Innovations and Trends Driving the Vacation Rental Industry in 2024/2025

The vacation rental industry continues to thrive in 2024 and is poised for a productive 2025 as well. However, your competition is stiff, which means you’ve got to stay up-to-date on the latest vacation rental trends so you can maintain your competitive edge. 

Every year, new themes and vacation rental trends seem to spring up. Here’s a look at the ones you need to keep an eye on this year so you can adapt to this evolving market. 

2023-2024 Vacation Rental Statistics You Need to Know

The vacation rental market had a market share of $64 billion in 2023. There were roughly 2.4 million short-term rental listings across the United States, and travelers booked over 200 million overnight stays. 

While the industry finished 2023 strong, it got off to a bit of a slow start at the beginning of 2024. CBRE, a real estate services and investment firm, initially estimated that revenue per available room (RevPAR) would hover at 3% this year. 

However, RevPAR averaged about 2% for the first half of 2024. The good news is that the latest projections estimate that RevPAR will grow by 3% for the remainder of the year. 

Revenue per available room provides a measure of how much revenue short-term rental properties will generate from available rooms. The new estimates mean you could earn more for each room or property in your portfolio.

So how do you make sure that your properties meet or exceed CBRE’s new projections? You’ve got to leverage the latest vacation rental trends to make your properties stand out. 

10 Vacation Rental Trends to Watch

Here’s a look at ten vacation rental trends worth watching:

1. Pet-Friendly Accommodations

Many travelers are now bringing their pets on vacation. This has created a growing demand for pet-friendly vacation rentals. Simply allowing people to bring their pets along can open you up to an entirely new audience of prospective renters. 

To make pet owners feel even more welcome, you might also consider adding amenities like a fenced-in yard or extra pet bowls. Vacationers will be able to stay at your property without worrying about pet-sitting or boarding. 

Of course, it’s also important to clear the presence of pets with your insurance company. Find out whether your insurer requires you to have breed or headcount restrictions. The last thing you want is to inadvertently compromise your insurance policy because you failed to familiarize yourself with any exemptions or breed restriction clauses. 

2. Instagrammable Properties

Many travelers want vacation rentals that are experiences, not just places to stay. Properties that offer unique design elements or stunning views can attract social-media-savvy guests who are seeking Instagrammable moments.

Consider the homes in your portfolio. Are any of them Instagram-worthy? A few strategic changes to the decor and lighting can increase the social media appeal of your properties and help you attract more guests. 

You should also keep that in mind when exploring new properties for your portfolio. Will guests be excited to take pictures of themselves at your property? Does the home offer stunning views or quirky features? If so, it might be a great addition to your portfolio. 

3. Health and Wellness Amenities

Wellness tourism has become increasingly popular. Health-conscious vacationers are drawn to rentals that offer features such as spa-like bathrooms, hot tubs, and access to fitness equipment. Rentals near hiking trails or with options for in-house wellness services like massages are also becoming popular.

Keep in mind that you don’t have to go overboard with this. Start by creating a space for guests to exercise and include a few basic amenities like speakers, yoga mats, and some small dumbbells. If guests respond well, you can expand the strategy to other homes in your portfolio. 

4. Remote-Work-Ready Spaces

Remote workers have the luxury of exploring the country without burning through all of their vacation time. Adding work-ready spaces to your rental properties can help you appeal to remote or hybrid workers who want to break away from the office but still need to be productive when on vacation.

Again, you don’t have to go overboard. Pick a quiet, secluded room in your rental property and add a desk and chair. A little goes a long way. You just want guests who need to work during their stay to have a place to retreat to. 

5. Local Experiences

Vacationers are looking for properties that offer an immersive experience. Think about why you chose each property in your portfolio. Identify amenities, businesses, and local offerings that appeal to you. Then, showcase those amenities and provide guests with curated local recommendations.

If possible, add local products from businesses located near your rental properties. For instance, you could give guests a complimentary bottle of wine from the local winery or encourage them to purchase fresh produce from the community farmer’s market. 

6. Personalized Stays

Personalized vacation experiences can make your properties stand out. You could book local experiences, stock the fridge with a few basics before guests arrive, or arrange transportation to create a luxury feel. 

Adding a few personalization options to the booking page of your short-term rental property management platform can really help. Allow guests to add amenities or services to their stay (for an upcharge, of course), and use this opportunity to make them feel at home. 

7. Short-Term Rental Coverage

Not all vacation rental trends are about making your space stand out. Some of them are about protecting your investments from liability and unexpected accidents. Short-term rental coverage can provide protection against injuries, lawsuits, and property damage.

Many rental platforms include liability coverage as part of the service agreement. However, having your own policy is always a good idea. You can use your short-term rental coverage to further protect yourself from claims against your business. If a guest gets hurt or damages your rental, your policy can kick in and save the day.

You should also keep in mind that you’ll be able to customize the policy to align with your unique needs. For instance, you can add lost rental income protection to compensate you in case your property becomes uninhabitable. The extra protection will minimize any cash flow disruptions while you make necessary repairs. 

