Occupancy
Occupancy in the United States has decreased since the peak in 2021, but is still above 2019. Prior to the pandemic, Occupancy rates were 40%. Since the surge of short-term stays in 2021, we’ve seen occupancy rates consistently fall each year. While 2024’s Occupancy rate was down 1% from 2023, it is still 2% higher than prior to Covid.
With the new normal of occupancy rates in the industry, diversifying the platforms where you list your property is essential for future-proofing your business. Relying on one platform can be risky because fluctuating demand might challenge the stability of your income. You may want to list your property on multiple online travel platforms to maximize exposure and take advantage of each site's unique strengths.
In order to exceed the market occupancy rates, it is essential to partner with a global platform such as Booking.com, which can deliver a high volume of bookings year-round. The platform has rapidly growing demand for vacation rentals: 1 in every 3 room nights booked was in a holiday rental in 2024. With its strong global presence and large traveler base, 45% of the partners get their first booking within the first week of listing on the platform.
ADR
Average Daily Rates peaked in 2022, reset in 2023, and stabilized at $308 in 2024. This small adjustment in 2024 indicates the potential for a “new normal” to stick. When adjusted for inflation, 2024 rates are the same as 2019. Pacing for 2025 shows only small changes, with a 2% increase and 4% decrease in Q1 and Q2 respectively. However, these numbers may continue to change and stabilize as we move closer.
RevPAR
RevPar was down to an average of $128 in 2024, compared to $133 in 2023. While these numbers are significantly lower than 2021 and 2022, they are considerably higher than 2019 and 2020. Looking ahead, 2025 is starting with slightly favorable pacing in Q1 and Q2. This could provide an opportunity for you to start the year with early wins.
International Air Travel
Inbound travel to the United States from other countries is slowly approaching pre-pandemic levels. International arrivals still lag behind U.S. departures at 8% lower than 2019. However, this is still an improvement over much of what we have seen in the prior Covid years.
Working with Booking.com offers numerous advantages for U.S. vacation rentals looking to capture international demand. Booking.com is one of the most downloaded travel apps worldwide* and has a strong brand reputation and a large customer base globally. By the end of 2023, 48% of nights booked by travelers on the platform were for international stays. If your goal is to reach international customers, partnering with their go-to platform for travel bookings will be a very effective strategy.
*in 2024, according to Statista
The return of international passengers benefits markets that rely on international tourism. When it comes to RevPAR, markets like Boston, Orlando, Honolulu, and Washington D.C. all saw improvements in 2024. However, as a whole, U.S. RevPAR was down year-over-year.
Challenges To Look Out For In 2025
Length of Stay
Early 2025 trends indicate that stay lengths may continue to shorten after a stable year in 2024. Average Length of Stay is pacing down 7% for Q1 of 2025 and 4% for Q2. In 2024, the average stay was 4.5 days, which was consistent with 2023, but down from 4.6 days in 2022 and 4.8 days in 2021.
Standing Out From The Competition
According to a nationwide survey of property managers by Key Data, 61% of property managers cited increased market competition as a top challenge that could prevent them from achieving your 2025 goals.
Given the demand and competitive pressures, it’s crucial to be strategic about OTAs and partner with those that deliver incremental traveler demand you can’t achieve through other channels. If you only work with platforms that specialize in vacation rentals, you might be missing out on a significant demand opportunity.
Listing on a platform with diverse property types, such as Booking.com, can help you reach more travelers. The platform has welcomed over 1.8 billion holiday rental guests since 2010, and many guests prefer exploring a range of accommodation options before making their bookings. 1/3 of travelers who start their search without a preference for a property type end up booking a holiday rental. You’re well positioned to tap into this growing demand.
Owner Retention and Acquisition
74% of property managers plan to add new owners or properties to their inventory in 2025. Additionally, 66% cited owner retention as a strategy they will employ to achieve their goals in 2024. Due to the increased competition, it’s an incredibly important time for property managers to revisit their owner communication strategy and ensure that they are not only keeping their existing owners, but attracting new ones.
To make a compelling proposition to independent property owners, property managers need to address owners’ key need: control of their property. For example, agreeing to accept guests only after they are screened through a booking request and a quick message about their trip intent may be essential. Booking.com has expanded its product features to allow properties to use the request to book model and pre-booking messaging, enabling all types of property owners to host worry-free.
Additionally, smart tools help property managers assess the strength of each listing’s setup and enable them to take laser-focused actions to optimize their portfolio for great performance. For example, Booking.com provides a list of preset recommendations that property managers can automatically apply to their newly onboarded properties. Later, property managers can also skim through their listings portfolio at a glance and see which listings are missing key foundations, such as opting into Payments by Booking.com.
Finally, as property managers grow their portfolio, their time spent on operational tasks may also grow. This is why it’s important for them to use smart tools for automation - for example, group invoicing and reconciliation - all of which have been at the center of attention for Booking.com’s upgraded payment features in 2024.
Starting Off 2025 Strong
With a competitive year ahead, property managers know they need to be on top of their game in order to meet their goals in 2025. Keep a close eye on your data and be prepared to adjust your strategy as the data develops.
Consider diversifying your distribution strategy to capture more attention with Booking.com, which has grown from 1% of guest checkins in the U.S. to 9% of guest checkins since 2021.
The growing interest that Booking.com customers show towards vacation rentals is also seen in the appreciation they consistently show over the years, such as Booking.com’s Traveler Review Awards.
Based on over 360 million verified customer reviews, the 2025 edition of these awards recognized a record-breaking 1.71 million partners from 212 countries and territories. Apartments was the most-awarded property type for the eighth year in a row - with over 800k winning a Traveller Review Award. Overall, awards for vacation rentals and other unique properties increased by 17%, reflecting travelers' continued enthusiasm for a variety of stays that offer distinctive hospitality and memorable experiences.
The global travel brand continues to generate increasing customer demand in both the U.S. and Europe, with a focus on vacation rentals, through marketing initiatives such as its Booking.yeah ad, which aired during the Big Game.
Learn more about the benefits of hosting with Booking.com here.