This Week’s News & Insights

Good morning,

Major updates are happening with Airbnb's Policies, effective May 10th. Don't miss the 5 Airbnb Policy Changes Hosts Need to Know article for the full details to avoid suspension or delisting.

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

Airbnb’s new no-nonsense price display is live globally (and killing fee sticker shock), Vacasa’s board is getting roasted by its own investors over a merger mess, and budget-conscious European travelers are trading Paris for Portugal as economic clouds roll in.

This week in the markets: 30 year mortgage rates jumped up, and STR regulation changes are rolling out in Houston, TX, Kelowna, BC, and Maryland.

Lets dive in. 

NEWS

Headline Roundup

• 5 Airbnb policy changes coming in May that hosts need to know (The Host Report)

• Major Vacasa shareholder blasts "rushed" Casago merger as self-dealing disaster (SEC Database)

• Airbnb kills hidden fees—guests now see the real cost upfront, no more clickbait pricing (The Host Report)

• Travel industry splits into AI haves and have-nots as tech reshapes customer experience (Phocuswire)

• Budget-conscious travelers are ditching France and Italy for cheaper European alternatives (Travel Pulse)

• America's tourism problem: International visitors still MIA as dollar strength and visa delays bite (Oxford Economics)

• OTAs quietly corner the market—now booking a third of all tours and activities (Arival)

INVESTMENT INSIGHTS

Market Snapshot

Mortgage rates jumped up across the board this week. President Trump’s heavy public criticism of Fed Chair Jerome Powell stirred up market anxiety. Traders responded to the uncertainty by pushing stocks lower and rates higher, causing 30-year fixed mortgage rates to cross back over 7%.

Analyzing March STR Occupancy Data

According to AirDNA’s March 2025 data, there was a slight slowdown in occupancy across the board in March compared to February. The one bright spot were mid-size cities. These markets continued to accelerate, coming in as the second-fastest growing location type after rural/small town areas. Meanwhile, mountain and lake resorts saw a minor dip in demand. 

Out of the top 50 markets, just 12 experienced stable or rising occupancy—and most of those were warm-weather spots in Texas, Florida, and Hawaii, likely drawing in travelers escaping the tail end of winter.

Regulations Update

• Houston, TX rolled out new regulations adding significant operational requirements - a $275 annual fee, mandatory human-trafficking training, and bans on event space advertising 

• In Kelowna, BC, new rules restrict rentals to primary residences or secondary suites, effectively eliminating investment properties solely used as STRs 

• Maryland has delayed its tax overhaul until 2027, giving investors breathing room to adapt their financial models

• Washington state's proposed 4% STR tax failed after Airbnb's $1.2 million lobbying effort

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

EDUCATION

Featured Article

Phocuswright ran a nationwide online survey targeting U.S. vacation travelers who booked at least one STR in the past year. Here’s one of the most interesting things they found:

Guests who’ve stayed in both hotels and vacation rentals say STRs win on key lifestyle features: kitchens, privacy, value, personality, and a space that doesn’t feel generic. Hosts should lean into those strengths—highlight well-stocked kitchens, unique design, and personal touches through photos and amenities.

But on the flip side, the study shows that guests are saying hotels still dominate on service—72% of STR guests say hotels do it better. To close that gap and stand out, hosts should double down on fast, clear communication and guest-first responsiveness. Service isn’t just for hotels—it can be your differentiator, too.

Additional Resources:

• How to find a trustworthy Airbnb cleaner, handymen, and essential team members (The Host Report)

• How to create an outstanding Airbnb listing (The Host Report)