Sedona officials assess short term rental revenue impact amidst data challenges

In the heart of Sedona, Arizona, the Tourism Advisory Board convened on April 16, 2025, to discuss the latest trends in short-term rentals and their impact on the local economy. As the meeting unfolded, board members delved into the intricacies of data collection and analysis, revealing both challenges and opportunities for the city’s tourism sector.

The discussion began with a focus on the short-term vacation rental market, which has seen significant fluctuations. Board members highlighted the importance of differentiating between various data sources. The direct data from property managers, which includes around 350 properties, was deemed more reliable compared to the broader scraped data that encompasses approximately 1,400 listings. This distinction is crucial, as the scraped data can sometimes inflate revenue figures due to owner-occupied properties being inaccurately counted as booked.

February was noted as a particularly strong month for Sedona, with revenue from short-term rentals in residential zones reaching an estimated $12.2 million. However, board members cautioned that this figure might be an overestimate, as it does not fully account for blackout dates when properties are unavailable for booking. The conversation underscored the complexities of accurately assessing the rental market, with members acknowledging that while the direct data is smaller in sample size, it provides a clearer picture of actual bookings.

The board also compared Sedona's performance to that of the nearby Village of Oak Creek, noting a trend where the latter often lags behind. Despite this, the Village experienced a boost in January and February, suggesting a potential shift in visitor patterns. The board expressed optimism about the marketing campaigns targeting peak seasons, which appear to be yielding positive results.

As the meeting concluded, the board members reflected on the importance of continuous data analysis to inform future strategies. With tourism being a vital part of Sedona's economy, understanding the dynamics of short-term rentals will be essential for sustaining growth and ensuring a balanced approach to community needs. The discussions from this meeting will likely shape the direction of Sedona's tourism policies in the months to come, as the city navigates the complexities of a changing market.