This month, three major platforms (Hospitable, Hostaway, and Lodgify) published insights from their users about the state of the STR market heading into 2026.
Combined, the three reports gathered survey results from 1,150 hosts and analyzed 1.6 million bookings.
Each report offers strong insights on its own, but taken together, we get a unique look into operator priorities, pain points, and the real state of the STR market.
Here are The Top 7 Takeaways:
1. Marketing Is Now the #1 Challenge
All three reports agree that marketing, competition, and getting bookings have replaced operational issues (like maintenance) as the #1 challenge for hosts.
- Hostaway: Marketing as the #1 investment area jumped from 4.6% last year to 33.4% this year
- Hospitable: 47.1% cite increased competition as the factor having the greatest impact on their business, closely followed by reduced demand/shorter stays (44.6%).
- Lodgify: 66% cite driving direct bookings/marketing as the top challenge
2. Growth Appetite is Slowing (But Not Disappearing)
Every report shows owners, hosts, and property managers are becoming much more selective about the new properties they take on vs. “scaling for its own sake.”
- Hospitable: 40% of hosts don’t plan to expand or are unsure
- Hostaway: Only 45% plan to add inventory (down from 63.5%); 36.5% won’t acquire new owners
- Lodgify: Only 19% list purchasing properties as a top goal
Lodgify had an interesting stat: ADR growth (+1.6%) trailed inflation (+2.7%) in 2025, meaning hosts effectively saw a dip in real take-home profit and are trying to avoid a “More Work, Less Profit” dynamic.
3. The Direct Booking Paradox
All three reports agree 60%+ of hosts struggle with direct bookings, yet all three ALSO agree direct booking economics are superior (longer stays, longer booking windows, higher ADR).
It’s a clear knowledge vs. execution gap. Everyone knows they should do it. Few know how.
- Hostaway: 62.3% generate less than 25% of bookings directly
- Hospitable: 48% generate only 1-10% directly; 38% get zero
- Lodgify: 31.6% of bookings come directly (Note: Lodgify markets heavily as a website builder for direct bookings, so their data naturally skews toward hosts more successful in that channel)
4. Hosts Are Clustering Where Vacation Rentals Are Clearly Legal
Despite constant headlines about “STR bans,” the majority of operators in all three surveys report no material regulatory impact.
All three reports show over 50% of respondents (Hostaway 56%, Hospitable 50.5%, Lodgify 76%) seeing no material changes or impact.
This likely reflects a survivorship bias. Active hosts are, by definition, operating where STRs are permitted. Those in banned markets wouldn’t participate in these surveys.
But I think this ties into a bigger point: hosts are clustering in areas that explicitly allow STRs, which explains why most hosts feel competition increasing: they’re all competing in the same territories.
5. AI’s Dominant Use Case is Guest Communication
While adoption rates vary, all reports agree “guest communication” is the primary and most trusted application of AI in the industry.
- Hostaway: 60% use for comms
- Hospitable: 80.9% use for comms
- Lodgify: 58% use for messaging
6. Airbnb Still Dominates Bookings
Airbnb remains the primary source of bookings across the board, even as hosts strive for diversification.
- Hospitable: 93.3% say Airbnb delivered best results in 2025
- Lodgify: 47.2% of bookings from Airbnb
- Hostaway: Airbnb most common channel (third year running)
7. Technology is Table Stakes, Not a Differentiator
More than 90% of hosts use a property management system, and over 70% use dynamic pricing tools. The competitive advantage has shifted from having the tools to mastering them.
The Story the Data Tells
Here’s what’s clear from the data: many hosts aren’t fully utilizing strategies proven to work (direct booking, AI optimization, strategic marketing).
I’m predicting the hosts who thrive in 2026 won’t be the ones discovering secret new strategies. They’ll be the ones who execute the obvious strategies everyone else is ignoring.
