How AI is Reshaping the Short-Term Rental Industry in 2025

Insights from Hostaway’s 2025 STR AI Report

Artificial intelligence (AI) is no longer a futuristic buzzword—it’s fast becoming a tool that short-term rental hosts can’t afford to ignore. Hostaway’s 2025 industry report surveyed 500 STR owners and property managers, and the results show a major shift: AI is transforming everything from pricing to guest communication and operational efficiency.

Let’s break down the key findings and what they mean for Nashville hosts.

AI Adoption Is Booming

Just six months ago, over half of STR professionals said they hadn’t used AI—or weren’t sure if they had. Now?
 70.1% say they are actively using AI
 61.8% believe it provides a competitive advantage

This shift shows just how quickly our industry is evolving. Whether you’re managing one listing or a whole portfolio, AI is creeping into the daily tools you rely on—and it’s making a difference.

Top Ways Hosts Are Using AI

Hosts and managers are putting AI to work in highly practical areas:

• Price Optimization: 41.4% use AI to set smart, dynamic pricing
• Marketing: 30.1% are creating ads, posts, and campaigns with AI tools
• Chatbots and Guest Messaging: 29.7% are using AI-driven communication tools

While some hosts are still skeptical—about 29.3% say they’re not using AI at all—those who are using it are seeing clear benefits, especially when it comes to saving time.

Time is Money: AI’s Biggest ROI

Let’s talk productivity.
Over 35% of respondents said AI saved them at least two hours per week, which adds up to four full workdays a year
For large portfolios (26+ properties), that number jumps to 46.6%

So where is that reclaimed time going?

• 37.6% say they’re using it to grow their business
• 28.5% are enjoying more personal time
• 24.9% are enhancing the guest experience

What About Cost Savings?

AI hasn’t translated into widespread monetary savings yet:

• 66.2% reported no noticeable cost savings
• But 33.8% have seen real financial benefits—and that increases significantly for large-scale operators

Still, the time-saving aspect alone makes AI a worthy investment for many.

Impact on Occupancy? Still Unclear.

AI’s direct impact on bookings is murky:

• 76.8% of hosts said they weren’t sure or saw no change in occupancy
• Interestingly, smaller portfolio managers were more likely to report positive booking impacts than large-scale operators

Bottom line: AI might not magically fill your calendar, but it can free you up to focus on the things that do.

Tools Hosts Are Using

Unsurprisingly, ChatGPT is leading the charge:

• 97.5% of respondents had used ChatGPT (either free or paid)
• Only 18% had tried industry-specific hospitality AI tools (expect that number to rise!)

Concerns Still Exist

Despite optimism, many STR professionals are proceeding with caution:

• 64.8% doubt AI can help build genuine human connections
• 54.4% don’t trust AI with complex guest complaints
• 32.5% have ethical or privacy concerns

Even so, the mood is largely positive:
75.9% are “highly” or “cautiously” optimistic about AI’s future in our industry.

What AI Can’t Do (Yet)

Respondents were clear about where AI falls short—for now:

• Genuine human connection (64.5% say AI can’t replace this)
• Nuanced customer issues
• Understanding local market flavor
• Building guest trust and making ethical decisions

For hosts in Nashville, this is key. Our southern hospitality, personalized touches, and unique properties are what make us stand out. AI is a tool—but the heart of the experience is still us.

Looking Ahead

One thing is certain: AI isn’t going away.
Hosts who adopt and adapt now are likely to stay ahead. As the tools evolve, we’ll likely see even better solutions tailored to STRs—especially those that blend automation with authenticity.

For now, it’s not about replacing hosts—it’s about amplifying what we do best. Automate the repetitive stuff, and spend more time creating amazing guest experiences.

Final Thoughts for NASTRA Hosts

If you haven’t yet dipped your toes into AI, now’s the time. Start small:

• Use ChatGPT to write listing descriptions or guest replies
• Try a dynamic pricing tool with AI features (like Beyond or Wheelhouse)
• Explore chatbot integrations for automated guest messaging

And remember—AI is a tool, not a replacement. The magic of Nashville STRs is still rooted in the human touch.