Focus on Yorkshire's STR performance in 2025

By Zak Ali, Revenue Management Expert

What’s driving the shift in Yorkshire’s short-term rental (STR) market performance in 2025?

In this article, I break down the latest market data from Key Data, uncovering where revenue is being lost, why occupancy is softening, and how operators can respond. Spoiler alert: it’s not a pricing crisis – it’s a pacing, supply, and demand activation challenge.

I share actionable insights for revenue managers and operators looking to navigate a more competitive landscape while maintaining pricing discipline and profitability.

The data story beyond Yorkshire's STR performance

I’ve been analysing the latest regional performance report from Key Data, and the numbers paint a very clear story – but not the one many might expect.

What does it really tell us?

• This isn’t a pricing crisis.

• It’s not even a demand crash.

• It’s a capacity and conversion challenge.

  
  

The winners in 2025 will be those who respond surgically, not reactively. Let’s break it down.

Occupancy is down (-4%)

• Adjusted paid occupancy has slipped from 28.3% to 27.1% year on year (YoY).

• Meanwhile, supply has expanded: +3.6% in nights available.

  
  

My take on this: We’re not seeing fewer guests – we’re seeing the same demand diluted across a wider playing field. You will feel the squeeze unless you’re actively improving conversion and differentiation.

RevPAR pressure is seasonal

• RevPAR (revenue per available room) dropped from £40 to £37 YoY.

• But summer remains strong: £58 in July and August.

• The real declines are showing in March (£39) and November (£9).

My take on this: Peak is holding, but shoulder periods are underperforming – not because the demand isn’t there, but because we’re not activating it properly. It's a strategic marketing and lead-time problem.

ADR is holding its ground

• ADR (average daily rates) declined modestly from £140 to £137 (-2.4%).

• This is not a sign of market rejection – it’s a sign of selective consumer behaviour.

My take on this: The market is still willing to pay – but only when the value is clear. Cutting prices won’t fix underperformance; improving product-market fit will.

Guest volume and length of stay are stable

• Length of stay remains at five nights.

• Guest check-ins are virtually flat YoY.

  
  

My take on this: Demand hasn’t disappeared – it’s just taking longer to convert and spending more time considering options. You’re not fighting fewer bookings – you’re fighting for attention and clarity in a noisier space.

Note to revenue managers, operators, and commercial teams

1. Interrogate your shoulder season: where are the gaps, and are you doing enough to stimulate demand?

2. Maintain peak pricing discipline: compression still exists – don’t erode margins unnecessarily.

3. Use pacing windows wisely: monitor short-lead softness and act earlier, not louder.

4. Consider pulling nights rather than pricing them: not all availability adds value.

5. Optimise for profitability, not just volume: focus on contribution margin, not headline occupancy.

   
   

What’s the bigger message here?

2025 is not about 'holding on'. It’s about operating sharper. This market now rewards operators with data fluency, proactive strategy, and controlled ambition.

Zak Ali is a Host Planet Columnist and Revenue Management Expert with 15 years of international experience leading pricing strategy, yield optimisation, and distribution for hospitality businesses across Europe, the Americas, and Asia.

A PASC UK Board Member, Zak has played a central role in the design, development, and deployment of revenue management technologies, including dynamic pricing engines, integrated distribution platforms, and automated booking systems.

Connect with Zak on LinkedIn.