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Cap rate calculator
The cap rate calculator is used to understand and compare the potential return on investment from an investment property.
Enter the current market value or purchase price of the property. This is the basis for determining the capitalization rate.
Input the total yearly income generated by the property, including rent, fees, and any other sources of revenue, before expenses.
Input the percentage of annual gross income that represents the property's total operating expenses. This is an alternative way to represent operating expenses if the exact dollar amount is unknown.
Enter the annual dollar amount of all costs associated with managing and maintaining the property, such as utilities, taxes, insurance, and repairs.
Input the estimated percentage of time the property is unoccupied or not generating income. This accounts for potential income loss due to vacancies.
This field displays the calculated yearly income after subtracting operating expenses and adjusting for vacancy rate. This figure is used to determine the capitalization rate and evaluate the property's potential return on investment.
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ResourcesseparatorHosting for Airbnb Investors

Airbnb Booking Trends for 2025: What Hosts Need to Know (and How to Profit From Them)

Key takeaways

Airbnb Booking Trends for 2025: What Hosts Need to Know (and How to Profit From Them)

Airbnb has come a long way from spare air mattresses and shared spaces. In just over a decade, it’s become a major player in the travel industry—shaping how millions of people vacation, work remotely, and even relocate temporarily. As we head through 2025, guest expectations are shifting, competition is heating up, and the platform itself is evolving fast.

If you’re a host or thinking about becoming one, keeping up with these changes isn’t optional—it’s the key to staying booked and profitable. From eco-conscious travel to tech upgrades and longer stays, today’s guests are looking for more than just a place to sleep.

Below, we’ll break down the biggest Airbnb booking trends of 2025 and show you exactly how to use them to your advantage.

Sustainability Becomes a Priority

More and more travelers are putting their money where their values are—and that means choosing places to stay that reflect a commitment to sustainability. Guests are actively looking for eco-friendly accommodations, from low-waste setups to homes that use renewable energy or support local environmental efforts.

This isn’t just a nice-to-have anymore—it’s something that can influence whether or not you get the booking.

What you can do:

  • Swap out old appliances for energy-efficient ones.
  • Offer recycling and compost options.
  • Use eco-friendly cleaning supplies and toiletries.
  • Most importantly, call attention to these efforts in your listing! Mention things like solar panels, filtered water systems, or your use of organic bedding—these details can make a real difference.

Being green is good for the planet and your bottom line.

Rise of Wellness and Pet-Friendly Stays

Travelers in 2025 aren’t just looking for a place to crash—they’re looking for a place to feel good. Wellness is a growing priority, with more guests seeking out spaces that support rest, relaxation, and healthy living. Think calm environments, clean air, and little touches like yoga mats or aromatherapy diffusers.

At the same time, more people are traveling with their pets than ever before. For many guests, if their dog or cat isn’t welcome, the booking’s a no-go. That’s why listings that embrace both wellness and pet-friendliness are seeing a big boost in visibility and bookings.

Actionable Tips:

  • Add amenities like yoga mats, air purifiers, or a meditation corner.
  • Provide pet bowls, treats, or a small fenced area if possible.
  • Mention these features clearly in your listing to stand out in searches.

Integration of Smart Home Technology

Today’s travelers aren’t just booking a place to stay—they’re looking for a seamless, modern experience. Smart home tech like keyless entry, smart thermostats, and even voice assistants like Alexa or Google Home are quickly becoming must-haves, not just nice-to-haves.

Guests love the added convenience and security, and as a host, it makes managing your property easier too. Imagine not having to coordinate key handoffs or being able to adjust the temperature remotely between check-ins.

How to use this to your advantage:

  • Install smart locks to make check-in a breeze and boost security.
  • Add smart lighting or thermostats for comfort and energy savings.
  • Leave simple, printed instructions or a digital guide so guests know how to use everything with ease.

A little tech can go a long way in making your place stand out.

