Why Vacancies Are Up and Tourism Is Slower in Orlando This Year

What Vacation Homeowners Need to Know in 2025

If you’ve noticed fewer inquiries and longer booking gaps in your vacation rental this year, you’re not alone. In 2025, vacancies are up and tourism is slower in Orlando—a trend that’s creating serious concerns for property owners across Central Florida.

At Renters Choice Homes, we’ve been tracking this trend closely. With significant shifts in international travel behavior—especially among Canadian and European visitors—vacation rental owners are feeling the squeeze. As seasoned property managers, our goal is to help you understand why this is happening and what you can do about it.

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A Sharp Drop in International Tourists

Historically, Orlando has been a magnet for international travelers, with Canada and Europe making up a large share of bookings in vacation hotspots like Kissimmee, Davenport, and South Orlando. However, in 2025, that has changed. International bookings have dropped significantly, and we’re seeing the effects across vacation rental markets.

Why Have Vacation Rental Bookings Slowed Down?

There are several converging reasons:

Rising airfare and travel costs are making it more expensive to visit the U.S., especially from across the Atlantic.
Weakening foreign currencies have reduced the buying power of international travelers, especially Canadians and Europeans.
Economic strain in key tourist markets is causing families to cut back on discretionary spending like vacations.
A growing preference for domestic or regional travel means fewer travelers are crossing borders.

In short, fewer tourists are making the long trip across the Atlantic or over the Canadian border—leaving more vacation homes sitting empty. Many vacation homeowners are finding unexpected gaps in their calendars, even during months that are typically in high demand.

Tariffs and Local Price Increases Add to the Strain

Even for those who do visit, rising costs in Central Florida are dampening the experience. Over the past year, new tariffs and ongoing global supply chain challenges have driven up the cost of everyday items. Tourists who come expecting an affordable getaway are now met with:

Higher restaurant prices
Increased theme park ticket costs
More expensive rental cars
Elevated grocery and retail costs

This has made Orlando less attractive compared to other warm-weather destinations, especially when travelers are seeking value for money. For international guests already burdened with unfavorable exchange rates, these rising local prices often make Florida vacations feel unreasonably expensive.

And it’s not just tourists feeling it—homeowners are too. The exact price hikes are affecting maintenance services, repairs, utilities, and home improvement materials. That means it costs more to keep a vacation rental guest-ready and competitive.

The Rising Costs for Vacation Rental Homeowners

Vacation rental owners are being hit on all sides. While bookings are down, the costs of operating and maintaining a vacation home have gone up dramatically. Here’s where many are feeling the pinch:

Utility bills are higher than ever, especially during hot Florida summers when air conditioning runs constantly.
Insurance premiums have seen sharp increases in recent years due to changes in climate and policy coverage.
Repair and replacement costs for appliances, furnishings, and home systems are inflated due to supply chain disruptions and increased material prices.
Cleaning and turnover services now cost more, especially with heightened expectations for sanitization and same-day guest readiness.
Marketing and listing fees are climbing, particularly on popular platforms that now charge additional booking and host service fees.

All these added expenses can erode the profitability of your vacation home, even when it has all the popular weeks booked. When occupancy dips—as it has in 2025—the financial strain becomes even more pronounced.

Your Florida dream home may be starting to feel more like an expensive money pit. Between rising costs, inconsistent bookings, and growing uncertainty, many owners are asking themselves the tricky question: how long can you afford to keep subsidizing the running costs? If your property is costing more to maintain than it generates, it may be time to reassess your rental strategy.

Vacation Rental Owners Are Feeling the Pressure

These trends all combine to create a perfect storm. Owners who once enjoyed nearly full calendars and strong nightly rates are now finding themselves:

Lowering prices to stay competitive
Paying higher fees for marketing and exposure
Covering gaps between bookings
Facing rising maintenance and operational costs

It’s no wonder that many are seeking alternatives. Fortunately, there is one option that provides more stability and consistency: long-term rentals.

