Short-term rental operators are increasingly adopting artificial intelligence (AI) to enhance efficiency and growth amidst rising competition, according to Hostaway's 2026 Short-Term Rental Report. The report, which surveyed over 300 operators across 46 countries, found that 61% of respondents utilised AI tools in 2025, with adoption reaching 79% among managers overseeing more than 50 units.
Larger operators are experiencing tangible benefits from AI, with nearly 30% saving over five hours weekly and more than half saving hundreds of dollars monthly. European operators lead in AI adoption at 68%, compared to 57% in the US and 63% globally.
Despite the advantages, direct bookings remain a largely untapped opportunity. Although 70% of operators have a direct booking website, nearly two-thirds generate less than 25% of bookings through these channels, and 18% receive none. Airbnb continues to dominate, with almost 80% of managers sourcing at least half of their bookings through the platform.
Marketing efforts are uneven, with 43% focusing on SEO and 36% using organic social media. However, fewer than one-third prioritise return guests, loyalty programmes, or email marketing, which could boost direct bookings.
Hostaway CEO Marcus Rader emphasised the importance of AI, stating, "Competition is intense across most short-term rental markets, and our latest report shows that those pulling ahead are the operators embracing AI and technology to work smarter and boost their revenue without extra costs."
The full report is available on Hostaway's website, offering further insights into the evolving landscape of short-term rentals.
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