Short-term rental bookings skyrocket on Labor Day

Take Skift

Some travel companies are reporting signs of a slowdown, but recent data—from AAA, TSA, and now short-term rental bookings—point to a strong holiday weekend.

David Habtemariam

There was a significant increase in short-term rental bookings this Labor Day weekend.

According to AirDNA, over 2.4 million nights were booked on short-term rental platforms for the four-day period ending September 1, up 13% from the previous year. In 2023, bookings for Labor Day weekend increased by only 2.4%.

Short-term room rental rates also rose on Labor Day, with the average daily rate reaching $329, up 13% from last year.

Bookings for rural, small town and beach destinations increased by 20.7% and 15.1% year-on-year, respectively, while urban destinations increased by just 1%.

The reason for the decline in urban destinations is New York City, where bookings are down 57 percent – after Labor Day last year, a law came into effect that imposed strict new rules and drastically reduced supply. “There are practically no short-term rentals left in New York,” said Bram Gallagher, economist at AirDNA.

Jersey City saw the largest increase in bookings at 36%. Napa Valley and Washington DC also saw big gains, each growing 33.5% year over year.

The stable economic situation is contributing to these gains, said Gallagher: “Inflation has fallen and the economy has so far avoided a recession.”

Strong travel demand

Labor Day weekend is expected to be a record year for air travel, with the Transportation Security Administration expecting to screen more than 17 million people – the highest number in its history.

According to AAA Travel, domestic travel is expected to increase 9% year over year, while international travel will decline 4%. To save money, more Americans are choosing domestic travel, said Paula Twidale, senior vice president at AAA.

In recent years, Americans have warmed to short-term rentals. According to Skift Research’s State of Travel report, the share of travelers who prefer short-term rentals over hotels increased from 7% in 2020 to 11% in 2023.