✈️ Summer 2025 Travel Trends: Budget-Conscious Travelers Shaping the Market

Over the last several months, we’ve been sharing updates in your monthly Owner Statements on the trends shaping this summer’s travel season. As we moved through July, typically the peak money-making month for many of our markets, those trends have only become more pronounced: softening demand, shorter lengths of stay, increased price sensitivity, and travelers booking much closer to arrival than we’ve seen in past years.

One of the biggest shifts we’re tracking is the sharp rise in “month-of” reservations, with many guests now booking within 30 days of arrival. AirDNA’s pacing data helps explain why this matters: while pacing is designed to show how many reservations are on the books compared to the same point last year, changing booking patterns are making it less reliable.

Take June as an example. Back in December 2024, pacing for June 2025 looked strong thanks to a small uptick in very early bookings (5+ months out). But by spring, a decline in mid-range bookings (1–4 months out) made pacing look weaker, raising concerns that demand would fall short. A surge of last-minute reservations in the final weeks leading up to guest arrival dates closed the gap and brought actual performance much closer to expectations and the prior year’s performance.

What the Research Shows

Economic uncertainty continues to weigh heavily on travel decisions. July industry bookings reflected this caution, with budget-conscious travelers approaching plans more carefully. Even airlines, normally at their strongest in summer, are feeling the pinch, with unsold economy seats forcing fare cuts.

Recent research from Skift, AirDnA, and KeyData Dashboard, confirms what we’re seeing in real time:

• Booking windows are shrinking.
• 73% of travelers are actively seeking budget-friendly options (Skift State of Travel 2025)
• Price is a leading factor in travel planning.

Most travelers are making moderate budget cuts:

• 40% expect to reduce accommodation spend by 10–20%

• 27% plan cuts of 21–30%

• Only 9% anticipate deeper cuts beyond 30%

Current moderate pacing may understate true demand for the rest of the summer and early fall.

Demand for affordable travel options is up amid economic uncertainty. AirDNA notes the rise in last-minute bookings is most pronounced among budget properties. Luxury homes are also seeing more last-minute reservations, but not like budget listings.

Key Data Dashboard’s U.S. Short-Term Rental Q2 Report notes that “the second quarter of 2025 represents a critical inflection point for the U.S. vacation rental industry.” After the unprecedented growth of 2021–2022, the market is now entering a period of normalization, with demand patterns becoming more volatile and traditional seasonal trends showing signs of disruption”.

The good news: while travelers are cost-conscious, they still prioritize comfort and quality when choosing accommodations.

🏡 What This Means for Your Property

At VRC, we’re actively adjusting to these shifting market dynamics to ensure your property remains competitive. Our team is:

• Using dynamic pricing strategies to capture both last-minute and early bookings.

• Leveraging targeted marketing to highlight amenities and value, keeping your home attractive to cost-conscious travelers.

• Prioritizing quality touches and standout features - such as white bedding, thoughtful amenities, and strong guest service - that continue to drive performance even in a softer market.

While the broader market is experiencing uncertainty, our proactive approach is helping many of our homes stay on track, weather the softness, and capture available demand.

FTC Ruling - Total Pricing Display

FTC Ruling Requires Total Price to be Displayed to Consumers - No More Separating Fees

You may have noticed that the way pricing is displayed for all short-term rental properties changed earlier this year from displaying the average nightly rate for a property to displaying the total cost of the reservation. In May, the FTC implemented a new ruling that governs how pricing must be shown to consumers on marketing platforms such as VRC’s website, Vrbo, Airbnb, and all other major OTA platforms.

Under this ruling, advertising for short-term rental properties must prominently display the total reservation price upfront. This total must include any charges or fees (like cleaning, damage waiver, hot tub, mandatory resort fees, etc.) for mandatory goods or services required as part of the booking. The only exceptions, which can still be listed separately, are taxes and other government-imposed charges.

Vacation Rental Collective updated the pricing structure and formatting on our website earlier this year to ensure compliance with the new FTC ruling. We’ve included screenshots below from the major booking platforms to give you a sense of how pricing is now displayed.

Bookvrc.com

image displaying vacation rental total pricing

Vrbo

Airbnb

Fun Fact: Ever wonder why it’s more expensive to book on Vrbo or Airbnb than on VRC’s website? Both platforms charge travelers a booking fee on every reservation made through their sites. On average, that fee ranges between 5% and 15%. The most cost-effective option for guests is always to book directly through our website.

Performance Benchmarking: Rest Assured, Your Property Is in the Right Hands

With the vacation rental market becoming more competitive, it’s important for homeowners to know their property is managed by the right team. At Vacation Rental Collective, our portfolio consistently outperforms the market in key metrics such as RevPAR (Revenue per Available Rental) and Occupancy across our destinations, giving our homeowners peace of mind that their property is managed by the best in the business.

*In the charts below, Vacation Rental Collective’s performance is shown in blue, while the market average - which includes both competitors and self-managed properties - is shown in brown and purple. Data Source: KeyDataDashboard

Purgatory Resort

Bend, OR

Vail & Beaver Creek, CO

Front Range, CO

Ouray & Ridgway, CO

Creede & South Fork, CO

Our Teams Are Working Hard To Prepare Your Homes

Our dedicated teams are conducting thorough pre-arrival inspections to ensure each home is spotless, safe, and guest-ready. We take pride in these checks to maintain the highest standards for your property and provide an exceptional experience for every guest. Plus, to add a special touch, we’re continuing our tradition of leaving thoughtful gifts to welcome guests and make their stay memorable. Thank you for trusting us to care for your home!

Bend, OR

Creede, CO

Denver, CO

Vacation Rental Collective is Now Live on Capital One Travel

Maximizing Exposure: We’re excited to share that Vacation Rental Collective has expanded our distribution network to include Capital One Travel - a next-generation booking platform available exclusively to Capital One cardholders. With access to over 100 million Capital One account holders, this partnership is designed to help drive even more bookings to your home.

Capital One Travel allows cardholders to earn elevated rewards and seamlessly book vacation rentals—and other travel plans—using their cardholder points. Through this integration, your property is being marketed to:

Affluent Travelers

Premium cardholders seeking high-end, curated travel experiences

Value Drive Guests

Savvy travelers using predictive tools to find the best deals without sacrificing quality

Young, Spontaneous Explorers

A growing segment that prioritizes unique, flexible, and last-minute stays

Loyal Capital One Customers

A massive base of engaged, pre-qualified travelers with flexible budgets

What This Means for You
By positioning your home alongside other premium travel options, we’re not only elevating the perceived value of your property but also capturing high-intent, loyalty-driven travelers at the moment they’re ready to book.

With VRC, your property isn’t just listed—it’s strategically placed in front of the right audience, at the right time, through platforms shaping the future of travel. We’re excited about the opportunities this partnership brings as we continue to leverage this growth channel.