We’re breaking down two major developments that signal a shift in the STR landscape: a slowdown in global growth and a wake-up call from one of the world’s top travel cities—New York.
The short-term rental industry may be exiting its hypergrowth phase, but it’s far from slowing to a halt. According to new research from Phocuswright, the STR sector recorded a massive $201.6 billion in gross bookings in 2024. While growth is expected to moderate to single digits in 2025, there’s strong momentum coming from emerging markets.
Key insights:
Asia Pacific and Latin America are seeing a surge in bookings, especially post-China reopening and renewed tourism confidence in key Latin hubs.
North America and Europe are stabilising, but no longer leading the charge.
87% of all bookings are now digital, and this number is still rising—underscoring the need for seamless tech adoption.
However, with opportunity comes complexity:
Urban regulations are tightening, particularly in major cities.
Hotels are moving in, with brands like Marriott aggressively expanding into the STR category.
Traveller preferences are shifting toward lifestyle-driven stays, regional travel, and longer trips.
Long-haul corridors, especially in and out of Asia, are facing hurdles due to economic uncertainty and visa issues, but demand remains strong where access is streamlined. The big message here? Hosts must adopt a sharper, more strategic mindset—focusing on platform compliance, tech efficiency, and regional market dynamics.
In a surprising move, New York City just downgraded its 2025 tourism forecast by 3 million visitors—just two months after predicting a record-breaking year. This isn't just a local blip. It’s a reflection of softening demand across the U.S., especially from international travellers.
The driving forces behind this shift include:
Rising political and cultural concerns surrounding travel to the U.S.
Stronger interest in alternative destinations such as Mexico, France, and Japan—a trend echoed by both Airbnb and Expedia in recent earnings reports.
For short-term rental operators, this signals a critical turning point. You can no longer rely on momentum or market size alone. Now is the time to:
Refine your messaging and marketing to attract intentional, values-aligned travellers.
Explore international diversification, particularly in rising markets with fewer regulatory hurdles.
Build guest-centric, digital-first experiences that align with changing expectations.
NYC’s shift is a powerful reminder that even legacy destinations must adapt. Agility, proactive strategy, and audience targeting are essential if you want to stay relevant and profitable in today’s fragmented travel landscape.
Go beyond growth metrics: Evaluate profitability, efficiency, and guest retention over raw booking numbers.
Embrace digital tools: From booking engines to automation, tech is no longer optional—it’s foundational.
Stay informed about regional regulations: Local changes can dramatically impact operations. Stay compliant and agile.
Market intentionally: Personalised messaging and alternative destinations are now key conversion levers.
Ready to elevate your direct booking game? Visit the Boostly website for the tools, strategies, and support you need to succeed in 2025 and beyond. And remember: Book Direct.
