Vacation Rentals Surge, Hotels Under Pressure

The Skift Travel Health Index reveals a period of balanced growth in global travel, despite challenges in the hotel sector.

The global travel industry showed moderate growth in May 2025, with the Skift Travel Health Index reaching 102, indicating 2% growth year-on-year.

A deep dive into sector performance, however, reveals diverging trends between the two accommodation sectors: vacation rentals, which are soaring, and hotels, which are softening.

According to the latest Skift Travel Health Index report, vacation rentals are experiencing a surge, growing 12% relative to May 2024, while hotels witnessed a slowdown (2% year-on-year) in the face of growing economic uncertainties.

Skift Travel Health Index Score by Sector

Short-term rentals emerged as