Once upon a time, Airbnb hosts could pop a few colorful throw pillows on their foldout couch and make a killing. But no more.
“The STR game has changed drastically,” says Andy Saintilus, a short-term rental (STR) host in Florida with six properties. Five years ago, when he started, “You could list a basic home with generic furniture, minimal amenities, and no Wi-Fi, and still get booked. Today? It’ll sit empty [unless] you offer more than just a place to sleep. You have to build an experience.”
Saintilus pulled out all the stops to deliver, adding outdoor kitchens, arcade machines, putting greens, basketball courts, and more. Although these upgrades cost a lot upfront, they paid off. “They’ve nearly doubled my nightly rate,” he says. “But they’ve also come with more responsibility and cost. Turf looks great until trees start dropping fruit and leaves. And no matter how clean the space is, some guests expect it to be flawless 24/7.”
Although his business is profitable, and he coaches new hosts on how to follow in his footsteps, Saintilus now warns them: “It’s no longer passive income,” he says. “It’s a full-scale hospitality operation, and if you don’t treat it like one, you’ll fall behind.”
“Nice house” no longer cuts it
“Running a short-term rental today is nothing like it was even three years ago,” agrees Andrea Clarkson, an Airbnb Ambassador, STR design consultant, and author of Stylish Stays: The Complete Guide to Airbnb Design, Setup, and Success. “You used to be able to stand out with a decent bed and cute throw pillows. Now? Guests are comparing your place to boutique hotels.”
For her own rental in Pullman, WA, she invested in design-forward furniture, layered lighting, and “moments” like cozy reading corners and luxe bathroom setups. “I also designed my own welcome guide and a brand identity—name, logo, story to give the place personality,” Clarkson says. “It worked: We’ve seen more bookings, better reviews, and guests sharing the space on social like it’s a lifestyle destination.”
Some hosts have joined forces with outside partners like Rove, which has transformed over 150 passive rentals across the country into “wow”-worthy experiences by adding welcome champagne in ice buckets, on-site sommeliers and private chefs, daily housekeeping on demand, 24/7 textable concierges, heated plunge pools, and other amenities. These upgrades don’t come cheap: In one rental in Sag Harbor, NY, a Rove property owner invested $85,000 into overhauling the landscaping and adding a James Turrell–inspired LED light installation. But overall, these improvements boost rental revenue by an average of 40% over what the property was collecting previously.
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“The STR arena has become a knife fight,” says Rove CEO Jonah Hanig. “Soaring supply, day-rate compression, and AI-driven pricing tools mean that ‘nice house, good photos’ no longer cuts it.”
An amenities arms race
“It’s definitely become more competitive to win short-term rental bookings, noticeably so in the past 12 months,” agrees Christina Melander, an STR host and founder of Knotty Pine Design. “I think three forces are driving the trend: a huge increase in the number of STRs, economic uncertainty making people less inclined to travel, and boutique hotels raising guest expectations and creating an amenities arms race.”
But Melander has found that she doesn’t need to spend tons to dazzle guests. At her rental in Keene, NH, “We always welcome guests with a freshly baked loaf of banana bread made by my sister Heather,” she says. At her rental in Tucson, “I sourced most of the furnishings from thrift stores to create a one-of-a-kind space that’s the antithesis of generic, off-the-rack styling. Heather painted a mural on the pool gate. These aren’t over-the-top, flashy additions, which I think can feel gimmicky; rather, they’re impactful updates that wear well.”
Whether they spend a little or a lot, Airbnb hosts say they must work harder to keep guests happy.
“We treat it like a business, not a side hustle. This mindset is key to staying competitive in a demanding market,” says New Orleans Airbnb host Stephen Keighery. “We’ve leaned into higher upfront investment because we know guests will pay for a turnkey, Instagrammable experience.”
“This is a classic early adopter issue: The first wave of Airbnb hosts were riding a blue ocean: No competition, no standards, and plenty of bookings made a lot of people fat and happy. But that’s not where we are now,” says Sarah Thomsen at Thomsen Real Estate, who opened two STRs in Colorado two years ago, right when the market was heating up. In Dillon, she branded her mountain property, The Goodness, as a high-end alpine escape with a wood-burning fireplace and luxury bedding. In Denver, she leaned into remote work setups and lounge vibes. Even though she’s new to hosting, both units outperform comparable properties.
“That’s not a fluke,” Thomsen says. “It’s design, intentionality, and guest experience. Financially, the effort has paid off. But it’s not passive. It’s hospitality.”