Good morning,

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

New data shows that “the booking windows are shrinking" headlines are wrong in certain markets, a report finally put real numbers on how often STR guests book local experiences, and we break down Airbnb's new “Direct Booking” link that can save you up to 9.5% in fees per booking.

Lets dive in. 

NEWS

Headline Roundup

• New data shows booking windows are shrinking in cities but growing at cabins (The Host Report)

• Finally, a report puts real numbers on how often vacation rental guests book experiences (The Host Report)

• The impact of college football games on STR revenue (AirDNA)

• Old dogs, new tricks: Why even 30-year veterans need to keep learning (The Host Report)

• Airbnb names former Tripadvisor exec Pepijn Rijvers chief business officer (PhocusWire)

• A Corpus Christi developer says the city's new STR rule could cost him $20 million (KIII-TV)

• Airbnb's Director of Public Policy shares how the company approaches new short-term rental regulations (Web in Travel)

What good is collecting guest emails if you never actually send them anything?

GuestLink solves that problem, so you get repeat direct bookings, without any extra effort.

INTERESTING INSIGHTS

Airbnb’s offering a new “Direct Booking” option where you can save up to 9.5% in fees on each booking.

Airbnb’s testing a new “direct booking link” with selected hosts.

Hosts can share the link anywhere: on instagram, in an email, or through a QR code printed in your welcome book. And If someone books through that link, the reservation still happens on Airbnb, but the host only pays a 6% fee instead of Airbnb's standard 15.5% fee.

Hosts can also add a special discount for guests that use the link. And the booking has all the regular Airbnb benefits like AirCover.

I've been critical of a lot of Airbnb's recent changes, but objectively, I think this is a really smart move.

Why would Airbnb do this?

A long-term risk to Airbnb’s business model is hosts building their own direct booking sites & cutting Airbnb out of the equation.

So with this new direct booking link, Airbnb’s essentially saying: "If you bring the guest, we'll charge you less."

And it makes sense strategically: Airbnb still gets the booking, the host gets a substantially lower fee, and the guest books through a website they already know and trust.

The more I think about it, the more I believe there’s a pretty big group of hosts that will use this when it rolls out.

Is it really a direct booking?

A lot of the early commentary is arguing about whether Airbnb is misusing the term "direct booking,"

Technically, this isn’t what the vacation rental industry has traditionally called a direct booking.

The reservation still happens on Airbnb. Airbnb processes the payment, controls the platform and sets the rules and fees. And importantly, Airbnb still owns the guest data.

You don't walk away with the guest's email address, and it doesn't solve the platform dependency on Airbnb, where most hosts have all their eggs in that one basket.

So I understand why people look at this and say: "That's not a true direct booking."

They're not wrong. 

But I think the debate over what to call it overlooks why it could be valuable to a lot of hosts.

Because a true direct booking operation requires much more than spinning up a website and adding a "Book Now" button.

You need a booking engine, payment processing, a strategy for fraud and chargebacks, a trustworthy website, ongoing website maintenance, and some way to actually generate traffic to the site.

For larger property managers generating direct booking demand, that infrastructure is easily worth the investment.

But remember, 87% of Airbnb hosts manage just one or two listings.

And the full direct booking infrastructure I mentioned above is still expensive (all-in costs can easily reach $3,000+ a year) and it’s time-consuming to maintain (a mediocre direct booking website can actually cost you conversions if it looks bad and the guest doesn't trust it enough to enter their credit card).

A lot of people got started hosting because they wanted to provide a great experience at their property, not build and maintain a website.

For them, the benefit of saving up to 9.5% in fees on each booking, while also avoiding most of that complexity sounds like a pretty reasonable deal. 

At the very least, I believe this will make hosts think twice about whether they want to take on the cost associated with building their own direct booking website when there's a simpler option available.

Who does this actually matter for?

I think there are 3 groups when it comes to direct bookings:

#1 Property managers with an existing direct-booking operation

This group won't change anything. They’ve already built the website, payment infrastructure, guest database and marketing systems. They’ve already done the hard work, so this Airbnb direct booking link doesn't matter to them. They don't need it.

#2 Hosts who aren't generating their own demand

This doesn't change much either. A direct booking link isn't valuable if you don't have anybody to send it to.

#3 Hosts with repeat demand, but no direct-booking infrastructure.

This group is much more interesting:

You're providing a great guest experience. People would stay with you again. You've thought about direct booking, but building the website, payment stack and marketing infrastructure seemed like a lot of effort (it is).

For this group, I think Airbnb just made it easier to get started.

Maybe you don't need to start by building the entire direct-booking stack on day one… Maybe you just need a way to stay connected to your guests and generate the next booking.

That’s where GuestLink fits particularly well.

GuestLink collects guest emails during the stay and automatically sends direct booking offers to your guests afterward.

So instead of building a direct booking website from scratch, you could simply point the "Book Again" button in GuestLink to your Airbnb direct booking link.

The system becomes pretty simple:

Provide a great stay → collect the guest’s contact info → stay in touch → send them back to your property → pay a reduced Airbnb fee and profit up to 9.5% more on each booking.

No direct-booking website required.

There's still one big catch

Airbnb controls the link. Today, the fee might be reduced to 6%. But tomorrow, Airbnb could make it 10%, increase it again, change the rules or shut down the pilot.

That's why I wouldn’t build a repeat-booking strategy around the Airbnb link unless you're independently collecting your guest’s contact info.

Because the valuable asset is your relationship with the guest.

If you have your guests' emails and permission to stay in touch, Airbnb’s direct booking link is simply one place you can choose to send them.

Today, maybe that means sending a repeat guest to Airbnb and only paying 6%.

But if the economics change later, you can build your own booking site and send those same guests there instead.

Because owning the guest relationship and processing the booking yourself don't necessarily have to be the same decision.

By making this move, Airbnb’s telling us that our relationship with guests and our ability to generate direct bookings is becoming more valuable.

MARKET INSIGHTS

Mortgage Rate Snapshot

In a sharp reversal from last week, mortgage rates climbed to their highest level in more than a year after Fed Chair Warsh's Jackson Hole speech stressed that inflation remains too high and renewed U.S./Iran fighting pushed oil prices higher.

Regulations Update

• Riverside County, California finalized rules that suspend an STR certificate after three citations and start revocation after five, and code officers can now respond to complaints without giving owners a 60-minute fix window

• Folly Beach, South Carolina voted 4-1 to halt new short-term rental licenses for six months, until February 19, after a court struck down its STR limits and 73 applications flooded in

• Corpus Christi, Texas paused new Type 1 short-term rental permits through November while keeping its cap of 15% of properties per block

• Lake Worth Beach, Florida is considering ending its ban on Airbnb and Vrbo rentals, with residents demanding a commissioner who owns an STR recuse himself

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