Here's What You Need To Know Today
- 🏠The WSJ put out an interesting piece explaining Why Home Prices Are Rising During the Pandemic.
- 🗞️Airbnb announced the lay off of 25% of their workforce. According to Airbnb CEO Brian Chesky’s letter to employees, Airbnb anticipates its 2020 revenue coming in under 50% of 2019’s total. The good news for hosts and PMs is that Airbnb is planning to focus more on their core business model, as opposed to pursuing hotel projects that add competition to their hosts' businesses.
- ⛰️🏖️ Travel experts predict that as local economies begin to open, “staycations” will become increasingly common, particularly those involving outdoor activities.
- ⚠️Beware: There's been reported increases of stir-crazy high school and college students booking STR properties for parties. If these teens are openly flaunting coronavirus laws, imagine how they are treating the properties. Airbnb has warned users in high risk areas like Detroit that parties and events are not allowed at this time.
- 💸As states and local governments open beaches, parks and STR back up, savvy VRMs are using the news as a good excuse to send their previous guests an email marketing campaign, along with a coupon to book directly for a lower price than OTA's.
- 🤓If you didn't get a chance to read my article last week about how PM's can take advantage of the booming mid-term rental market, you can check it out here
- 📊New Data from All the Rooms Analytics shows that STR Occupancy Rates Have Rebounded in States Where Lockdowns are Ending. The occupancy rate on Airbnb for the next 90 days across the U.S. reached 17.5% on May 8. Two weeks ago, it was under 10%.
- 🏘️Booking.com's CEO reported on their most recent earnings call, that their longer term (2+ months) full house rentals performed better than hotels in April.
- 🇨🇳China tourism revenue drops nearly 60% in first major holiday since coronavirus outbreak. The total of 115 million trips over the May Labor Day holiday was down 41% from the 195 million over the same period last year, according to the Ministry of Culture and Tourism.
- ⛅The google search term: "Summer Vacation" reached another 2020 high in the week ending May 11th. However, for context, the search volume for "summer vacation" in the US is still down 29.5% from the same week in May 2019.
Have a great week,
James von der Lieth