Vacation Rentals Boom While Hotels Stumble: What the Latest Travel Health Index Reveals

Welcome to episode 280 of the STR Daily Podcast, powered by Boostly, the industry's first AI driven show for short term rental professionals. I'm Bob, your host, bringing you the latest news, trends and insights in travel, AI and hospitality. Whether you're a host, property manager or industry expert, this podcast is your go to source for staying ahead in the fast moving world of short term rentals. Our mission to equip you with actionable strategies and updates so you can navigate the industry with confidence. Hit that subscribe button and never miss an upload in today's episode. First up, vacation rentals are surging while hotels are showing signs of fatigue. At least that's what the May 2025 Skift Travel Health Index reveals. The index hit 102 last month, indicating modest growth for global travel overall, but the real standout is the 12% year over year growth in the short term rental sector. Brazil in particular saw a staggering 105% increase in bookings, suggesting strong international demand and ongoing consumer preference for flexible home like stays, while occupancy slightly dipped, likely due to increased supply. Post Easter RevPAR projections for STRs in the US remain optimistic, with AirDNA forecasting consistent growth through 2026. Hotels, meanwhile, are under pressure. Bookings are slowing, especially in North America and Europe, and adrs are being lowered to stimulate demand. PWC has revised its US hotel forecast downward, now projecting just a 0.9% RevPAR increase for the full year. This divergence signals a shift in traveler behavior and a potential golden moment for STR operators to double down on pricing strategy, guest experience and market expansion. For property managers, the message is clear. Short term rentals are not just bouncing back, they're leading the pack. If you need help boosting your direct bookings, check out the Boostly website and if you'd like a shout out on the podcast, leave a review. We love hearing from our listeners and your feedback helps us improve. Also, don't forget to share this podcast with your industry peers. Tag boostlyuk on social media when you do and we'll be sure to share it too. Thanks for tuning in. And remember, book direct.