8. Third-Party Background Checks

One of the most important vacation rental trends involves the use of third-party background check solutions. Guest screening tools let you rest assured in the knowledge that all renters have been thoroughly screened. You decide who stays in your properties without worrying about bad guests or unfair reviews.

Many short-term rental platforms offer preliminary guest verification services. Third-party guest screening solutions take this check a step further to ensure you know who is renting your properties. 

You’ll receive a risk report and can make informed decisions when approving or denying requests. The best solutions even include notification features so you can cancel reservations while protecting yourself from legal repercussions. 

9. Outdoor Entertainment Areas

Outdoor entertainment areas like fire pits, barbecue stations, and al fresco dining spaces are highly sought-after by vacationers looking to relax and have a good time. You can’t go wrong with classic amenities like pools and hot tubs, either.

Make sure that you create outdoor spaces that fit the theme of your properties. If you have a beachfront getaway in your portfolio, consider an outdoor area that gives beachy vibes and helps guests relax. If you are planning an entertainment area for a wooded retreat, focus on amenities that will blend in with the natural landscape. 

10. Contactless Check-In and Smart Home Features

If you already offer contactless check-in, you may think you have this area covered. While that may be true, there are ways to make the experience even better for your guests.

Smart home amenities like electronic locks allow your guests to check in without hassling with a lockbox or keeping track of a key. They can simply enter the provided code, access the property, and enjoy their stay. When it’s time to welcome new guests, simply update the access code to ensure that past renters cannot enter the property. 

Smart home technologies like electronic locks have tremendous safety and convenience benefits. You don’t have to worry about guests losing keys or making copies so they can break into the rental property later on. 

5 Vacation Rental Innovations That Are Changing the Game

Are you hoping to keep up with major changes in the industry? If so, check out these five innovations that could transform the way you interact with guests and manage your portfolios. 

1. Artificial Intelligence

One of the biggest innovations shaping the vacation rental industry is the increased use of AI and automation. You can use these technologies to streamline your operations and reduce costs. 

There are many great ways to integrate AI into your business model. You can use AI-powered chatbots and virtual assistance to handle guest inquiries, bookings, and support. 

Artificial intelligence facilitates 24/7 availability and can manage multiple languages. You can use AI chatbots to cater to international travelers and communicate with them in their preferred language.

AI tools are also capable of automating the check-in and check-out processes. Combining AI and automation technologies with smart locks and keyless entry systems can reduce the need for in-person interactions and allow you to manage multiple properties more efficiently. 

2. Sustainability and Eco-Friendly Practices

Sustainability is more than just a buzzword. An increasingly large percentage of the population is eco-conscious. Individuals who care about the environment are interested in supporting short-term rental businesses that show respect for our natural world.

You can invest in innovative technologies like smart thermostats and solar panels to attract eco-conscious guests. These solutions can also provide long-term value by potentially reducing your ongoing maintenance and upkeep costs. 

3. Data Analytics

Big companies have been using data analytics tools for years. These technologies are now readily accessible to small business owners, including short-term rental property managers. You can use analytics tools to better understand guest preferences, occupancy trends, and other key elements of your business.

Predictive analytics technologies also provide insights into what vacationers want. You can use these tools to cater your marketing efforts and property offerings to align with regional preferences. 

Analytics tools facilitate dynamic pricing as well, enabling you to adjust rates based on seasonality and demand. With these solutions, you have the opportunity to capitalize on busy seasons and maximize long-term profitability. 

4. Focus on Health and Safety Amenities

Health and safety amenities remain a top concern for many travelers. Touch-free faucets and alarm systems to prevent young children from accessing dangerous areas (e.g., pools and waterways) can make your properties more appealing to family-oriented guests. 

It’s also important to invest in comprehensive cleaning protocols and be transparent about what you do to keep guests safe. Share information about your between-stay sanitation practices and ensure that your properties include plenty of soap, hand sanitizer, and other cleaning supplies. 

5. Enhanced Marketing

Social media remains one of the best marketing tools for short-term rental property managers. You can use platforms like Instagram and Facebook to run targeted ads that showcase the properties in your portfolio. The targeting capabilities of these platforms make it easy to advertise to niche audiences and reach prospective renters.

It’s also important to build an organic presence on social media. Posting high-quality photos and video tours can help attract guests. You can also share guest reviews and testimonials to showcase how you go above and beyond for those who stay with you.  

Leverage These Vacation Rental Trends to Promote Strong Cash Flow

You can’t hop on every bandwagon that catches your eye. However, you also can’t afford to ignore potentially game-changing vacation rental trends, either. So how do you know which vacation rental trends are worth watching and which ones should just be ignored? 

We recommend prioritizing trends and innovation with staying power while always considering your portfolio’s unique needs. Technologies like artificial intelligence and services like guest background checks aren’t going anywhere. These investments will add value to your rental property strategy for the foreseeable future and are worth incorporating into your management process. 

Other vacation rental trends need to be weathered. For instance, the meager RevPAR projections mean you must minimize expenses and work to differentiate your properties from other options out there.

The bottom line is that you need to prioritize guest satisfaction and seamless booking experiences if you want to thrive in 2024 and beyond.