Understanding the market is the key to unlocking the potential of Orlando’s vacation rental market. The Greater Orlando vacation rental market is undergoing significant changes in 2025, driven by evolving traveler preferences, increased hotel competition, and broader economic factors. For short-term rental (STR) owners—or those considering entering the market—understanding these trends is essential to staying competitive and maximizing returns.
At Shine Villas, we’re dedicated to ensuring your property not only keeps pace with the market but stands out as a top choice for travelers. Here’s an in-depth look at the latest insights and how we can help you navigate the road ahead.
Market Performance: Hotels vs. Short-Term Rentals
The Orlando market has faced some challenges over the past year, particularly when compared to pre-pandemic (2019) benchmarks. While hotels have seen a decline in occupancy rates—down to 71.6% in 2024 from 77.6% in 2019—short-term rentals have shown resilience, albeit with some variability.
Short-term rentals in Orlando are experiencing occupancy rates ranging from 48% to 65%, depending on the property type and location. The average daily rate (ADR) for STRs currently sits around $113 per night, though this figure varies widely based on factors like property size, quality, and proximity to attractions. Seasonality continues to play a significant role, with peak seasons driving strong demand while shoulder seasons require more strategic pricing and marketing efforts.
Key Market Influences Shaping 2025
Several factors are shaping the Orlando vacation rental market in 2025, and understanding these influences is critical for success.
- Hotel Expansion and Increased Competition
Orlando is home to 25% of all new hotel rooms under construction in Florida, significantly increasing competition for visitor stays. This surge in supply means STR owners must work harder to differentiate their properties and offer unique value to travelers. - Economic Pressures on Travelers
Rising credit card debt and delinquencies in the U.S. are affecting travel budgets and spending habits. Travelers are becoming more price-sensitive, making competitive pricing and value-added amenities more important than ever. - Hurricane Impact on Demand
Natural disasters, such as Hurricanes Helene and Milton, temporarily boosted demand in some Florida markets in late 2024. While these events can create short-term spikes in bookings, they also highlight the importance of having a flexible and responsive pricing strategy. - International Travel Recovery
While outbound U.S. travel is strong, inbound international visitor numbers remain below 2019 levels. This slow recovery impacts Orlando’s international traveler market, which has historically been a key driver of tourism in the region.
Outlook for 2025 and Beyond
Looking ahead, Orlando’s vacation rental market is expected to see moderate growth, with RevPAR (Revenue Per Available Room) forecast to increase by 5.4% in 2025. However, this growth comes with challenges. The influx of new hotel rooms means STR owners must focus on differentiation, strategic pricing, and exceptional guest experiences to remain competitive.
Successful STR owners will need to prioritize high-quality listings, strong branding, and innovative marketing strategies. At Shine Villas, we specialize in helping owners navigate these challenges, ensuring their properties not only meet but exceed traveler expectations.
Here’s our take: Actionable Strategies for Orlando STR Owners
At Shine Villas, we believe that proactive management and strategic planning are the keys to success in today’s competitive market. Here’s how we help our owners stay ahead:
- Optimize Pricing for Maximum Revenue
With ADR growth slowing, dynamic pricing strategies are essential to maximize revenue. Our team uses advanced tools and market data to adjust pricing in real time, ensuring your property remains competitive while maximizing profitability. - Enhance the Guest Experience
To compete with hotels, STRs must offer more than just a place to stay. We help owners create memorable guest experiences by incorporating amenities like early check-ins, themed décor, and personalized local recommendations. These touches not only attract guests but also encourage repeat bookings and positive reviews. - Boost Visibility with SEO and Reviews
In a crowded market, visibility is key. We optimize your listings with SEO-friendly descriptions and high-quality photos, ensuring your property stands out in search results. Additionally, we work with guests to secure 5-star reviews, which play a crucial role in attracting future bookings. - Adapt to Seasonality with Targeted Strategies
Seasonal fluctuations in demand require tailored strategies. During slower periods, we help owners attract bookings by offering discounts, extended stay options, or targeting niche markets like remote workers. This approach ensures consistent revenue year-round. - Diversify Booking Channels
Relying on a single platform like Airbnb or VRBO can limit your property’s visibility. We leverage multi-channel distribution, including direct booking websites and niche travel platforms, to maximize your reach and revenue potential.
Partnering with Shine Villas for Success
Orlando remains one of the strongest short-term rental markets in the U.S., but success in 2025 and beyond requires more than just owning a property—it demands strategic management, adaptability, and a commitment to excellence.
At Shine Villas, we’re here to help you navigate the evolving market with confidence. From optimizing your pricing to delivering unforgettable guest experiences, we provide the expertise and support you need to keep your property at the forefront of the Orlando market.
Ready to elevate your vacation rental? Contact Shine Villas today to learn how we can help you maximize your rental income, streamline operations, and ensure your property shines in a competitive marketplace. Let’s work together to make 2025 your best year yet!