If you’re anything like us, you’re always on the lookout for the latest and greatest news from the world of vacation rentals. Well, lucky for you, we select the industry’s most eye-catching pieces of news from each month and analyze what they mean for hosts. February was a positive month in general, and we’re pleased to report more good news in March.
From exciting new announcements to important STR insights, the industry has been buzzing with activity. So, as we bid farewell to the winter blues and welcome the warm sunshine of spring, it’s time to catch up on what happened in the vacation rental industry over the last month. Whether you’re a property owner, manager, or simply a travel enthusiast, there’s something for everyone in this month’s lowdown. Let’s get started!
U.S. STR market booms with 20% rise in demand and increasing rates
The short-term rental market in the U.S. is looking promising for 2023, according to a recent report by AirDNA. Compared to February 2022, demand for short-term rentals in the US is up by almost 20%, with cities like Orlando, Gatlinburg, and Panama City experiencing the fastest growth in demand.
Large cities enjoyed the biggest growth in supply, and some areas saw supply increase by more than 30% in a single year. As for daily rates, they’re also on the rise. In February 2023, the average daily rate increased by almost 6% to $330.
This is great news for hosts, managers, and investors because, with a total of 39.6 million nights booked over the course of two months, the first half of 2023 appears to be gearing toward another strong year for overall demand in the STR industry.
Luxury vacation rentals on the up!
The luxury vacation rental market is booming right now! KeyData, the short-term rental data provider, says that by the end of 2023, the average daily rate and length of stay for these lux rentals will double! And that’s just the beginning. Experts say that in eight years’ time, the global luxury vacation rental business will be worth over $80 billion! That’s some serious growth, at 13.1% between 2021 and 2031.
Perhaps investing in these plush rentals is a wise move. Why? Well, during a recession, when people start cutting back on their vacation budgets, these high-end spots can still make bank.
EU Council agrees plan on data collection and sharing for short-term rentals
On Thursday, March 2, European ministers for competitiveness reached an agreement to regulate the collection and sharing of data for short-term rentals. They achieved a consensus to standardize registration requirements for hosts and their short-term rental properties across all EU countries. This agreement is aimed at promoting a level playing field and ensuring greater transparency and accountability in the short-term rental market.
More regulations? This is bad for hosts, right?
Not really, no! Basically, if national authorities need any information from platforms like Airbnb, they have to set up something called a ‘single digital entry point’ to make it easy to share the information between the two parties. Oh, and every rental has to have a registration number, so the authorities can know who’s renting it out.
The online platforms have to do some checks to make sure there’s no funny business going on, but it’s all good because they’re just making sure everyone plays by the rules. And don’t worry, they’re following all the European data protection laws, so your information is safe. This is all to make things easier and cheaper for everyone involved while still making sure everything’s legit. Plus, it should be fair for everyone else in the tourism game.
Lodgify named Airbnb’s Preferred Software Partner (again!) for 2023
Ok, this is a big deal for us! Lodgify’s PMS system has once again been recognized as a Preferred Software Partner by Airbnb for the fifth consecutive year. This reaffirms the robustness and dependability of our system. Our long-standing association with Airbnb has been fruitful, and we have maintained a fully functioning, two-way connection with the platform over the years. We remain committed to expanding our integration with Airbnb to achieve the highest level of connectivity possible as we continually strive to enhance our services.
That’s great, but what does this mean for users?
Well, being a Preferred Software Partner means that Lodgify has met Airbnb’s strict quality and performance standards, ensuring that hosts can rely on the platform’s dependability. Hosts can also look forward to regular updates and new features, as well as access to exclusive benefits, including increased visibility.
Lodgify earns Vrbo Elite Partner status for 2023
And so is this…! We’re thrilled to also share that Lodgify has been awarded the prestigious Vrbo Elite Partner status for 2023, marking a significant milestone in our journey. This recognition is exclusive to a select few who meet Vrbo’s stringent performance, quality, and customer service standards. As the highest partnership status awarded by Vrbo to its connectivity partners, it affirms our commitment to excellence and exceptional customer service while positioning us as a leading player in vacation rental management software.
How will this affect hosts?
Lodgify customers who are also Vrbo hosts can look forward to a range of benefits and resources, including enhanced account management, business advantages, special product access, exclusive collaborations, and premium promotions.
These benefits are designed to help hosts streamline their operations and maximize their revenue potential. For example, enhanced account management tools can help hosts manage their listings more efficiently, while exclusive collaborations and special product access can help them offer more compelling guest experiences.
Vrbo launches loyalty program: One Key
The Expedia Group, which includes Vrbo, has launched its One Key loyalty program, allowing Vrbo to provide its guests and property owners with an all-encompassing rewards experience. By enabling guests to earn and use rewards across various Expedia Group brands, they will have greater flexibility and convenience when making travel plans.
Doesn’t this only affect guests?
Well, if you own or manage a property that is listed on Vrbo, you may gain a competitive edge over hosts on other vacation rental platforms that do not offer comprehensive loyalty programs. This feature can appeal to guests who prioritize loyalty programs when booking their accommodations. Promoting long-term customer loyalty can potentially result in more guests turning to Vrbo and booking your rental.
Airbnb user updates
Hosts can now check and correct their category
Airbnb hosts can now easily view and categorize their listings for better visibility and bookings, thanks to a recent platform update. In mid-March 2023, Airbnb introduced a feature that allows hosts to check which categories their listings belong to. If you’ve been frustrated by not knowing your listing’s category, this update is for you.
To check your listing categories, follow these steps:
- Log in to your Airbnb hosting dashboard.
- Go to your listing in the “Listing Details” tab.
- Scroll to the “Property and rooms” section.
- Look for the “Categories” line item, which displays the categories your listing is listed in.
Click on “View” for more details about each category.
If you notice that your listing has been categorized incorrectly, get in touch with Airbnb’s host helpline. They will then refer your request to a dedicated team for assessment.
Return of the Guides Board
Airbnb also announced the opening of a new Guides Board tailored specifically for the Community Center. The Board provides a dedicated space where host-created guides on optimizing listings, improving bookings, utilizing various Airbnb tools, and other related topics can be accessed. Additionally, there are guides available for new members, which explain how to effectively use the Community Center.
The Guides Board has been reinstated in response to feedback from users who have expressed their interest in utilizing this feature. The Board is conveniently accessible on both desktop and mobile devices through the drop-down menu located below your avatar in the navigation bar in the top right corner.
Until next time!
We’re seeing more and more regulations being introduced, but we’re also seeing some promising signs of a great year for STR hosts and owners. So, this latest round of industry updates has us feeling very optimistic!
If you have any questions on the topics discussed, or if you think we’ve forgotten to mention something, please leave us a comment below!
Meanwhile, stay tuned for April’s Lodgify Lowdown, where we’ll look at the main news and updates from throughout the month.
Don’t see the form to download the Rental Agreement Template? Click here.
