Domestic travel is driving STR success in 2025—don’t miss your chance to get ahead of the curve. Join our STR Investor Group today and gain insider insights, strategies, and connections that will help you capture this booming market.
The travel industry is entering 2025 with shifting dynamics that every short-term rental (STR) investor should pay attention to. While international tourism has cooled in several markets due to high costs, lingering visa backlogs, and geopolitical uncertainties, domestic tourism is climbing steadily. For STR operators, this signals an important pivot: maximizing occupancy means aligning with the travelers who are actively booking trips closer to home.
Over 60% of Americans travel for leisure each year, and most of those trips stay within U.S. borders. Popular destinations remain strong—places like New York City, Las Vegas, Orlando, and Hawaii—but travelers are also rediscovering regional destinations, road trips, and hidden gems. STRs are uniquely positioned to capture this demand because they provide the flexibility and affordability travelers are seeking in a high-cost environment.
Understanding the demographics behind this domestic surge is critical. Millennials and Gen Z are leading the way in trip frequency, often combining leisure with workcations, prioritizing experiences over possessions, and seeking out properties with strong design, tech-friendly amenities, and sustainability features.
At the same time, families and multigenerational travelers remain a core segment. They value larger accommodations, kid-friendly setups, and homes that allow for shared experiences that hotels often struggle to provide. Road trippers and regional explorers are also reshaping demand, booking stays in secondary and tertiary markets that feel authentic and less crowded.
Together, these segments represent the bulk of 2025’s domestic travel landscape. STR operators who tailor their offerings—whether through flexible booking policies, eco-conscious upgrades, or family-oriented amenities—are the ones positioned to outperform in occupancy.
How STR Investors Can Leverage the Boom
Rising domestic demand is more than just a tailwind—it’s an opportunity for strategic positioning. Here are a few ways to capitalize:
Design for Experiences, Not Just Stays
- Incorporate local flavor into your property through décor, welcome packages, or partnerships with nearby businesses.
- Younger travelers, especially Gen Z and Millennials, are drawn to authentic, Instagram-worthy experiences.
Prioritize Flexibility
- Offer flexible cancellation and check-in policies, catering to travelers who value convenience and spontaneity.
- Workcations and bleisure travel thrive when stays can be easily extended.
Invest in Family-Friendly Amenities
- Add bunk beds, game rooms, or fenced yards to appeal to multigenerational and family groups.
Provide baby gear rentals or kid-friendly entertainment to differentiate from hotels.
Highlight Sustainability and Tech Features
- Energy-efficient appliances, recycling programs, and smart-home devices resonate with eco-conscious, tech-savvy guests.
Contactless check-in remains a baseline expectation for younger travelers.
Expand Beyond Primary Markets
- Regional travelers and road trippers are fueling demand in secondary and tertiary destinations.Target emerging “drive-to” markets where supply is still limited and occupancy is climbing.
What This Means for Investors
The message is clear: don’t over-index on international demand. Instead, lean into the U.S. domestic boom by tailoring your properties to the travelers who are shaping it. Investors who focus on flexibility, authenticity, and family- or experience-driven design will not only maximize occupancy but also command stronger nightly rates in 2025’s competitive landscape.