UK short-term rental occupancy paced 5% higher in December 2025

On December 16, 2025, short-term rental analytics company Key Data reported that UK short-term rental occupancy for December 2025 was pacing 5% higher year-over-year. Average daily rates (ADR) for the month rose 3% compared to the same period in 2024, while revenue per available rental (RevPAR) paced 7% higher.

According to Key Data's UK Winter 2025 Index Report, these figures pointed to firm winter demand and strengthening pricing conditions heading into the holiday season. The performance followed a solid autumn foundation, where steady growth in occupancy and rates helped build positive momentum as the year progressed. Key Data reported that October RevPAR rose 8% year over year, while November RevPAR increased 5%. These autumn gains were supported by consistent ADR growth of between 4% and 7% across September, October, and November.

What the data shows

The UK Winter 2025 Index Report published by Key Data outlined a clear upward trajectory in performance metrics as the year drew to a close. While the first half of the year had experienced mixed signals, the autumn and winter periods demonstrated a strengthening market. In October, RevPAR rose 8% year over year, and in November, it increased 5%. Key Data attributed this performance to consistent average daily rate growth of between 4% and 7% during the autumn months.

This late-year acceleration contrasted with the more moderate growth recorded during the summer. In the third quarter of 2025, Key Data reported that paid occupancy rose 1% year over year, while average daily rates rose 3% and RevPAR rose 4%. According to the analytics firm, this third-quarter growth was led primarily by properties in England and Scotland.

The report also highlighted significant behavioral shifts among travelers, particularly in how they booked their stays. During the third quarter of 2025, the share of reservations made directly with property managers fell from 53% to 45% year over year. In contrast, online travel agencies (OTAs) gained ground. Booking.com increased its reservation share from 17% to 22% and its revenue share from 11% to 15% during the third quarter, reinforcing its growing influence on both booking volume and guest spend. Airbnb also gained ground during this period, though the report did not specify its exact market share figures.

Furthermore, guests opted for shorter stays and shorter lead times. Stay lengths declined slightly across September, October, and November. Booking windows fell by between 4% and 7% year over year, highlighting a shift toward later, more spontaneous trip planning among travelers.

How it was measured

Key Data produced these figures for its UK Winter 2025 Index Report. The primary press release stated that the report tracked real-time performance across over 1.2 million direct-sourced short-term rental properties nationwide. However, the technical notes to editors accompanying the release specified that all data cited in the report was sourced from Key Data's UK Winter 2025 Index, which tracked real-time performance across 85,000 short-term rental properties in the UK.

The index compiled anonymized reservation data sourced directly from integrated property management systems (PMS). This data covered demand, revenue, pricing, and guest behavior trends. Key Data stated that its platform uniquely combined direct PMS data with OTA data to provide visibility into portfolio and market performance. The analytics firm updated its platform daily and utilized over 45 forward-looking key performance indicators (KPIs) to analyze the short-term rental market.

What moved these numbers

The changes in occupancy, rates, and revenue were driven by a combination of firm winter demand and shifting traveler habits. Key Data reported that the positive pacing for December 2025 was supported by strengthening pricing conditions heading into the holiday season, which allowed operators to maintain higher rates without sacrificing occupancy.

The shift in booking behavior was a major factor in the changing distribution of revenue. The decline in booking windows by 4% to 7% year over year indicated that travelers were waiting longer to book their trips, leading to a more compressed booking cycle. This shift toward spontaneous planning favored online travel agencies over direct booking channels, as guests utilized the search and comparison tools of major platforms to secure last-minute accommodations.

The rise of Booking.com was particularly notable. By increasing its reservation share from 17% to 22% and its revenue share from 11% to 15% in the third quarter, the platform demonstrated its capacity to capture both volume and guest spend. Key Data indicated that this trend, alongside gains made by Airbnb, came directly at the expense of direct bookings, which fell from 53% to 45% of reservations year over year.

Who was affected

These performance trends had direct implications for short-term rental operators, property managers, and investors across the UK. The rise in occupancy, ADR, and RevPAR heading into the holidays provided what Key Data described as a valuable cushion for operators, helping them offset some of the operational pressures experienced earlier in the year.

However, the shift away from direct bookings to online travel agencies created new financial and operational challenges. Because direct booking share fell to 45%, property managers and hosts had to rely more heavily on third-party platforms, which typically charge commission fees. This transition squeezed profit margins, as a larger portion of reservation revenue was directed to platforms like Booking.com and Airbnb.

The operational demands on hosts and property managers also intensified. Shorter stay lengths across September, October, and November meant higher turnover rates, increasing the frequency of cleaning, maintenance, and guest communications. Combined with booking windows that fell by 4% to 7%, operators had less lead time to schedule staff and manage inventory, putting greater pressure on pricing strategies and channel management.

Sally Henry, Vice President of Business Development, EMEA at Key Data, commented on these operational pressures in the report:

“December’s strong pacing is a clear indication that demand remains present, even in a year defined by mixed signals and shifting traveller behaviour. Occupancy, ADR, and RevPAR are all trending ahead of last year heading into the holidays, which gives operators a valuable cushion. At the same time, the data shows guests are booking later, staying for shorter periods, and relying more heavily on OTAs. That creates new operational pressures and puts more weight on pricing strategy, channel diversification, and maintaining visibility across platforms.”

What the data did not tell you

While Key Data's report provided a comprehensive overview of national trends, it left several key questions unanswered. First, the report noted that third-quarter growth was led by England and Scotland, but it did not provide any specific performance metrics, occupancy rates, or average daily rates for Wales or Northern Ireland. This omission makes it difficult to assess how the short-term rental markets in those regions performed during the same period.

Second, the data did not break down performance by property type or location type, such as urban apartments versus rural holiday homes. Because market dynamics can vary significantly between major cities like London or Edinburgh and coastal or rural destinations, the national averages may mask significant localized variations.

Third, although the report stated that stay lengths declined slightly across September, October, and November, it did not publish the actual average length of stay in nights. Similarly, while it reported that booking windows fell by 4% to 7% year over year, it did not disclose the actual average number of days in advance that bookings were made. Without these absolute figures, operators cannot easily compare their own portfolio averages to the national benchmark.

Finally, the report did not specify the exact market share or revenue share gains achieved by Airbnb, despite noting that the platform, alongside Booking.com, gained ground as direct booking shares fell.

What to take from it

For short-term rental operators, the late 2025 data highlights the importance of adapting to changing guest booking habits rather than relying solely on high top-line demand.

• Compare direct booking shares against the national benchmark of 45% to evaluate whether your brand loyalty and direct marketing strategies are performing effectively against major OTAs.
• Monitor local booking lead times to see if they align with the 4% to 7% year-over-year decline reported nationally, adjusting dynamic pricing rules to capture late-booking travelers.
• Assess whether holiday occupancy gains are being offset by shorter stay lengths, which increase cleaning costs and operational turnover pressures.
• Evaluate channel distribution strategies to ensure properties remain highly visible on platforms like Booking.com, which expanded its revenue share to 15% in Q3.