Vacation Rental News & Insights

Good morning,

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

Marriott cuts ties with Sonder as the company heads into bankruptcy, Airbnb’s Q3 results reveal new hotel listing pilots and AI-driven tools for guests, and flight cancellations from the government shutdown drag down hospitality revenues.

On the regulations front: Nantucket voters overwhelmingly legalized short-term rentals island-wide after years of courtroom battles, Vail residents narrowly voted down a proposed 6% STR tax hike, and San Diego hosts are staring down new taxes that could reach $20,000+ per property annually.

Lets dive in. 

NEWS

Headline Roundup

• What Hosts Need to Know About Airbnb's Q3 Results (The Host Report)

• Marriott Terminates Sonder Partnership and Sonder Collapses into Bankruptcy (The Host Report)

• A Four-Bedroom Vacation Rental in San Diego Could Face $20,000 Per Year in New Taxes (KPBS)

• Travel Platforms Say Americans are Powering Through Inflation and Booking More Trips Than Expected (Investopedia)

• Airbnb.org Offers Free Emergency Housing for Hurricane Melissa Victims (Airbnb News)

• Flight disruptions across the U.S. are squeezing hospitality revenues and occupancy rates (Hotel Dive)

• Tripadvisor cuts 20% of workforce in major restructuring across core and tour divisions (Skift)

• Amid a Growing Wealth Divide in Hospitality, Luxury Travelers are Thriving (Hotel Dive)

• Best Airbnb Amenities That Boost Revenue for Hosts (AirDNA)

• Apaleo Strengthens Leadership Team with Key Hires to Fuel its Next Growth Phase (Hospitality Net)

• RMS Integrates with Epos Now to Streamline Operations (The Host Report)

The #1 Priority for 84% of people booking a place to stay is The Location!

INTERESTING INSIGHTS

Airbnb Launches Hotel Listings, New AI Tools, and Other Platform Changes

Hotels have officially launched on Airbnb

Airbnb confirmed it is testing hotel listings in Los Angeles, New York, and Madrid. The Hotel listings have been fully integrated into the Airbnb experience with new filters and redesigned room pages.

A few key differences:

• Selectable room types & room-type-specific reviews. Hotel listings allow guests to choose between different room types (ex: queen, king, or suite), just like a typical hotel booking flow. And guest reviews are tagged with the exact room category the guest stayed in. 

• No “host” page. The usual host profile is gone. The listing feels more like a standard hotel OTA than a personal home.

Airbnb is testing a ‘What Box’ for natural language search

Airbnb is also testing conversational search that lets travelers describe what they want (ex: "a pet-friendly cabin near hiking trails") instead of filtering manually. CEO Brian Chesky said the search box will include a "what" field with "free text natural language input, which is similar to ChatGPT or Gemini."

For hosts, listings with clear descriptions, strong visuals, and complete amenities will likely rank higher in AI-driven results once this system rolls out globally.

Other platform changes

Airbnb rolled out 65 new product updates this quarter designed to increase engagement and conversions. Notably:

• Updated Cancellation Policies now let hosts offer free cancellation up to 14 days before check-in, while guests can cancel within 24 hours of booking if check-in is more than a week away. Airbnb says these changes have reduced customer service cases and lifted overall bookings.

• New Search Carousels now show listings slightly outside a traveler's criteria, such as nearby towns or similar amenities, broadening exposure for hosts near high-demand areas.

• Reserve Now, Pay Later lets guests book eligible stays with $0 upfront and pay closer to check-in. Airbnb says it's already a major driver of growth, with 70% of eligible guests choosing the option.

Together, these changes aim to boost conversion rates and keep guests browsing longer inside the Airbnb app.

MARKET INSIGHTS

Mortgage Rate Snapshot

Mortgage rates fluctuated narrowly last week, climbing on strong economic data before easing on weaker labor reports, ultimately ending slightly higher but still within the tight range that has held since late October.

Regulations Update

• Nantucket voters approved short-term rentals island-wide by a 71% margin, legalizing STRs in nearly all zoning districts and ending five years of legal battles, though corporate ownership remains banned

• Vail, Colorado voters narrowly rejected a 6% STR tax increase by just 36 votes, keeping the total tax rate at 10.8% instead of jumping to 16.8%

• Port Hueneme, California is reviewing an ordinance that would cap STRs at 10% of housing stock, require $995 annual fees, and mandate 100-200 foot spacing between units, with a vote delayed until November 17

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