Phocuswright Research Roundup 2Q25

Refreshed insights.

Q2 saw the release of refreshed and revamped Phocuswright's flagship reports on U.S. and European consumer behavior and major travel markets. This collection of focused analyses offers a smarter and more streamlined approach to our vast data and essential insights. Discover some of the high-impact findings below.

And as always, we published fresh data metrics, comprehensive consumer research on short-term rentals, AI's impacts on key areas, updated Phocal Point with new market sizing and sharper forecasts and more. Here's a recap of the insights, data and more. (Click on each report title to access the report).

Tech and innovation

The New Age(nts): Impact of Generative AI Travel Distribution

Mike Coletta, Phocuswright’s senior manager of research and innovation and Norm Rose, senior technology and corporate market analyst, hosted the third session of The New Age(nts) Trend Series , along with three panelists: 

  • Julie White, CCO of Europe & North Africa, premium, midscale and economy brands at Accor, where she oversees sales, distribution, marketing, loyalty and customer experience. 
  • Matthias Keller, chief product officer at Kayak, who's leading the launch of Kayak.ai and much of Kayak’s AI strategy. 
  • Tom Underwood, co-founder and COO at Bonafide, a startup working with hotel and airline brands to ensure that the information about their products and services available to AI systems is accurate and up to date. 

The conversation focused on the coming impact of generative AI (GenAI) and autonomous agents on travel distribution. It explored how these technologies are changing the way travel is booked and marketed, and whether the industry's infrastructure is ready for these changes. 

This summary captures the most important takeaways from the discussion and subsequent audience questions for Phocuswright subscribers. The full recording is available on YouTube and embedded below. All quotes are paraphrased. 

The New Age(nts): Impact of Generative AI on the In-Destination Experience

Moderated by Mike Coletta, Phocuswright’s senior manager of research & innovation, the session featured a panel discussion with: 

  • Janette Roush, SVP Innovation & Chief AI Officer at Brand USA, the official destination marketing organization promoting the United States as a premier travel destination. 
  • Mitch Bach, Partner at Tourpreneur, a community and resource hub supporting tour business entrepreneurs, and Co-founder & CEO at TripSchool, a training and educational platform for professional tour guides and operators. 
  • Alex Bainbridge, CEO of Autoura, specializing in AI-driven tours and autonomous vehicles to enhance the traveler experience. 

This summary captures the most important takeaways from the discussion and subsequent audience questions for Phocuswright subscribers. The full recording is available on YouTube and embedded below. All quotes are paraphrased. 

Phocuswright’s Travel Innovation and Technology Trends 2025 aims to provide an in-depth overview of the real-time developments surrounding the travel industry, including key focal points on the impact of generative AI on in-destination experiences, company operations, distribution dynamic and more.

Short-term rentals

Phocuswright's U.S. Short-Term Rentals 2025: Guest Attitudes and Decision Making reveals patterns that likely resonate across other mature STR markets: The overwhelming majority of guests seek properties with an interesting look and feel, and nearly half say STRs outperform hotels on uniqueness and design. At the same time, younger travelers under 35—a critical future audience—are less convinced. Only 38% believe STRs offer better value than hotels, and 40% say hotels have delivered the best overall stay in recent trips.

Reputational challenges remain a drag on broader adoption. More than half of all travelers—whether they've stayed in STRs recently or not—say that negative press around cleaning fees, chores or inconsistent experiences makes them think twice about booking. The takeaway is clear: STR operators are no longer competing solely on availability or price. Brand perception—whether of an individual host's inventory or a professional management firm—is increasingly essential to win trust and drive repeat bookings.

These consumer dynamics are fueling the rise of branded and professionally managed inventory, while independent hosts face growing pressure to elevate their offerings—or risk being eclipsed in a more discerning market.

Global Short-Term Rentals 2025

After two and a half years of remarkable pandemic-fueled expansion, growth of global short-term rental (STR) bookings is slowing as significant volume shifts back to hotels. Travelers have experienced the peaks and valleys of the STR segment, and overall find themselves in a more discerning place. With certain markets maturing (U.S., Europe) and others still developing (Asia, Middle East, Africa), the global market is varied and uneven, though overall slower growth is anticipated through the forecast period.

