Vacation rental industry: Round up of key insights in early 2024

The cost of booking international flights is increasing

As a property owner in the travel industry, it's important to stay informed about the upcoming trends in airfares for 2024. This can significantly impact how international travellers plan their holidays, which in turn can affect the number of international guests you receive. It's predicted that there will be a slight global increase in airfares, ranging from 3%-7%, due to high fuel costs and sustainability measures. However, some experts predict a minor decrease in airfares, particularly for flights to and from Asia and within the U.S. This could make international travellers more hesitant to make bookings, potentially resulting in fewer overseas guests. 

While recent reports suggest that airfares may decrease slightly this year, it may not be enough to offset the general rise in flight costs, which could discourage some international travellers from making bookings. This trend presents both challenges and opportunities. While you may see a drop in bookings from overseas guests, it's an excellent time to focus on the domestic travel market. With international travel becoming more expensive, more people may choose to stay closer to home. To attract domestic travellers, adjust your pricing strategy, highlight local attractions, promote the unique aspects of your property that appeal to locals, and offer special deals to them. This will help you maintain a steady flow of guests and keep your business thriving in this ever-changing industry.

Short-term let regulations to be introduced across England this summer 2024

If you own a short-term rental property in the UK, it's important to be aware of new regulations that will be introduced this summer. These changes aim to strike a balance between the benefits of short-term lets to the tourism economy and the need for affordable housing for local residents. 

One of the key changes is that planning permission will be required for future new short-term lets. There will also be a mandatory national register to ensure that short-term rental properties are safe and compliant with regulations. However, these new rules won't apply to owners who let their main home for less than 90 nights a year. The government is also considering a balanced application of the register to avoid imposing unnecessary regulations on occasional homeowners. These changes form part of a broader housing plan featuring a new planning "use class" for short-term lets and permitted development rights. Hotels, hostels, or B&Bs won't be affected by these measures. Detailed timeline and specifics for implementing these regulations will be provided by the government in response to consultations. 

Airbnb to manage tourist taxes across Italy

As a property owner listing their property on the Airbnb platform in Italy, you should be aware of a new change that will simplify your hosting experience. From February 15th, Airbnb will automatically collect and remit tourist taxes for short-term rentals in all regions of Italy that have a tourist tax system. This automated process will eliminate the hassle of dealing with tax bills and paperwork, allowing you to focus on providing a fantastic experience for your guests. 

The tourist tax will be applied automatically for eligible stays based on your local rate. Airbnb will collect the required amount for each stay and remit it in full to the local authority routinely, adhering to local terms. Airbnb is also embracing Italy's new national short-term rental rules, including a new national registration system. This, along with data collected due to new EU-wide rules, will provide more informed policy decision-making for historical centers like Venice and Florence. Overall, this change will simplify the hosting process.

Plans for a statutory registration scheme by the Welsh government

Short-term rental property owners in Wales should be aware of a new registration scheme that the Welsh Government plans to implement. This scheme will require all providers of visitor accommodation to register and meet specific safety and quality standards. The legislation is expected to be introduced by the end of this year. As a property owner, you should keep yourself updated about the latest developments and ensure that your property meets the required standards to enhance visitor safety and experience. Also, be ready to provide details about your operation, including where and how you operate. This scheme is similar to other registration schemes in Northern Ireland and Scotland, and upcoming regulations in England, aimed at regulating the industry and controlling its growth. Therefore, staying informed and prepared will help you navigate these changes smoothly and continue providing excellent service to your guests.

Important changes are coming to the short-term rental industry in England, Wales and Italy. Property owners must adapt and align their operations to comply with these regulations. Although there is a lack of specific details on how these regulations will be implemented, it is essential for owners to stay informed and prepared for these changes. Despite the uncertainties, these developments offer opportunities for growth and improvement in the industry. To succeed, property owners should focus on enhancing guest experiences and maintaining high-quality standards.