Automation and artificial intelligence are becoming essential tools for short-term rental (STR) operators as competition intensifies and operating conditions tighten, according to new research from Hospitable.
Data from the 2026 Evolving STR Landscape report shows that 47.1% of hosts and property managers say increased competition in their local market impacted their business in 2025. As margins come under pressure, the research suggests technology-led efficiency is increasingly determining which operators are able to sustain performance.
Rising costs and softer demand have compounded competitive pressures. Some 45.1% of respondents cited higher operational costs, while 44.6% experienced reduced guest demand or shorter stays. A further 42.4% pointed to economic uncertainty. The convergence of these challenges has created an environment where manual processes and reactive decision-making are proving harder to sustain.
Against this backdrop, confidence in technology adoption is strong. Almost all respondents (97.7%) say technology is critical to remaining competitive, with automation and AI now embedded across core operational workflows. Over 80% of hosts and property managers use AI for guest communication, and over half trust AI-driven tools to manage guest interactions and reviews accurately.
Time savings are emerging as a key benefit. Nearly 60% of operators say automation and AI save them at least two hours per week, while over 20% report saving six hours or more. These efficiency gains are enabling teams to focus on higher-value tasks such as revenue optimisation, portfolio strategy and guest experience.
Despite a more challenging market, growth ambitions remain. Almost 60% of hosts and property managers plan to expand their STR portfolios in 2026. However, the data indicates a shift toward more selective, performance-led growth, with nearly two in five respondents either undecided or not planning to expand, reflecting a greater emphasis on operational resilience over rapid scale.
Looking ahead, respondents ranked smarter automation and AI as the most influential trend shaping the STR sector in 2026. Nearly a quarter identified automation as the single most important factor for the year ahead, ahead of regulatory change or evolving travel behaviour, underlining the role of technology as a competitive differentiator.
“We’re seeing a market where running a STR well matters more than ever. Competition has increased, costs are tighter, and operators are having to be more deliberate about how they grow and how they operate.”
Pierre-Camille Hamana, CEO and Founder, Hospitable
Founded in 2016 as a time-saving property management system, Hospitable has evolved into a STR super app. The platform uses AI and automation to manage guest messaging, optimise nightly rates, handle rental agreements and security deposits, coordinate operational teams, and support direct booking websites with integrated payments and property protection.
