Annual Insights: New Developments, Challenges and Trends in Short-Term Rentals

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Hello, and welcome to Snowball Rentals’ WeChat account, where you can read about recent developments in the US short-term rental market.

This Tuesday, November 19, short-term rental management platform Hostfully released its eighth annual Hospitality Industry Report.

Based on feedback from 347 short-term rental operators, the report summarizes the latest industry trends, challenges and key directions for future development, covering market dynamics, growth strategies and the impact of technology.

Hosts, let us take a look together.

1. Market trends: More booking channels and new marketing directions

— A more diverse mix of booking sources

Airbnb, direct bookings and Vrbo still dominate short-term rental reservations. Notably, Google’s share of bookings has reached 5%, showing its potential to grow in this market. Although many operators are interested in Google Travel’s features, integrating and using them is also considered relatively complicated.

— The rise of niche platforms

The report shows that as many as 29 other booking channels contributed 4% of reservations, reflecting the increasing importance of niche platforms as a supplement to the market. This trend is particularly apparent when supported by property management software.

— Adjustments to marketing strategies

Growth in direct traffic depends on organic search: 63% of operators use SEO strategies, while social media brings in 52% of traffic.

By comparison, paid advertising is becoming less attractive because its return on investment is lower than that of other channels.

— Intensifying competition

39% of operators report a noticeable increase in competitive pressure, suggesting that the industry is gradually moving beyond the post-pandemic demand boom and returning to a more measured phase of development.

2. Growth strategies: Expanding property portfolios and improving occupancy

— Adding properties is the top priority

Increasing the number of properties remains operators’ main growth strategy, followed by stronger marketing. However, smaller operators with 2–4 listings are experiencing a marked slowdown in expansion.

— Improving occupancy is a greater priority

More than 85% of operators view increasing occupancy as a core objective, while the importance of increasing revenue through additional services has declined compared with previous years.

3. Technology challenges and progress: Automation and efficient management

— Technology remains a major difficulty

Technology is the leading challenge in short-term rental operations, with 45% of operators identifying it as a pain point. Guest communication, at 20%, and automated management, also at 20%, are the most common specific issues.

— The challenge of managing multiple tasks

Operators struggle with a range of complex tasks, including calendar management, cleaning schedules, marketing and accounting, all of which place greater demands on their time and efficiency.

— Advances in automation

For operators managing more than 10 properties, automation tools are particularly effective in improving efficiency and simplifying processes.

4. Service and experience: The keys behind five-star reviews

— Cleanliness comes first

Cleanliness is the most important factor in earning five-star reviews, and all respondents consider it essential. Smaller operators tend to enhance the guest experience with distinctive local recommendations and personalized welcome packages.

— Smart check-in

52% of operators have adopted smart locks. Particularly for larger portfolios, this technology has become a standard way to improve efficiency and security.

— Digital travel guides

Digital guidebooks are the most effective tool for sharing local recommendations, and 57% of operators have completely abandoned traditional printed guides.

— The value of additional services

Early check-in and late checkout remain the most popular additional services, providing 25% of additional revenue sources.

5. AI: Accelerating industry change

— Widespread adoption of AI

43% of operators already use AI tools within their short-term rental management systems, while 73% use external AI such as ChatGPT. These technologies have been significantly helpful in simplifying communication and workflows.

— The association between AI and revenue growth

Operators using AI tools are more likely to see revenue growth and a reduced risk of revenue fluctuations since 2023. Although this is currently only a correlation, it still shows that the technology’s potential should not be overlooked.

— AI’s future impact

AI is expected to have its greatest impact on guest communication, at 48%, and marketing, at 28%, opening further possibilities for the industry’s future development.

6. Outlook and recommended actions

Hostfully’s annual report paints a picture of a short-term rental industry full of both challenges and opportunities.

From technology upgrades and market competition to guest service and operational efficiency, future competitiveness will depend increasingly on how effectively operators integrate tools and resources.

Upgrade technology: Introduce smart management systems to improve operating efficiency.

Optimize marketing: Diversify promotional channels, with an emphasis on SEO and improving social media content.

Focus on the guest experience: Make cleanliness the foundation and use local services and smart experiences to improve guest satisfaction.

In an increasingly competitive industry, actively embracing technological and market changes will be key to long-term development.

How do you think AI will affect short-term rentals? Send us your views by private message and let us explore future trends together!

~ Black Friday promotion: Exclusively for our followers ~

To our new and longtime followers: Are you still deciding when to enter short- and mid-term rentals and earn your first additional income?

As the saying goes, know yourself and your counterpart and you will prevail. Before making a formal decision, we suggest gaining a solid understanding of the short- and mid-term rental income your property might earn.

With Black Friday approaching, Snowball Rentals is launching an exclusive promotion for our followers: Drawing on years of management experience in Greater Seattle’s short- and mid-term rental market, we will assess your potential short- and mid-term rental income for free.

You can add us on WeChat or scan the QR code above, or send us a private message through our official account.

If you:

Hope to increase rental income through short-term rentals;

Cannot spare a great deal of time to handle the small details;

Occasionally need to use the home yourself, making it unsuitable to empty out the furniture for a long-term rental;

Then:

Snowball Rentals’ management team is your best choice.

