Live From VRMA: Hurricanes Impact, Urban Challenges, and Q4 Outlook

In episode 103 of The STR Data Lab, Jamie Lane, Chief Economist at AirDNA, and Scott Sage, VP of Marketing and Customer Experience at AirDNA, broadcast live from the vacation rental management association (VRMA) conference in Phoenix, Arizona. This episode dives into the effects of recent hurricanes on the short-term rental industry and presents a comprehensive Airbnb market analysis as operators look ahead to Q4.

Here’s what you can expect from this episode:

  • A deep dive into Airbnb and hurricanes, particularly the impact of storms like Helena and Milton on Airbnb markets in Florida and North Carolina.
  • Insights on how rising insurance premiums and property devaluation in hurricane-affected areas will affect the market for STR operators.
  • A breakdown of September's Airbnb market data, with an analysis of slowing supply growth and the challenges urban markets face due to regulatory crackdowns and competition from hotels.
  • The Q4 outlook, covering holiday booking trends for Thanksgiving, Christmas, and New Year’s.

Episode Highlights

Hurricanes and STRs: The Long-Term Impact
Jamie and Scott outline the significant, lasting effects that hurricanes can have on the STR industry. One major concern is property devaluation in areas prone to natural disasters, especially as more buyers and investors begin to avoid these high-risk areas.

Jamie explains how this phenomenon, coupled with skyrocketing insurance premiums, could reshape the entire market for short-term rentals in coastal and hurricane-impacted regions. According to Jamie, the total economic impact of hurricanes in Florida alone is expected to reach $50 billion, a staggering figure that will inevitably lead to further insurance rate hikes across the state. This means that even operators who weren’t directly affected by a hurricane may still see their costs rise.

While some markets may experience a downturn in demand, others could see an influx of guests displaced by hurricanes or looking for alternative accommodations during the rebuilding phase. Airbnb operators should familiarize themselves with the Airbnb hurricane policy.

Airbnb Market Analysis: September Performance
Shifting focus, Jamie and Scott dive into the latest Airbnb market data, with an analysis of September's performance. While nights booked were up by 2.9%, the growth rate was below expectations, largely due to a calendar shift that moved Labor Day into August. The summer’s earlier strength wasn’t replicated in September, but the hosts who benefited from the Labor Day surge in August were already well-positioned to capitalize.

Another important point in the market analysis is the slowing growth in Airbnb supply, particularly in urban markets. Scott and Jamie discuss how supply in major cities has dropped by 3.1%, driven by regulatory crackdowns and weak demand.

The urban STR market faces increasing competition from hotels, which have aggressively priced their offerings to lure back short-term travelers. This trend is exacerbated by large urban operators like Frontdesk, which have struggled and even closed due to these market pressures.

Despite these challenges, Average Daily Rates (ADR) were up 2.7% in September, signaling that STR operators have been able to hold or even slightly increase pricing. The hosts who’ve managed to adapt to these challenging market conditions have done so by carefully managing both their occupancy rates and pricing strategies.

The Q4 Outlook: What Operators Should Expect
Looking ahead, Jamie and Scott provide a detailed Q4 outlook for the Airbnb market, focusing on upcoming holiday periods like Thanksgiving and Christmas. Jamie mentions that while October bookings were boosted by events like Halloween and leaf-peeping in regions like the Appalachian Mountains, November and December may see a slight dip in occupancy. However, Christmas and New Year’s bookings—historically one of the busiest times of the year for short-term rentals—are expected to remain comparable to 2023.

Jamie advises operators to review their market's performance and ensure that their properties are priced correctly to maximize bookings during these high-demand periods. Scott echoes this sentiment, reminding operators that AirDNA’s performance dashboard can help hosts track near-term booking trends and optimize pricing.

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Connect with Jamie on LinkedIn and Twitter: 

LinkedIn: https://www.linkedin.com/in/jamiehlane/ 

Twitter: https://twitter.com/Jamie_Lane 

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Connect with Scott on LinkedIn: 

LinkedIn: https://www.linkedin.com/in/sagescott

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Connect with AirDNA on LinkedIn, Twitter, TikTok, and Instagram:

LinkedIn: https://www.linkedin.com/company/airdna/  

Twitter: https://twitter.com/airdna 

TikTok: https://www.tiktok.com/@airdna.co 

Instagram: https://instagram.com/airdna.co 

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Up Next:

Mastering Laundry and Housekeeping for Short-Term Rentals with Daniel Cruz

In Episode 104 of the STR Data Lab podcast, we dive into practical solutions for housekeeping efficiency and laundry management, essential areas for any short-term rental (STR) operator aiming to provide top-tier guest experiences. Our guest, Daniel Cruz, founder of Washbnb, brings his industry knowledge and innovative approach to streamlining STR operations. He shares insights on reducing turnaround time and improving property quality through better housekeeping and laundry management.

