Avalara, Inc., a leading provider of tax compliance automation software for businesses of all sizes, today announced the findings of a recent survey that sheds light on the preferences and behaviors of travelers concerning short term rentals (STR). The survey was conducted by Bastion Insights during a summer travel season that saw bookings up 15% year-over-year during the Fourth of July holiday and found that 70% of respondents are open to considering STRs for travel accommodations. While the survey showed that STRs are gaining traction in the lodging industry, respondents also showed a preference for hotels, and 12% of travelers said they would not consider staying in an STR.

Avalara’s survey offers new insights into increased traveler preference for STRs as an option for lodging, particularly those traveling with families and large groups, even as cities in regions across the U.S. continue to limit or curb vacation rentals.

Key Findings:

  • Accommodation Preferences: Overall, half of respondents have stayed in an STR and 41% of respondents think STRs provide the best accommodations for those traveling with a family or large group. Travelers who prefer STRs prioritize rates (34%) and fee transparency (27%), likely due to ongoing inflation and economic considerations. Respondents 35 years and older are the most price sensitive. Those with children are the most concerned with securing pet-friendly accommodations as well as lodging that is conducive to larger groups.
  • 88% of travelers would book a second STR stay: Once travelers experience an STR stay, 88% are likely to consider booking one again. Travelers who have stayed in an STR credit them with having more benefits compared to other lodging options, which likely contributes to this high rate of satisfaction.
  • Increasing awareness of unique STR options is key to segment growth: The primary barrier to choosing an STR is the perception that there is only one type of listing. Indeed, 36% of travelers noted they might not need an entire house when traveling. To address this issue and meet diverse traveler needs, STR providers and industry organizations are encouraged to educate the public about the universe of options available, from single room lodging, to smaller apartments or condominiums, and unique properties ranging from yurts and treehouses to mansions.
  • Just 9% of travelers report a negative STR experience: Only one in 10 travelers considering a STR say there is a lack of availability in the areas they want. Only 9% cite having a prior unpleasant experience as a reason to not consider booking a STR again.
  • STR traveler profile is young and road savvy: The survey found those who have stayed in an STR tend to be younger and employed full time. They are also more likely to have traveled in the past year and plan to travel internationally in the next year.
Travel is the biggest mover of human beings, and perhaps never more so than in the 2024 summer travel season. Today’s traveler expects more choices in all facets of their journey, including lodging. Our survey results indicate strong demand and a growing appetite for diverse lodging options. Short-term rentals have become increasingly popular and are now a mainstream choice for travel. To fully realize their potential, the industry must focus on addressing consumer concerns about pricing transparency while highlighting the wide range of options. By educating travelers on these benefits, the STR sector can increase interest and actual bookings. Pam Knudsen, Senior Director of Compliance Services at Avalara

About Avalara

Avalara makes tax compliance faster, easier, more accurate, and more reliable for 41,000+ business and government customers in over 75 countries. Tax compliance automation software solutions from Avalara leverage 1,200+ signed partner integrations across leading ecommerce, ERP, and other billing systems to power tax calculations, document management, tax return filing, and tax content access. Visit avalara.com to improve your compliance journey.

Brian Austin
Avalara