The short-term rental (STR) industry is facing heightened competition, according to Hospitable's newly released 2026 Evolving STR Landscape report. Nearly 47.1% of hosts and property managers reported that increased competition affected their business in 2025. This comes amidst rising operational costs, reduced guest demand, and economic uncertainty, creating a challenging environment for operators.
Despite these pressures, confidence in the STR market remains robust, with nearly 60% of hosts and property managers planning to expand their portfolios in 2026. However, this growth is expected to be more selective, as almost two in five operators are either hesitant or undecided about expansion, indicating a shift towards more strategic growth.
Technology is playing a crucial role in navigating these challenges. An overwhelming 97.7% of respondents consider technology essential for maintaining competitiveness. Automation and artificial intelligence (AI) have become integral to operations, with over 80% of hosts using AI for guest messaging and more than half relying on it for managing guest interactions and reviews. These technologies are saving hosts significant time, with nearly 60% reporting savings of at least two hours per week.
Pierre-Camille Hamana, CEO and Founder of Hospitable, stated, “We’re seeing a market where running a short-term rental well matters more than ever. Competition has increased, costs are tighter, and operators are having to be more deliberate about how they grow and how they operate.”
Looking ahead, operators view automation and AI as pivotal forces shaping the industry in 2026, with nearly a quarter identifying smarter automation as the top trend. This underscores the belief that technology will be key in navigating the increasingly competitive landscape.
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