This week’s roundup covers Airbnb’s strong Q3 performance, Sonder’s abrupt bankruptcy, Instacart’s move into vacation rentals, new short-term rental rules in Kansas City ahead of the World Cup, and Airbnb’s strategic push into rural Spain. Let’s dive in.
Airbnb reported strong Q3 financial results, posting a 10 percent year-over-year increase in revenue and more than $2 billion in adjusted EBITDA, marking its highest quarterly result to date. Gross Booking Value rose 14 percent, and Nights and Seats Booked climbed 9 percent, showing faster growth than in Q2 and outperforming expectations thanks to a strong U.S. market and higher ADRs. According to Airbnb, they believe the continued growth is tied to ongoing platform improvements, expansion into new international markets, a broader range of product offerings, and new AI features across the app. For vacation rental operators, this encouraging Q3 report signals strong guest demand going into the end of 2025.
Sonder, a competitor to Airbnb, Vrbo, and Booking.com, abruptly filed for bankruptcy this week, halting operations at all its properties and disrupting stays for guests in 40 cities worldwide. Founded in 2012, the San Francisco–based company offered a hybrid model between traditional hotels and vacation rentals, aiming to combine the consistency of a hotel brand with the space and privacy of a vacation rental. The sudden shutdown came after Marriott ended its agreement with Sonder due to unmet financial obligations. The closure leaves a gap in the market for professionally managed short-term rental brands and highlights the challenges of scaling operations in the short-term rental market.
Instacart looks to break into the vacation rental market with a recent partnership with Airbnb that allows guests to order groceries directly through the Airbnb app before their stay. The pilot launches in select U.S. cities next year, letting guests place orders up to three weeks in advance. Hosts who accept deliveries and unpack orders can earn additional income, including a $25 fee per order and a $100 bonus for their first completed delivery. While the program adds extra work for hosts, an Airbnb spokesperson said, “Hosts can coordinate delivery and kitchen stocking to be a part of the general turnover process between guests, similar to cleaning.” It will be interesting to see if guests truly adopt the new service and how vacation rental operators might adjust their processes to accommodate deliveries if demand grows and the program expands to more markets.
Kansas City approved changes to its short-term rental rules this week, allowing residents to apply for a temporary 90-day permit during declared major event periods. The permit carries a $50 registration fee, which is significantly lower than the $200 annual fee, and allows residents to list their property for rent during the designated time. The change is intended to help address predicted lodging shortages during the upcoming World Cup and to keep nightly rates more affordable for visitors. It will be interesting to see if other major cities adopt similar temporary permitting programs.
Airbnb announced on Wednesday that it is shifting its focus in Spain, targeting rural destinations as major cities continue to tighten regulations on short-term rentals. The move aligns with a recent Spanish government campaign that encourages tourism in these lesser-known areas, seeking to highlight locations outside traditional cities and popular coastal hotspots. Nearly a third of visitors to Spain stay in short-term rentals, and Airbnb plans to invest roughly $50 million over the next three years to encourage these visitors to stay in listings in these underserved towns. This coordinated effort highlights a growing opportunity for vacation rental operators in rural Spanish markets.
As online travel sites experiment with new services and governments adjust short-term rental regulations to meet demand, the industry continues to evolve, creating new opportunities for operators. Check back next week for the latest news.
