From tax hikes and protests to new platform tools and funding rounds, this week’s vacation rental news highlights how the industry is evolving under pressure ahead of peak summer travel.
Hawaii Governor Josh Green signed a bill raising hotel and vacation rental taxes by 0.75%, effective January 2026, aiming to generate $100 million annually for climate change projects. This increase brings the combined visitor tax rate to nearly 19%, one of the highest in the U.S., and will also extend an 11% tax to cruise ship bills. Funds will support initiatives like beach restoration, wildfire prevention, and climate resilience, despite industry concerns about impacts on tourism.
An Italian court overturned the government’s ban on remote check-ins for short-term rentals, ruling it overly burdensome and ineffective for security. Host associations welcomed the decision, but officials in cities like Florence and Rome plan to maintain local restrictions on key boxes and rental caps amid ongoing tensions over tourism impacts.
Over 23,000 residents in Spain’s Canary Islands recently protested overtourism, blaming it for rising housing costs and environmental strain. In response, the government is cracking down on illegal rentals, ordering Airbnb to remove nearly 66,000 unlicensed listings and introducing a 21% VAT on short-term stays under 30 days.
Vrbo has introduced a new Promotions Suite aimed at helping hosts increase bookings and revenue by offering tailored discounts to various traveler segments. The suite includes tools for early booking and last-minute promotions, with dedicated search filters to enhance visibility. Upcoming features will allow hosts to target Expedia Group loyalty members and mobile users, and provide advanced settings for new listings. These initiatives respond to traveler preferences for competitive pricing and aim to improve calendar occupancy and reduce booking risks for hosts.
Wander, a luxury vacation rental platform, has secured $50 million in Series B funding to expand its network of smart, remote work–friendly properties. The company aims to combine the consistency of a luxury hotel with the personalized experience of vacation rentals, positioning itself as a trusted brand in the short-term rental market. This investment follows previous funding rounds, including a $100 million raise to establish Atlas, the industry’s first vacation rental REIT.
Miami-based vacation rental startup Roami, formerly known as Sextant Stays, has filed for Chapter 11 bankruptcy, citing debts of up to $50 million. Despite raising significant funding and having two leaders featured on Forbes’ “30 Under 30” list, the company faced financial challenges leading to this development.
As the season heats up, expect more shifts in regulation, strategy, and innovation across the vacation rental landscape. Stay tuned for next week’s highlights.