The way people book short term rental stays is changing and keeping up means understanding these shifts and adjusting your approach. In a recent webinar with Key Data, we explored what 2024 taught us and how property owners can use these insights to make smarter decisions in 2025.
Rethinking Seasonal Demand
Peak summer bookings are currently tracking similarly to last year, but August is showing signs of slowing down. Relying too heavily on the summer peak comes with risks, especially when demand is unpredictable. Encouraging bookings throughout the year creates a more stable revenue stream and reduces dependence on a short, high-stakes season.
We recently spoke with tourism marketing professional Fiona Drane about strategies to boost winter bookings. You can read her insights here.
Finding the Right Balance Between Pricing & Revenue
Revenue per available rental (RevPAR) has increased year over year, primarily due to higher prices rather than an increase in bookings. This metric reflects the income generated per property that is available for rent, regardless of whether it is occupied.
Last summer, many property owners raised their rates even as occupancy softened. For the most part, this approach wasn’t successful until later in the year. While revenue remained steady during the summer months, it flattened as the year progressed. The key takeaway? Holding firm on rates early on, rather than relying on last-minute discounts, can help maintain a steadier income.
A Shift Towards Last-Minute Bookings
Guests are now booking later and staying for fewer nights. The average stay has dropped from 4.8 days in 2022 to 4.3 days in 2024, meaning property owners need more bookings to maintain the same occupancy levels.
The average booking window (time between booking and arrival) shrank to 85 days in 2024 (10 days shorter than the year before) making it harder to predict demand.
Key insights to keep in mind:
- 40% of bookings happen within 14 days of arrival, but they only account for 25% of total revenue.
- Bookings made 6+ months in advance make up just 10% of reservations but generate 20% of revenue.
Guests who book early tend to stay longer and spend more, so encouraging advance bookings could help you maximise income.
How Booking Channels Affect Your Revenue
Where guests book has a big impact on pricing, booking windows, and stay length. Different platforms attract different types of travellers:
Airbnb & Booking.com: These platforms tend to bring in lower nightly rates and shorter stays, with booking windows of 35–44 days.
Vrbo & Direct Bookings: Vrbo tends to generate higher nightly rates than Airbnb and Booking.com, while direct bookings generally offer the best rates and longest stays.
A well-balanced mix of platforms is the most effective approach. Refining your listings with high-quality photos, competitive pricing, and clear cancellation policies can help maximise performance across all channels.
Using the Key Data Dashboard for Competitive Insights
SuperControl users get free access to the Key Data Dashboard, a tool that helps track key performance metrics and make informed pricing decisions.
With the dashboard, you can:
- Analyse key metrics for pricing and occupancy
- Compare performance against the local market
- Make data-driven decisions to stay competitive
If you haven’t activated your Key Data account yet, now’s the perfect time. Click here to get started.
Key Takeaways for 2025
- Encourage early bookings: Offer incentives for guests who book well in advance, whether that’s a discount, added perks, or flexible cancellation policies. These guests tend to stay longer and spend more.
- Make the most of shoulder seasons: If summer demand is uncertain, focus on marketing autumn and spring stays to spread revenue more evenly.
- Adjust your pricing strategy: Instead of last-minute discounts, adjust pricing gradually based on demand. A well-timed price tweak can make all the difference.
- Adapt to shorter stays: If guests are staying fewer nights, look for ways to boost revenue—gap night pricing, early check-in/late check-out fees, or packaged extras.
- Diversify your booking channels: A mix of Airbnb, Vrbo, direct bookings, and other platforms helps attract a variety of guests and keeps revenue steady.
- Understand your specific market: The national picture is useful, but local trends matter most. For example, Cornwall, Devon, the Lake District, and the Dales are all experiencing different pressures. Explore the data for your area to shape your approach using Key Data.
The market is changing, but there are plenty of opportunities for those who adapt. Understanding these trends and making strategic adjustments can help you stay ahead and set up 2025 for success. Start gathering insights for your property here.