The short-term rental market trends for 2025 are already making waves!

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Staying ahead of the curve is key to thriving in this competitive industry. That’s why we turned to our team of vacation rental experts at Beyond to get the scoop on what’s coming next. 

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From emerging traveler preferences to pricing strategies that keep you competitive, our team shares their top predictions and practical tips for hosts and property managers to crush it in 2025. Whatever stage your vacation rental business is at, this is the advice you need to stay ahead.

1. Winning Market Shifts with Real-Time Demand Data and Automation

Julie Brinkman, CEO

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2025 belongs to those who actively listen to what travelers seek – instead of relying on historical trends or paradigms. Today's travelers are using the latest tools, like AI trip planners, to help them find unique and memorable experiences. This is a perfect opportunity for hosts to meet travelers where they are by showcasing how their property, space, and amenities are one of a kind. Short-term rentals inherently have a leg up over other accommodation providers because of their unique nature, and it's up to us to keep this edge by embracing traveler trends. The only way to do this is to use innovative, AI-powered solutions that automate real-time insights into personalized, flexible experiences travelers expect.

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As we move toward 2025, the competition isn’t just between short-term rental operators in the same market; it’s the entire stays industry, from hotels to hostels to campsites and glamp-sites. Competing effectively means embracing and translating real-time insights to match traveler desires. Based on data and the latest trends, we know that travelers are craving authentic, personalized experiences that connect them to the places they visit – not just a place to sleep.

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From guest communications to unit maintenance to supply shifts to weather unpredictability, a host has to manage hundreds of inputs on any given day. And the savviest Hosts are using technology to automate both the mundane and complex tasks of managing their short term rental. The hosts of 2025 will expect that the tools they use will make their life easier and richer - not harder and less effective. Technology that not only predicts, but automates action is critical to winning the market.

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2. How Tech and Investment Will Shape 2025

Maria Flores Portillo, CRO

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As I look ahead to 2025, the blurring of lines between traditional hotels and short-term rentals (STRs) will not only persist but intensify, fueled by investor interest across both sectors. Hotel investors are now actively exploring STRs as growth assets, while experienced STR operators are moving toward whole-building acquisitions to protect against regulatory shifts. This trend underscores a clear market demand for flexible, diversified accommodation options—and it’s only gaining momentum.

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Technology, especially AI and machine learning, will play a pivotal role in this shift. We've seen impressive advancements in revenue management tools that allow for sharper, data-driven decisions in real-time. By automating repetitive tasks, AI is empowering revenue managers to focus on strategic growth rather than just operational work. Additionally, AI’s ability to forecast demand with real-time data—rather than relying solely on historical trends—brings greater accuracy. This is a game-changer for pricing and occupancy strategies, giving businesses the resilience to navigate market shifts with a steady hand.

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While outsourced revenue management and basic, budget tech solutions gained popularity last year, I see this trend fading as STR operators realize the need for a deeper understanding of revenue strategy. Rather than outsourcing, businesses need to invest in tech that truly simplifies decision-making and allows internal teams to stay in control of their strategy. When applied effectively, smarter tech doesn’t just operate a thousand buttons—it aligns with a business’s strategic goals and empowers its teams. This shift will be essential as businesses adapt to a smarter, more sustainable model in the year ahead.

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Constructive Regulation 

In Europe, regulatory discussions are increasingly focusing on enhancing the quality and social benefits of STRs within communities. Unlike incredibly restrictive regulations like those in New York City, which often benefit hotels more than STRs, emerging frameworks could emphasize sustainable integration of STRs. Such regulations could support local neighborhoods, ensure high standards for guests, and foster a balanced dialogue between STRs and the community.

3. Authenticity Over Everything: Gen Z and Millennials Demand Realness in Travel Experiences for 2025

Ryan Saylor, Director of Product Marketing:

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Next year, Millennials and Gen Z travelers are poised to be the largest force shaping travel, bringing with them an unyielding demand for authenticity and trust. With a wealth of options ranging from hotels to vacation rentals and everything in between, these travelers seek immersive, shareable experiences that match up to their expectations—and they’re quick to detect when properties fall short of their online promises. Social media has heightened awareness of the “expectation vs. reality” gap, where polished listings sometimes reveal disappointing realities IRL. Travelers from these generations are more attuned to misleading “catfishing” than ever before—where properties that look ideal in photos fall short upon arrival.

