Long term in the sense where you have to pay monthly rent whereas short term where you come for a business trip and stay for 4 to 5 days. Now the thing is whoever is staying and working for them staying long term works well whereas who comes for business trip for them short term works well this is where the hotels comes into picture. But the new entrance into it is AirBNB where you can get the full house for short term which is mainly the fully furnished and you don't have to go out for food or other things.
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Now if I talk about profitability, short term is much more profitable but it needs constant attention as well as it needs some Capex for initial investments for making it fully furnished. Whereas long term rental is less profitable but again it is mostly occupied. For short term mostly you get occupancy season wise and when you have more occupancy your profit will increase. But the long term rentals are mostly occupied and thus you get regular income from it.
Long term rentals are mostly happening in Bangalore but now slowly short term rentals are also getting started. But it only working near the tech park as people come for working from office once or twice a week. If you are thinking of starting a short term rentals or AirBNB in outskirts then the occupancy will take a dip and thus you have to go for long term rentals only. In this way you will be sure that you will earn from it and not wait for people to come only in seasons.
So if you are thinking of renting your property you have to see if you are at the right place for short term rentals or you have to go for long term rentals and be safe.