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US: KeyData’s 2027 Vacation Rental Industry Outlook survey shows that 76.8 per cent of US professional property managers expect revenue to grow in 2027, while 64.2 per cent anticipate more competition for guests.
The survey’s findings marks a change from last year’s results, which revealed flat-to-modest growth expectations.
However, while expectations for revenue growth remain high, 65.2 per cent expect occupancy to rise and just 55.5 per cent expect average daily rates (ADR) to increase. This suggests that managers expect several factors to affect revenue growth, rather than just rate increases alone.
Other findings of the survey include:
- OTA reliance: For 2027, 25.1 per cent plan to rely more heavily on OTAs, while 17.8 per cent plan to pull back. In the previous year, managers planning to reduce OTA reliance outnumbered those planning to increase it.
- AI adoption: Despite appearing in the report for the first time this year, 89 per cent of property managers report use it at least once. AI adoption is high among extra small managers and at the lowest overall among extra large managers.
- Regulatory conditions: Strict permitting or licensing requirements are the most commonly cited challenge at 39.5 per cent, followed by rising occupancy taxes and tourism fees at 33.9 per cent, and pushback from local residents or associations at 28.2 per cent. At the same time, 28.5 per cent of respondents report no major regulatory challenges at all.
- Managers who engage with market data regularly tend to show more optimism toward revenue growth. Those using more technology also tend to have greater revenue confidence.
“Managers are heading into 2027 expecting to grow, and they are being realistic about what that will take,” said Sally Henry, KeyData’s vice president of market intelligence and insights. “Revenue confidence sits well ahead of rate confidence, suggesting operators expect growth to depend on a broader mix of demand capture, distribution, pricing, and portfolio execution rather than rate increases alone.”
Download the Vacation Rental Industry Outlook 2027 report here.
Highlights:
- KeyData’s 2027 Vacation Rental Industry Outlook survey reveals that 76.8 per cent of US professional property managers expect revenue growth.
- The annual survey indicates that 65.2 per cent of managers anticipate higher occupancy levels, while 55.5 per cent expect rising average daily rates.
- Regulatory hurdles remain a primary operational concern, with 39.5 per cent of US property managers citing strict permitting or licensing requirements as their biggest challenge.
