We are delighted to present the 2023 report on
hospitality trends in the vacation rental industry.
This report wouldn’t be possible without informative
conversations with and insights from industry experts,
but more importantly, the many vacation rental
operators who took valuable time to fill out our survey.
This year’s results show many similar trends to those
of our 2022 report, including an increasingly
competitive market despite post-pandemic recovery
and tightening state and city regulations.
Some changes are afoot, however.
While Airbnb continues to dominate, for the first time,
direct bookings and referrals have claimed second
place in the category, exceeding Vrbo. This is likely a
sign that operators are focused on strategy and
scalability in response to OTA fees and mandates.
Additionally, this year, revenue growth—and loss—have
shifted. While we observed a slow and steady increase
in negative revenue growth over the past few years (8%
in 2021, 13% in 2022), this year, the number jumped to
a surprising 31%— more than doubling the number of
property managers who lost revenue in just one year.
And while it’s important to note that the majority of our
2023 respondents reported positive growth, it appears
that the post-pandemic’s increased supply and inflated
operating costs have taken a toll on a growing
segment of operators.
This year produced a burst of AI activity, with an
overwhelming desire for increased AI integrations in
2024, especially in the realm of guest
communications.
Guest communications remains a pivotal category,
posing both the largest challenge to respondents and
simultaneously the area that grew easier this past
year. If anything, we can infer that guest
communications remains a foundation of the
short-term rental industry—and a key area AI’s
continued explosion may manage to unlock in 2024.
We hope this report provides valuable insights for you
and your vacation rental business.
Hostfully Yours,
Margot, David and Steph
Hostfully Founders
032023 Hospitality trends in the vacation rental industry
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