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Report: Vacation rentals outpace hotels

Younger guests drive changing lodging choices

Report: Vacation rentals outpace hotels

An Alchemer report finds vacation rentals outpacing hotels on loyalty and guest satisfaction among younger travelers.

Photo credit: iStock
  • Vacation rentals post higher NPS than hotels in 2026.
  • Most 30- to 44-year-olds read reviews before booking.
  • Cleanliness tops guest priorities for hotels and rentals.
YOUNGER TRAVELERS ARE increasingly choosing vacation rentals over hotels, while older travelers continue to stick with branded hotel stays, according to a report. The divide is widening along generational lines and is starting to show up in loyalty numbers too.
Alchemer's “2026 Hospitality Benchmark Study: Hotels vs. Vacation Rentals” report, which surveyed 1,014 U.S. travelers, found vacation rentals now post a Net Promoter Score of 50.9 against hotels at 41.8, a gap that is significant by industry standards. Around 96.4 percent of rental guests rated their stay positive, compared with 93 percent for hotels.

The generational split behind these numbers is clear. Among travelers aged 61 and older, 64 percent plan to book mostly hotels in the next year, while just 11 percent lean toward short-term rentals. Flip to the under-30 group and the picture reverses, with 37 percent leaning toward rentals and 29 percent mostly choosing hotels.

“The hospitality industry has never had more access to guest feedback than it does today,” said Bo Bandy, Alchemer CMO. “If hotels want to win business away from vacation rentals, they need to listen, respond and make visible improvements that align with customer feedback, generational expectations and unique guest experiences for each audience.”


Feedback handling is another area where hotels are falling short. Around 23.4 percent of hotel guests said they were never asked for feedback at all, compared with 13.8 percent for rentals. Of those who did give feedback, only about one in five saw any visible change come from it. Hotels left 20.4 percent of feedback-givers with no response at all, compared with 11.9 percent for rentals.

When it comes to what actually drives a good stay, cleanliness sits at the top across both hotels and rentals. Around 63 percent of guests said cleanliness is the most important factor, ahead of cost and value at 44.8 percent and room comfort at 37.7 percent.

Gen Z stood out as the most demanding group in the study. Travelers between 18 and 29 posted the lowest satisfaction scores, with just 57 percent rating their stay very positive

compared to around 70 percent for older groups. Around 35 percent of younger travelers flagged an issue during their stay, compared with just 8 percent of those aged 61 and older. They are also the quickest to dispute charges and the least likely to rebook.

Reviews are increasingly central to booking decisions, especially among younger travelers. Around 87 percent of travelers aged 30 to 44 read reviews before booking and 37 percent said reviews are extremely influential.

Another report by Phocuswright highlights a modest recovery in U.S. hotel performance for 2026, supported by steady demand and growing OTA share.

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