Vacation-rental demand index posts record July rebound
Hostfully’s July index rose sharply as cheaper gasoline, better consumer sentiment and a record July 4 travel forecast lifted U.S. travel demand.
By Hana Yoshida · Markets Reporter
3 min read
U.S. vacation-rental and travel demand staged its largest monthly rebound in July, helped by cheaper gasoline, improving consumer sentiment and a record Independence Day travel forecast. The jump matters for travel operators because it points to stronger summer booking interest, while higher lodging prices continue to pressure household budgets.
Hostfully, a vacation-rental property management software provider, reported that its Hosting & Travel Index climbed 14.3 points from June to a Getaway Score of 63.5 out of 100. The company described the move as the biggest one-month increase since the index began.
The index is a monthly composite score for the U.S. vacation-rental and travel market. It combines seven signals: Hostfully booking data, TSA throughput, Google search trends, gasoline prices, lodging inflation, consumer sentiment and weather.
Gas prices and confidence led the rebound
Several travel indicators improved at the same time. The national average for gasoline fell to $3.86 a gallon, down 15% over six weeks and below $4 for the first time since late March, according to figures cited in the index.
Consumer sentiment rose 10.5%, the second-largest monthly increase on record, based on University of Michigan data cited by Hostfully. AAA forecast 72.2 million Americans would travel during the July 4 holiday week, a record, with 85% expected to drive.
Those figures point to a summer travel market led by road trips. Lower fuel costs can make driving vacations more affordable, while high airfare can push some travelers away from flying.
- Getaway Score: 63.5 out of 100, up 14.3 points from June
- July 4 travelers: 72.2 million forecast by AAA
- Share expected to drive: 85%
- National gasoline average: $3.86 a gallon
- Consumer sentiment: 49.5, up 10.5%
- Lodging CPI: up 4.2% year over year
Five of the seven index signals improved in July: sentiment, gasoline prices, TSA throughput, search trends and weather. Hostfully platform data was flat, while inflation moved against the broader improvement.
Affordability remains the weak spot
Travel costs remain a drag even as demand indicators improved. Lodging CPI rose 4.2% year over year, which Hostfully said was the highest reading since 2023.
Other travel expenses also ran hot in the data cited by the company. Airfares climbed 26.7% from a year earlier, hotel prices increased 5.1%, and the U.S. Travel Association’s Travel Price Index rose 9.8% year over year for its fourth straight accelerating month.
The result is a market where more travelers may be willing to book, but price sensitivity remains high. That has direct implications for vacation-rental managers setting nightly rates, minimum stays and discount strategies during peak summer weeks.
Southeast markets pulled ahead
All U.S. regions improved in July, but the Southeast posted the strongest score at 78.0 and entered “Partly Sunny” territory for the first time this year. Hostfully tied the region’s performance to a quieter hurricane season, lower gas prices and strong drive-market demand.
The Midwest had the lowest regional score at 48.0. The 30-point gap between the Southeast and Midwest was the widest spread recorded by the index since its April launch.
Southeast beach and mountain destinations led the city rankings. Destin, Myrtle Beach, Gulf Shores, Outer Banks and Gatlinburg each received “Sunny” ratings in the July vacation-rental travel demand index. Jackson, Mississippi, and Lake Tahoe posted the largest monthly gains, while Houston and Galveston declined as Tropical Storm Arthur affected those markets.