From pre-launch vacation-rental styling, big-data analysis and online marketing to tenant screening, dynamic pricing, customer service and sales, cleaning and repairs, Snowball Rentals provides everything as one complete service for your home.

This Week’s Booking Results

Through long-standing relationships with insurers, assignment companies and technology companies, Snowball Rentals rents homes for medium- and long-term durations at short-term rates, then gives owners a rebate of 5% in management fees to maximize their income.

As the weather gets cooler, Seattle’s short-term rental low season is approaching again.

Short-term rentals in peak season and mid-term rentals in low season: this is the new strategy we have repeatedly emphasized and tried this year! Some recent large bookings have been like a ray of sunshine. Homeowners, let us support one another and face the approaching low season with confidence.

The property below can be found on Redfin. It is a duplex in Seattle.

On Zillow, the estimated long-term rent for one unit of this duplex is about $2,910. However, the owner told us that the actual previous rent was just $2,200 a month.

With the owner’s trust and support, we carefully furnished the home and immediately began operating it as a short-term rental. Fortunately, its good condition and location have brought a steady stream of short- and mid-term bookings.

As shown in the booking screenshot below, a guest recently booked this house through Airbnb from December 8 this year to April 6 next year, a total of 119 nights,

at an average monthly rent of approximately $4,220.

In summary, after Snowball Rentals began operating this property, the monthly rental income for one of its units increased from $2,200 to

$4,220—almost double.

Securing such a large booking in low season is no easy feat!

As noted above, this 119-night booking runs from December 8 this year to April 6 next year, spanning the entire short-term rental low season, September through March of the following year. We believe it can achieve further success when the peak season arrives.

For homeowners, combining short- and mid-term rentals in this way can earn more in peak season and help them get through low season smoothly. Even if the low-season rental figures look less dramatic, they still outperform long-term rentals and give homeowners a strong sense of financial security.

More importantly, the owner does not have to worry about maintenance or cleaning. When something needs to be discussed with guests, we also help with communication and oversight.

Here, we again thank the owner for placing trust in the Snowball Rentals team!

After nearly two years of Airbnb’s downturn, we at Snowball Rentals hope to help owners make steady progress in low season, navigate the challenges safely and lay a better foundation for next year’s peak season.

Once again, heartfelt thanks to our homeowners for their trust and support. Whether the market is strong or weak, Snowball Rentals will stand with you and look for ways to increase your income!

Some homeowners will surely ask the hard question: was a large booking like this just a stroke of luck? What if the home does not rent? A long-term rental is more stable—even earning less is better than earning nothing!

Our answer is: the outcome depends on what we do.

Vacation-Rental Styling

Competition on Airbnb is becoming increasingly intense. The days of piecing together secondhand furniture, taking phone photos and earning easy money on Airbnb are over. Airbnb hosts have moved toward professional operations.

Careful design and furnishing before launch, followed by professional short-term rental operations, will be the only choice for a rental that continues to generate high income.

Here is another of Snowball Rentals’ core services: vacation-rental styling!

After our careful furnishing, the detached home mentioned above looks like this:

When choosing a short-term rental on Airbnb, would this home’s appearance attract you?

If you would also like to make your home more attractive and earn more rent, please contact us at any time!

This Week’s Short Videos

We regularly update short videos every week.

The content you need is all here.

👇🏻 Homeowners are welcome to follow us 👇🏻

Snowball Rentals

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Snowball Rentals

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We also share practical vacation-rental styling plans and creative ideas to help you achieve more with less spending!

Keep rental income growing!

Xiao An’s Vacation-Rental Styling

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Referral Rewards

If you are already a Snowball Rentals homeowner, you receive a US$500 referral fee for each referral.

If you are not yet a Snowball Rentals homeowner, you receive a US$250 shopping voucher for each referral.

Snowball Rentals Management

1. Full service — We provide pre-launch rental design, furniture procurement, furnishing, professional photography, online marketing, copywriting, tenant service and sales, cleaning, supply purchasing and property repairs. You only need to be a hands-off owner; we handle the rest.

2. Multi-platform promotion — We promote the home on Airbnb, VRBO, HomeAway and other mainstream platforms for maximum exposure.

3. Dynamic pricing — Using big data, we adjust prices every day according to seasonal demand, holidays, last-minute vacancy offers, weekends and local activities, maximizing the owner’s income.

4. Income-improvement SOP — We follow 44 secrets for maximizing short-term rental income, optimizing each property’s online marketing, on-site operations and other aspects to work toward maximum income.

5. Flexible owner stays — Owners can flexibly choose when to stay themselves. This is especially suitable for owners with multiple residences around the world.

6. Terminate at any time — Management does not require an annual commitment. The owner can end the agreement with one month’s advance notice.

7. Corporate housing — In addition to nightly rentals, we work with insurers and assignment companies to provide executives with hotel-style managed accommodation for stays longer than 30 days.

8. Transparent fees — For rentals longer than 30 days, we charge 15% of accommodation revenue. For nightly rentals under 30 days, we charge 20% of accommodation revenue.

Author’s tip: Personal views, for reference only.