If you're looking an Airbnb management company in Gloucestershire, Pass the Keys offers specialist short-term rental management for homeowners across Cheltenham, Gloucester and the Forest of Dean—helping you increase income without taking on the day-to-day workload of hosting.
Over the past 12 months, the number of active short-term rental listings across Cheltenham, Gloucester and the Forest of Dean has grown from 2,450 to 2,706. At the same time, guest bookings have increased by 10.58%—rising from 96,368 to 106,563 bookings over the same period. (Source: PriceLabs Market Dashboard / Property Market Intelligence.)
In other words, more homeowners are entering the short-term rental market—but even more guests are booking accommodation. That's a positive sign that demand is continuing to grow alongside supply, creating opportunities for well-managed properties to perform strongly in an increasingly competitive market.
For homeowners in Gloucestershire who are already hosting or weighing up whether to start, demand is only one part of the equation. The real decision is whether the potential income outweighs the time, effort and operational responsibilities that come with hosting. Managing bookings, guest communication, cleaning, maintenance, pricing and compliance all play a significant role in determining whether short-term letting is truly worthwhile.
Below, we'll look at what the latest market data reveals about Cheltenham, Gloucester and the Forest of Dean's short-term rental market, what's driving demand across the region, the types of guests booking stays, the main challenges hosts face, and how professional Airbnb management can help streamline operations and maximise revenue.
The latest market data shows that the short-term rental market across Cheltenham, Gloucester and the Forest of Dean remains resilient. Demand continues to be supported by festivals, business travel, countryside tourism and year-round visitor appeal. However, with more professional operators entering the market, success increasingly depends on pricing, presentation and operational excellence rather than simply listing a property.
Here are the key figures every homeowner should know.
The Cheltenham, Gloucester and Forest of Dean market currently has 2770 active short-term rental listings.
What this means: Competition remains healthy across the region.
The average active short-term rental generates approximately £22,270 in annual revenue. Actual earnings vary depending on location, occupancy, property size and management quality.
What this means: There is strong income potential, but not every property will achieve average—or above-average—performance without the right strategy.
AirDNA gives the Gloucester–Cheltenham market a Seasonality Score of 76 out of 100, indicating that demand is spread more evenly across the calendar than in many traditional holiday destinations. In the right property and pricing conditions, short-lets can potentially earn 60% to 75% more than long-lets.
What this means: While there are obvious seasonal peaks, there are also booking opportunities throughout much of the year, including the quieter months.
The strongest performance is typically seen during Cheltenham Festival, the Literature Festival, Jazz Festival, school holidays and summer weekends. Holiday cottages in the Forest of Dean also experience increased demand during bank holidays and warmer months.
What this means: Dynamic pricing around local events can have a significant impact on annual revenue.
AirDNA currently gives the Gloucester–Cheltenham market an overall Market Score of 94 out of 100, reflecting strong underlying demand despite increased competition.
What this means: Gloucestershire continues to offer favourable conditions for short-term lets, particularly for professionally managed properties that consistently deliver excellent guest experiences.
Different parts of the county attract different guest types, meaning there isn't a single "best" location.
What this means: The most successful properties aren't necessarily those in the busiest locations—they're the ones that understand their target guest, price strategically and deliver a consistently excellent experience.
Overall, the data suggests that short-term letting remains an attractive opportunity across Cheltenham, Gloucester and the Forest of Dean. While the market has become more competitive, homeowners who invest in professional presentation, dynamic pricing and high-quality guest experiences are best placed to maximise occupancy, achieve stronger nightly rates and generate sustainable long-term returns, and professionally managed properties can earn up to 30% more revenue when standards, pricing and guest experience are handled consistently.
One of Gloucestershire's biggest strengths as a short-term rental market is that demand doesn't come from a single source. Instead, bookings are driven by a combination of tourism, major events, business travel and people visiting family and friends, creating a more balanced market throughout the year.
Each part of the region attracts a different type of visitor.
Cheltenham is known for its Regency architecture, independent shopping, award-winning restaurants and its location on the edge of the Cotswolds, making it a popular destination for weekend breaks and cultural tourism.
Gloucester attracts visitors with landmarks including Gloucester Cathedral, Gloucester Docks, Gloucester Quays, museums and its growing programme of cultural events throughout the year.
Meanwhile, the Forest of Dean appeals to a completely different audience. Visitors travel to the area for walking, cycling, mountain biking, family holidays and outdoor adventures, with attractions such as Puzzlewood, Symonds Yat, Clearwell Caves and the Forest's extensive network of woodland trails drawing guests throughout the year.
What this means: Properties close to popular attractions, walking routes or town centres often benefit from stronger occupancy and can justify higher nightly rates.
Cheltenham has one of the UK's most established annual events programmes, which creates significant spikes in accommodation demand.
The biggest draw is The Cheltenham Festival at Cheltenham Racecourse, but demand is also boosted by the Cheltenham Literature Festival, Jazz Festival, Science Festival, Music Festival, cricket festival and numerous food, sporting and cultural events held throughout the year. Cheltenham is widely recognised as "The Festival Town", hosting more than 30 major festivals and sporting events annually.
Across the wider county, Gloucester hosts events including the Three Choirs Festival, seasonal markets, concerts, sporting fixtures at Kingsholm Stadium and a growing programme of city-centre events, helping maintain visitor numbers beyond the peak summer season.
What this means: Event-driven demand allows well-managed properties to achieve premium nightly rates during key dates, particularly when pricing is adjusted dynamically.
Leisure tourism is only part of the market.
Cheltenham is also a recognised centre for cyber security, technology and professional services, with major employers including GCHQ, Spirax Group, Superdry and a growing cluster of cyber and engineering businesses. The town is also home to campuses of the University of Gloucestershire and Gloucestershire College, while its excellent transport links make it a convenient business base.
Gloucester supports demand through healthcare, manufacturing, logistics, retail, engineering and construction projects, alongside regular business visitors attending meetings, training and temporary work assignments.
Across the county, contractors and project teams often prefer serviced accommodation over hotels, particularly when staying for several weeks.
What this means: Business guests often book outside traditional holiday periods, helping to smooth occupancy across the year.
Not every guest is a tourist.
Many bookings come from people returning to Gloucestershire to visit family, attend weddings, celebrate birthdays, or take part in university open days and graduation ceremonies. Others need accommodation while relatives are moving house or carrying out renovations.
These guests often value having an entire property rather than several hotel rooms, particularly when travelling as a family or group.
What this means: Family homes with multiple bedrooms and parking are often particularly attractive for these types of stays.
The Gloucestershire short-term rental market attracts a diverse mix of guests. Couples and solo travellers frequently choose one-bedroom apartments in central Cheltenham for weekend breaks and festivals. Families and groups tend to favour larger homes in Gloucester and the Forest of Dean, especially those with gardens, parking and pet-friendly features. Contractors and business travellers often book well-equipped two and three-bedroom properties for longer stays, while remote workers increasingly look for comfortable homes with fast Wi-Fi and dedicated workspace where they can combine work with exploring the local area.
This broad mix of guest types is one of the reasons Cheltenham, Gloucester and the Forest of Dean continue to offer year-round opportunities for short-term lets, with different property types appealing to different segments of the market.
The Gloucestershire short-term rental market continues to present a compelling opportunity, but it's also becoming more professional. Strong demand is still there, particularly in areas such as central Cheltenham, Gloucester and the Forest of Dean, but guests have more choice than ever before. As a result, the properties achieving the best returns are usually those that combine an attractive location with excellent presentation, responsive hosting and a well-planned pricing strategy.
For many homeowners, the current market offers several clear advantages.
Strong demand can support higher occupancy and premium nightly rates
Gloucestershire benefits from multiple demand drivers throughout the year, including major festivals, business travel, countryside tourism and family visits. This means many properties can achieve excellent occupancy during peak periods while also attracting bookings outside the traditional holiday season.
The right property can outperform a traditional long-term let
A well-managed short-term rental in the right location can often generate higher gross income than a conventional tenancy. A stylish apartment within walking distance of Cheltenham town centre, a family home close to Gloucester's key attractions, or a spacious holiday cottage in the Forest of Dean may all achieve strong returns when priced and marketed effectively.
Of course, higher revenue also comes with higher operating costs and more active management, so it's important to look at overall profitability rather than headline booking income alone.
You stay in control of your property
Unlike a long-term tenancy, short-term letting gives you complete flexibility over when your property is available. You can block out dates for holidays, family visits or personal use whenever needed, making it an attractive option for second homes or properties that aren't occupied year-round.
While the opportunity remains strong, guest expectations have also increased.
Guests expect hotel-quality cleanliness
Today's guests compare Airbnb properties with boutique hotels and professionally managed serviced accommodation. Consistently spotless cleaning, fresh linen and a well-presented property are no longer optional—they're expected, which is why professional cleaning matters so much to guest satisfaction and review scores.
Fast communication is essential
Guests increasingly expect quick responses before and during their stay. Whether it's a question about check-in, a maintenance issue or a local recommendation, prompt communication plays a major role in overall guest satisfaction and review scores.
Presentation influences bookings
Professional photography, an accurate and engaging listing description, thoughtful amenities and clear house rules all help a property stand out in a competitive marketplace. Effective listing optimisation can further improve visibility and help convert more views into bookings. Small details often make the difference when guests are choosing between similar listings.
Reviews have become even more important
With hundreds of properties available across Cheltenham, Gloucester and the Forest of Dean, guests naturally gravitate towards listings with consistently excellent reviews. A strong reputation improves visibility in search results, builds trust with potential guests and often supports higher nightly rates and stronger rental income. A managed two-bed short-let in Cheltenham averages £2,260 monthly.
As competition increases, maintaining those high standards becomes more challenging—especially for homeowners who want to stay in control of their own property. That is especially true for a second home owner weighing up whether to self-manage or outsource.
This is where professional management can help.
The market data is clear: there is strong demand for high-quality short-term rentals across Cheltenham, Gloucester and the Forest of Dean. The challenge for many homeowners isn't attracting guests—it's consistently delivering the standard needed to maximise occupancy, earn five-star reviews and generate sustainable returns through professional cleaning, responsive guest care and listing optimisation that improves visibility and conversion.
That's where Pass the Keys can help with airbnb management in Gloucestershire. Our airbnb management services give owners a fully hands-off service, while our airbnb property management model covers the day-to-day property management needed to protect guest experience and income. As a local management service, outsourcing management can save hosts up to 40 hours a week.
Setting one nightly rate and hoping for the best is rarely the most profitable approach for high-quality Airbnb management in Gloucestershire.
Pass the Keys provides an Airbnb property management service for short-term rentals. We combine dynamic pricing technology with detailed knowledge of the local market to adjust your rates based on demand, seasonality, booking pace and major events. Airbnb management services also need close control of availability so owners can block dates for personal use while keeping occupancy strong around peak demand. Whether it's Cheltenham Festival, a busy summer weekend in the Forest of Dean or a quieter period that requires more competitive pricing, we help ensure your property is positioned to achieve the best possible return through a management service designed to deliver consistent standards and stronger returns.
Listing on Airbnb alone limits your property's visibility.
We advertise your property across multiple leading booking platforms, helping you reach leisure travellers, business guests, contractors and international visitors. By spreading demand across several channels, we help reduce reliance on a single platform and improve occupancy throughout the year.
One disappointing clean can lead to one disappointing review.
Our professional housekeeping teams prepare your property to a consistently high standard before every stay, using hotel-quality linen, cleaning coordination, and thorough quality checks. Properties listed on multiple platforms can earn up to 30% more revenue. This helps create the first impression guests expect and protects the reviews that drive future bookings.
Modern guests expect quick, professional communication at every stage of their stay.
We manage guest enquiries, bookings, check-in support, cleaning coordination to keep standards consistent before every stay, guest vetting, and any issues that arise during a stay, so you don't need to be on call evenings, weekends or while you're away. Problems are resolved quickly, helping protect both the guest experience and your property's reputation.
Every property needs ongoing maintenance, but organising trades and emergency call-outs can be time-consuming.
We coordinate trusted local contractors to deal with maintenance issues efficiently, helping keep your property in excellent condition while minimising disruption to future bookings.
Great properties deserve great marketing.
From professional photography and compelling listing copy to optimising amenities and guest information, we present your property in a way that attracts more clicks, more bookings and better-quality guests. Our local management teams also help ensure properties meet regional guidelines and safety standards. We also use professional photos to help your listing stand out and perform better in search results.
You remain in control without having to manage every booking yourself.
Our host portal gives owners access to booking information, earnings reports, transparent pricing, and your property's calendar, while our onboarding process covers professional photos, listing copy, and amenity presentation. You'll also receive photographs after each clean for added peace of mind, and you can easily block dates whenever you'd like to use the property yourself.
As we've explored earlier in this guide, short-term letting comes with important responsibilities beyond welcoming guests. The process is designed to be straightforward for owners switching to managed hosting.
While homeowners remain responsible for meeting legal requirements, we provide practical guidance on the operational aspects of hosting as your management company, helping you understand what's required and making it easier to navigate the day-to-day responsibilities of running a successful short-term rental. We can help you understand whether your area requires a local pass, but tax treatment depends on your individual circumstances, so it's worth speaking to a qualified accountant. Transparency in pricing structures also matters, so owners can clearly see bookings, earnings and calendar use in one place.
Cheltenham, Gloucester and the Forest of Dean are thriving short-term rental markets for good reason. A combination of internationally recognised festivals, year-round tourism, business travel and outdoor attractions continues to attract a diverse mix of guests and create excellent opportunities for homeowners.
However, strong returns don't happen by accident. Today's guests have higher expectations, competition is stronger than ever and successful hosting requires much more than simply listing a property online.
Cheltenham, Gloucester and the Forest of Dean are booming for a reason—but the best results come from running a high-quality operation. Whether you're looking to maximise income, reduce the day-to-day workload or simply understand your property's potential, the right strategy and professional support can make all the difference.
Wondering what your property could earn as a short-term rental? Every home is different, and factors such as location, size, guest capacity, amenities and local demand all influence its income potential.
Our local team can provide a realistic, data-led estimate based on your property's location and the current short-term rental market across Cheltenham, Gloucester and the Forest of Dean. We'll also talk you through occupancy expectations, likely running costs and whether professional management could help maximise your returns.
Get your free income estimate today. Complete the enquiry form on our website or book a call with the Pass the Keys Cheltenham, Gloucester and Forest of Dean team to discover what your property could achieve. There's no obligation—just honest, local advice to help you make an informed decision.