The short-term rental (STR) industry has undergone a seismic transformation over the past decade, and 2025 promises to be another pivotal year. As the market continues to evolve, hosts and property managers must stay ahead of emerging trends to remain competitive. From technological advancements to shifting guest preferences and regulatory changes, the STR landscape is set to look vastly different in just a few years.
In this blog, we’ll explore the top short-term rental industry trends in 2025, providing actionable insights to help you adapt and thrive. Whether you’re a seasoned host or just starting out, understanding these trends will empower you to enhance your guest experience, streamline operations, and maximise profitability. Read on to discover:
- Market overview for short-term rentals in 2025
- Technology trends shaping STR in 2025
- Evolving guest preferences in 2025
- Regulatory and economic factors impacting STR in 2025
- Strategies for STR success in 2025
- What do industry experts and hosts think?
- Final thoughts: Staying ahead in the STR industry in 2025
Ready to future-proof your STR business? Let’s dive in!
Market overview for short-term rentals in 2025
The short-term rental industry has come a long way since its early days, evolving from a niche market to a mainstream accommodation option. By 2025, the global STR market is expected to reach new heights, driven by changing travel behaviors, technological innovations, and economic recovery.
Current state of the STR market
- Steady growth in the STR market: the short-term rental industry has experienced consistent growth over the past decade, with global revenue reaching $124.5 billion in 2024 - and predicted to reach £344 billion by 2034, according to Precedence Research. This growth is fuelled by increasing demand for flexible and personalised travel experiences, as well as the rise of remote work and extended stays.
- Rise of mid-term rentals: extended stays (30+ days) are becoming increasingly popular, fuelled by remote work and "workcations." Platforms like Airbnb and Vrbo have introduced features to cater to this growing segment.
- Emerging destinations: secondary cities and rural areas are gaining traction as travellers seek unique, off-the-beaten-path experiences. Destinations like Portugal’s Algarve region and Mexico’s Oaxaca are seeing a surge in bookings.
Key factors influencing STR growth in 2025
- Remote work and "workcations": the shift to remote work has created a new demand for STRs that cater to digital nomads. Properties with dedicated workspaces, high-speed internet, and ergonomic furniture are in high demand.
- Economic factors: inflation and rising travel costs are influencing consumer spending habits, with travellers prioritising value and flexibility. Hosts who offer competitive pricing and flexible cancellation policies will have an edge.
- Sustainability and wellness: eco-conscious travellers are driving demand for sustainable and wellness-oriented accommodations. Properties with eco-friendly features like solar panels and organic toiletries are becoming increasingly popular.
Pro tip: stay ahead of the curve by leveraging Touch Stay’s digital guidebooks to provide guests with seamless, personalised experiences.
Technology trends shaping STR in 2025
Technology continues to revolutionise the STR industry, offering hosts innovative tools to enhance efficiency and guest satisfaction. In 2025, expect to see even more advanced solutions that streamline operations and elevate the guest experience.
AI-driven pricing and revenue management
- Machine learning tools: Platforms like AirDNA and PriceLabs are using AI to optimise pricing strategies based on real-time data. These tools analyse factors like local events, weather, and competitor pricing to recommend optimal rates.
- Dynamic pricing: tailored pricing models that adjust for seasonality, local events, and demand fluctuations. Hosts and property managers using dynamic pricing report a 40% increase in revenue.
- Increased profitability: AI-driven tools not only maximise revenue but also reduce the time hosts spend on manual pricing adjustments.
Confused by STR jargon? Check out our A-Z of short-term rental terminology.
Smart home technology in STR properties
- Smart locks and thermostats: keyless entry and automated climate control are becoming standard features. Guests appreciate the convenience of self-check-in and the ability to control the thermostat from their smartphones.
- Virtual assistants: voice-activated devices like Alexa and Google Home enhance convenience for guests. These devices can provide local recommendations, control smart home features, and answer common questions.
- Enhanced security: smart cameras and sensors provide peace of mind for both hosts and guests. Features like motion detection and remote monitoring help prevent unauthorised access.
Automation for hosts and property managers
- Guest messaging: automated messaging systems handle guest enquiries, check-in instructions, and post-stay feedback. Touch Stay digital guidebooks automate guest communication saving hosts hours of work.
