76.8% of professional property managers in the US expect revenue growth in 2027, while nearly two in three anticipate that competition for guests will intensify. Expectations for higher occupancy exceed those for price increases, highlighting the importance of demand and more effective management.
Expectations for the US short-term rental market in 2027 are positive, with the majority of professional property managers forecasting an increase in revenue. At the same time, however, stronger competition for guests is emerging as one of the sector’s most significant challenges.
According to the 2027 Vacation Rental Industry Outlook by KeyData, 76.8% of professional short-term rental property managers in the United States expect their revenue to increase in 2027. Meanwhile, 64.2% anticipate stronger competition for bookings.
The findings paint a more optimistic picture compared with the previous year, when managers’ expectations pointed mainly to flat performance or limited growth.
Revenue growth will not rely solely on prices
Of particular interest is the analysis of the factors underpinning industry professionals’ expectations for 2027. Although the vast majority expect revenue growth, a smaller proportion expect to be able to increase prices for overnight stays. Specifically, 65.2% expect occupancy at their properties to increase, while 55.5% anticipate a rise in the average daily rate (Average Daily Rate – ADR).
This gap suggests that expectations for growth are not based solely on increases in nightly rates. Instead, attracting more guests, increasing bookings, promoting properties more effectively and making better use of the existing portfolio are expected to play a decisive role.
In a market where competition is intensifying, managers’ ability to maintain high occupancy and reach the right audience becomes particularly important. Price increases alone are no longer considered a sufficient condition for improving financial performance.
Greater reliance on online platforms
There are also significant indications of the strategy managers are planning for their distribution channels and online booking platforms, known as OTAs (Online Travel Agencies).
For 2027, 25.1% of respondents say they intend to rely more heavily on these platforms, while 17.8% plan to reduce their dependence on them. This differs from the previous survey, when more managers intended to reduce their reliance on OTAs than to increase it.
This shift may be linked to the need to expand properties’ visibility and reach more potential customers in an environment where securing bookings is becoming more demanding. At the same time, the balance between major platforms and direct bookings remains a critical issue for revenue management.
Artificial intelligence is becoming part of day-to-day operations
One of the new elements of this year’s survey is its examination of the use of artificial intelligence (AI) by industry professionals.
Although this aspect is examined for the first time in the report, 89% of managers say they have used artificial intelligence tools at least once. Technology adoption appears to be high among smaller property management companies, while the lowest levels are recorded among the largest companies in the sample.
The finding highlights the growing presence of AI in a sector where booking management, guest communication, data processing and commercial strategy demand increasing speed and efficiency. However, having used artificial intelligence at least once does not necessarily mean it has been systematically integrated into every company’s operations.
Regulatory requirements remain an obstacle
Despite positive revenue expectations, managers continue to face significant challenges relating to regulatory frameworks and local restrictions.
39.5% of respondents identify strict permit and licensing requirements as a key problem. This is followed by rising occupancy taxes and tourism levies, cited by 33.9%, as well as opposition from residents or local associations, reported by 28.2%.
On the other hand, 28.5% say they do not face significant regulatory difficulties. The picture is therefore not uniform across the US market, as operating conditions may vary depending on the destination and the applicable framework.
Information and technology as drivers of growth
The survey also identifies a correlation between the use of market data and optimism about financial performance. Managers who regularly monitor the available data tend to be more optimistic about revenue growth. Similarly, those who use more technology tools also express greater confidence in the prospect of increasing revenue.
As Sally Henry, Vice President of Market Intelligence and Insights at KeyData, points out, managers are entering 2027 with expectations of growth, but also with an awareness of what achieving it will require. She stresses that the greater optimism about revenue compared with rates indicates that growth is expected to come from a combination of factors: capturing demand, distribution channels, pricing policy and effective portfolio management.
The main conclusion is that professionals in the US short-term rental market see room for growth in 2027, without taking its achievement for granted. Higher occupancy, the use of data, technology and adaptation to competitive conditions are expected to determine, to a large extent, who will succeed in turning positive forecasts into actual revenue.
