Summer’s coming to an end, bringing with it a drop in temperatures, back-to-school vibes, and the cozy arrival of fall. As you gear up for the season ahead—whether you’re heading into your low season or ramping up—we’ve got some hot-off-the-press updates to keep you in the loop on all things vacation rentals.
Keep reading to learn about Airbnb’s recent updates, new legislation, industry partnerships and acquisitions, and more.
Airbnb news
New (and familiar) things ahead
In an earnings call with investors in early August, Airbnb CEO Brian Chesky shared that the company will be expanding its products and services beyond short-term rentals to grow its revenue.
First up: co-hosting. With what looks to be an expansion of its Experienced Co-Hosting Platform, Airbnb’s goal is to connect homeowners who don’t have time to manage their listings with those who do. The new (or revamped) platform, to be launched this fall, could make it easier for small co-hosts to break into the market and undercut traditional property management companies.
Airbnb also plans to resume its Experiences program. The program—which enables guests to book tours, classes, and other activities during their trips—had paused new applications last spring so the company could focus on its core offerings. Now, it seems that applications will resume sometime next year—but with a new focus on affordable and unique experiences.
These announcements came just a week after Airbnb told Bloomberg that it’s considering services such as mid-stay cleanings, in-home massages, and personal chefs in order to diversify its offerings. So, even more changes could be coming Airbnb users’ way.
Travel scams on the rise? Not if Airbnb has any say
In other Airbnb news, the company has partnered with the International Association of Financial Crimes Investigators (IAFCI) to prevent travel scams.
This partnership was spurred in part by new Airbnb-commissioned research from DKC Analytics, which showed that 47% of Americans have fallen for a scam. According to the research, victims lose an average of $2,697.
Online scams are on the rise thanks to the use of technology such as artificial intelligence and the cost-of-living crisis, which has made finding deals a priority for most consumers. Airbnb says it’s found nearly 2,500 third-party phishing domains in the past 12 months, prompting this partnership and other measures to promote safe online bookings.
Your monthly rules and regulations roundup
Nova Scotia: new legislation, same issue
The ongoing saga of measures aimed at increasing affordable housing continues with new legislation in the Eastern Canadian province of Nova Scotia.
The legislation includes a Short-Term Rental Registration Act, which requires all short-term rentals to provide documentation such as:
- Proof of compliance with local bylaws
- Written consent from the property owner or condo board (where applicable)
- Proof of primary residence
Short-term rentals must also pay annual registration fees ranging from $50 to $2,000/unit, depending on the accommodation type and location. The greater the housing need in the area, the higher the registration fee will be.
Registration for the 2024/2025 season is already open and, while the legislation comes into effect on September 30, applications are due on September 16 to allow time for processing. Registration numbers from the 2023/2024 season won’t be valid after September 30, so Nova Scotia hosts should be sure to get their applications in as soon as possible—especially since fines for noncompliance reach $100,000.
The end of STR tax relief in the U.K.
Meanwhile, the U.K. Government has announced that it will abolish its furnished holiday lettings (FHL) tax regime in April of 2025, removing tax benefits for short-term rentals.
Although legislation to bring about this change has already been drafted, the Treasury plans to meet with organizations lobbying for the short-term rental industry to discuss the potential consequences of such a move. While the government hopes to improve the availability of long-term rentals, opponents of the change fear it will spell the end of hundreds of small businesses and are lobbying to stop it.
Will their lobbying be enough to prevent the tax relief from being abolished? Only time will tell, but U.K. short-term rentals should prepare for the changes just in case.
…And the beginning of STR taxes in Victoria
Following the U.K.’s suit, the southeast Australian state of Victoria will be giving local councils the ability to impose a 7.5% tax on short-term rental bookings.
Expected to go into effect on January 1, 2025, this new legislation will apply to properties listed on booking platforms such as Airbnb and Stayz for reservations under 28 days. However, it won’t apply to primary residences or hotels, motels, and RV parks.
The legislation’s goal? Once again, to correct the housing landscape in Victoria, which currently has an estimated 50,000 short-term rental listings. Additional regulations are also on the table, including permits and maximum stay lengths.
Stronger together
Partnerships and acquisitions are a normal occurrence in any industry, but August saw a particularly high number of businesses joining forces in the travel industry. Interestingly, two of these partnerships involved booking platforms and airlines: namely, Vrbo and JetBlue, and Expedia Group and Alaska Airlines.
Thanks to the first partnership, JetBlue customers can now use Paisly—JetBlue’s booking site for nonflight-related travel—to book trip elements through Vrbo. Following suit, Alaska Airlines has leveraged its partnership with Expedia Group to launch Stays by Alaska Vacations, a platform that enables its loyalty program members to explore, book, and earn and redeem miles for vacation rentals and hotels.
In other recent partnership and acquisition news:
- Google Nest and the smart home monitoring provider Minut have integrated to enable remote management of heating and cooling for short-term rentals. Property managers can manage their Nest thermostats from anywhere and even sync their turnover schedules with their property management system to reduce their carbon footprint, save money, and enhance the guest experience.
- Marriott and the short-term rental apartment management company Sonder have entered into a licensing agreement. The Sonder by Marriott Bonvoy collection will be available to book via Marriott in 2025, with 9,000 Sonder units joining Mariott’s portfolio by the end of 2024.
- Real estate marketplace Revnest has acquired vacation rental data provider Hungry Robots to expand its data capabilities. Revnest will now have access to data from more than 30 million global short-term rental and hotel listings to better verify properties’ performance data and help its users buy and sell vacation homes.
A peek at the state of travel in 2024
Finally, we’ll end our updates with a little additional reading in the form of Skift’s recently released State of Travel 2024 report—a must-read for anyone in the travel industry.
Download the full report to get 350+ insights defining the state of travel today, data highlighting travel industry performance, consumer insights, and more. For those who don’t have time to read the full report, here are some of the top takeaways:
- 81% of Gen Z prefers personalized ads over nonpersonalized ads. Many businesses are turning to artificial intelligence (AI) to offer this personalization.
- 30% of travelers are willing to make sustainable decisions, even if it inconveniences them. Promoting sustainable practices will be key in attracting this demographic.
- 74% of travelers report that experiences have a huge impact on shaping their trips, giving short-term rentals a clear idea of what to focus on in their offerings and marketing.
- 57% of Gen Z and millennial travelers prefer receiving personalized travel recommendations from AI-based systems. Businesses that are able to utilize AI-based tech such as virtual reality (VR) and augmented reality (AR) stand much to gain, starting with an enhanced customer experience.
- 64% of travelers are comfortable booking travel directly through social media platforms, meaning that businesses should focus on offering integrated booking features on their profiles.
See you next month!
That’s all for now! We wish our U.S. hosts a happy Labor Day weekend and everyone else a strong start to the new season. We’ll be back with more industry updates in no time.
