Vacation Rental Professionals Network

Panic in Greece as New Tourism Law Threatens to Harm Economy Greece’s economy is facing potential disruption as new tourism regulations could jeopardize the country’s vital tourist industry. A draft law currently undergoing public consultation, set to end tomorrow, seeks to regulate Airbnbs and short-term rentals for the first time. The proposed legislation has sparked controversy, especially Article Three, which states that properties converted into short-term rentals after July 28, 2011, would no longer be allowed to operate as such. The Greek Short-Term Accommodation Managers Association (STAMA) has written to Prime Minister Kyriakos Mitsotakis urging him to amend the law. While the Ministry of Tourism has emphasized that the new regulations aim to address current challenges while ensuring the competitiveness and sustainability of Greek tourism, STAMA argues that the rules are discriminatory and impractical. The association claims the law unfairly penalizes property owners who invested in upgrading properties for short-term renting, effectively punishing those who acted in good faith. STAMA warns that the economic impact could be severe, highlighting that millions of euros have been invested in these properties. Disqualifying these rentals from the market could cause property values to plummet and reduce state tax revenues. Furthermore, it could discourage future investments, undermining the broader Greek economy. #greece #greek #economy #tourism #regulations #rules #greekisles https://lnkd.in/gRNr_i6K

Your Product Video, Blog/Vlog, Podcast, Company Intro Video, and Personal Video introductions are Needed. It's almost time to show something that will be a useful tool for members of the Vacation Rental Professionals Group and the industry in general. hashtag #videos #video #content #contentneeded #questionforthegroup #podcast #vlogs #blogs #productvideos #personalintroductions Please add your content links here: https://lnkd.in/gENiCQzA

PhocusWire: The inevitable shift towards technology consolidation in short-term rentals. Eric's Take: Consolidation has been ongoing for years. We know there are major transactions pending with InhabitIQ, with Goldman Sachs Announcing InhabitIQ's offering last year. Guesty is on track to IPO at some point. Heck, I quietly completed a transaction last year without fanfare. More from the story: In the short-term rental (STR) management arena, a persistent debate revolves around technology choices: should property managers assemble customized tech stacks with specialized tools or adopt an all-in-one property management system (PMS) for simplicity and efficiency? While this question dominates discussions, it overlooks a more pressing issue — the inevitable consolidation of technology within the STR sector. Ironically, this is the critical missing puzzle piece in this ongoing debate. This oversight is happening because the STR industry tends to view itself in isolation, focusing exclusively on its own unique challenges. While there are indeed unique aspects to the STR industry, the industry follows common patterns observed across other cloud software verticals. When the industry considers broader business trends, a common thread emerges: industries naturally gravitate toward consolidation, culminating in comprehensive, all-in-one solutions. Consider HubSpot. What started as a marketing software platform evolved into an all-encompassing ecosystem that now supports sales, customer service and customer relationship management (CRM) capabilities. Microsoft expanded beyond its foundational Windows and Office products to create Microsoft 365, integrating cloud services, collaboration tools and enterprise-level security — all under one umbrella. Even online travel agencies like Expedia and Booking.com have consolidated services, allowing users to book accommodations, flights, experiences and rental cars on a single platform. Despite potential challenges or failures in some consolidation efforts, the overarching strategy remains toward unification. This pattern isn’t just a trend; it’s the natural evolution of industries as they mature and professionalize. Industries often experience a “mushroom phase,” characterized by the rapid proliferation of players and specialized tools — a phase the STR industry is currently emerging from. This phase often begins when industries digitize or consumer behavior shifts... hashtag #technology #mergersandacquistions #sale #shift #consolidation #technology #propertymanagementsoftware #acquistions #divestiture https://lnkd.in/gP3TidAS

Airbnb will extend the long-term rental marketplace to UK tenants. Our Take: Airbnb is seeing its landscape change, and some say Airbnb is the root cause of this change. They are looking to expand their position in both Long-Term Rentals and Mid-Term Rentals. More from the story... The concept aims to counter criticism that the platform contributes to housing crises in big tourist destinations. Airbnb is introducing its long-term rental marketplace that allows tenants to sublet homes on a part-time basis to the UK, as the platform responds to criticism that it has contributed to higher prices and housing shortages. Airbnb-friendly apartments started in 2022 in partnership with rental companies, including Greystar, the biggest apartment owner in the US, link potential renters with landlords who are willing to allow tenants to act as hosts for a limited time to earn money when they are not using their property. The scheme will be rolled out in London from Monday, allowing tenants in nearly 1,500 flats across three properties owned by Greystar in the capital to rent out their homes. Airbnb said it was “actively discussing” with other landlords to join the platform and extend the concept to other parts of the UK. Prospective tenants will have to sign a contract with their landlord, establishing hosting rules such as limits on the number of nights that the property can be let out. They also have to agree to share about 10 per cent to 25 per cent of the revenue with landlords. “It’s no secret that a lot of tenancy agreements say do not sublet [so] unfortunately, renters have had a challenge historically to become Airbnb hosts,” said Jesse Stein, global head of real estate for Airbnb. Landlords taking part in the programme were happy as long as they could “ensure that [the flats] are people’s primary homes”, he added. Airbnb’s push to work more closely with landlords — and its emphasis that such properties are used only occasionally as short-term lets — comes amid mounting criticism that the company and rivals such as Vrbo and Booking.com are driving up rents and housing costs. hashtag #UK #london #longtermrentals #midtermrentals #airbnb #evolve #expand https://lnkd.in/ggvCDKQm