America Feels Less Welcoming Right Now

While Orlando remains one of the most magical destinations in the U.S., the broader political climate has had an undeniable impact on tourism. With an election year underway and divisive political discourse dominating headlines, many international visitors are rethinking their travel plans.

Some of the biggest deterrents include:

Stricter immigration and visa requirements
Unpredictable border policies
Heightened media coverage of political and social unrest

The perception abroad is that America is not as welcoming or safe as it once was, which is discouraging families and individuals from booking trips. In the world of tourism, perception is everything—and right now, many people are choosing alternative destinations that feel more stable and inviting.

The Economy Is Unsettled—and So Are Travelers

On top of everything else, 2025 has brought its fair share of economic uncertainty. Global markets remain volatile. Inflation continues to affect consumer confidence. Job security is a growing concern across industries, and many households are tightening their belts in preparation for what feels like an unpredictable year.

This has led to:

Fewer vacations being planned
Shorter trips with reduced budgets
Cancellations and last-minute changes in plans

When families are unsure about their financial future, one of the first luxuries to go is the big, international vacation. Even domestic travelers are opting for shorter stays or more affordable accommodations—and that puts added pressure on the vacation rental market.

Why Now Is the Time to Consider Long-Term Rentals

Converting your vacation property into a long-term rental may feel like a big decision, but it comes with major benefits—especially in a slower tourism year. Here’s why:

1. Steady Income, Month After Month

With a long-term lease in place, you won’t have to worry about fluctuating occupancy or off-season dips. Rent is paid monthly, and your cash flow becomes far more predictable.

2. Lower Management Costs

Vacation rentals require constant guest turnover, cleanings, marketing, and service coordination. Long-term rentals, by contrast, are far more hands-off and cost-effective.

3. Less Wear and Tear

Short-term guests can be hard on a property, especially with frequent use of amenities. Long-term tenants typically treat the property more like a home, reducing the need for frequent repairs and deep cleanings.

4. Less Risk During Uncertain Times

When tourism is uncertain, so is your income. But with a stable tenant in place, your investment property becomes more resilient against external economic shifts.

How Our Property Management Company Can Help

We specialize in helping vacation homeowners transition smoothly into long-term rental success. Here’s what we provide:

Comprehensive tenant screening to ensure reliable occupancy
24/7 owner and tenant portals for transparency and convenience
Full-service maintenance coordination to keep your property in top shape
Detailed financial reporting so you always know where you stand

We understand that your property is a major investment, and we’re here to make sure it performs to its fullest potential—no matter what the travel market is doing.

Are you an investor from outside the US? Find out How To Master Long Distance Real Estate Investing.

Frequently Asked Questions (FAQs)

How hard is it to switch from vacation rental to long-term rental?

With the right property management team, the transition can be smooth. We handle tenant placement, contracts, and set up ongoing support to make the shift seamless.

Can I switch back to short-term rentals later?

Absolutely. Many owners try long-term rentals for a year or two and reevaluate based on market trends. It’s flexible.

What if I live out of state?

No problem. We specialize in managing properties for out-of-state owners and provide full transparency through our online portals.

Will I still need to update or renovate my property?

Depending on the condition, some updates may help attract long-term tenants, especially in competitive areas. We can advise you based on your specific property.

How much will I actually earn with a long-term rental?

On average, owners net more consistently over time with long-term rentals, especially when vacancy rates are high for vacation homes. We can provide a customized estimate.

Final Thoughts: It’s Time to Reconsider Your Strategy

Vacancies are up and tourism is slower in Orlando this year. That’s the reality we’re all facing in 2025. However, while short-term rental markets are tightening, long-term rentals are offering a haven of stability for savvy property owners.

Now is not the time to wait and see. It’s time to act.

Whether you want to explore a hybrid model, test the waters with a 12-month lease, or fully convert your property to long-term rental status, our property managers are here to guide you every step of the way.

Let’s talk about your property’s potential as a long-term rental. Contact us today for a free consultation and strategy session.