- Cleaning schedules: tools like Turno streamline cleaning operations, ensuring properties are guest-ready. These platforms coordinate cleaning teams, track supplies, and manage schedules.
- Time-saving solutions: automation allows hosts to scale their businesses without sacrificing quality. By automating repetitive tasks, hosts can focus on providing exceptional guest experiences.
Did you know… Touch Stay’s digital guidebooks integrate seamlessly with smart home technology, offering guests a modern, hassle-free experience. Learn more here.
Evolving guest preferences in 2025
Guest expectations are constantly evolving, and 2025 will bring new demands that hosts must address to stay competitive. From sustainability to wellness, travelers are seeking more than just a place to stay—they want an experience.
Demand for sustainable travel and eco-friendly accommodations
- Energy-efficient properties: solar panels, energy-efficient appliances, and water-saving fixtures are in high demand. Guests are increasingly aware of their environmental impact and prefer properties that align with their values.
- Eco-certifications: properties with certifications like Green Key or LEED attract eco-conscious travellers. These certifications signal a commitment to sustainability and responsible tourism.
- Sustainable practices: recycling programs, composting, and locally sourced amenities are becoming standard. Hosts who prioritise sustainability can differentiate their properties in a crowded market.
Check our blog on how sustainability is shaping the short-term rental market.
Increased focus on wellness-oriented stays
- Wellness amenities: yoga spaces, fitness equipment, and spa-like bathrooms are highly sought after. Guests are prioritising properties that support their physical and mental well-being.
- Mindfulness retreats: properties offering meditation spaces and wellness programs are gaining popularity. These retreats cater to travellers seeking relaxation and rejuvenation.
- Health-conscious travellers: guests are prioritising properties that support their physical and mental well-being. Features like air purifiers, organic bedding, and healthy meal options are becoming must-haves.
Preference for unique, local, and experiential stays
- Off-the-beaten-path destinations: travellers are seeking unique, lesser-known locations for authentic experiences. Properties in rural areas or secondary cities are seeing increased demand.
- Personalised experiences: hosts who offer local recommendations and curated itineraries stand out. Guests appreciate insider tips on the best restaurants, attractions, and hidden gems.
- Storytelling in branding: properties with compelling narratives and strong branding attract more bookings. Highlighting the history, architecture, or unique features of your property can create a memorable impression.
Pro tip: use Touch Stay’s digital guidebooks to showcase your brand, your property’s unique features, as well as local recommendations that aren’t listed in standard guidebooks.
Regulatory and economic factors impacting STR in 2025
As the STR industry grows, so do the regulations and economic pressures that hosts must navigate. Staying compliant and adapting to these changes will be crucial for success in 2025.
Stricter regulations for short-term rentals
- Permits and licenses: many cities (especially in the US) are requiring hosts to obtain permits and adhere to occupancy limits. Failure to comply can result in fines or even property shutdowns.
- Fines and restrictions: non-compliance can result in hefty fines and even property shutdowns. Hosts must stay informed about local regulations to avoid penalties.
- Community impact: local governments are addressing concerns about housing shortages and neighbourhood disruptions. Hosts who engage with their communities and address these concerns are more likely to succeed.
Tax implications for hosts
- Income and occupancy taxes: hosts must stay updated on tax requirements to avoid penalties. Many cities now require hosts to collect and remit occupancy taxes.
- Platform assistance: STR platforms like Airbnb and Vrbo offer tools to help hosts comply with tax laws. These tools automate tax collection and reporting, saving hosts time and effort.
- Transparency: clear communication about taxes in listings builds trust with guests. Guests appreciate knowing the total cost upfront, including taxes and fees.
Economic pressures on pricing
- Inflation and rising costs: hosts must balance affordability with profitability as operational costs increase. Rising costs for cleaning, maintenance, and utilities are putting pressure on profit margins.
- Competitive pricing: dynamic pricing strategies help hosts stay competitive in a crowded market. Tools like Beyond Pricing and Wheelhouse analyse market trends to recommend optimal rates.
