Revenue management in 2026: why intent matters more than ever

The short-term rental market has changed – and hosts who fail to adapt risk falling behind.

On a recent episode of the Host Planet Podcast, Zak Ali, Co-Founder of Launchbase, joined James Varley to unpack what the data is really telling us about revenue management, pricing, and performance heading into 2026. The conversation offered a refreshingly grounded view of where the market stands – and where opportunities still exist.

Catch the full episode on YouTube, Spotify, or Apple.

Shorter stays aren’t a warning sign – they’re a signal

One of the standout themes from the discussion was the continued decline in length of stay. According to the data Zak has been analysing, average stays dropped to around 3.7 nights in 2025, with early signals suggesting a further marginal decline in 2026.

But Zak was clear: this isn’t something hosts should panic about.

Shorter stays don’t mean weaker demand. Instead, they signal tighter intent. Guests are still travelling – they’re just committing later and staying for more defined, purpose-driven trips. The real risk, Zak explained, isn’t the length of stay itself, but poor calendar management, which leads to awkward gaps, late discounting, and unnecessary volatility.

Minimum stays need an annual reset

When guest behaviour changes, strategy must follow.

Zak emphasised that minimum stay rules shouldn’t be fixed forever. Just like pricing, minimum stays should be reviewed at least annually, using real data rather than instinct. In markets where operators insist on rigid seven-night stays, many are simply blocking demand without realising it.

The key, Zak said, is education – particularly when dealing with owner expectations. Showing how length-of-stay patterns have shifted can help bring stakeholders on board and unlock more flexible, revenue-positive strategies.

Rates didn’t really rise – tolerance collapsed

While UK daily rates increased by around 4% in 2025, Zak was keen to clarify what drove that change. In most cases, rates didn’t rise because hosts were earning more – they rose because guest tolerance for low-value nights collapsed.

Midweek gaps and shoulder nights became harder to fill, pushing average rates up statistically, even though overall profitability remained tight once rising costs were factored in. The takeaway? Revenue management today is less about pushing peak pricing and more about protecting the calendar.

Search data reveals intent before bookings appear

One of the most valuable insights from the episode was Zak’s focus on demand intent, particularly search data.

In 2025, search activity peaked weeks before bookings followed – creating what Zak called a crucial “reaction window”. Operators who understood this window could adjust pricing and visibility early, while others panicked and discounted too late.

Bookings show what already happened. Search shows what’s about to happen. In 2026, operators who manage from intent – not just confirmed revenue – will be far better positioned to shape outcomes rather than react to them.

Cornwall proves where the real opportunity lies

Cornwall, often seen as a “solved” market, offered one of the clearest lessons. The strongest performers in 2025 didn’t squeeze more from August – they won in the shoulder seasons.

April, May, September, and October were where revenue was made, driven more by occupancy than price. Three-bed homes in strong locations performed particularly well, proving that summer will sell regardless – but shoulders need strategy.

The bottom line in revenue management in 2026

Zak summed it up perfectly: demand didn’t disappear – it reorganised.

Peak periods still matter, but they no longer carry the entire year. In 2026, success will come from earlier action, greater flexibility, and a deeper understanding of intent, not hope.

For hosts and property managers willing to adapt, the opportunity is still very much there.