What happens when passionate short-term rental owners gather over coffee to share their biggest wins and challenges? Magic, honestly. That’s precisely what we experienced at our Rise and Shine Breakfast Series in Palm Springs, San Diego, and Whistler, British Columbia. From sunny California to the snowy peaks of Canada, property owners are coming together to dive deep into the strategies that are moving the needle in today’s short-term rental market.
What’s Really Happening in 2025: The STR Market Reality Check
Let’s talk about what we’re all experiencing right now. The data tells a story that feels familiar: guests are being more cautious with their booking decisions, thanks to U.S. tariffs and general economic uncertainty. We’re seeing Canadian bookings to U.S. destinations drop while domestic Canadian travel picks up—and those booking windows? They’re getting shorter, even though occupancy rates are holding steady.
In Canada specifically, we’re seeing growth in regional destinations like Whistler, Canmore, and the Okanagan Valley. With international travel costs high, more Canadians are choosing to vacation closer to home, favoring mountain resorts, lake towns, and cultural hubs. According to recent market insights, demand in Canadian resort destinations is up year-over-year, while urban markets like Toronto and Vancouver are seeing more modest growth, impacted by new provincial regulations and tighter enforcement.
Here’s the thing, this isn’t necessarily bad news. It means we need to be more strategic in how we approach our business.
The Revenue Picture That’s Pretty Encouraging
When we looked at 2024’s numbers, here’s what jumped out: rent made up 82% of total revenue, with property owners taking home 65% and managers keeping 17% in commissions. The real goldmine? That additional 18% comes from fees and services that savvy property managers are capturing.
And here’s a pro tip that many people don’t realize, when you add fees as separate line items rather than bundling them into the owner rate, you keep 100% of that revenue instead of just 15–20%. It’s a simple shift that can have a significant impact on your bottom line.
Current Performance: Steady with Real Opportunities
The good news is that occupancy is trending slightly upward, while rates are holding steady compared to last year. Yes, it varies by market (as is the case with most things), but the fundamentals remain solid. Inventory growth has slowed down, yet demand for vacation rentals remains strong. This creates a competitive environment for owner acquisition, which is why focusing on keeping your current owners happy is just as crucial as finding new ones.
In the Canadian market, especially in tourism-heavy locations like Whistler, Banff, and Mont-Tremblant, short-term rental demand has shown resilience. While new licensing laws are tightening inventory, they’re also giving compliant operators a better opportunity to stand out and capture more bookings.
Strategies That Are Working Right Now
Smart AI Integration
We’re seeing property managers utilize AI in efficient ways, including automated guest messaging that feels personal, dynamic pricing that adjusts in real time, and systems that reduce your daily workload while boosting occupancy. It’s not about replacing the human touch; it’s about amplifying it.
Strategic Platform Diversification
The most successful owners we know don’t put all their eggs in one platform basket. They’re spreading across multiple booking channels, which gives them leverage in negotiations and increases their visibility. Additionally, it’s a novel approach to risk management.
Technology That Pays for Itself
The tech stack conversation always comes down to return on investment (ROI). What we’re seeing work are property management systems and revenue optimization tools that solve real problems and show measurable returns. No fancy bells and whistles—just solutions that make your life easier and your business more profitable.
Market Intelligence That Guides Decisions
The property managers who are thriving right now are the ones who know how to read their market data. They’re adjusting their pricing strategies based on actual trends, positioning their properties ahead of shifts, and making decisions based on data rather than intuition.
The Guest Experience Revolution
Here’s something exciting: property managers are discovering that enhancing the guest experience isn’t just good hospitality; it’s good business. We’re talking about amenities like bikes and kayaks, services like early check-in and mid-stay cleaning, and connecting guests with local experiences and tours. Airbnb’s recent app updates are making this even easier by featuring local services right in the platform.
The Numbers You Should Actually Be Watching
Let’s get practical about KPIs because tracking the right metrics can transform your business:
- Adjusted Paid Occupancy removes the noise of blocked nights, and owner stays, giving you a clearer picture of your actual performance.
- The booking window is crucial right now, especially with the shorter lead times we’re seeing. Understanding when your guest’s book helps you time your rate adjustments and promotions perfectly.
- Revenue per Unit (RevPAU) combines your occupancy and average daily rate into one number that tells the real story of your performance.
- Length of Stay is your secret weapon—longer stays mean more revenue, and it’s one of the few metrics you can directly influence through strategic pricing and guest experience enhancements.
Your Next Steps (That You Can Start This Week)
- Take an honest look at where AI could streamline your current workflow
- Audit your platform strategy—are you diversified enough to weather change?
- Evaluate your tech investments: are they solving real problems and showing returns?
- Start monitoring market indicators more closely to stay ahead of shifts
- Put as much energy into keeping current owners happy as you do finding new ones
- Adjust your revenue management strategy for those shorter booking windows
- Explore guest experience upgrades that can create new revenue streams
- Sign up for tools like LSI Insights to benchmark against your local market
The Real Talk
The Rise and Shine series reminds us why we love this industry so much, it’s full of people who are passionate about creating amazing experiences while building sustainable businesses. In both California and Canada’s competitive markets, the difference between properties that thrive and those that struggle often comes down to staying informed and willing to adapt.
The 2025 data is telling us a clear story: occupancy is up, booking windows are shorter, and guests expect more. Property managers who embrace these realities while using the right tools and strategies will find plenty of growth opportunities. It’s not about working harder; it’s about working smarter and staying connected to what’s happening in the market.
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