This Week’s News & Insights

Good morning,

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

Airbnb’s been accused of poaching tour guides from other platforms as it relaunches Experiences, we explore if the “No Tax on Tips” bill could give hosts a creative way to lower costs, and babysitting + exclusive dinner reservations are becoming an amenity in luxury STRs.

This week in the markets: Inflation optimism pushed mortgage rates to their lowest level in over a month before stabilizing, and on the regulatory front: a federal lawsuit in Louisiana could reopen the door for STRs, while Maui moves forward with a massive phaseout that could eliminate 6,000 vacation rentals.

Lets dive in. 

NEWS

Headline Roundup

• Airbnb accused of poaching tour guides as it relaunches Experiences (Skift)

• Will “No Tax on Tips” cut costs for vacation rental operators? (The Host Report)

• HomeExchange partners with The Babysitting Company, adding babysitting to luxury rental perks (Travel Daily News)

• Airbnb teams with FIFA to deliver exclusive football experiences (The Host Report)

• OpenTable expands UrVenue integration, giving guests priority access to the hottest restaurants (UrVenue)

• Global study finds 77% of travelers are ready to let AI plan their trips (PhocusWire)

• Airbnb points finger at hotels for European overtourism (Airbnb Newsroom)

• What the top 10% of STR new builds get right (Key Data)

• Luxury Simplified Retreats acquires Charleston Island Rentals and merges with Stay in Palmetto Bluff (Charleston Business)

• Castle Peak raises $315M to scale outdoors-focused Trailborn brand (Hotel Dive)

INTERESTING INSIGHTS

What Pricing Data Actually Matters in 2025?

Beyond just released their inaugural State of Revenue Management report, which highlights essential trends and tactics STR operators need to stay profitable in a year defined by economic turbulence, changing guest behavior, and rapid tech innovation.

Here’s some key takeaways:

#1 Recession-Resilient Travel Demand

Despite the negative headlines, travel hasn’t disappeared, It’s just changed shape.

• U.S. travelers are opting for domestic road trips over costly international flights.

• European travelers are showing strong interest in destinations like Tokyo, Palma de Mallorca, and Paris, among others.

#2 Predictive Data Outperforms Historical Trends

While past performance can offer helpful context, it can't capture today’s dynamic market conditions.

• In Europe, 35% of STR searches target stays within the next 40 days, peaking around mid-August.

• In the U.S., 42% of searches also focus on short booking windows, notably around July 4th.

• An interesting takeaway: Guests might have also become conditioned to expect last-minute deals, further incentivizing them to hold out on making a booking. This makes early pricing adjustments critical to avoid deep discounts later.

#3 Trusting the Right Data

Pricing decisions based on scraped OTA listings risk inaccuracies.

• Actual reservation data: confirmed rates, occupancy, and lead times is crucial.

• Nearly 49% of international hosts consider pricing optimization their top 2025 priority, emphasizing reliable, real-time data.

#4 Strategic Adoption of AI Tools

• AI isn't about eliminating human judgment but enhancing it through automation and actionable insights.

• Beyond reports that 46% of travelers now trust AI to assist trip planning, signaling a broader industry shift toward intelligent automation for pricing, operations, and guest communications.

Whether it’s pricing, guest behavior, or regulation, the report offers operators the data and direction needed to navigate today's dynamic STR environment. 

You can read the full report here

MARKET INSIGHTS

Mortgage Rate Snapshot

Mortgage rates moved within a narrow band over the past week, with the biggest drop coming after the June 11 CPI data showed lower-than-expected inflation, pushing rates down to the lowest levels in more than a month. Rates briefly bounced higher on Friday and Monday but dipped again Tuesday ahead of the Fed’s policy update. Markets remain cautious, with rates holding steady as traders await further signals from the Fed and geopolitical developments.

Regulations Update

• Maui's Bill 9 proposes phasing out approximately 6,000 STRs in apartment-zoned districts, potentially costing the county a projected $60 million in tax revenue

• Nantucket, Massachusetts will not enforce a Land Court ruling that blocks non-owner-occupied STRs while an appeal is pending, offering temporary stability for STR investors in the area

• Lafayette, Louisiana faces a federal lawsuit challenging its ordinance that bans STRs in residential zones covering 75% of the city, with the outcome potentially restoring STR operations or affirming restrictions that severely limit investment opportunities

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