This Week’s News & Insights

Your one-stop-shop for vacation rental success

Author

Dom Trovato
April 16, 2025

Good morning,

Here's what's going on in the vacation rental world this week:

Airbnb is pouring cash into NYC politics to fight local restrictions, Sonder is in survival mode slashing $50M ahead of a crucial Marriott deal, and Y Combinator is backing a bold AI startup aiming to help vacation rental hosts.

This week in the markets: 30 year mortgage rates stayed relatively flat and new STR regulations are developing in San Diego, Washington State, and Puerto Rico.

Lets dive in. 

NEWS

Headline Roundup

  • Locked out of NYC rentals, Airbnb opens wallet to become biggest spender in local elections (Gothamist)

  • 83% of Americans Keeping Vacation Plans Despite Tariffs and Stock Market Turbulence (The Host Report)

  • STR operators searching for new revenue streams as market saturation pinches profits (PhocusWire)

  • Trump’s 90-Day Tariff Pause Relieves Pressure on Housing Market & Travel Industry (The Host Report)

  • Y Combinator-backed Conduit secures $3.1M to build AI property management tools for STR hosts (Tech Funding News)

  • Struggling Sonder slashes $50M in spending and layoffs ahead of make-or-break Marriott integration (Skift)

  • KAYAK's new AI assistant trades endless clicking for natural conversation in travel planning (PhocusWire)

  • Airbnb flexes its tax muscle with $13.5B in tourism taxes paid to governments worldwide (Airbnb News)

INVESTMENT INSIGHTS

Market Snapshot

Mortgage rate volatility has cooled off—for now. Markets have slipped back into their usual high-activity rhythm, the kind we saw before the tariff chaos kicked off. Less drama, same volume.

“Uncertainty” has officially entered buzzword territory in the housing world. The temporary pause on the harshest tariffs offers some relief, but both buyers and sellers are still navigating the ripple effects. Fatigue is setting in, and it’s justified.

Mortgage rates haven’t budged meaningfully yet. A drop in rates would help unstick the market, but so far, it’s just wishful thinking.

Do You Know Your Email Capture Rate?

Let’s break it down: Email capture just means collecting a guest’s email address during their stay. That’s it. But what you do with it—and how often you capture it—can quietly transform your entire business.

Why does it matter?

Because email is leverage. A high email capture rate gives you a direct line to guests—no gatekeepers, no algorithms, no OTAs (like Airbnb or Vrbo). That opens the door to personalized offers, marketing campaigns, and post-stay feedback.

Done right, it builds stronger guest relationships, boosts direct bookings, and improves your bottom line. Ignore it—or do it poorly—and you're leaving money on the table + giving long-term guest relationships to the OTAs.

Think about it this way:

When email capture is dialed in, you’re not just collecting data—you’re setting the stage for VIP-level personalization. Guests feel recognized. Offers feel relevant. Repeat stays feel like a no-brainer. Direct bookings go up. NOI follows.

OTAs have traditionally guarded guest data like Fort Knox, but the smartest hosts are flipping the script. They’re aggressively building email databases because they know that every email isn’t just a contact—it’s a future revenue stream.

Regulations Update

  • San Diego, CA and Washington State are both advancing short-term rental taxes aimed at funding affordable housing.

  • In Puerto Rico, a proposed Senate bill would centralize STR licensing and registration, raising concerns about added bureaucracy and cost burdens.

  • Nevada City, CA is considering a permit cap and stricter compliance standards, potentially limiting new investor entries after July 1st.

  • A zoning technicality in Preble, New York, may overturn a local STR ban, offering a rare win for property owners.

See this weeks full regulations report here: (The Host Report)

EDUCATION

Featured Article

In data published by the International Trade Administration, U.S. citizens traveling abroad has recently declined, indicating that Americans may be rethinking international travel due to economic uncertainty. 

At the same time, foreign arrivals to the U.S. remain 13% below 2019 levels and, despite gradual recovery over the past few years, have started to decline again in recent weeks.

However, the change in international travel wont impact all markets equally.

Destinations like Washington D.C. (23%), Orlando (19%), and Hawaii (12%) are especially exposed to a decline in international travelers and these markets could be hit hardest. 

In contrast, domestic-focused areas like 30A (1%) and Lake Tahoe (1%) have low exposure to international travel shifts but are still sensitive to U.S. economic trends.

Additional Resources: