I recently presented data on how short-term rentals (STR) fit into the market to the HSMAI Revenue Optimization Advisory Board. We discussed how the role of STRs has changed post pandemic.

Data

More of the STR inventory is becoming professionalized, so the experience for consumers is closer to that of a hotel. Some hotel brands are also dabbling in the space. Below are some of the key points I shared.

— Source: Lighthouse (formerly OTA Insight)— Source: Lighthouse (formerly OTA Insight)
— Source: Lighthouse (formerly OTA Insight)

Professionally managed STR properties are now 71% of hosts.

— Source: Lighthouse (formerly OTA Insight)— Source: Lighthouse (formerly OTA Insight)
— Source: Lighthouse (formerly OTA Insight)

In some locations the inventory of STRs is at or above the inventory of hotels.

— Source: Lighthouse (formerly OTA Insight)— Source: Lighthouse (formerly OTA Insight)
— Source: Lighthouse (formerly OTA Insight)

The professional operators have seen a larger share of the revenue growth for STRs.

— Source: Lighthouse (formerly OTA Insight)— Source: Lighthouse (formerly OTA Insight)
— Source: Lighthouse (formerly OTA Insight)

Key Takeaways from our Discussion

  • Many times, the markets are different between those seeking hotels and those seeking STRs. This can be generational preferences but is mostly situational. Business and short-term travelers generally prefer hotels, while longer term and larger groups often prefer STRs.
  • STR cleaning and other hidden fees are making hotels more competitive. Legislation that requires hotels to have transparent pricing doesn’t apply to STRs, making the STRs more of a risk for consumers.
  • Many consumers appreciate the standards in cleaning, service, fire, and other safety measures that hotels offer over the largely unregulated STR space.

About Lighthouse

Lighthouse (formerly OTA Insight) is the leading commercial platform for the travel & hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways.

Trusted by over 65,000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners—their success is our success.

www.mylighthouse.com