This Week’s News & Insights

Your one-stop-shop for vacation rental success

Author

Dom Trovato
April 30, 2025

Good morning,

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

Honolulu’s coming for illegal STRs with millions in fines and even foreclosure threats, Guesty says their new Quality Dashboard for Airbnb property managers boosts 5-star reviews by 7% in just eight months, and Airbnb's summer travel trends show a surge in travelers seeking authentic local experiences and spontaneous staycations within 300 miles of home.

This week in the markets: 30 year mortgage rates have inched down each of the last 5 business days, and new STR regulations are developing in Connecticut, Michigan, South Carolina, and New York.

Lets dive in. 

NEWS

Headline Roundup

  • Expedia's loyalty program takes another hit as Vrbo point earnings get slashed for most guests starting May 22nd (The Host Report)

  • Honolulu means business: City now threatening property foreclosures on illegal STR operators who ignore millions in fines (Star Advertiser)

  • Pelosi pressures SF’s mayor to claw back $120M from Airbnb (The Host Report)

  • Guesty says its new Quality Dashboard for Airbnb hosts delivers 7% boost in 5-star reviews (PR Newswire)

  • Summer 2025 travel trends: Airbnb reports surge in local culinary destinations, spontaneous staycations, and event-driven bookings (Airbnb)

  • Expedia cuts 3% of product and tech staff in a move to “streamline,” aka trim the fat (Skift)

  • Airbnb drops $1.2M on lobbying in Washington to kill a proposed 4% STR tax—for now (GeekWire)

  • Ireland’s top economic think tank says Airbnb isn’t the villain in the country’s rental crisis (RTÉ)

INVESTMENT INSIGHTS

Market Snapshot

Mortgage rates spent the last week stabilizing as market sentiment improved after Trump clarified he didn't plan to fire Fed Chair Powell.

Rates have drifted slightly lower each of the last five business days, with the average lender reaching the lowest level since April 7th.However, rising inflation signals – particularly in service and manufacturing sectors – have prevented more significant declines, keeping lenders cautious. 

For now, the broader trend appears flat, with small daily gains largely offset by inflation concerns and potential market-moving data ahead.

Trend to Watch: Canadian Travel Decline to the US

Now, we're tracking a new trend: changing inbound travel patterns from tariff-affected countries.

New tariffs targeting Canada in March prompted boycott calls from Canadian public figures, resulting in a 12.1% year-over-year drop in travel to the US from Canada.

Source: Airdna

While Canadians represent only 2.6% of total US short-term rental demand, their absence impacts specific markets—particularly border regions and popular snowbird destinations.

Source: Airdna

Understanding your market's international traveler exposure is essential for planning. Markets like Lake Tahoe and 30A (under 2% international demand) face minimal impact, while Washington D.C. (23%), Orlando (19%), and Hawaii (12%) are highly vulnerable to international travel declines.

Regulations Update

  • Connecticut's statewide short-term rental registry, approved by their Finance Committee, requires all operators to register by January 1, 2026, and pay a $100 annual fee while potentially facing additional municipal taxes.

  • Michigan communities are taking targeted action against rentals, with Spring Lake Village and South Haven banning new listings in key beachside neighborhoods and layering new zoning rules that could limit future growth. 

  • Meanwhile, South Carolina's legislation that would have prevented local STR bans has stalled, highlighting the ongoing tension between state and local control

  • And Irondequoit, NY, is considering either banning rentals under 29 days or requiring minimum 7-day stays

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

EDUCATION

Influencers Impact on Travel

Big-budget productions like The White Lotus, Emily in Paris, and Game of Thrones have all triggered spikes in Airbnb searches (Airbnb searches for Koh Samui, Thailand rose 80% after being named the next White Lotus set). But betting on Hollywood filming in your city isn’t a strategy.

Social media influencers offer a more strategic alternative. A March, 2025 survey from Data Axle shows 57% of respondents say influencers impact their travel choices, with 18% relying significantly on influencer recommendations.

We anticipate branded short-term rental partnerships with travel influencers will drive increasing direct booking traffic in coming years. If you haven't explored this booking channel yet, now is the time.

Additional Resources: