
As the short-term rental (STR) market continues to evolve, one major trend is becoming clear: Booking.com is emerging as a powerhouse in the industry, reshaping the way property managers approach their distribution strategies. Recent data from Lighthouse highlights this significant shift – among others – and understanding these trends can help property owners and managers stay ahead of the curve. Here's a brief rundown of the key trends mentioned by Lighthouse:
Supply levels reached an all-time high in 2024
Demand remains strong for STRs
The number of rentals listed on more than one OTA dropped to 28.8%
Only 5.82% of rentals are listed on all three major OTAs: Airbnb, Booking.com, and Vrbo
Weekly ADR (average daily rates) performance in the global STR market in 2024 was higher than any previous year for all but 10 weeks of the year
Booking.com gains ground in the STR industry
While Airbnb remains a dominant force, Booking.com is quickly gaining traction. As of December 2024, 13.6% of worldwide short-term rentals are listed exclusively on Booking.com, up significantly from previous years. This growth signals increasing trust among property managers in the platform's ability to deliver bookings while maintaining competitive pricing.
In comparison, the number of properties listed solely on Airbnb has dropped to 45.95%, and those listed only on Vrbo sit at a modest 3.34%. The declining trend of properties listed across all three major platforms (Airbnb, Vrbo, and Booking.com) to just 5.82% shows that property managers are favouring specific OTAs rather than spreading their inventory across multiple platforms.
Booking.com's rise can be attributed to its strategic integration of short-term rentals into traditional hotel searches. In November 2024, Lighthouse data revealed that 26.61% of short-term rental listings in the EMEA region appeared in Booking.com hotel searches, compared to 14.61% in LATAM and 5.98% in APAC. This unique approach gives it an edge, especially in markets like Europe, where it already holds a strong foothold.
Average daily rates continue to rise
Another noteworthy trend is the continued rise in ADRs for short-term rentals. Throughout most of 2024, global ADR performance exceeded previous years. While the last weeks of the year saw a slight dip below 2023 levels, the overall trend remained strong, suggesting that travellers are willing to pay a premium for quality stays.
What these trends mean for 2025
With these insights in mind, here’s how short-term rental hosts can prepare for success in the year ahead:
Leverage Booking.com’s growing reach
As Booking.com integrates more STRs into its ecosystem, it’s a prime time to consider listing your property on the platform. Its global audience, robust hotel-like search features, and growing share of exclusive listings make it an increasingly attractive option for property managers.
Embrace selective distribution
Many hosts are moving away from listing on multiple OTAs and focusing on platforms that deliver consistent bookings and streamlined operations. While it’s important to diversify during low-demand periods, evaluating which OTA aligns best with your target audience is crucial for maximising revenue.
Anticipate supply and demand shifts
Markets such as North America and APAC are poised for growth in 2025, while Europe’s market saturation may lead to ADR pressure. Keep an eye on your region's performance and adjust your pricing strategy accordingly.
Adopt advanced technology
Distribution technology is becoming more accessible, allowing property managers to optimise visibility across multiple channels with ease. These tools are particularly useful for maintaining occupancy during off-peak seasons.
Think like a hotelier
The lines between hotels and short-term rentals are blurring. To remain competitive, consider strategies that appeal to diverse guest segments, such as offering longer stays, flexible pricing, and personalised experiences.
Why Booking.com is worth watching
Booking.com’s rapid growth in the STR market isn’t just a trend – it’s a testament to the platform’s ability to innovate and attract both hosts and travellers. By integrating short-term rentals into hotel searches, it’s effectively capturing a new segment of the market, making it a valuable partner for hosts looking to expand their reach.
As the STR landscape continues to shift, staying informed about trends like these can make all the difference. Whether you’re a seasoned property manager or just starting out, aligning your strategy with evolving industry dynamics will set you up for success in 2025 and beyond.
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