2026 Short-Term Rental Report: 61% of Operators Are Using AI and the Gap Is Growing

Want the full picture?

This post only scratches the surface. The Hostaway 2026 Short-Term Rental Report dives deep into how short-term rental operators are using AI, where the biggest revenue opportunities still sit, and what’s separating the operators pulling ahead from those just keeping up.

Let’s break down the takeaways shaping 2026.

61% of STR Operators Used AI in 2025

A few years ago, AI in short-term rentals felt optional. Experimental. Maybe even a little intimidating.

That era is officially over.

Our latest data shows AI adoption among short-term rental operators jumped to over 60% in 2025, up year over year, and climbed even higher among operators managing larger properties.

AI has moved from experiment to foundation.

Operators using AI are reporting real gains, including time saved and reduced costs.

Guest communication is where AI is having the most immediate impact.

Faster responses.

More consistent messaging.

Fewer late-night inbox marathons.

For many operators, that alone adds up to hours reclaimed every single week.

“Adopting artificial intelligence (AI) tools has become the norm in 2025. No longer is AI an optional add-on; it has been, and will increasingly be, embedded in your everyday workflows. This is true for many companies, Hostaway chief among them.” - Marcus Rader, CEO & Co-Founder at Hostaway

74% Say Markets Are More Competitive as AI Adoption Rises

Nearly three-quarters of operators now say their markets are more competitive than last year. That pressure isn’t coming from regulation as much as it’s coming from saturation.

There are more listings. And with more listings comes more guests with higher expectations.

In that environment, efficiency wins.

The report shows that larger operators are adopting AI faster and achieving greater returns. They’re using it to improve pricing decisions, support marketing efforts, and surface data that would otherwise get buried in dashboards.

That doesn’t mean smaller operators are locked out. It means the gap is still closable, but not forever.

AI is quickly becoming one of those tools that separates “growing” from “stuck.”

Direct Bookings: Everyone Talks About Them. Few Win Them.

Now for the part that might sting a little.

Yes, most operators have a direct booking website.

No, most operators are not getting meaningful volume from it.

The report found that nearly two-thirds of operators generate less than 25% of bookings through direct channels, and a notable portion receive none at all.

Meanwhile, OTAs continue to dominate because they reliably deliver demand.

This is where AI and direct bookings start to intersect in interesting ways.

As travelers increasingly rely on AI-powered discovery (think conversational search, hyper-local recommendations, and intent-driven results), brand visibility matters more than ever. It’s about having a recognizable, searchable, trustworthy presence.

SEO and organic social media emerged as the top strategies operators use to drive direct bookings. But the follow-through, like loyalty programs, email marketing, and return-guest strategies, is still underutilized.

Translation? The first booking might come from an OTA, but the second one doesn’t have to.

AI Is Changing How Guests Find You

One of the most interesting undercurrents in the report is how operators are thinking about visibility in an AI-driven world.

It’s no longer just about ranking on page one. It’s about being recommended.

As large language models get better at surfacing niche, local, and experience-based results, operators with strong brands and clear positioning stand to benefit.

That’s part of why marketing investment jumped sharply this year; operators are starting to realize that brand is becoming a performance channel.

AI is optimizing the back office and reshaping the front door.

So What’s the Real Opportunity Heading Into 2026?

It’s not “use AI.” Most operators already are.

The real opportunity is using AI intentionally to reclaim time, sharpen marketing, and finally make direct bookings work harder.

The operators pulling ahead aren’t doing everything. They’re doing the right few things well:

• Automating where it counts

• Investing in owned channels

• Building brands that show up where guests are searching

And they’re doing it before the rest of the market catches up.

Want the Full Breakdown?

These highlights only tell part of the story.

Our Hostaway 2026 Short-Term Rental Report goes deeper into:

• Where AI is delivering the biggest ROI

• How time and cost savings scale with portfolio size

• Why direct bookings remain the industry’s most underused growth lever

• What top operators are prioritizing heading into 2026

Download the full report below and see how your strategy stacks up.