Short-term Rental News Digest – February 2023

February was a busy month. From rebrands to new features aimed at helping hosts, industry stakeholders will want to take notice of several newsworthy events this month. 

One golden thread is the value of tech and data. Whether it’s to find new areas to invest in or streamlining your daily tasks, various resources are available to hosts. Plus, more are continuously being introduced.

One headline that the team at iGMS is very excited about is that tech adoption is on the rise. Most hosts realize the value that vacation rental software solutions, like iGMS, can offer. If you’re one of the 10% who aren’t using a PMS or channel manager yet, we invite you to try it out after you’ve read this month’s digest.  

TurnoverBnB Rebrands to Turno

TurnoverBnB rebranded to Turno! The CEO and co-founder of the popular SaaS company, Assaf Karmon, explained that their new, shorter name embodies what they’re all about — making turnovers shorter. In his words, “By adopting a name that better expresses our brand promise of simplicity, automation, and ease of implementation, we are actively leaning into Turno’s longstanding mission.”

Founded in 2016, their platform is used by over 55,000 users and offers features and tools like in-app chat, automatic scheduling, inventory management, and checklists. It also integrates with leading property management software solutions like iGMS, helping you to streamline your property management further. 

AirDNA Reveals Best US Areas to Invest

According to AirDNA’s Best Places to Invest in US Vacation Rentals in 2023 report, the Northeast and Midwest are currently enjoying much popularity. To compile this list, the following four key pillars were used:

1. Demand
2. Revenue growth per property
3. Investability score
4. Regulations

Only Illinois boasts more than one destination to have made the Top 10, with Rockford and Springfield in third and fourth spots respectively. In first place, it was Fairbanks in Alaska, while Evansville in Indiana claimed the second spot. 

AirDNA predicts that 2023 will be about moderation. The increase in home values paired with the interest rate hike will mean that interested real estate investors will have their work cut out for them.  

Report Reveals Tech Adoption Is on the Increase

Transparent, a vacation rental data intelligence provider has released its global property manager survey report. According to the report, tech usage among property managers is on the increase. In 2022, 74% indicated that they were already either using PropTech or planning to add it to their stack. In 2023, this percentage is expected to increase to 80%.

Keyless entry and dynamic pricing tools, in particular, are becoming more popular. It’s anticipated that adoption of these tools will grow by 15% and 21% respectively. While the usage of property management software solutions and channel managers is only expected to grow by 9%, the vast majority are already using it. In fact, by the end of the year, only 10% of property managers won’t have a PMS in their PropTech stack. 

Flexible High-end Renting for NYC

One of the leading vacation rental sites for hosts and travelers, onefinestay, has introduced a flexible rental product – New York Home Collection – for the Big Apple. Currently, they have 16 homes that can be booked for monthly stays, but will be adding several more homes in the next few months. 

What sets the site and its listings apart is the focus on luxury. Guests, for example, have the option to take advantage of concierge services. From housekeeping to private chefs, there are several extra services that can add that luxury element. Pricing ranges anything from $7,000 to more than 20 times that per 30-night stay. 

Airbnb Reaches One Million Superhosts

Airbnb has recorded a new milestone — 1 million Superhosts. To quantify Superhosts’ success further, in the span of a year, they’ve collectively had more than 45 million check-ins that generated over $23 billion in income. What’s more, in Q3 2022, typical Superhosts earned over 60% more than regular Airbnb hosts. 

Launched in 2014, the Superhost program gives the best-rated Airbnb hosts the recognition that they deserve. This means that if you respond within 24 hours, avoid canceling, etc., your effort can still be rewarded even though you might not be renting out a luxury rental on the platform. 

Another program that involves Superhosts – Airbnb Setup – is proving to be equally successful. In short, Airbnb Setup matches first-time hosts with Superhosts for one-to-one guidance. Since November 2022, double as many prospective hosts have been matched with Superhosts. This initiative is proving especially popular in London, Paris, and Istanbul. 

ID Verification for Airbnb Guests to Become Compulsory

Hosts asked and Airbnb listened. The platform will soon update its ID verification requirements to make a valid government-issued ID mandatory. Alternatively, guests will need to provide a legal address when making a booking. 

In addition to this extra safety measure, Airbnb also uses technology to improve safety. It, for example, uses tech to help with confirming guests’ identity and reviews. 

Vrbo Introduces New Safety Tech 

To help curb listings being booked for the purpose of using it as party houses, Vrbo has introduced new unauthorized event prevention tech. The new tech was piloted in the Phoenix area for the past year and delivered impressive results. According to the platform, the new system managed to prevent over 500 unauthorized event bookings, helping hosts to save millions that would otherwise have been spent on damage. 

In short, the tech uses various factors to create a risk score for each booking. Factors that are considered include the length of stay, number of guests, and lead time before check-in. Hosts are then informed via email that the booking is high-risk and that they’re welcome to cancel it without being penalized.