New industry research also reveals how technology is reshaping the market
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Nearly half of hosts and property managers say increased competition impacted business in 2025
Nearly half of hosts and property managers (47.1%), say increased competition in their local market impacted their business in 2025.
The finding comes from Hospitable’s newly released 2026 Evolving STR Landscape report and reflects a market where success is increasingly shaped by execution, efficiency, and differentiation.
Competition was not an isolated pressure. Rising operational costs affected 45.1% of hosts and managers, while 44.6% reported reduced guest demand or shorter stays.
A further 42.4% cited economic uncertainty. The close clustering of these figures suggests that many operators experienced several pressures at once, creating a far less forgiving operating environment than in previous years.
Despite this, confidence in STRs remains intact. Nearly 60% of hosts and property managers plan to expand their portfolios in 2026.
However, growth is becoming more selective. Almost two in five operators either do not plan to expand or remain unsure, indicating a shift away from aggressive portfolio growth toward more disciplined, performance-led decision-making.
Technology is said to be playing a "central role in how operators respond". Almost all respondents (97.7%), said technology is critical to remaining competitive.
Automation and AI are now embedded across core workflows, from guest communication to pricing.
More than 80% of hosts and managers use AI for guest messaging, and over half trust it to manage guest interactions and reviews accurately, while almost 60% of hosts say automation and AI save them at least two hours per week, with over 20% saving six hours or more.
Looking ahead, operators see automation and AI as the most significant force shaping the industry in 2026.
Nearly a quarter ranked smarter automation as the top trend for the year ahead, ahead of regulation, travel behaviour changes, or mid-term stays, signaling a clear belief that technology will play a decisive role as competition intensifies.
Pierre-Camille Hamana, CEO and founder of Hospitable, said: “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.”
