This Week’s News & Insights

Good morning,

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

STR booking momentum is heating up ahead of peak season, hosts recovered over 300 abandoned bookings worth nearly $4,000 each by simply following up, and Hyatt cuts 30% of its U.S. guest services team, giving us a preview of what guest support might look like in an AI-first world.

And tons of new STR regulations are shaking things up this week:

Oklahoma City hiked STR license fees by 267%, Kansas City passed host-friendly reforms to keep STRs classified as residential, South Lake Tahoe reversed its STR ban and is issuing new permits, Arizona officials are floating new restrictions after a closed-door meeting in Sedona + a whole lot more. Don't miss the weekly regulations update at the bottom of this newsletter. 

Lets dive in. 

NEWS

Headline Roundup

• How Hosts Recovered $1.2M by Following Up on Abandoned Bookings (The Host Report)

• Spanish Court Rejects Airbnb Appeal, Upholds Ruling to Ban 66,000 Airbnb Listings (Euronews)

• Airbnb vs Hotels: Who’s to Blame for the Overtourism Problem in Europe? (The Host Report)

• AI in Hospitality: Hyatt Lays Off 30% of US Guest Services and Support Teams (Hotel Dive)

• Thousands of Canadian Airbnb Bookings at Risk of Cancellation (Global News)

• Western Mountain Towns Hit by Global Tourism Slump (Hotel Dive)

• New Report Reveals 2025’s Biggest STR Revenue Challenges (The Host Report)

• New York Poll: What Locals Really Think About Airbnb (New York Post)

• TravelPerk Rolls Out New Insurance Add-On for EU Business Travel (GlobeNewswire)

• RMS Launches New AI-Powered Direct Booking Engine (Hospitality Net)

INTERESTING INSIGHTS

May STR Data: Summer Signals Strong Bookings

AirDna’s latest U.S. STR report confirms what many hosts were hoping for: strong momentum heading into peak season. Despite a small dip in occupancy, the report shows rising RevPAR, record listing growth, and a surge in last-minute reservations

Key U.S. STR Performance Metrics

• RevPAR: $169.78, up 4.8% year-over-year

• Available Listings: 1.75 million, up 5.7% YOY

  • Listing growth hit its highest level since May 2023

  • Most new inventory is concentrated in resort areas and small city or rural locations

• Occupancy: 55.3%, down 1.1 percentage points YOY

• ADR: $307.05, up 6.1% YOY

Guest Booking Behavior: A Shift to Last-minute Reservations

Booking lead times continue to shrink as travelers hold off on making decisions. Comparing May 2025 to May 2024:

• Same-day bookings: Up nearly 4% YoY

• 2–3 month lead times: Down 4% YoY

• Bookings between 1-5 days: 23% of overall demand

This shift isn’t a demand problem, it’s a planning shift. Guests are still booking, but closer to their travel dates. 

One exception: upscale and luxury travelers are still booking well in advance. For bookings made 183 days in advance, Luxury lead times are +11%, while Budget lead times are -3%.

Location Standouts

Positive:

• Philadelphia: +6.1% occupancy, driven by a 14.0% rise in demand

• St. Petersburg, FL: +5.8% occupancy as inventory recovers post-Hurricane Milton

Negative:

• New Orleans: –8.6% occupancy, likely tied to stricter STR enforcement

• Las Vegas: –8.5% occupancy, despite steady demand, due to increased listings

Large markets are adding supply fast. Seventeen of the top 50 U.S. STR markets grew listings faster than the national average.

July 4th Outlook: Bookings Surge in Key Markets

Washington D.C. is up 26.8% in bookings for the holiday weekend compared to this time last year. Other top performers with over 15% YOY growth:

• Nashville, TN

• Big Bear, CA

• Fort Myers, FL

• Rosemary Beach, FL

• Destin, FL

• Gulf Shores, AL (close behind at +12.7%)

These markets all benefit from their accessibility and strong appeal for regional summer travel.

You can read the full report here.

MARKET INSIGHTS

Mortgage Rate Snapshot

30-year mortgage rates moved to the lowest levels since April with the second consecutive week of rate drops, supported by a steady bond market and soft economic signals. Weaker labor market data and Fed Chair Powell’s softer tone in congressional testimony helped drive a midweek rally in bonds, pushing rates even lower.

Regulations Update

• Oklahoma City hit hosts with a 267% fee increase from $300 to $1,100 for STR licenses while deploying new software to hunt down unlicensed operators

• Kansas City, Missouri passed investor-friendly legislation preventing STRs from being reclassified as commercial properties, reducing tax burdens ahead of the 2026 FIFA World Cup

• South Lake Tahoe reopened short-term rental permits after overturning Measure T, creating new investment opportunities with updated regulatory standards

• Arizona mayors and officials met in Sedona to discuss short-term rental challenges, signaling potential future regulations to address community impacts.

• Maui is considering eliminating approximately 6,000 short-term rentals in apartment-zoned districts, potentially forcing conversions to long-term housing or hotels

• Cities in Louisiana, Minnesota, and Washington are all facing federal lawsuits challenging outright STR bans

• Chicago's proposed ordinance allowing precinct-level STR bans has stalled due to opposition

• Las Cruces, New Mexico adds a 5% lodgers' tax with July enforcement,

• Athens, Greece extended its ban on new STR permits in the city center through December 2026, completely blocking new Airbnb investments while protecting existing operators

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