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Beyond’s latest international traveler survey underscores this shift: nearly 90% of travelers would lose trust in an accommodation if a listing misrepresented itself, and more than two-thirds would actively share those experiences on social media or online travel forums. This highlights a key prediction for 2025: hospitality pros must step up with transparent, high-quality offerings that truly reflect what’s promised online. Platforms that prioritize honest listings, reliable reviews, and influencer-led endorsements will resonate deeply with this demographic, whose preference for authentic, shareable moments has set a new standard for travel experiences.

4. Go Where The Locals Go

Jess Kelso, Senior Director, Host Segment

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In 2025, travelers will venture off the well-worn paths and embrace unique, under-the-radar destinations that offer a richer, more personal alternative to the usual tourist hotspots. Imagine choosing Bilbao over Barcelona, or heading to Ulaanbaatar, Nairobi, or Madeira—destinations that are now more accessible than ever, thanks to new direct flight routes. These somewhat lesser-known spots can be incredibly attractive for budget-conscious travelers as they often allow for meaningful, affordable experiences with a local touch. With social media influencers highlighting these hidden gems, now is the time to travel there – and get in before everyone else!

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For property owners in these emerging destinations, this shift is a huge opportunity. Guests will be increasingly drawn to places that offer something unique, going beyond things like offering eco-friendly amenities to search for stays where they can create genuine connections and feel deeply integrated with the local culture. Whether that means sourcing local products, recommending undiscovered cafes, or curating immersive cultural experiences, the winning formula is creating an environment that feels warm, personalized, and unique.

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This trend is perfectly suited to solo travelers craving quiet retreats, couples looking for affordable authenticity, and groups wanting shared adventures that aren’t prepackaged. For hosts, welcoming guests of all backgrounds with a fresh, inclusive approach will be essential in the coming year. In 2025, the travel experience will be a true blend of exploration, value, and genuine connection.

5. 2025: The Year of Standout Stays

Jeffrey Breece, Director of Revenue Management and Data Science

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As we look ahead, the short-term rental market is poised to turn around, particularly in the U.S., with mild year-over-year growth anticipated. I expect markets to outperform 2024, driven by trends that echo pre-pandemic patterns, particularly in 2019. Notably, lead times will be a bit shorter, but seasonal booking curves will mimic those of 2019 though with an upward shift of about 10% from the growth in prices, indicating a shift back towards historical trends.

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However, not all properties or vacation rental businesses will see this growth. Listings that are more average, think your basic 2-bedroom property in a suburb, may face challenges this year. Properties like this will face a tough time standing out and attracting guests to book. On the other hand, larger or unique properties that stand out will be thriving – properties that can accommodate large groups, have standout amenities, and even themed properties in tourist destinations.

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According to Beyond’s data, listings with four or more bedrooms are experiencing the most substantial growth year over year, alongside those featuring distinctive amenities. Properties commanding premium rates of over $1,000 per night have shown remarkable resilience, maintaining their revenue levels even amid fluctuations.

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Notably, income performance is not uniform; understanding the market's elasticity is crucial. In a flat market, knowing when to adjust rates—lowering them on specific days to boost bookings and raising them when demand is high—will be key to maximizing revenue.

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2025 promises renewed growth in the short-term rental sector, particularly for those who focus on leveraging data and insights to navigate the evolving landscape. By investing in unique, high-demand properties and adopting strategic pricing techniques, stakeholders can position themselves favorably for the future.

6. The Key to Revenue Growth Lies in Reasonable ADR Strategies

Marki Carlson, Strategic Customer Success Manager

To maximize profits next year, keeping your Average Daily Rates (ADR) balanced will be key. Fair pricing drives bookings, boosts occupancy, and appeals to today’s price-conscious travelers navigating high consumer costs and inflation. With travelers increasingly focused on getting the best value, a thoughtful ADR strategy ensures your calendar fills up and guests feel their money goes further.

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Consider reasonable ADRs for future bookings, too. This reduces the need for last-minute discounts, which can set unrealistic expectations for repeat guests. With smart pricing now, you’ll attract steady bookings and create a strong, future-proof rate structure.

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As occupancy rises, flexibility with length of stay requirements will be crucial, especially if your rates are on the higher side. Today’s guests are feeling financial pressure from many angles and want good value for their money. If they can’t find it domestically, they may start looking at international options, where they often find prices more appealing and their dollar stretches further.

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I've seen this strategy work across various vacation rental markets, particularly in more traditional areas like the Florida Panhandle and the Alabama Gulf Coast. Even with lower ADRs, properties in these regions have seen revenues up by 29% for their peak summer season (June-August) and even 44% ahead for the May-August period compared to last year. This shows that even with lower ADRs, revenue can still outperform expectations.

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What 2025 short-term rental trends are you preparing for? Take charge of your revenue management strategy for next year and work with Beyond today!

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