This Week’s News & Insights

Good morning,

Here’s what’s going on in the short-term rental world this week:

Pass the Keys rolled out AI guest messaging across 1,700+ properties, Inspirato unveiled a $40,000-a-year unlimited luxury travel pass, and Casago franchisees are accelerating the takeover of former Vacasa homes with major acquisitions in California and Texas.

This week in the markets: It was a quiet stretch with mortgage rates hovering at 10-month lows, and on the regulations front, enforcement dominated headlines with Airbnb starting to remove non-compliant properties in New Orleans - marking a significant shift from city-only enforcement to platform self-policing.

Lets dive in. 

NEWS

Headline Roundup

• Pass the Keys Brings AI Messaging to Over 1,700 Properties (The Host Report)

• Inspirato Launches $40,000-a-year Pass for Unlimited Luxury Travel (Inspirato)

• Casago Franchisee in Texas Adds 90+ Former Vacasa Homes on the Gulf Coast (The Host Report)

• Casago San Diego Takes Over 150 Former Vacasa Homes (The Host Report)

• OwnerRez Adds Option for Hosts to Donate to Defend the Future of Vacation Rentals (OwnerRez)

• Airbnb Signals "Aggressive" Expansion Into Hotels (Boutique Hotelier)

• Australian STR Advocates Say Restrictions Hurt Tourism & Won’t Fix Housing Crisis (ABC News)

• RMS Launches Payment Platform for U.S. and Canadian Hosts (The Host Report)

• Florida-based vacation rental company IPG Franchising Files For Bankruptcy (Gulf Coast News Now)

Custom Maps: The Easiest Way to Boost Your Bookings

INTERESTING INSIGHTS

Airbnb Rolls Out ‘Reserve Now, Pay Later’ in the U.S.

Airbnb has officially launched its Reserve Now, Pay Later option in the U.S., after months of testing.

Important distinction: This is not Buy Now, Pay Later. Guests aren’t taking out loans. Instead, they can reserve a stay without paying anything upfront. Payment is only collected a few days before arrival, so if the guest cancels in time, there’s no charge. No fees, no friction, guests have no skin in the game

Translation for hosts: Airbnb just made it easier for guests to cancel last minute, and hosts can be left scrambling trying to fill last-minute gaps.

The feature only applies to listings with a Flexible or Moderate cancellation policy, which represents about 40% of U.S. listings. Airbnb is clearly trying to compete with hotels, Expedia, and Booking, which all offer pay-at-hotel options.

Unsurprisingly, many hosts are frustrated. They're right to be. This is a clear win for guests, and the risk is absorbed by hosts. But to be fair, there is a narrow segment of operators who might benefit.

Who Might Benefit, and How It Works

This product is built for budget travelers. In a shaky economy with tons of economic uncertainty, people are already on the fence about taking a vacation or not.

Here’s the psychology of how it works:

When money’s tight, people hesitate. But Reserve Now, Pay Later makes the decision feel risk-free. Guests think, “Worst case, I’ll just cancel.”

But once a trip is on the books, they start investing emotionally and logistically. Flights get booked. Dinner plans are made. Friends get invited. Suddenly, they’re mentally committed and cancellations drop off.

It lowers the barrier to booking, and that’s the point. 

You could argue it’s irresponsible to nudge people into spending what they can’t afford, but hey, that’s not Airbnb’s problem. Their job is to drive conversions.

And Airbnb’s data shows that flexible cancellation policies already drive higher bookings, and that 60% of travelers consider flexible payment options important. 

So, for hosts that are willing to risk last minute cancellations, they could have a big advantage in getting more bookings. 

The Smart Take

On balance, this is a net negative for most hosts. But it’s not universally bad.

• Good Fit: Budget-friendly units (studios, 1–2BRs) near city centers that already attract lots of last-minute bookings. If a guest cancels 72 hours out, odds are you can refill the spot.

• Bad Fit: Larger properties in destination or rural markets. If you get hit with a last-minute cancellation on a week- or month-long booking, you’re toast.

Takeaway for Hosts

Don’t let this catch you off guard.

Cancellation policies now matter more than ever. Take a hard look at:

• Where your traffic comes from

• How close to check-in guests usually book

• How confident you are in filling last-minute gaps

If you get a lot of last-minute bookings and can backfill a 72-hour cancellation window, this could be a tool. For everyone else, stick with the strict cancellation policy.

MARKET INSIGHTS

Mortgage Rate Snapshot

This week, mortgage rates stayed near 10-month lows, with only minor moves tied to inflation and retail sales data. The broader trend shows rates resisting upward pressure, holding steady despite shifts in economic data.

Regulations Update

It was a light week for STR regulations, with most activity focused on enforcement rather than new policy changes.

• New Orleans saw Airbnb voluntarily remove over 1,000 unlicensed listings as platforms now actively enforce permitting requirements, marking a significant shift from city-only enforcement to platform self-policing

• Los Angeles faces an Airbnb-funded campaign to overturn primary residence restrictions, potentially opening second homes to STR use and generating $79 million in additional tax revenue

• Clark County, Nevada, battles a federal lawsuit challenging enforcement practices that include $1,000-$10,000 daily fines and potential property seizures for unlicensed operations

• Crosslake, Minnesota, issued $1,000 fines for unregistered properties while reducing appeals to $500

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