The Austin City Limits (ACL) Music Festival is one of the most anticipated events of the year, drawing in music lovers from all over the world. With nearly a half a million people flooding the fest over the two weekends it’s no surprise that short term rentals (STRs) see a surge in bookings during October. However, there’s a rumor circulating among some property owners and hosts that revenue from short term rentals during ACL has been declining over the past few years. This claim, though widely discussed, doesn’t necessarily hold up when you dive into the data.
Let’s unpack why that is and address some common misconceptions.
The Data Tells a Different Story
Looking at the historical average revenue during the month of October over the past five years, we do see some downward trends among certain size homes in certain zip codes. However, among many subsectors, average revenue actually increased between 2022 to 2023.
One key factor driving the perception of a decline is the sheer increase in competition. Austin’s short term rental market has expanded significantly, with more property owners hoping to capitalize on events like ACL. But while the number of available rentals has risen, this doesn’t mean demand has decreased. Instead, the growth in supply has been matched by a broader range of options for guests. This brings us to an important distinction: not all listings are created equal.
Quality and Location Matter More Than Ever
Gone are the days when simply throwing together a listing with a few quick phone photos could guarantee steady bookings. As the market has become more competitive, so too have guest expectations. Travelers coming to ACL are looking for more than just a place to crash. They’re searching for comfort, convenience, and a memorable experience—and one of the most critical factors in this experience is location.
Properties located in the highly desirable 78704 zip code, where the ACL festival is held in Zilker Park, and homes in downtown Austin continue to see the highest average revenue during the event. Proximity to the festival and easy access to the city center make these locations particularly appealing to festival-goers. Guests are willing to pay a premium for the convenience of staying close to the action, which means properties in these areas consistently outperform those located further away.
High-quality listings in these prime locations with professional photos, thoughtful amenities, and excellent customer service still perform exceptionally well during the festival. These properties often command higher rates and see earlier bookings, as guests are willing to pay more for a stay that enhances their overall festival experience.
On the other hand, properties that lack attention to detail or aren’t marketed effectively, especially those located farther from the core festival and downtown areas, are the ones seeing lower revenue. It’s not that demand is shrinking—rather, guests are becoming more selective. Those who fail to keep up with these higher standards and strategic locations are missing out on the revenue potential that events like ACL can bring.
The Rise of Professionalism in Hosting
In a city like Austin, where events like ACL draw international attention, short term rental hosts who are truly invested in the guest experience are reaping the rewards. Professionalism in the STR market has risen dramatically, and guests can easily spot the difference between a well-maintained, well-marketed property and one that isn’t.
Hosts who invest in high-quality photography, offer personalized touches, and maintain responsive communication are able to charge premium rates, particularly during high-demand periods like ACL. Those who own properties in prime locations such as 78704 or downtown see even greater returns as their location naturally makes them more attractive to festival attendees.
Meanwhile, those who haven’t adapted to the changing landscape are the ones seeing a drop in bookings and revenue. They may have been able to fill their calendars a few years ago when the competition was lighter, but with a growing pool of options for travelers, simply “being available” isn’t enough anymore—especially if the location isn't optimal.
Location and Value are Key to ACL Success
The claim that ACL booking revenue is dropping over time isn’t 100% accurate. What’s really happening is that the market has evolved. There are more short term rentals than ever in Austin, and as a result, guests have more options. Properties located in prime areas near Zilker Park that offer a superior guest experience, continue to perform well, while those that don’t meet these criteria are feeling the pinch.
The message is clear: in today’s market, focusing on location, quality, and professionalism is essential to capturing the revenue potential during major events like ACL. The demand is still there, but the properties that deliver an exceptional experience in the right area are the ones that will continue to see strong returns year after year.
