Short-term Rental News Digest – March 2024

Short-term Rental News Digest – March 2024

Spring is here and we have a solar eclipse to look forward to, along with a long run-up to the presidential elections. It’s been a busy month here at iGMS and we’ve been keeping an eye on the STR industry for you.

Tech and innovation continue to play their part, with property managers and hosts embracing advanced booking platforms and AI pricing strategies to streamline operations and boost profits.

Sustainability and regulation compliance continue to feature heavily too, with pressure on the STR market to adopt eco-friendly credentials and adhere to new vacation rental property restrictions and rules. 

Let’s take a closer look at this month’s news digest to find out more…

The VRMA European Conference Returns to Paris 

The Vacation Rental Management Association (VRMA) European conference returned to Paris (the last conference took place in 2019 before the pandemic). Global short-term vacation industry professionals gathered at the Pullman Paris Montparnasse Hotel to discuss key STR topics.  

Attendees debated operations, strategy, sustainability, regulations, and the impact of artificial intelligence. Industry experts including STRz editor Paul Stevens and Inhabit’s Scott Leggat also took to the stand to proffer insights on European and U.S. rules and regulations. 

Booking.com Drops Travel Sustainability Badge

Following discussions with the Netherlands Authority for Consumers and Markets (ACM), Booking.com announced it is no longer part of the Travel Sustainable program.

The program was launched back in 2021 and involved Booking.com scoring rentals 1 to 3+ based on their sustainability, with over 500,000 rentals earning a Travel Sustainability Badge. 

The ACM objected to the name of the program and disagreed with the transparency of the system. They inferred consumers could not be clear about the sustainability claims, which could result in a distorted view of properties. 

In a follow-up statement, Booking.com denounced the Travel Sustainable system in favor of a third-party sustainability certification. 

Solar Eclipse to Be a Major U.S. Attraction 

April 8th is set to be a memorable day in the U.S., as the moon blocks out the face of the sun resulting in a total solar eclipse.

Tour companies, airlines, and cruise operators are offering tailor-made trips, allowing visitors to bask in the wake of the phenomenon. Vacation rentals in eclipse areas can expect increased bookings as visitors seek the perfect spot to view the spectacle. AirDNA data shows that properties are getting booked up along its path.

There have been eclipses before, but this one is particularly special as it will travel diagonally across the U.S. from South to East, passing by:

  • Texas,
  • Oklahoma,
  • Arkansas,
  • Missouri,
  • Illinois,
  • Kentucky,
  • Indiana,
  • Ohio,
  • Pennsylvania,
  • New York,
  • Vermont,
  • New Hampshire,
  • Maine,
  • Tennessee,
  • and Michigan.

Niagara Falls will also be a hot spot, with the total eclipse expected to last around four minutes, attracting around a million visitors. 

U.S. States Generate Record Airbnb Tourist Taxes

Some U.S. states have hiked tourism tax rates, leaving Airbnb hosts with hefty bills. In 2023 U.S. Airbnb hosts generated a staggering $2.2 billion, while those in Canada contributed a further $135 million in tourism tax.

The top three tourism tax-generating states in the U.S. were Florida with $387 million, California with $212 million, and Tennessee with $135 million. Other notable contributors were Airbnb hosts in North Carolina, Georgia, Texas, and Colorado – all generating over $90 million each. 

Airbnb Set to Introduce the Trophy Homes Icon

In 2023 Airbnb presented a new category “Guest Favorites,” a grouping of two million of the most admired and highly rated vacation rental properties on the platform. The company is now working on yet another classification, highlighting the top 25% of properties based on reviews and ratings. 

The cream of the crop (the top 1%) will receive a special accolade – a trophy icon. This will indicate they are the best of the best in terms of Airbnb properties, ensuring they stand out amongst the 7.7 million rentals listed on the platform.

At the other end of the spectrum, Airbnb will be highlighting properties in the bottom 10% too – which will be a headache for hosts who have earned poor reviews from disgruntled guests. 

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