Happy Friday! From tightening profit margins to new taxes and stricter international rules, the vacation rental industry continues to evolve in response to shifting economic and political forces. Here are this week’s top headlines shaping the short-term rental landscape.
The U.S. travel sector is showing signs of a slowdown as economic pressures mount. Expedia’s Q1 revenue came in at $2.98 billion, below expectations, triggering a 9.2% drop in its stock price, largely due to weaker domestic demand. Marriott also revised its 2025 revenue outlook downward, citing shorter booking windows and cautious consumer behavior. Meanwhile, Airbnb reported a 6% year-over-year revenue increase to $2.3 billion in Q1, but net income fell 41.7% to $154 million, and the company is forecasting flat average daily rates for Q2.
In a first-of-its-kind move, Hawaii lawmakers approved a 0.75% surcharge on top of the state’s 10.25% lodging tax, raising it to 11%. When combined with county and general excise taxes, the total rate could climb as high as 18.712%, among the highest in the U.S. The estimated $100 million in annual revenue will go toward climate resilience projects, including beach restoration and wildfire prevention.
Fort Myers Beach, Florida, is rolling out Rentalscape, a new software system designed to monitor short-term rentals. The platform will automatically flag violations and notify property owners, reducing manual oversight and improving compliance.
In Europe, Spain passed national legislation requiring landlords to obtain consent from at least 60% of building residents before offering short-term rentals. In addition, 50% of all property owners must approve legalizing these rentals. The law also permits communities to charge up to 20% of monthly community fees to STR operators, citing increased wear and tear on shared spaces.
Airbnb is preparing to launch a major product update on May 13, with plans to go beyond accommodations. The revamped app is expected to offer deeper integration of experiences and services, AI-powered personalization, and new tools for group travel, signaling Airbnb’s continued evolution into a broader travel platform.
That’s a wrap for this week’s updates. Check back next Friday for more news and trends shaping the vacation rental world!
