Happy Thanksgiving and Black Friday to those who celebrate! As you spend the long weekend with family or scan the internet for the best deals, don’t forget to set aside a few minutes to get up to speed on the latest industry news.
This month, the top headlines include Airbnb’s Q3 financial results, an expanded Airbnb arbitrage program in the U.K., and Journey’s new vacation rental rewards program. We’ll also take the opportunity to share recent new legislation from around the world, much of which is going into effect in the next couple months.
Let’s take a look!
Airbnb news
Mixed Q3 financials
Airbnb’s Q3 results are out, and the results are mixed: Despite a 10% year-over-year increase in revenue to $3.7 billion, driven by higher bookings and average daily rates, the company saw a sharp decline in net income, which fell 37% due to increased marketing expenses and tax charges.
On the bright side, the company saw strong growth in international markets, particularly in Asia-Pacific and Latin America, and anticipates further acceleration in bookings for Q4.
Good news for U.K. renters
In other news, Airbnb is expanding its rent-to-rent model (also known as “Airbnb arbitrage“) in the U.K. through a partnership with real estate developer and manager Greystar. This new partnership will allow tenants in 1,500 London apartments to sublet their homes on a part-time basis via Airbnb.
There are some requirements, of course: Tenants must follow specific hosting rules and share a percentage of their rental income with landlords. Airbnb’s goal here is to make short-term rental opportunities more accessible to renters while also addressing concerns about its impact on housing in its key markets.
It’s a Santastrophe!
One more thing regarding Airbnb, because this is too good not to share: On Thanksgiving, Airbnb launched its “Santastrophe” campaign—its first ever Christmas-focused advertisement.
In this one-minute video, Santa Claus tries (unsuccessfully) to deliver presents at a busy hotel, encountering various obstacles in his quest until he stumbles upon an Airbnb. Needless to say, the Airbnb presents a much smoother experience!
Give the video a watch below if you haven’t seen it yet:
A new kind of rewards program
Curated travel rewards platform Journey has launched the first-ever rewards program focused specifically on vacation rentals and boutique hotels.
The platform will enable travelers to earn points for direct bookings and access perks, while also providing operators with AI-driven marketing tools to enhance guest experiences and attract repeat visitors. Launching in spring 2025, Journey plans to build an exclusive alliance of properties and introduce features like point transfers and influencer contributions to enhance personalization and loyalty for modern travelers.
Interested? You can join Journey’s alliance here!
Your monthly rules and regulations roundup
We’ve had a quiet couple months on the vacation rental legislation front in the U.S. and U.K.—but that’s not the case everywhere. So, let’s take a look instead at the biggest legislation news from around the globe:
- A new law in France will reduce tax breaks for nonclassified and furnished tourist accommodations starting January 2025, giving local authorities power to set quotas for short-term rentals.
- In response to the Portuguese government’s recent reversal of restrictions, activists in Lisbon are pushing for a referendum to ban vacation rentals in residential buildings.
- Short-term rental groups and booking platforms are urging the Barcelona government to reconsider its planned ban on tourist rentals by 2028, arguing that the move could harm local economies, exacerbate housing issues, and disproportionately impact families and small operators.
- The Madrid City Council has unveiled a new plan to restrict short-term rentals in the historic center, allowing them only in entire buildings dedicated to tourism or in existing licensed properties.
- Starting in December 2024, Malaga will implement restrictions on new vacation rentals in areas where they exceed 8% of residential properties, with additional limitations in neighborhoods at risk of saturation.
- Croatia’s Ministry of Tourism and Sport is proposing amendments to the Hospitality Industry Act, including stricter rules for vacation rentals in multidwelling buildings and favorable tax rates for certain rental operators.
- The Hungarian government has announced a two-year moratorium on new short-term rental registrations in Budapest, higher taxes on short-term rentals, and stricter regulations effective from January 2025.
- The Romanian government is tightening regulations on illegal short-term rentals by introducing a new draft law that targets unlicensed property owners and platforms like Airbnb and Booking.com, with fines for noncompliance.
Until next time!
With the last of this news, we’re bidding adieu to November and fully embracing the holiday season! Is your vacation rental prepared?
Best of luck getting everything in order for holiday bookings, and be sure to check back next month for a roundup of all the most important industry news of 2024!
