2024 Short-Term Rental Report by Hostaway: Key Takeaways

When we were building our first-ever annual Short-Term Rental Report last year, the key themes leapt out at us. Competition was fiercer than ever, uncertainty in the economy was palpable, and AI adoption hadn’t quite reached critical mass. Twelve months later, our 2024 Short-Term Rental report reveals new realities emerging alongside familiar challenges. 

What are the key takeaways from this year's Report? What were some of the toughest challenges faced by property managers in 2024; what might be some of the challenges faced in 2025? And most importantly, how should you overcome these challenges? 

We hope you’ll download the full report to get a clear picture of the year that was and the year that will be 2025. But if you’ve only got time for a few key takeaways, here they are.

The Evolving Landscape of Short-Term Rentals

In 2023, the industry was marked by economic uncertainty and record-high interest rates, even as travel rebounded to near pre-pandemic levels. This backdrop created a challenging environment for short-term rental operators. A year later, the economic outlook has stabilized somewhat, with less focus on a looming recession. However, property managers still grapple with perennial challenges such as intense competition and finding reliable cleaning staff.

Yet, the industry is far from static. New pressures, such as the growing impact of extreme weather events, are reshaping the way hosts operate and how travelers make decisions. From hurricanes and floods to heatwaves, these events are influencing both local hosting conditions and broader travel patterns.

Challenges That Persist

Competition

Competition in the short-term rental market remains fierce. With more properties available than ever, standing out in crowded marketplaces like Airbnb or Vrbo is increasingly challenging. This underscores the importance of a strong marketing strategy, unique offerings, and impeccable guest experiences.

Staffing woes

The difficulty of finding and retaining reliable cleaning staff continues to be a significant issue. Cleanliness is a critical factor in guest satisfaction and reviews, making this challenge one that hosts cannot afford to overlook. Property managers may benefit from investing in staff training, offering competitive wages, or exploring partnerships with professional cleaning services.

Emerging Pressures

Extreme weather impacts

The Impact of Extreme Weather: As climate change leads to more frequent and severe weather events, property managers are facing disruptions ranging from physical damage to properties to cancellations driven by traveler safety concerns. These events are also altering guest behavior, with many travelers now prioritizing flexibility and safety when booking accommodations.

Hosts should consider how to mitigate these risks. For instance, investing in property insurance tailored to natural disasters and developing clear emergency protocols can help protect assets and ensure guest safety.

Changing Traveler Behavior

Extreme weather and broader global dynamics are fostering a trend toward more spontaneous travel. Guests increasingly value flexibility, seeking accommodations that offer adaptable cancellation policies and last-minute booking options.

Technology: The Key to Adapting and Thriving

In the face of these challenges, technology continues to provide solutions that empower property managers to optimize operations and enhance guest experiences.

Dynamic Pricing

Real-time dynamic pricing tools are becoming essential for maximizing revenue and maintaining high occupancy rates. These tools allow property managers to adjust rates based on demand, seasonality, and competitor pricing, ensuring that listings remain competitive without undercutting profitability.

Guest-Friendly Policies

Flexible cancellation policies are no longer optional but a competitive necessity. Offering traveler-friendly terms can build trust and attract bookings, particularly from guests seeking peace of mind in an uncertain world.

Automation Tools:

Automation tools, from communication platforms to property management systems, are streamlining operations. These solutions not only save time but also ensure consistency in managing bookings, guest communication, and cleaning schedules.

Making the Most of 2025

The 2024 Short-Term Rental Report by Hostaway highlights both challenges and opportunities within the industry. While competition and staffing concerns persist, new pressures such as extreme weather and changing traveler behaviors require hosts to adapt their strategies. Leveraging technology, embracing sustainability, and focusing on flexibility can help property managers not only weather these changes but thrive in an ever-evolving market.

Download the full report to dive deeper into these insights and discover actionable strategies to make 2024 your most successful year yet!