vacation rental news

The Lodgify Lowdown – Vacation Rental News at a Glance – June 2022

We share only the poignant and juicy bits, so you don’t have to scroll your way through reams of text to stay on top of what’s happening in the vacation rental industry.

Summer 2022 is sizzling hot so far, but clouds are gathering…

The Story

Hopefully, you’re reading this with an Espresso Martini in hand to celebrate Summer 2022, which by all accounts, appears to be shaping up very nicely for vacation rental hosts.

Looking at May and June booking data from Airbnb and Vrbo, Summer 2022 is going swimmingly well so far, according to vacation rental data provider, AIRDNA.

What does ´going well´ mean exactly?

Well, overall demand in the U.S. is up 12,8% as of early June compared with Summer 2021, and up 21% compared with Summer 2019, according to the latest AIRDNA market review.

So, what about rates? Are they up too?

Yup, (Average Daily Rates) ADRs are on the rise – with the average nightly rate this summer increasing to $351, up 8% from last year, according to AIRDNA.

Where is demand the highest?

As the fear of COVID subsides, travelers definitely seem to be up for city breaks again, with large cities seeing the biggest increase in demand – up 32% in May, compared to 2021, as quoted in the AIRDNA report.

Guess which markets are seeing top occupancy?

No surprises here. Homes on the coast are already over 70% occupied in the Outer Banks, NC, Downeast Maine, and Pawleys Island, SC.

Anything else worth noting?

We are gobsmacked by the sheer number of listings in the U.S. – a historic record with a total of 1.34 million available unique listings on Airbnb and Vrbo in May this year, up 25% over the previous year.

Are things looking up in Europe too?

Kind of. In Europe, overall demand on the books is up 56% from 2021, and 5% higher than at the same time in 2019. Not all markets are doing equally well, though, according to AIRDNA´s market review for Europe.

Out of 20 top regions, 11 are up on 2019 figures, while 9 are seeing declines in demand.

For example Germany (up 36 %), Greece (up 27% and Austria (up 16%) are top performers, while the Czech Republic (-36%) ,Hungary (29%)  and Ireland (-22%) are lagging behind.

So far ADR is pacing toward a rise of 1.3% across the European continent.

What´s this about storm clouds?

High energy prices, high inflation and the war in Ukraine could have an impact on demand in the longer term. An increase in supply could also affect the vacation rental economy in the future.

We´ll just have to wait and see…

And also this…  A legal challenge to a controversial ban!

Nothing to do with reproductive choices, this one, but another restrictive law –  Bill 41, which was used by the Honolulu City Council to slap a  ban on vacation rentals across the island of Oahu in April.

Why the ban?

The usual suspects – guest nuisance issues and the need for more affordable housing with the average cost of a home in Hawaii apparently being nearly 3 times higher than the U.S. average. 

Is that the full story?

Not everyone thinks so. Short term rental industry representatives claim the process for Bill 41 happened behind closed doors and favor the hotel industry.

So, who is challenging this?

Property managers and owners have filed a federal lawsuit against the City and County of Honolulu, the Honolulu Department of Planning and Permitting and the DPP Director in response to the recently passed bill.

They claim the bill is unconstitutional and takes away owners existing property rights.

Why should I care?

The regulatory issue is one that concerns all vacation rental owners, and the last thing they need is an example of an effective clampdown by a city council to add to the constant threat of property right restrictions hanging over their heads in many parts of the country.

By the way, the party is over…  for good this time.

Airbnb Inc announced it will make permanent its temporary ban on parties introduced in homes listed on the platform. (They have also tried down to clamp down on revellers in other ways in the past)

The latest ban follows a sharp drop (44%)  in reports of unauthorized gatherings since the temporary prohibition was put in place in August 2020.

Why is Airbnb being a party pooper?

Because parties spell trouble – as we all know. More than 6,600 guests and some hosts were suspended in 2021 for attempting to violate the party ban, the company said in a statement.

Finally…  Let’s talk pride and prejudice

As Pride Parades painted the world´s city centers and streets in all shades of the rainbow this month, it emerged that LGBTQA+ travelers are still not welcome everywhere.

Research from the Business Travel Show Europe reveals that 66% of travel programs for business travelers do not cater to LGBTQA+ travelers. They also found that this community was the least well looked after compared to solo women travelers, marginalized communities and those with accessibility issues.

Find out how to make your vacation rental more LGBTQA+-friendly.

That’s a wrap for June. If you liked our lowdown, please share this page with your friends and sign up to our email list, to be sure you get the Lowdown every month.

Have any questions or constructive suggestions or would like to be featured in our round-up in June, leave us a comment below.

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