Emphasis on Unique and Themed Interiors

Gone are the days when a clean, minimalist space was enough to stand out. In 2025, travelers are booking places that feel like an experience—from boho lofts and jungle-inspired bungalows to retro game rooms and cozy book nooks. Guests want stays that are as memorable as the trip itself—and yes, totally Instagram-worthy.

Properties with personality tend to catch more eyes (and more bookings). Whether it’s a color palette that pops or a full-blown theme, guests are drawn to spaces that tell a story.

Actionable Tips:

  • Pick a theme that suits your target guests—like a surf shack vibe near the beach or a vintage escape in the city.
  • Invest in great photography. Natural light, clean angles, and detail shots help your listing shine.

Growth of Multi-Generational and Group Travel

Travel isn't just for couples or solo adventurers anymore. In 2025, we’re seeing more families hitting the road together—grandparents, parents, kids, and even extended relatives all under one roof. Group getaways with friends are also on the rise, and that means the demand for larger, more accommodating spaces is climbing fast.

If you’ve got a property that can comfortably host six or more, you're in a great position to capitalize on this trend.

Actionable Tips:

  • Stock your space with family-friendly amenities like cribs, high chairs, board games, and smart TVs.
  • Set up cozy communal areas where people can gather—think large dining tables, fire pits, or a comfy living room with plenty of seating.

Little touches like these can make a big difference when guests are choosing where to stay with their whole crew.

Extended Stays and 'Bleisure' Travel

The line between business and leisure is blurrier than ever—thanks to remote work, more guests are turning quick trips into week-long (or even month-long) stays. This “bleisure” trend means travelers aren’t just looking for a comfy bed; they want a space where they can take Zoom calls in the morning and explore the local scene in the evening.

For hosts, this opens up a huge opportunity. Longer bookings mean fewer turnovers and steadier income. Want to attract this crowd?

Here’s what to do:

  • Offer a discount for week-long or monthly stays—guests love a good deal.
  • Make sure your Wi-Fi is strong and reliable.
  • Add a small desk or workspace, even if it’s just a tidy corner with a chair and lamp.

Small upgrades can make a big difference to remote-working guests.

Navigating Regulatory Changes

Short-term rental laws aren’t what they used to be—and they’re still changing fast. In 2025, more cities and municipalities are tightening the rules around Airbnb listings, adding everything from licensing requirements to stay limits and zoning restrictions. If you’re not keeping up, you could be hit with fines, delisted, or worse.

The good news? Staying compliant isn’t complicated if you stay proactive. It’s all about understanding the rules in your area and making sure your listing checks all the right boxes.

Actionable Tips:

  • Check your local government’s website regularly for updates to short-term rental laws.
  • Register your property if it’s required—and renew that registration when needed.
  • Keep documentation handy, including permits and safety certifications, in case of an audit or guest concern.

Taking care of the paperwork now keeps your business running smoothly later.

​​Leveraging Direct Bookings and Diversified Platforms

Relying solely on Airbnb used to be the norm—but in 2025, smart hosts are branching out. Between rising platform fees and stricter policies, many are looking for more control over their bookings and profits. That’s where direct booking websites and multi-platform listings come in.

Creating your own website lets you build trust with repeat guests, set your own rules, and avoid third-party fees. Plus, with tools like Boostly or Lodgify, it’s easier than ever to set one up. At the same time, listing your property on other platforms—like Vrbo, Booking.com, or niche travel sites—helps you tap into new audiences Airbnb might miss.

Actionable Tips:

  • Build a simple direct booking site with clear photos, reviews, and contact info.
  • Use a channel manager to list on multiple platforms without double-booking.

The Bottom Line

From eco-conscious travel to extended stays and smart-home tech, 2025 is bringing some major shifts to the short-term rental world. Staying on top of these trends isn’t just helpful—it’s essential if you want to keep bookings high and guests happy.

The good news? You don’t have to navigate it all alone. Whether you’re juggling multiple platforms or figuring out how to market your listing, Awning’s full-service vacation rental property management can take the guesswork off your plate. They’ll handle everything from pricing to guest communication so you can focus on growing your income—without burning out.

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