Short-term Rental News Digest – August 2023

This was one hot summer for Airbnb and US hosts in particular. While travelers are eagerly booking stays, the cost of travel remains a concern. Luckily, there are a number of travel loyalty programs that they can join, with the retail giant Walmart also recently joining the list. 

Here’s a closer look at how the industry heated up in the past month. 

Airbnb Celebrates Most Profitable Q2

The data is in and Airbnb has a reason to celebrate. The net income margin of Q2 2023 is up by 8% to reach 26%. This is the highest percentage that it has generated for the second quarter to date. 

Some of the other impressive results that the platform generated for this period include:

• Net income is up by 72% reaching $650 million.
• Bookings increased by 11%.
• Urban nights booked increased by 13%.
• Total active listings grew by 19%.

Airbnb is optimistic that the results for Q3 2023 will follow the same trajectory. While there are concerns that domestic stays in the US will decrease, it believes that urban locations in the US and global destinations will continue to drive bookings for the remainder of summer. 

July Generated the Most STR Stays in One Month

Recent data from AirDNA, one of the leading short-term rental data providers, echoes the success that Airbnb enjoyed in the second quarter. Its July review of the US short-term rental market reveals that more than 35 million nights were booked in the US during this month alone. This is the most STR stays that have been booked in a single month to date. 

The heat was on in more ways than one in Phoenix. Phoenix and the Coachella Valley boasted the highest increase in demand compared to July 2022. At the same time, Phoenix was also the hottest area in the literal sense of the word. It set a new all-time record for the hottest month in a US city for the month of July.   

Rent Responsibly Launches Support Services for US STR Organizations

Rent Responsibly, an education platform for the short-term rental community, launched a variety of support services for STR alliances in the United States. Previously, organizations had to sign up for its all-in-one suite of services and couldn’t pick and choose only the services that interested them. 

Now, they have more flexibility and can choose which of the following individual services they want to take advantage of:

• Brand identity design
• Website development and management
• Email marketing and campaign design
• Communications management
• Leadership development   

In addition to these services, hosts can also enjoy free access to its STR Community Builders network where they’ll find valuable resources. 

Cost Is One of the Top 5 Travel Nightmares

Faye, one of the top travel insurance companies, has revealed the top five nightmares of US travelers. The cost of travel, overbooking, and delays are three of their biggest nightmares. Just over 60% of US travelers can’t afford to travel this coming holiday season, while the vast majority of those who have the means will try to limit holiday spending to $5,000. 

Aside from careful budgeting, more Americans are choosing to plan their holiday in advance to help quell their fear of expensive prices. Nearly a third of Americans have already started to plan next year’s spring break vacay. 

In addition to popular holiday events like spring break, birthdays are also a popular reason to travel. A massive 70% of their survey participants plan to travel for their birthday in 2024. 

Some of the other interesting findings that their survey uncovered are:

• 53% are planning a trip of about seven days.
• 23% prefer dealing with a human travel agent.
• 18% want to rely on a virtual travel assistant.  
• 8% want to plan their trips on their own.
• Instagram is the leading social media platform for trip planning, with 28% of travelers using it.
• The average cost for a holiday is $4,700.
• 85% will consider participating in an extreme activity like base jumping, storm chasing, or volcano boarding.

Walmart Launches New Travel Website

Walmart has collaborated with Expedia to launch a new travel website — WalmartPlusTravel. Members of Walmart+ can use this website to book trips and unlock discounts on vacation rentals, flight bookings, and car rentals. 

Powered by Expedia’s white label template technology, the new website is home to hundreds of thousands of properties. Members can also use it for transport arrangements and choose from hundreds of car rental companies and airlines or take advantage of savings on fuel. 

On top of these rewards, Walmart members will also be able to use Expedia’s AI-powered virtual agent tool or live agents for trip planning. President of Expedia for Business, Ariane Gorin, commented that as part of this partnership with Walmart, more travelers will be able to leverage the platform’s ongoing innovation and use their new features to improve the traveler experience.  

American Express Pilots New Vacation Rental Program

American Express is collaborating with a number of vacation rental management companies to offer high-end accommodation in several US destinations to select card members. 

Some of the destinations currently included are:

• San Diego, California
• Orlando, Florida
• Cape Cod, Massachusetts
• Breckenridge, Colorado

This pilot program complements its Fine Hotels + Resorts and Hotel Collection program and is expected to be rolled out further in the future.