Pass the Keys Blog

How OTA Travel Trends Will Impact Short-Term Rentals in 2025 in the UK

Written by Pass the Keys York | Feb 18, 2025 2:45:22 PM

The world of travel and tourism is constantly evolving, and for short-term rental owners in the UK, staying informed about the latest Online Travel Agent (OTA) trends is essential for keeping ahead of the competition. With the ongoing transformation of the travel industry, 2025 is shaping up to be an interesting year for short-term rentals. From changes in consumer preferences to the rise of new booking channels and innovative technologies, short-term rental owners need to understand how these shifts will impact their business.

In this blog, we’ll explore how OTA travel trends are poised to influence short-term rentals in 2025, highlighting key changes and offering strategies to help property owners and managers adapt and thrive in this evolving landscape.

1. Increased Focus on Flexibility and Personalisation

Trend: In recent years, travellers have become more accustomed to flexible booking options due to the global pandemic. The trend of flexibility, especially when it comes to cancellations, check-in times, and personalised experiences, is expected to continue well into 2025.

Impact on Short-Term Rentals in the UK:

  • Booking Flexibility: OTA platforms like Airbnb, Booking.com, and Vrbo are pushing for policies that allow for more lenient cancellation policies and flexible booking options. Short-term rental hosts in the UK will need to consider how they can offer more flexibility in their policies to stay competitive. This may include offering free cancellations, offering last-minute booking options, or extending check-in/check-out windows to suit guests' needs.
  • Personalised Travel Experiences: Guests are seeking more than just a place to stay – they want a unique experience. As OTAs continue to enhance their algorithms to provide more tailored recommendations, short-term rental owners will need to find ways to cater to niche audiences. Whether through unique décor, offering personalised local guides, or adding value-added services like guided tours, property owners must adapt to the trend of creating unique, personalised guest experiences.

2. Rise of Sustainable Travel and Eco-Friendly Accommodations

Trend: Sustainability is becoming an increasingly important factor for travellers, with a growing number of consumers prioritising eco-friendly options when selecting their accommodations. OTAs are responding by promoting sustainable properties that reduce their environmental footprint.

Impact on Short-Term Rentals in the UK:

  • Eco-Friendly Certification: With OTAs actively promoting sustainable accommodations, short-term rental owners in the UK may find it beneficial to implement eco-friendly practices in their properties. This could include offering sustainable amenities, such as water-saving showerheads, energy-efficient appliances, and recycling facilities. Hosts can also earn green certification badges on platforms like Booking.com, which are likely to become an attractive selling point for eco-conscious travellers.
  • Promoting Green Practices: In addition to making physical changes to properties, property owners can highlight their commitment to sustainability in their listings, offering guests an eco-conscious travel experience. OTAs will likely provide tools for property owners to indicate their commitment to sustainability, which can attract eco-conscious travellers and differentiate their listings from competitors.

3. The Growing Importance of Alternative Accommodation Types

Trend: Travelers in 2025 are looking for unique and authentic experiences, and this has led to a boom in alternative accommodation types, such as glamping, houseboats, and even short-term rental stays in castles and historical homes. OTAs are catching on, with many platforms expanding the variety of properties available on their sites.

Impact on Short-Term Rentals in the UK:

  • Diversification of Offerings: As travellers look for more than just traditional city apartments or country cottages, property owners will need to consider diversifying their offerings. This could include investing in unique properties or converting existing spaces to meet the growing demand for quirky stays. For instance, unique stays like yurts, tiny homes, and converted barns could become more popular.
  • Leveraging OTA Features: OTAs are adapting to this demand by adding specific categories and filters to help users find unique and alternative accommodation types. Property owners in the UK can benefit by highlighting their property’s uniqueness, using the right tags and descriptions to attract travellers searching for something special.

4. Integration of Smart Technology for Seamless Guest Experiences

Trend: Technology is playing a significant role in improving the travel experience. As OTAs continue to invest in artificial intelligence (AI), automation, and IoT (Internet of Things) integrations, guests will expect smart homes, keyless entry, automated check-ins, and personalised digital concierge services.

Impact on Short-Term Rentals in the UK:

  • Smart Home Features: Short-term rental owners in the UK will need to consider incorporating smart technology into their properties to enhance guest experiences. This could include smart thermostats, voice-activated assistants like Amazon Alexa, keyless entry systems, or automated lighting and security systems.
  • Digital Concierge Services: In addition to smart technology, OTAs are pushing for more seamless guest experiences through the integration of digital concierge services. Offering guests access to local attractions, restaurant bookings, transportation services, and even remote check-in/check-out services via an app or website will become increasingly important for short-term rental owners.

5. Shift Toward Longer Stays and Business Travelers

Trend: The trend of longer stays continues to rise, as more travelers seek remote working options and longer-term vacations. This trend has gained traction in the wake of the COVID-19 pandemic, and OTAs are beginning to cater to these "digital nomads" and business travellers who need accommodations for extended periods.

Impact on Short-Term Rentals in the UK:

  • Targeting Business Travelers and Remote Workers: Short-term rental owners can target business travellers and remote workers by offering amenities that cater to their needs. Providing fast Wi-Fi, quiet workspaces, and comfortable office setups can help attract this segment. Additionally, offering discounts for longer stays (such as weekly or monthly rates) could make properties more appealing to those seeking remote working options.
  • Flexibility in Terms of Long-Term Bookings: OTAs are increasingly featuring long-term stay options, and short-term rental owners can benefit by adjusting their listings to appeal to these guests. Property owners in the UK should consider offering flexible pricing for long-term stays and ensuring their properties are equipped with amenities like fully stocked kitchens, laundry facilities, and workstations to cater to the growing market of extended stays.

6. New Distribution Channels and Expanded Marketing

Trend: The fragmentation of the short-term rental market continues, with more and more OTAs entering the scene, including niche platforms tailored to specific traveller types or accommodation styles. This trend gives short-term rental owners greater opportunities for exposure.

Impact on Short-Term Rentals in the UK:

  • Listing on Multiple OTAs: To maximise visibility, short-term rental owners should consider listing their properties across multiple OTAs, including both mainstream platforms (Airbnb, Booking.com, Vrbo) and niche platforms that cater to specific needs (luxury stays, eco-friendly options, pet-friendly properties, etc.). Expanding your reach will help reduce dependence on one channel and increase the likelihood of booking.
  • Effective Marketing Strategies: As more OTAs fight for market share, competition will intensify. Short-term rental owners will need to implement strong marketing strategies that include high-quality photos, compelling descriptions, and clear value propositions to stand out. Additionally, implementing dynamic pricing tools will help property owners stay competitive and attract guests with attractive rates, especially during off-peak times.

Conclusion: Navigating the Future of Short-Term Rentals in 2025

As we head into 2025, short-term rental owners in the UK must adapt to the changing OTA landscape. By embracing flexibility, sustainability, smart technology, and targeting emerging market segments, property owners can position themselves for success in a competitive environment. Being aware of OTA trends and continuously optimizing listings across multiple platforms will help increase visibility, maximise revenue, and ensure a seamless guest experience.

For those seeking additional support in managing their short-term rental business, explore solutions like Pass the Keys, which offers end-to-end property management services tailored to the needs of short-term rental owners. From optimising your listings to managing guest communications, Pass the Keys helps make your property stand out and ensures a hassle-free rental experience.

Adapting to these trends today will help short-term rental owners not just survive, but thrive in the ever-evolving travel market of 2025 and beyond.