While larger short-term rental (STR) property managers are typically the quickest on technology uptake, new data suggests extra small property managers, defined as those with up to 29 units, have the highest rate of artificial intelligence (AI) adoption.
According to KeyData’s 2027 Vacation Rental Industry Outlook survey, which included 392 responses from U.S.-based property managers, 89% of respondents are using AI for at least one application. The most common use cases are guest messaging automation (50%), followed by social media content (42%), portfolio performance insights (40%), knowledge base chatbots (32%) and review management and sentiment analysis (32%).
Extra small managers “show particularly broad” AI use, with 53% applying it to guest messaging and 50% using it for social media content. These managers also have the highest use of AI for owner reporting (31%) and sales development representative email personalization (25%).
“AI may be helping smaller teams extend their capacity across functions that would otherwise require more staff or specialized resources,” the report reads.
Extra large operators (500+ units) have the lowest overall AI adoption rate, but they have some of the strongest adoption of more analytical use cases.
“Portfolio performance insights lead at 53%, while 40% use AI for both knowledge-base chatbots and review management and sentiment analysis. This suggests lower overall adoption does not necessarily mean less sophisticated usage; AI may be implemented more selectively around specific high-value workflows at scale,” the report reads.
OTA reliance, anticipated revenue growth
In 2026, more operators said they expected to lower online travel agency (OTA) reliance than increase it (19% versus 11%, respectively). But for 2027, this metric has flipped, with approximately 18% planning to pull back and 25% planning to rely more heavily on OTAs.
Extra small managers are also the most likely group to increase OTA reliance (28%). Medium managers, those with 100-249 units, are the least likely to increase reliance (22.5%).
This shift, however, does not indicate decreased importance of direct booking.
“Instead, the 2027 responses point toward a more pragmatic view of distribution in which managers weigh reach, acquisition costs, direct demand, conversion and occupancy needs rather than treating lower OTA reliance as a goal in itself,” the report reads.
The percentage of property managers anticipating revenue growth has also increased from the 2026 report. About 77% of U.S. property managers expect revenue to grow in 2027, compared with 69% in last year's report.