Market Reports, Investors, Big Sky

Big Sky Q2 Market Report 2025

Published on Aug 03, 2025

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Tim Drain

Regional Manager of Business Development

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Dear Partners,

We hope you were able to relax or enjoy some adventurous travels this Spring. As promised, we will continue sharing short-term rental data and our perspective on how it applies to the Big Sky market. This review provides an overview of key performance indicator trends for the second quarter of 2025 compared to the same period last year.

Report Sections

Market Overview
Market KPIs
Looking Ahead
Glossary

Market Overview

The Big Sky vacation rental market remained steady during the second quarter of 2025, despite being a historically soft period for visitation to Big Sky. Visitor demand decreased slightly in Q2 2024, while short-term rental supply increased by approximately 100 homes over the same time last year.

Average Daily Rate (ADR) and Revenue per Available Rental (RevPAR) saw an uptick over Q2 2024.  This is not surprising, as even a small swing in Key Performance Indicators (KPIs) during a slow quarter can appear as a larger percentage increase with less volume to smooth out the averages. 

The team at Natural Retreats was hard at work despite the soft market conditions.  This is the time of year for us to deep clean our homes, complete maintenance requests from our owners, and onboard new homes as they sign with us.  We entered the Summer season with our homes in great shape and a few new gems added to our portfolio, thanks to the support from our partners in the real estate business.

Q2 2025 Key Performance Indicators  

The Data

The below data was sourced from Key Data, a third-party short-term rental analytics provider sourcing authoritative data from 10 property managers and from privately managed rentals with +/- 1,300 properties, all of which are located within the BSRAD boundary.  Key Data refers to the BSRAD boundary as Greater Big Sky.

Average Daily Rate (ADR)

Average Daily Rate (ADR) Q2 2025 Big Sky

 

Average Daily Rate (ADR):

The Big Sky market saw a 5% year-over-year increase in ADR for the second quarter of 2025.  With occupancy being slightly down, this indicates that those who did visit Big Sky were willing to pay higher rates for higher-end accommodations.  Natural Retreats saw strong bookings in our larger homes during April as the ski season wound down and in June as Summer business began to pick up. Smaller groups traveling during May were booking our higher-end condos.

Market Occupancy

Adjusted Occupancy Rate (ADR) Q2 2025 Big Sky

 

Big Sky Market Occupancy:

The Big Sky market achieved an occupancy level of 18.5%, down 5.6% from Q2 2025.  We saw a slight increase in occupancy in April as ski season came to a close, while May and June lagged 2024.  Natural Retreats saw slightly lower occupancy during Q2 2025.  While our smaller homes and condos performed more in line with the market, a large portion of our portfolio is comprised of larger custom single-family homes that tend to book less during the shoulder seasons when smaller groups tend to visit Big Sky.

Adjusted Revenue per Available Rental (RevPAR)

RevPar (ADR) Q2 2025 Big Sky

 

Big Sky Market RevPAR:

Revenue per Available Rental (RevPAR) is considered a top indicator of true revenue performance for a given home, a specific portfolio, or an entire market.  The Big Sky market saw RevPAR of $53, a 0.8% quarter-over-quarter decrease.  With the caliber of Natural Retreats’ portfolio, we outpaced the market with RevPAR of $68, down over Q2 2024 but still leading the market.

Looking Ahead

Summers in Big Sky have remained at normalized pre-pandemic levels the past 3 years and are on track for a slight decline in paid visitation.  The market continues to see an increase in ADR similar to Q2 through the Summer months, with occupancy pacing slightly behind Q3 2024.  One trend we see throughout the year, but especially during the Summer, is continually shrinking booking windows.  This is partially due to more flexible work schedules and guests having learned that they can often find a better deal if they wait until closer to their travel dates to book.  If this trend remains true, expect to see ADR and occupancy close the gap with Q3 2024.

We will provide a Q3 update in a few months once the books have been closed, and look ahead to Q4 and Winter 2026 as that booking window begins to take shape.

KEY-DATA KPI DEFINITIONS

Glossary

 

  • ADR (Average Daily Rate) measures the average Unit Revenue paid by guests for the Guest Nights in a given time period. ADR = Unit Revenue (Nightly) / Guest Nights.
  • Adjusted Paid Occupancy calculates the percentage of Guest Nights out of the total nights available for guests to book, or the Nights Available. Adjusted Paid Occupancy = Guest Nights / Nights Available.
  • Adjusted RevPAR (Revenue Per Available “Room”) is calculated by multiplying the Adjusted Paid Occupancy % by the ADR. A critical KPI for measuring revenue performance, Adjusted RevPAR takes into account both the average rate at which you booked the property (ADR) and the number of nights it was booked less owner nights and holds (Adjusted Paid Occupancy).  This provides a better indicator of overall performance when compared to looking at the ADR or the Occupancy alone. Adjusted RevPAR = Adjusted Paid Occupancy % x ADR (or) Total Unit Revenue / Total Available Paid Nights in a given period.
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Partner with Natural Retreats

We’re actively seeking partnerships with real estate professionals who want to bring added value to their clients. Whether your buyers are exploring vacation home investment or sellers need a compelling income story, we are here to help with:

  • Complimentary revenue projections
  • Pre-market rental assessments
  • Seamless onboarding for new homeowner clients
  • Consultation of current short-term rental regulations

 

At Natural Retreats, we provide expert vacation rental management designed to drive returns and preserve property value. We're actively partnering with local agents to help buyers and sellers unlock the full potential of short-term rentals.

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Questions?

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Vacation Rental Management

Discover how partnering with Natural Retreats can help you succeed. Our Homeowner Experience Guide includes all you need to know about vacation rental management in destinations.

 

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