The vacation rental industry has officially entered uncharted territory. According to new research from Beyond's inaugural State of Revenue Management report, nearly half of international hosts and property managers say optimizing pricing is their top priority for 2025, and for good reason.
"The idea of a 'historically normal' year is out the window," the report states bluntly. If you're still using last year's data to set this year's rates, you're essentially "using last week's weather report to plan your weekend."
Here are 5 key takeaways for STR operators to optimize revenue in 2025:
1. Guests are Booking Way Later
Despite the negative headlines, travel demand hasn’t disappeared. It's just evolving. Guests are still booking, but they’re waiting longer and watching prices more closely. Booking windows are shrinking across major markets, with U.S. stays being booked 11% closer to check-in year-over-year. France bookings are leading the drop at 24% closer YoY.
2. Predictive Data is Crucial
While past performance can offer helpful context, it can't capture today’s dynamic market conditions. For example: the report shows that 35% of European searches and 42% of U.S. searches are for stays within the next 40 days. That’s why guest search data is becoming a core layer in pricing strategy, offering visibility into demand before bookings even happen.
3. Trusting Source Data Over Scraped Data
Most pricing tools rely on scraped data from OTA listings. But that info is often outdated or incomplete. The report strongly recommends using actual reservation data: confirmed rates, occupancy, and lead times to make the best pricing decisions.
4. Strategic Adoption of AI and Automation
AI and automation tools are becoming essential, and operators who embrace these tools are seeing immediate efficiency gains and better guest satisfaction. However, Beyond advises careful vetting to ensure tools align with specific business needs rather than chasing hype.
5. Navigating Regulatory Complexity
STR rules are tightening across the globe. From New York City’s restrictive Local Law 18 to the EU’s data-sharing mandates, operators must stay informed and involved.
The bottom line? The era of "set it and forget it" pricing is over. As the report concludes: "The market will shift. The question is: will you be ready?"
You can read the full report here
