The vacation rental industry is expected to continue to grow in 2025, with the following trends and projections:

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• Revenue

  The global vacation rental market revenue is expected to reach $102.90 billion in 2025. 

• Demand

  Demand growth is expected to improve or remain steady in most locations, with small cities, rural areas, and mid-size cities leading the way. 

• Travelers

  Travelers are expected to take longer, more extravagant vacations in 2025, with the average stay increasing to 22 days. 

• Destinations

  Popular destinations for 2025 include Hawaii, Arizona, Michigan, and Maine. 

• Millennials

  Millennials are expected to drive market growth. 

• Competition

  Property managers need to stay up-to-date on the latest trends to maintain a competitive edge. 

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Here are some tips for vacation rental property owners:

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One very concerning trend in the industry is the fact that many of the large software providers are owned by the same parent company. Keeping your guests' information confidential should be your number one priority. It is imperative that you read through the company's privacy policy thoroughly. Sharing of information will likely be listed in two or more places.  Look for the information the company collects and tell them you want to "Opt out of the sale, sharing and use of your data and the data of your clients (Guests) including affiliated companies. Make sure you have this in writing. If they bulk at this, it is our belief that you should move on. ​

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• Pricing: Tier your pricing based on the relative popularity of different weeks. 

• Repeat guests: Consider offering repeat guests a discount to encourage them to book again.

• Amenities: If you add amenities or make upgrades, you can ask repeat guests to pay full price.

• Rates: Lower your rates if you aren't getting the bookings you expected.