As the vacation rental landscape continues to evolve, staying ahead means more than just managing properties well, it requires embracing innovation, anticipating guest needs, and adapting business models for long-term sustainability.

During Breezeway’s ELEVATE 2025 Summit, industry leaders, including Jeremy Gall of Breezeway, Alex Zemianek of JZ Vacation Rentals, Freeman Richards of Brightworks Property, JJ King of Beachside VR, and Simon Lehmann of AJL Atelier, shared their insights on what lies ahead for vacation rental operators. From AI-powered operations to shifting guest expectations and emerging market forces, here are the top trends shaping the future of vacation rentals.

Artificial intelligence is here, just not how you think

The term “AI” often evokes thoughts of chatbots or ChatGPT, but the technology’s real power lies behind the scenes. JJ King of Beachside VR was quick to debunk the misconception that AI is limited to guest messaging: “AI = ChatGPT, that’s what people think. But there’s so much more coming. It’s how we interpret data, automate tasks, and even how guests interact with our brands.”

Instead of focusing only on guest-facing tools, savvy operators are using AI for backend efficiencies. Alex Zemianek of JZ Vacation Rentals described how his team uses AI to summarize Slack messages, scan thousands of guest reviews for actionable insights, and even save money by working so efficiently: “It’s like handing your team a chainsaw instead of an axe.”

Freeman Richards of Brightworks Property added that while chatbots have their place, they can’t replace hospitality: “We make it clear when guests are speaking to AI, and we define when real humans are available. That transparency is key.”

Balancing automation with hospitality

Technology can streamline communication and workflows, but it shouldn’t come at the cost of the guest experience. As Jeremy Gall of Breezeway noted, “It’s not robotic, it’s bionic, which means humans still need to be involved.” Automating too much can backfire. JJ King shared how his team tried AI for guest messages, but the tone missed the mark: “It didn’t hold up to our hospitality standards. It went a little rogue.”

That’s why striking the right balance is so important. As Simon Lehmann aptly put it, “Put human capital where it creates a smile, and put technology where it creates efficiency.” The best guest experiences still require a human touch, and AI should enhance that, not erase it.

Operators are finding creative ways to use AI as an internal support system. For example, AI can convert guest feedback into task lists, assist with SOP creation, or even guide a maintenance technician on-site. “You can point your phone camera at a water heater and get step-by-step instructions on how to fix it,” said Zemianek. “There’s no reason to ever waste time calling a 1-800 number again.”

Zemianek also offered a forward-looking take on adoption: “You can't replace humans with AI, but you can replace humans not using AI.” In other words, those who embrace the technology to amplify their teams will outperform those who ignore it. By using AI to reduce manual workloads and empower staff, operators can preserve what makes hospitality special while working smarter behind the scenes.

Business models are shifting, and staying local matters

While AI and tech dominate the trend conversation, structural industry shifts are just as critical to stay on top of. The panelists discussed growing consolidation among property management companies and the rise of large brands shifting their business models. For example, King noted, “Marriott launched Apartments by Marriott Bonvoy, Airbnb is building its own hotels now, and we’ll see more national brands building purpose-built vacation rentals. That creates big opportunities for entrepreneurs but also a lot of competition for local operators.”

But despite this, local expertise still matters deeply. “Property management is hyperlocal,” said Gall. “Even when companies roll up brands, they maintain those local identities because they matter to owners and guests.” Lehmann echoed this, pointing out that the industry has long failed to produce a strong consumer-facing brand at scale, mainly because local relationships and trust are what drive success.

Sustainability and regulation are long-term considerations

Sustainability and regulation remain critical strategies in 2025. “Sustainability may not top the trends list this year,” Lehmann said, “but it’s still there and it’s not going away. And regulation is here to stay, we need to lean into it and help shape it.”

Gall reinforced this point: “The complexity of our industry is growing. That’s actually good news for professional managers. It creates a moat. Property owners are realizing you need expertise to succeed in this space.”

Use AI to amplify, not replace

The biggest takeaway? Technology should empower your team, not eliminate it. As Alex Zemianek put it: “You can't pull the soul out of the hospitality, you need a human to have that soul.”

Operators who embrace AI for internal efficiencies, remain adaptable in a changing market, and double down on personal guest care will be the ones who stay ahead. Zemianek added, “Operators that quickly adapt to that change can chop a year's worth of work down into a week, or a week into a day, or a minute.” Whether it’s leveraging automation for smarter maintenance, scaling operations without sacrificing service, or navigating evolving business models, the future of vacation rentals belongs to those willing to innovate with heart.

View all of the expert resources shared during ELEVATE 2025 and the full session recordings to continue elevating your property operations.