Barcelona protesters demand affordable rents as Spain juggles the impact of tourism. About 22,000 people protested in Barcelona on Saturday in the latest demonstration to demand lower housing rental prices and better living conditions. Housing has become a major issue in Spain as it struggles to balance promoting tourism, a key driver of its economy, and concerns over high rents due to gentrification and landlords shifting to more lucrative, short-term tourist rentals. The price of rentals signed in the second quarter of 2024 in Barcelona was almost 70% higher than in the same period of 2014, data from the Catalan Housing Agency shows. "We are spending half our wages in rent ... This must stop!," said Carme, 28, a spokeswoman for a tenants union. Smaller protests were held across Catalonia, and in Burgos, Asturias in north Spain and Jerez de la Frontera in the south. The government announced a crackdown on short-term and seasonal holiday lettings in July and planned to investigate listings on platforms such as Airbnb (ABNB.O) and Booking.com to verify if they have licenses. Demonstrations have been held this year in Madrid, the Canary Islands and Malaga, where seasonal hospitality workers struggle to find accommodation, with many sleeping in caravans or even their cars. #europe #barcelona #spain #regulations #affordablehousing #housing #living https://lnkd.in/gGRgzfQu

In Ocean Beach, California, Short-Term Rentals Are Exacerbating Homelessness. Short-term (vacation) rentals (STRs) are an innovation. Since VRBO and Airbnb came on the scene, this is a new sub-sector of the lodging industry, just as Uber and Lyft were a new sub-sector for the transportation industry. But, at least for STRs, there is a downside. Unintended consequences often accompany innovation, mostly during early adoption. STRs rely on existing homes and apartments. The more there are, the less housing there is for residential. As a result, rental prices can soar, sometimes pushing residents out of an area. My concern, because homelessness is one of our greatest crises and something I have been personally involved in addressing for decades, is that exacerbates the problem. Less stock and higher prices and/or rents are only going to cause more people to become homeless, especially if they have an unexpected financial setback and are already living on the edge. Let’s look at how this is turning thing upside down, and what might be done about it. Knee-Jerk Reactions Causing Chaos With STRs, governments have allowed market forces to reduce inventory for housing, but that came at a price. As more homes were offered up as STRs, they impacted neighborhoods, sometimes becoming party centers. Visitors don’t always act like they live there with consideration for neighbors and neighborhoods. But STRs make a lot of money for a lot of people. Among the knee-jerk reactions when things started getting a little out of hand were regulatory “experiments,” which are still ongoing. Some regulations cap the number of STRs allowed in a city. Others set conditions about length of rentals, restrictions on loud parties and other obnoxious behaviors, and even looking at visitor taxes similar to what hotels charge. The city of Del Mar, CA capped STRs in the City at a total of 129. And on Nov. 5, Del Mar voters overwhelmingly approved a 13.5 percent transient occupancy tax (what hotels pay) on STRs, expected to bring the City $775,000 annually. #california #homelessness #regulations #innovation #housing #supply #homes #affordablehousing #oceanbeach #sandiego https://lnkd.in/gDHbQUhT

Airbnb crackdown looming in South Africa. Proposed regulations for short-term rentals in South Africa could affect the entire industry, causing many to consider whether remaining in the market is viable and making others skeptical of buying into it. This is according to Only Realty Property Group CEO Grant Smee, who spoke to Cape Talk about the proposed regulations. “Ultimately, like any hospitality industry, your money is made on vacancy levels and the fewer nights you are empty, the more money you make,” said Smee. “If the government limits how many nights you can rent the property out, that’s going to be a massive issue for almost all Airbnb owners.” Smee is referring to regulations proposed by Airbnb in a report released at the beginning of October. The report provided case studies on how South Africa can regulate the short-term rental market. These included limiting the number of nights owners can rent their property for if done on a short-term basis and creating a national registry of all short-term rentals. This followed backlash from Cape Town residents after claims that many felt they were being priced out of the city due to short-term rentals pushing up property prices. #africa #southafrica #regulations #laws https://lnkd.in/gMZFHVUc

