomads or Yoga Retreat Haven) in both marketing and listing descriptions.  

Key Strategy for 2025: Adapt or Get Left Behind

To thrive in today’s STR market, operators must:  

✅ Leverage AI tools for pricing and guest communication and ensure your properties show up in AI search.

✅ Tap into 'bleisure' and experience-driven demand with recommendations and local affiliations in your guest journey.  

✅ Enhance sustainability to attract eco-conscious travelers or EV guests that tend to spend 11% more.  

✅ Stay compliant amid increasing regulations.  

For the full travel trends report, check out Skift’s State of Travel 2025