Hostaway's 2026 Industry Report: The Urgency of AI, Direct Bookings and How to Win in 2026
2026 is shaping up to be a tipping point for short-term rentals. A new report from Hostaway, surveying 326 operators across 46 countries, makes one thing brutally clear: adapt now, or get left behind.
And it all boils down to two non-negotiables: adopting AI and mastering direct bookings. Let's break down the top insights from Hostaway's 2026 STR Industry Report.
1. The AI Short-Term Rental Rule: It’s "Adopt or Die"
Hostaway CEO Marcus Rader doesn’t mince words: “I predict those who don’t take the time to deeply understand, adopt and deploy AI will go out of business in five years.”
This isn’t a future prediction; it’s a current reality. The data shows AI adoption among STR operators leaped to 60.7% in 2025, up from just 46% in 2023. For large-scale managers with 50+ properties? That number soars to nearly 80%.
Why the rush? Because it’s working.
43% of operators now save at least 2 hours per week using AI—double the number from last year. For big teams, those savings translate into real cash, with over one-in-five large managers reporting weekly cost savings of more than $1,000.
The biggest impact? Guest communication. A staggering 60% of respondents say AI has revolutionized this time-suck task. The message is clear: AI is no longer a fancy add-on. It’s your new operations manager, customer service rep, and efficiency expert, rolled into one.
2. The Competitive Squeeze is Real (And How to Fight It)
If you feel like it’s harder to stand out, you’re not imagining it. For the second year running, nearly 75% of operators report their market is more competitive than the year before.
This pressure has reshuffled the top challenges list. Marketing and bookings have now dethroned property maintenance as the #1 headache for hosts everywhere.
The industry’s response? A massive shift in investment. The number of operators prioritizing "Marketing" as a key investment area skyrocketed from 4.6% to 33.4% in just one year. In a crowded marketplace, building a recognizable brand is necessary for survival.
3. Your #1 Growth Lever: Cutting Out the Middleman
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Here’s where the Hostaway data reveals a huge, untapped opportunity—and it aligns perfectly with a massive industry shift.
While Airbnb remains the top channel, direct bookings are the dark horse you can’t ignore. The report shows a staggering gap: 62.3% of operators generate less than 25% of their bookings directly, and 18.4% get none at all.
This isn't just an operational miss—it’s a strategic failure in 2026.
Why? Because guests are actively moving in this direction.
While the Hostaway report focuses on operator strategy, industry data from sources like PR Newswire and Hospitable shows direct bookings surging, capturing nearly a third of the market and growing revenue by over 90% in a year.
Guests are getting smarter. They want deals, they want direct relationships, and they’re tired of OTA fees. If your business isn’t optimized for direct bookings, you’re not just paying unnecessary commissions—you’re missing the wave of where your future guests are already heading.
So, how do you win at direct bookings in 2026? Operators in the report point to two clear strategies:
- Invest in SEO & Organic Social Media (the top-cited tactics).
- Use Loyalty Programs & Email Marketing to keep those direct guests coming back.
And here’s the AI connection: As tools like ChatGPT change how people search for trips, a strong brand is your ticket to being “found and suggested.” Your direct booking site is the foundation of that brand.
The 2026 Mindset: Optimistic, Pragmatic, and Tech-Powered
Despite the competition, operators are walking into 2026 with their eyes open. 59% expect occupancy rates to rise, and 58% expect to increase their Average Daily Rate.
But the frenzy to expand is cooling. The percentage of operators planning to add new properties dropped significantly (from 63.5% to 45%), signaling a strategic pivot from growth-at-all-costs to optimizing what you already have.
Your Action Plan for 2026
- Get Serious About AI: Start today. Use it for guest messages, content creation, and market analysis. The learning curve is the only thing standing between you and major time savings.
- Build Your Direct Booking Engine: Stop treating it as a side project. It’s your new main channel. Focus on SEO, a flawless website, and a guest loyalty program.
- Double Down on Your Brand: In a world of AI search and endless listings, your brand name is your most valuable asset. Invest in it.
Read the full 2026 Short-Term Rental Report from Hostaway here.
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