STR Growth & Revenue Strategies for Winning the Second Half of 2025

Webinar Overview

As the short-term rental market enters the second half of 2025, new dynamics are reshaping how operators drive occupancy, revenue, and profitability. From shifting traveler behavior to evolving city regulations and economic signals, success now depends on agility, data, and smarter pricing strategies. We've invited PriceLabs, a leading revenue management platform for hospitality to discuss state of the STR industry and revenue strategies to win the second half of the year.

TL;DR

• Market reality (US, 2025): 1.57M active Airbnb listings (+4.5% YoY), occupancy ~62–64% (stable), ADR ≈ $249 (up YoY).
  
  

  

  
  

• Demand isn’t gone - it’s concentrated. Event/holiday spikes and “pocket” markets outperform.
  
  

• Booking windows are shorter. Avoid panic discounting; use far-out premiums + occupancy-based adjustments.
  
  

• Align length of stay (LOS) with your market. E.g., Chicago (short stays) vs. Miami (7–14 nights). Turn on dynamic minimum stays.
  
  

• Upsells pay: Early check-in often out-converts late checkout; price ~15–40% of nightly rate; reveal access codes close to check-in to lift conversion.
  
  

• Damage waiver > deposit (optional choice). Turns a liability into keepable revenue; fits Airbnb when offered as guest choice.
  
  

• AI guest experience: One-hub journeys, accurate multilingual replies, review quality (“Guest Favorites”) now drive discoverability.
  
  

• Offer: Enso Connect’s reasoning/agentic AI: free for 2025 sign-ups (mentioned live).

Key data & trends

• Supply & demand: Supply growth cooled from the 2021–2023 boom; 2025 is a mature, stable phase. Booked nights are slightly up YoY overall; performance varies by pocket market and events.
  
  

  

  
  

  

  
  

• Occupancy: Normalizing around 62–64% the past few years.
  
  

  

  
  

• Rates: ADRs continue rising ~3–4% YoY on average (post-2023 reset).
  
  

  

  
  

• Concentrated demand examples: Labor Day spiked in 18/24 tracked markets (e.g., Branson +40%, Destin +30% YoY for that weekend).
  
  

  

  
  

• Shrinking booking windows: Example: July median lead time 31 → 28 days (2024→2025). Small average shifts hide big tail changes—expect more last-minute bookings.

What it means for operators

• Forecast revenue around pockets (weekends, holidays, local events) vs. blanket tactics.

• Don’t rush to discount as lead times shrink - monitor pacing and comp activity first.

• Keep listings “active” (fresh prices/edits) to help OTA visibility - plus win great, specific reviews.

Pricing & pacing: practical moves

1. Far-out premiums: Keep them for 2026; consider trimming for late-2025 if you want certainty.

2. Occupancy-based adjustments: Use stronger discounts only when pacing lags your target.

3. Event & weekend focus: Identify top weekends/holidays and anchor price corridors there.

4. Guardrails: Maintain floors/ceilings to avoid race-to-the-bottom behavior in short windows.

Length-of-stay (LOS) strategy

• Match LOS to local reality:

  • Chicago: heavier 1–4 night demand;

  • Miami: more 7–14 night stays + strong seasonality.

• Turn on dynamic minimum stays (with a sensible “lowest allowed” floor).

• Goal: Fill more of the right nights while preserving high-value dates.

Upsells that convert (and how to run them)

Operational upsells (fastest payback):

• Early check-in: Converts better than late checkout in most portfolios; present 3–4 paid options.

• Late checkout, gap nights, mid-stay cleans.

• Pricing anchor: ~15–40% of nightly rate for early/late windows (varies by market/season).

• “Popcorn pricing” trick: Offer tiers (e.g., 3pm/2pm/11am) so most guests choose the profitable middle.

• Crucial timing tip: If you send full access instructions too early, early check-in conversion tanks. Release codes closer to the adjusted check-in time.

Experiential upsells (brand & review flywheel):

• Curate trusted, local experiences; guests trust you as the local authority.

• Better reviews → “Guest Favorites” badges → higher visibility and direct bookings.

Damage waiver vs. deposit (Airbnb-compatible approach)

• Present guest choice: security deposit or an optional damage waiver (one-time fee).

• Why it works: Deposits = liability to return; waivers = keepable revenue while preserving protection.

• Airbnb policy fit: Forced extra fees aren’t allowed; optional waiver choice is typically compliant. (Some properties need Airbnb approval to even show deposits—varies by market/building/insurance.)

AI, search, and the “one-hub” guest journey

• AI-first trip planning is rising. Guests discover trusted, specific answers (not just listings).

• Be “answer-worthy”: Publish local authority content; ensure your reviews mention curated experiences and service wins—not just “clean check-in.”

• One hub > channel sprawl: Unified messaging + a branded guest app reduce friction and raise satisfaction.

• What’s new: Enso Connect’s reasoning/agentic AI (shows its thinking; learns from live content) was announced as free for 2025 sign-ups.

Q&A highlights

• Early check-in pricing: Common $35–$60 for 1–2 hours in many markets; tie to % of nightly rate during peak.

• Airbnb US fee change (Oct 27): Host-only fee - increase base price so guest total stays similar; watch for official guidance.

• Ranking higher on OTAs: Stay active (pricing freshness), win bookings, and drive specific, high-quality reviews.

• Collecting waivers on Airbnb: Use guest choice (deposit vs. waiver). Off-platform fee collection is more common on non-Airbnb channels.

30-day action checklist

• Map Q4 event weekends/holidays; set price corridors & min-stays per period.

• Review pacing; apply occupancy-based nudges instead of blanket discounts.

• Enable dynamic minimum stays with a safe “lowest allowed” floor.

• Launch 3-tier early check-in and late checkout offers (test popcorn pricing).

• Publish 2–3 local authority posts guests actually search for (AI-friendly FAQs).

• Tighten your guest app + unified inbox flow; remove micro-frictions pre-arrival.

• Pilot damage waiver choice where permitted; track uptake and disputes.