KeyData’s 2027 Vacation Rental Industry Outlook found that 55.5% of managers expect higher average nightly rates, up from 38% in the previous survey. The report includes responses from 392 U.S. property management professionals.
Managers are even more confident about revenue and occupancy. Nearly 77% expect revenue to grow, while 65% expect a larger share of their available nights to be booked.
That confidence comes despite growing pressure to attract guests, as nearly two-thirds expect more competition in 2027.
Rate Gains Expected to Be Modest
About 49% of managers expect modest rate growth, while 6% expect a significant increase. Another 34% expect rates to stay about the same.
Only 9% expect rates to fall, down from 18% last year.
The largest companies are the most confident about pricing, while managers with fewer than 30 rentals are more cautious and are also the most likely to expect more competition.
Still, more competition does not appear to rule out higher rates. Among respondents who expect competition to increase, nearly 60% also expect their nightly rates to rise.
Larger Companies Lead Revenue Confidence
Managers are more hopeful about total revenue than nightly rates. Six in ten expect modest revenue growth, 17% expect significant growth, and just 3% expect a decline.
Companies managing at least 500 rentals lead the way, with 90% expecting revenue growth. But the smallest companies are optimistic, too: 78% of managers with fewer than 30 rentals expect growth.
KeyData says the gap between revenue and rate expectations suggests managers don’t expect pricing alone to drive growth.
More Managers Plan to Rely on Booking Platforms
About a quarter of managers plan to rely more on online travel agencies, or OTAs, such as Airbnb, Vrbo and Booking.com in 2027. That’s up from 11% last year.
Roughly 18% plan to rely less on them, while just over half expect no major change.
The shift reaches across company sizes. In every size group, more than one in five managers plan to increase their reliance on booking platforms.
Earlier this year, KeyData’s Q2 report showed Airbnb accounting for half of all U.S. reservations, while direct bookings fell to 23%.
Guest Experience Tops Managers’ Plans
Improving the guest experience is the most common strategy managers have planned for 2027, followed closely by marketing and distribution. Interestingly, guest experience ranked third last year, behind marketing and pricing.
More managers also appear to be focused on improving their current businesses than expanding into new markets.
When it comes to keeping owners, the priorities remain familiar. Managers point first to financial results (77%) and communication (73%), followed by property care and guest satisfaction (60%).
Technology Use Tracks With Growth Expectations
Managers using a wider range of technology are more likely to expect revenue growth.
Among those using three or fewer of the 11 tool categories KeyData measured, about 64% expect revenue to rise. That climbs to about 86% among those using nine or more categories.
Regular market checks are also common. About three-quarters review market data at least weekly. Those who check once a week are more likely to expect revenue growth than those who check monthly or less often (87% vs. 64%).
AI use is widespread, too. Nearly nine in ten respondents use it for at least one task, most often guest messaging, social media content and insights into property performance. The smallest managers lead adoption. Hostaway’s October survey of 714 operators found a similar figure, with 88% using AI in some form.
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