While short-term rentals enjoyed a clear advantage over traditional hotels throughout much of the pandemic, demand for rentals has leveled off and hotels are retaking some lost ground by competing in the space on their own terms.
A recent report from STR and short-term rental analytics company AirDNA showed that impact from the pandemic caused short-term rental market share to spike to its highest level in mid-2020, when the segment ballooned to nearly 17% of all accommodation demand in the U.S.
By January 2022, however, that share had slipped to 12.7% — a level roughly 3% below the trend line that STR and AirDNA had projected based on their tracking of the segment’s growth trajectory between 2018 and early 2020.
“The current linear growth trend from 2021 to present has a slope significantly flatter than that of the pre-pandemic trend,” the report said.
STR and AirDNA said a sudden contraction of short-term rental supply in urban markets hit harder by Covid-related challenges…