- Value-added services: offering extras like free parking or breakfast can justify higher rates. Guests are willing to pay more for properties that offer exceptional value.
Stay compliant and competitive with Touch Stay’s digital guidebooks, which help you communicate important information to guests.
Strategies for STR success in 2025
To thrive in the evolving STR market, hosts must adopt forward-thinking strategies that align with industry trends. Here’s how you can stay ahead in 2025.
Enhancing guest experiences
- Tailored offerings: customise your property to meet the needs of specific guest demographics (e.g., families, remote workers). Families may appreciate child-friendly amenities, while remote workers prioritise high-speed internet and workspaces.
- Guest feedback: use feedback to continuously improve your offerings and address pain points. Encourage guests to leave reviews and take their suggestions seriously.
- Personal touches: small gestures like welcome baskets or a digital guidebook automatically personalised for each guest leave a lasting impression. These touches can turn a good stay into a great one.
Optimising property listings for 2025 trends
- AI tools for copywriting: use AI-powered tools to craft compelling property descriptions. Tools like Jasper and Copy.ai can help you highlight your property’s unique features.
- Professional photography: high-quality visuals are essential for attracting bookings. Consider hiring a professional photographer to showcase your property in the best light.
Learn more with our professional guide to Airbnb photography. - SEO and keywords: optimise your listings with relevant keywords to improve visibility. Research popular search terms in your area and incorporate them into your listing.
Want more on this? Discover everything you need to know about how to market your short-term rental.
Building loyalty and repeat bookings
- Loyalty programs: offer discounts or perks for returning guests. A simple loyalty program can encourage guests to book directly with you in the future.
- Exclusive deals: provide special rates for guests who book directly through your website. Direct bookings save you platform fees and increase your profit margins.
- Exceptional service: consistently delivering outstanding experiences encourages repeat business. Go above and beyond to exceed guest expectations.
Pro tip: Touch Stay’s digital guidebooks help you create memorable guest experiences that drive loyalty.
What do industry experts and hosts think?
To gain deeper insights into the future of STRs, we turned to industry experts and active hosts. Here’s what they had to say:
Insights from Reddit's r/Airbnb
- On automation:
"Automation tools like dynamic pricing and smart locks have been a game-changer for my STR business. I’ve saved hours of work and increased my revenue by 25%."
– u/STRHost2023 - On sustainability:
"Guests are increasingly asking about eco-friendly features. I’ve started using energy-efficient appliances and offering recycling options, and it’s made a noticeable difference in my bookings."
– u/EcoHost - On regulations:
"Local regulations are getting stricter, especially in cities like New York and Barcelona. It’s crucial to stay compliant to avoid fines or shutdowns."
– u/GlobalHost
Insights from industry blogs
- On experiential travel:
"Travellers are seeking unique, local experiences. Hosts who curate personalised itineraries and highlight their property’s story are winning more bookings."
– Skift Blog - On mid-term rentals:
"The rise of remote work has fuelled demand for mid-term rentals. Hosts who cater to digital nomads with extended stay options are tapping into a growing market."
– AirDNA Blog. - On guest expectations:
"Guests today expect more than just a place to stay. They want seamless check-ins, personalised recommendations, and eco-friendly amenities."
– Guesty Blog.
Key takeaways from hosts and experts
- Automation is essential: hosts are leveraging tools like dynamic pricing and smart home technology to save time and boost revenue.
- Sustainability matters: eco-friendly features and practices are becoming a key differentiator for guests.
- Regulations are tightening: staying compliant with local laws is critical to avoiding fines and maintaining operations.
- Experiences over accommodations: guests are prioritising unique, local, and wellness-oriented stays.
Final thoughts: staying ahead in the STR industry in 2025
The short-term rental industry is poised for exciting changes in 2025, driven by technology, guest preferences, and regulatory shifts. By adapting to these trends, hosts can enhance their offerings, streamline operations, and stay competitive in a dynamic market.
Key takeaways:
- Leverage technology to automate and optimise your STR business.
- Cater to evolving guest preferences, such as sustainability and wellness.
- Stay informed about regulatory changes and economic pressures.
Ready to take your STR business to the next level? Discover how Touch Stay digital guidebooks can help you stay ahead in 2025!