Free research insights articles:

Webinar replay:

Phocuswright’s Global Short-Term Rentals 2025 presents market sizing and projections for the global STR market by region and distribution channel. Key questions answered by this research include:

  • How is the global short-term rental market evolving post-pandemic—and what’s driving regional growth or stagnation?
  • What role do digital platforms and online bookings play in the future of STR distribution?
  • What new pressures are STR operators facing—and how are they adapting?
  • How are traveler preferences changing, and what must STRs deliver to remain competitive with hotels?

U.S. Short-Term Rentals 2025: Guest Attitudes and Decision Making

The U.S. short-term rental market has undergone a dramatic transformation, shifting from a pandemic-driven boom to an increasingly competitive and complex landscape. With supply growth outpacing demand and consumer preferences evolving, hosts and property managers must navigate rising costs, regulatory uncertainty, and heightened competition from hotels and international rentals. Profit-oriented hosts are proving more resilient, while those with passive management styles face mounting challenges. As the industry seeks equilibrium, success will depend on strategic pricing, operational efficiency, and the ability to deliver consistently high-quality, differentiated guest experiences.

Phocuswright’s U.S. Short-Term Rentals 2025: Guest Attitudes and Decision Making is part of a comprehensive consumer research study focused on the incredibly dynamic short-term rental travel segment. Key questions answered by this question include:

  • What drives travelers to choose short-term rentals over hotels—and what keeps them from doing so?
  • How do guest expectations and satisfaction levels vary across age groups, property tiers, and booking behaviors?
  • How are STR guests shopping, booking, and comparing rentals with other lodging options?
  • What implications do guest preferences and perceptions have for property managers, hosts, and platforms?

The following products are included in this report series:

Travel Metric of the Month

Phocuswright’s Travel Metric of the Month 2025 features fresh travel industry research published throughout the year, showcasing key data across our market sizing, consumer research, and tech and innovation practices. Each month, we will publish a new visualization that highlights a significant research trend, finding or data set, along with links to the source publication for a deeper dive.

Metrics of the Month 2025 include:

  • January:     U.S. Travel Agency Bookings, 2020-2026
  • February:    U.S. Lodging Trends
  • March:         Asia Pacific Travel Rebound
  • April:            Travel Startup Funding Trends
  • May:            Short-Term Rental Trends
  • June:           Europe Consumer and Market Sizing Trends
  • July:             U.S. Market Sizing Trends
  • August:        Coming Soon!

Free research insights report:

More than numbers: This is decision-grade intelligence

Phocal Point: Global Market Sizing

When the market shifts, the most prepared teams aren’t just watching — they’re already adjusting.

That’s why we’ve updated Phocal Point and our Short-Term Rental dashboard with new market sizing, sharper forecasts through 2028, and tools built for professionals who need to move with clarity — not guesswork.

Why It Matters

Every percentage point matters
Whether you're modeling revenue, sizing a market, or evaluating a new opportunity, the difference between a good guess and a precise projection adds up — fast.

Regional nuance matters
What’s happening in Western Europe isn’t what’s happening in the U.S. — and it’s definitely not what’s happening in Asia Pacific. Our updated forecasts reflect this complexity, so you don’t have to flatten it.

Distribution strategy matters
Where bookings happen — and how that’s changing — is just as important as how much they’re worth. Our STR dashboard gives you interactive access to gross bookings data by channel, year, and region. Run your own comparisons. Export your own cuts. Back your strategy with specifics.

10 insights that should be on your radar in 2025

2024 marked a year of solid global growth in the travel sector, with strong performance in APAC and steady gains in North America and Europe. The Middle East and LATAM continue to emerge as significant markets, albeit much smaller than the three regional powerhouses. Looking ahead, here are 10 key insights from the report that should be on your radar in 2025

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