How Many Short-Term Property Managers Are Using Artificial Intelligence?

With each passing month, artificial intelligence (AI) is increasingly becoming a part of everyday life. This is as much the case in personal tasks like planning a vacation as it is in the world of business — the short-term rental industry being no exception. 

But how many short-term rental property owners and managers are actually using AI? What are they using it for? And what concerns, if any, do they have about the proliferation of AI? We decided to get some answers to these questions. 

That’s why we created the first-ever AI in the Short-Term Rental Industry by Hostaway. Five hundred property owners and managers from 30 countries and six continents answered our survey. We crunched the numbers, pulled out the most interesting findings, and now you can download the entire report for free.  

To whet your appetite for all that AI goodness, here are three big takeaways from the report.

1. AI Adoption More Than Doubled in Just a Few Months

In late 2023 we surveyed more than 300 short-term rental property owners and managers for our 2023 Short-Term Rental Report. We asked two questions about AI, including if they were using it. 

Back then, 29.9% said there were. Fast-forward today and that number has skyrocketed. Seventy percent (70.1%) now say they are using AI for everyday business. This leap is not just about joining the bandwagon. A significant 61.8% of respondents believe that AI offers a competitive advantage in the marketplace.

From dynamic pricing to automating guest communications and marketing campaigns, our findings show that AI tools are becoming indispensable for those looking to stay competitive in a market that demands both agility and precision. 

2. Mixed Results on Cost and Occupancy Impact

Despite the optimistic adoption rates, the effectiveness of AI in driving down costs and improving occupancy rates shows mixed results. About 30.7% of respondents reported no noticeable cost savings from using AI, and a similar percentage observed no change in occupancy rates. 

However, the vast majority of respondents did report that AI saved them time — at least two hours per week. Over the course of the year, that translates into about four workdays. 

This would suggest that although AI is indirectly resulting in cost savings for industry professionals, quantifying it poses a challenge. Triangulating AI’s effect on occupancy rates is another calculation bridge to cross altogether.

3. Where Artificial Intelligence Falls Short

One of the more intriguing findings from the report is the skepticism about AI's ability to foster genuine human connections, with 64.8% doubting AI's effectiveness in this area. A further 54.4% do not believe AI can handle complex, nuanced customer complaints effectively. 

This highlights a critical challenge: balancing technological integration with maintaining the human touch that is often crucial in hospitality-driven industries like short-term rentals. With rapid advancements in machine learning and artificial intelligence technology, our respondents may be singing a new tune by next year.

The Short-Term Rental Industry is Optimistic about AI

Fully measuring the bottom-line impact of AI, as well as its effectiveness in handling nuanced, human issues, is still being figured out as we speak. Will a computer ever fully and honestly represent the human experience? 

That’s left to be seen. But two findings from the report leap off the page. Seven-in-ten (70.1%) are using artificial intelligence technology, alongside their vacation rental software, to run their business. 

What's more, three-quarters 75.6% say they are highly or cautiously optimistic about AI. As it turns out, AI is here to stay, and short-term rental owners and managers are happy about it.

Download Your Free Copy of the Report Today