From Vrbo’s updated policies and push for last-minute bookings to Honolulu’s bold regulatory push, this week’s headlines highlight how platforms and policymakers continue to shape the vacation rental industry. Let’s dive in.
Forbes sat down with Larry Plawsky, general manager of Vrbo, to get insights into the ever-changing vacation rental market. Plawsky said the company has moved past simply adding supply and is now focused on building trust and delivering consistent quality for guests. “Travelers want consistency, reliability, and an uncomplicated stay,” he said, pointing to Vrbo’s policies such as the Book With Confidence Guarantee and Verified Reviews. He also noted a rise in last-minute bookings across the industry. In response, Vrbo is making it easier to secure last minute stays, with updated discounts playing a key role in that strategy.
Skift reported on a recent press release from Vrbo outlining a new policy to protect guests who are stranded and unable to access their booked home. Starting October 1st, U.S. hosts who cannot be reached to resolve these situations will face a 100% financial penalty. Vrbo may also temporarily suspend the property and cancel any future bookings. The policy is part of Vrbo’s ongoing effort to improve the guest experience and build trust between guests and the platform.
Hawaii News Now reported that the city of Honolulu is stepping up its crackdown on illegal vacation rentals by involving mortgage lenders in enforcement efforts. City officials are notifying lenders when property owners continue to operate rentals in violation of local laws, noting that mortgage agreements require borrowers to follow all regulations. Letters have been sent to both local and mainland mortgage companies, urging action against borrowers who ignore fines or continue operating illegally. The city says this approach is designed to protect neighborhoods while encouraging property owners to adhere to the law.
The New York Post reported on the strong performance of short-term rentals in the U.S., drawing on data from AirDNA. Despite economic uncertainties, July saw a record 26.4 million nights booked, a 3.6 percent increase from the previous year. The article notes that larger properties, particularly those with six or more bedrooms, experienced the most growth. Overall, the revenue per available rental (RevPAR) rose 5.7 percent year-over-year, reflecting a healthy market. While international tourism declined, domestic travelers filled the gap, with coastal destinations like Maui, Hilton Head Island, and Charleston leading the way. The report suggests that despite the uncertain economy, this trend points to strong potential returns for investors, especially if interest rates ease and supply growth stabilizes.
PropertyGuru released an interesting article on how Phuket’s vacation rental market is evolving in 2025. Despite a drastic slowdown across Thailand, arrivals to the island rose by eight percent in the first half of the year, driven by travelers from India and Russia, while Chinese arrivals fell sharply. “The market today is not about simply offering a villa—it’s about offering peace of mind. Guests want privacy, security, and the confidence that their stay will meet personal expectations,” said Femke Beekers of Elite Havens, noting that the industry needs to align product offerings with an evolving customer base. At the same time, new villas and condominiums are increasing competition and putting pressure on rates in the region. In response, property managers are focusing on homes that combine luxury with practicality, including wellness features, child‑friendly layouts, and flexible spaces for extended stays.
National Mortgage Professional reported that second-home buying is slowing down across the U.S., with vacation markets feeling the biggest impact. Using Redfin data, the article noted that sales in seasonal demand areas fell 3 percent year-over-year in July, compared with just a 1 percent drop in non-seasonal communities. “Many Americans who might have bought a vacation home a few years ago are now holding off, partly because of high costs and economic uncertainty,” said Daryl Fairweather, Redfin’s chief economist. The continued shift in buyer behavior signals that affordability is reshaping how buyers approach second-home investments at the moment.
With evolving guest preferences and ongoing regulatory moves shaping the vacation rental industry, check back next week for more updates!