How Vacation Rentals Can Reach New Audiences - By Lindsey Roeschke. Vacation rentals are gaining popularity with travelers, but still have room to grow to reach equal footing with hotels. Key Takeaways: Key Takeaways: * Since 2020, net favorability for vacation rentals has improved by 5 points, and net trust has risen by 4 points. * Travelers typically choose vacation rentals for group trips and extended stays, leaving room to grow for other trip types. * Price and safety are key areas to address if vacation rental brands want to reach new audiences. If you had asked a traveler in 2007 if they’d consider sleeping in a bedroom in a stranger’s home while on vacation, they may have looked at you as though you were crazy. But in the years since then, renting a room or home from a private owner has become an accepted and even embraced approach to travel accommodations. While Airbnb and similar brands in the category have evolved and grown notably in popularity since their initial introduction, hotels are still considered the tried-and-true option for travelers. In order to continue growing, vacation rental brands must understand what’s driving their existing customers while also broadening their base to reach new travelers. Vacation rentals are improving on all key brand metrics. Vacation rental companies have made great strides in connecting with and engaging travelers since the outbreak of COVID-19. Consumers returning to the road after pandemic restrictions were more likely to book vacation rentals than in pre-pandemic years, often due to the physical distance it allowed, compared to hotels which often found consumers in close proximity to others. And the momentum has grown — the share of travelers planning to use a vacation rental in an upcoming trip grew from 18% in late 2021 to 27% in early 2024. Notably, increased usage has been accompanied by an improvement in brand metrics across the board. Since early 2020, net favorability is up 5 points, and net trust has improved by 4 points. Another perhaps unexpected improvement is in net community impact — despite concerns about the negative influence of vacation rental brands on affordable housing and neighborhood safety and culture for locals, perceptions in this area have grown more positive over time.... #future #vacationrentals #audience #Audiences #new #consumers #shorttermrentals #airbnb Click here to read the entire article: https://lnkd.in/gGY9WEZw

Insolvencies In The French Hospitality Sector Are Accelerating. According to data provided by Altares, the number of defaults in the French hospitality sector rose by nearly 20% in the first nine months of this year compared to last year. There were 208 insolvencies in the "Hotels and Similar Accommodation" category this year, up from 176 last year and 160 in 2020. Summary: The French hospitality sector is experiencing a 20% rise in insolvencies due to inflation, rising costs, and increased competition following the pandemic. While state aid had kept defaults low, the financial strain from high raw material and energy prices and debt from government-backed loans have led to more business failures. The sector faces workforce stability and customer retention challenges, especially for smaller, debt-burdened establishments. Industry bodies advocate for better staff training to counter these issues. Eric's Take: This is not just a European phenomenon; this is happening all over the world. More from the article: In addition, there were 68 defaults in the "Tourist Accommodation and Other Short-Term Accommodation" category, increasing from 58 last year and 26 in 2020. Experts are not surprised by this significant rise in insolvencies. The study identifies several factors explaining this phenomenon. Firstly, due to state aid, the post-COVID period saw a historically low level of defaults, a trend that had persisted for 30 years and was expected to increase. Additionally, consumer spending decreased because of inflation. The hotel and restaurant sectors were among the most affected, as professionals struggled with rising raw material costs while still needing to repay their state-guaranteed loans. The escalating expenses and insufficient revenues have led some companies to fail. Lastly, during the post-COVID recovery, there was a sudden increase in available accommodation and dining options. With too many competitors entering the market simultaneously, the most vulnerable businesses could not survive. #survive #businesses #businessfailure #business #france #hospitality #decline #defaults #french https://lnkd.in/gHTjtKZz

How the forgotten tourist homes of the 1930s predicted Airbnb. The article traces the history of tourist homes from the 1930s, showing how these early short-term rentals, similar to today’s Airbnbs, served travelers with affordable and community-focused accommodations. Tourist homes offered safe lodging for Black travelers during segregation, supporting social functions and economic opportunities, especially for Black women. The article reflects on how highways and hotels replaced these homes but suggests a renewed interest in local, personal hospitality reminiscent of the tourist home experience. From the article: Before highways, hundreds of thousands of short-term rentals served a growing class of American traveler. At a cozy table inside a 19th-century farmhouse, the clink of ice cubes against cocktail glasses punctuates the lively jazz that plays over the stereos. A pendant lamp casts an amber glow over yellowed wallpaper printed with pink and blue wildflowers. If not for the Honda CR-Vs and Toyota Priuses parked outside the Airport Rooms, this might be the 1940s, when the restaurant in North Adams, Massachusetts, was a tourist home — a category of accommodations based in a private residence, where passing travelers could rent a room for a few nights during the first wave of automotive travel. If the concept sounds familiar, it’s because Airbnb, Vrbo and other short-term rental platforms have the same business model. Hailed as innovators and disrupters when they first came online in the late 1990s, short-term rentals made up 20 percent of the U.S. accommodations sector in 2023, according to an annual report from the travel business site Skift, generating $66 billion that year. “I like to say that tourist homes were among the first Airbnbs,” says Candacy Taylor, who wrote about the category in her book “Overground Railroad: The Green Book and the Roots of Black Travel in America.” Tourist homes functioned similarly to the original iteration of today’s short-term rentals, offering an affordable alternative to the traditional hotel. In many places, especially the Jim Crow South, certain tourist homes served a crucial safety and social function for Black road trippers, who were frequently refused service or subjected to violence while traveling... hashtag #history #touristhome #shorttermrental #vacationrental #str #airbnb #businessmodel #highway Read the article: https://lnkd.in/gDj-fSfx