INVESTING
5. Travel demand Is surging and evolving
The post-pandemic travel surge is no longer a temporary rebound- it’ s a reshaping of how and why people travel.
• The U. S. expects 77.1 million international arrivals in 2025, a 6.5 % increase year on year( YoY).
• Europe and Latin America are seeing record-breaking occupancy in STR-friendly cities.
• On Airbnb, 60 % of guests prefer staying in local neighbourhoods over hotels.
• Families and groups are increasingly choosing STRs for space and kitchen access.
• Most notably, longer stays( 28 + days) now account for more than 20 % of Airbnb bookings, fuelled by remote work, sabbaticals, and lifestyle travel.
The message is clear: STRs that offer comfort, flexibility, and location relevance are best positioned to ride the next wave of travel growth.
6. The Bottom Line: STRs are a Future- Proof Strategy
In an investment world grappling with uncertainty from fluctuating interest rates to geopolitical instability. Short-term rentals remain one of the most resilient, adaptable, and profitable real estate strategies available.
Why?
INVESTING
• They offer high cash flow and strong yields.
• They’ re supported by data-rich platforms and scalable systems.
• They allow for creative models( arbitrage, co-hosting, remote management).
• They align with changing consumer behaviour- longer stays, blended travel, and lifestyle-first decisions.
As platforms continue to refine quality standards,
50 REI MAGAZINE MAY 2025