Hello, October! In many parts of the world, vacation rental businesses are now in their shoulder season, transitioning from summer to winter (or vice versa).
Wherever you are in the world, whether leaves are falling or plants are blooming, we’re here to help you make the most of the transition with all the latest updates from the industry.
So, what’s new in the vacation rental landscape? Grab your beverage of choice, and let’s dive in.
The end of Tripadvisor vacation rentals
The big news of the month comes from Tripadvisor: On September 10, the platform announced that it was discontinuing the vacation rental segment of its business.
In keeping with this switch in strategy, Tripadvisor has canceled and refunded all vacation rental bookings with check-in dates on or after November 1, 2024 and plans to close its Flipkey and Niumba sites. Unsurprisingly, this news prompted much frustration, both among guests who had already made travel arrangements such as flight reservations and car rentals, and among hosts who were losing a booking channel and revenue stream.
So, what’s next for Tripadvisor? The company said it was transitioning to a new business model leveraging third-party providers, like that which it currently uses for its hotel offerings.
Welcome back, Airbnb Experiences
We announced last month that Airbnb planned to reopen its Experiences program, and now it’s official: The company has reopened applications!
This comes a year and a half after Airbnb paused the program—which enables guests to book tours, classes, and other activities during their trips—to focus on its core offerings.
So, if you’ve been wanting to host an Airbnb Experience, now’s the time to submit your application. Just keep in mind that Airbnb thinks future experiences will need to be more affordable and unique for the program to work.
Learn more about how to host an Airbnb experience here.
Expedia Group launches One Key in the U.K.
Tripadvisor and Airbnb aren’t the only booking platforms with updates this month: Expedia Group has also been in the news thanks in part to its U.K. launch of One Key.
Expedia Group launched One Key, its flexible loyalty program, in the U.S. last year. Now, the program is available and free for U.K. travelers who book eligible vacation rentals, hotels, flights, car rentals, and activities via Expedia, Vrbo, and Hotels.com.
This news came just days after an announcement that former CEO Peter Kern had stepped down from his role as vice chairman.
Your monthly rules and regulations roundup
Airbnb presses NYC to reverse local law 18
It’s been over a year since New York City implemented new short-term rental restrictions via its Local Law 18. Now Airbnb is asking NYC to reconsider, claiming that the legislation has failed to reverse the city’s affordable housing crisis.
Specifically, Airbnb cited “all-time high rents, “all-time high hotel prices,” and “stagnant” vacancy rates in a post on its blog as evidence that other factors are responsible for driving up rent prices.
So, will Airbnb’s claims and other recently released data be enough to convince city officials? Only time will tell.
Check out our report to learn more about the impact of Local Law 18 on the short-term rental landscape.
Edinburgh City Council reverses policy requiring planning permissions
Meanwhile, in Scotland, the Edinburgh City Council has reversed its policy requiring short-term let (STL) operators to prove planning permission before receiving a license. Up until this reversal, the City Council had been issuing three-month suspensions to all STLs that applied for a license without the proper planning permissions.
This change follows a legal opinion by James Findlay KC, sent on behalf of the Association of Scotland’s Self-Caterers (ASSC). The decision marks the third time the Council has revised its STL policies due to legal challenges, which the ASSC sees as proof that the legislation is inherently flawed.
New vacation rental rules come to Gwynedd, Wales
In other U.K. news, the Welsh county of Gwynedd has become the first area in the country to require planning permission to convert a main property into a vacation rental or second home.
Effective starting September 1, the new rules aim to improve housing availability by limiting vacation rentals. The change follows a Welsh government move to classify properties as main homes, second homes, and vacation rentals.
While supporters believe this will protect communities and even the Welsh language, opponents argue it could devalue homes and make it harder to sell properties.
Byron Shire introduces an annual rental cap
The Byron Shire region in the Australian state of New South Wales has begun enforcing a 60-day annual cap on unhosted short-term rentals. Like so much recent legislation, this comes as a result of a severe housing shortage and is hoped to shift many short-term rentals to the long-term market.
The cap will apply to all of the coastal town of Byron Bay as well as most of Byron Shire (although some tourism-reliant areas are exempt). If the cap seems to pay off, it may even be rolled out statewide.
Olympic spotlight: how did Paris vacation rentals fare?
All eyes have been on Paris leading up to and during the 2024 Summer Olympics. And while everyone expected this to be a positive force for the Paris vacation rental industry, new data suggests that hasn’t exactly been the case.
According to a joint study published by booking management platform eviivo and data provider Key Data, the influx of new property owners and managers looking to capitalize on the 2024 Olympic Games has led to an excess of short-term rentals in Paris this summer.
This massive increase in supply has contributed to a 24% drop in revenue per property compared to 2023, despite a spike in demand during the period of the Olympic Games. Overall, average summer occupancy (June-August) decreased by 4.9%, with an average occupancy rate of 58% and revenue per available room (RevPAR) falling to €151.
During the Games (July 26-August 11), demand for short-term rentals increased by 229%, outpacing the increase in supply and temporarily boosting the sector. However, after the event, excess supply slowed the market, leading to lower occupancy rates and revenue.
These numbers beg the question: While we know major events are great at driving demand for vacation rentals, what happens afterward? This may be a sign that vacation rentals need to have transition plans following major events.
See also: Is Taylor Swift Bigger Than the Olympics?
Lodgify releases its Summer 2024 Report
Finally, here at Lodgify, we released our Summer 2024 Report packed with everything you need to know about how the U.S. vacation rental industry fared this summer.
Here are some highlights:
- Average daily rates (ADR) for the summer were up by 3.5% since 2023.
- 30% of bookings this summer were made within a single week of the arrival date.
- Summer occupancy rates were up by an average of 2.9%.
But there’s more! Check out the full report to see which summer holiday was the most popular, which state had the most popular summer destinations, and other key metrics.
See you next month!
That’s a wrap on our September news updates. Now, as we look ahead, let us be the first to wish you a happy Yom Kippur, Indigenous Peoples’ Day, Canadian Thanksgiving, Diwali, and Halloween! Back with more industry updates soon.
