We now have an extra hour of sunlight thanks to daylight savings, spring has officially begun, and Easter is right around the corner. Is it just us, or are you feeling a little extra spring (pun intended) in your step?
Either way, we’re here with an Easter basket of tidings from the STR industry, including a spring update from Airbnb, the most recent event driving vacation rental demand, and the latest in rules and regulations.
(Surprise) Airbnb 2024 spring update
We’ve come to expect Airbnb’s annual summer and winter updates, but this year, they’ve surprised us with an additional update for spring. Released on March 4, this update has a few major takeaways:
- Airbnb will verify nearly 1.5 million listings across the U.S., Canada, the U.K., Australia, and France by the end of March. These listings will receive a “verified” badge, helping guests book with confidence. The company will also introduce new tools to help hosts verify their homes soon, and plans to expand verification to additional countries this fall.
- Top (and bottom) homes will soon receive a new highlight. Specifically, listings in the top 25%, top 1%, and bottom 10% globally based on ratings, reviews, and reliability will feature callouts. There will also be a new sort function to help guests view the lowest-ratest reviews for listings.
- Airbnb has removed 100,000 low-quality listings since launching its updated hosting quality system in April of 2023—the most removals they’ve ever made. Overall ratings are based on various factors, including subcategory ratings, host cancellations, and community support issues.
- Host cancellations were reduced by 36% in the final quarter of 2023. This reduction is a result of various Airbnb efforts, including updates to reduce host mistakes and stricter consequences for cancellations.
- U.S. and Canadian hosts can now connect compatible Schlage smart locks with their Airbnb account and automatically generate unique codes for each reservation.
So, what does this all amount to? With more than 7.7 million listings now on its platform, Airbnb knows that it needs to make it easier for guests to weed through the options—namely by highlighting top listings and filtering out underperforming ones.
While these updates are good news for top hosts, if they make you at all nervous, take them as an extra incentive to improve your offerings.
STR demand spikes thanks to…a total solar eclipse?
Move over, Taylor Swift. A total solar eclipse is the next event driving U.S. vacation rental demand.
That’s right. A total solar eclipse—a natural phenomenon in which the moon passes between the Earth and the sun, completely blocking the sun from view and causing total darkness—will occur on April 8.
The eclipse will be visible from 15 U.S. states as well as parts of Canada and Mexico. And according to data from PriceLabs, it’s driving bookings, average daily rates (ADR), and revenue per available room (RevPAR) in cities along its path.
To give you an idea, in Waco, Texas, occupancy is up by 171%, ADR by 85%, and RevPAR by 394% compared to the previous year.
These spikes are less surprising when you consider just how rare total solar eclipses are. While total solar eclipses occur about every 18 months, they occur in any given location once every 400 years.
Where will the next solar eclipse be? Will your vacation rental be in its path? With events continuing to heavily drive STR demand, this is yet another reminder to plan ahead—or use a dynamic pricing tool that can plan ahead for you.
“Cameras off” for Airbnb hosts
In an effort to prioritize guest privacy, Airbnb has announced a global ban on indoor security cameras for its hosts. The company is hoping this change will simplify and clarify its policy, which previously allowed security cameras in common areas as long as they were disclosed in the listing prior to booking.
The update also expanded Airbnb’s rules for outdoor security cameras and other devices to provide hosts with alternative ways to monitor security. For example, solutions like doorbell cameras and noise decibel monitors are permitted as long as you disclose their presence and general location prior to booking.
Interested in an Airbnb-approved smart home monitoring system? Lodgify partner Minut provides both noise and occupancy monitoring to prevent misuse of your vacation rental—no indoor security cameras necessary.
Chances are, this update won’t affect you, as only a small percentage of Airbnb hosts use indoor security cameras. But if that includes you, you have until April 30 to conform with the new policy. So be sure to review the policy details and your listing thoroughly to prevent infringement.
Your monthly rules and regulations roundup
An update on Florida Senate Bill 280
We first reported on Florida Senate Bill 280 in early February when it was up for vote in the Senate. Since then, both the Senate and—as of early March—the House have passed the bill, sending it to Governor Ron DeSantis for review and approval.
For those who’ve forgotten or missed it, Senate Bill 280 implements new STR regulations in Florida, including:
- Occupancy limits (limit of two people per bedroom, unless there’s at least 50 square feet per person, plus an additional two people in the common area)
- “Reasonable” registration fees (no specific number defined), with fines up to $500 if you fail to meet registration requirements
- Response requirements (someone must be available to respond to complaints and emergencies by phone 24/7)
- An action window (property owners have up to 15 days to resolve issues)
- Suspensions for violations (30-, 60-, and 90-day suspensions depending on the number of violations in a given period)
With many organizations in the state calling for DeSantis to veto the bill, we’ll have to wait to see what happens next.
The U.K. de-incentivizes vacation rentals
As part of the 2024 Spring Budget, U.K. Chancellor Jeremy Hunt has announced changes to tax policies affecting vacation rentals. Most notably, vacation rental owners will no longer receive tax relief in an effort to reduce the shortage of long-term rentals.
Additionally, property capital gains tax for residential properties will be reduced to boost revenue and transactions in the U.K.
As with all recent regulations addressing housing availability, industry reactions to this change have varied, with concerns about potential job losses and a negative impact on tourism.
Data-sharing comes to the European Union
In yet another effort to address housing shortages, the European Parliament passed a new law related to data sharing at the end of February. Under this law, short-term rental platforms must share data with local authorities on either a monthly or quarterly basis (depending on the size of the platform) and conduct random verification checks.
The goal? To prevent illegal listings and thus increase access to affordable housing.
The regulation awaits formal approval and is expected to be signed in April, with a 24-month compliance period for local authorities and platforms.
Lodgify achieves Airbnb Preferred+ status
Finally, we’re excited to announce that Lodgify has been selected as an Airbnb Preferred+ Partner for 2024! This recognition places us among the top 15 providers globally who have met and exceeded Airbnb’s rigorous standards.
We’re incredibly proud to be one of only 15 Preferred+ Partners, especially as it will allow us to receive fast-tracked, dedicated support from Airbnb’s API support team and other perks we can pass along to our users.
This is a testament to Lodgify’s commitment to excellence, secure practices, and unwavering dedication to our clients, and we look forward to continuing the hard work!
See you next time!
Will the coming month bring April showers or sunny skies for Earth Day? Only time will tell, but with spring break for many schools, the total solar eclipse, Coachella, tax day, and more, it’s sure to be another busy month! As always, we’ll report back with more updates soon.