Here’s What You Can Expect from This Episode:

  • Practical strategies for efficient housekeeping in STRs
  • How to optimize laundry management without added stress
  • Benefits of outsourcing laundry needs to maintain consistent quality
  • Tips for elevating guest satisfaction through thoughtful amenities

Episode Highlights

Why Housekeeping Efficiency Matters for STR Hosts

One of the top drivers of guest satisfaction is cleanliness, making housekeeping efficiency a foundational aspect of STR success. Housekeeping efficiency involves designing streamlined processes for cleaning, organizing, and restocking a property, ensuring it's ready for new guests with minimal downtime.

Daniel emphasizes that achieving high housekeeping efficiency isn’t just about cleaning faster—it’s about creating repeatable routines that allow property managers to consistently deliver an exceptional experience. This includes training cleaning staff, setting clear expectations, and using checklists to ensure that nothing is overlooked. STR operators can reduce the time between bookings, maximize revenue, and improve guest reviews by investing time upfront to build an efficient housekeeping system.

In addition to cleaning routines, efficient housekeeping also encompasses managing supplies and resources. From replacing essentials like toiletries to ensuring extra linens are readily available, well-organized housekeeping helps prevent last-minute scrambles. Daniel recommends tools like mobile apps for managing inventory and scheduling cleanings, which help STR hosts keep operations running smoothly without direct oversight.

Breaking Down the Challenges of Laundry Management in STRs

Laundry is one of the most labor-intensive and challenging aspects of running an STR property. Every new guest expects fresh linens, towels, and other amenities, and managing this demand on a tight schedule can be overwhelming. Laundry management involves not only washing and drying but also folding, inspecting for quality, and organizing these items efficiently. For hosts juggling multiple properties, this can quickly become a time sink.

Daniel explains how outsourcing laundry to a specialized service like Washbnb offers a solution that balances quality with convenience. Washbnb provides STR hosts with a dedicated partner that understands the unique demands of the industry. Washbnb handles everything from linens to bath towels, keeping each property stocked with fresh, high-quality items that improve the guest experience.

For hosts, this kind of support can be a game-changer. Instead of investing in laundry facilities, equipment, or extra staff, hosts can redirect their time and resources toward tasks that add direct value to their guests. STR operators can achieve more consistent quality control by outsourcing. With Washbnb, each item is professionally laundered and inspected, minimizing wear and tear. Daniel points out that maintaining quality linens is essential not just for guest comfort but also for reducing replacement costs over time.

Adding Value with Thoughtful Guest Amenities

In the competitive STR market, providing guest amenities that go beyond the basics can differentiate a property. Daniel discusses how STR hosts can make strategic choices about amenities that improves the guest experience without overextending their budget. From high-thread-count sheets to plush towels and premium toiletries, small investments in guest comfort can lead to positive reviews, repeat bookings, and overall brand loyalty.

Daniel also highlights the impact of thoughtful touches, like adding extra pillows, cozy blankets, or even items like coffee makers and local snacks. Hosts can create a welcoming atmosphere that stands out by paying attention to what guests value. Premium linens and towels, professionally managed by services like Washbnb, elevates the look and feel of a property and also reflects a host’s commitment to quality and cleanliness.

Moreover, these amenities don’t have to break the bank. Daniel advises hosts to consider items that are both functional and memorable, such as high-quality soap dispensers, reusable toiletries, or sustainable cleaning supplies. These thoughtful amenities show guests that a host cares about their stay, which can make a lasting impression and encourage positive reviews.

Operational Efficiency Through Partnership with Washbnb

Managing multiple properties or dealing with high guest turnover can make STR operations challenging. For hosts looking to scale or optimize their properties, a streamlined approach to operations is essential. Washbnb supports STR hosts by handling the most time-consuming aspects of property management—laundry and housekeeping logistics. This partnership helps hosts focus on other areas, such as guest satisfaction, marketing, and revenue management, while Washbnb takes care of the behind-the-scenes work.

Daniel shares how Washbnb’s services align with the needs of busy STR operators. By offering a tailored solution that includes laundry, turnover support, and quality control, Washbnb helps hosts provide a consistent experience across multiple properties. This is especially beneficial for hosts with larger portfolios or those seeking to expand, as it allows them to maintain high standards without increasing their workload.

According to Daniel, having a trusted partner like Washbnb enables hosts to scale more confidently. As the STR market grows, guests’ expectations continue to rise, and partnering with a reliable service provider allows hosts to meet these demands without sacrificing quality. Washbnb’s scalable model supports hosts of all sizes, providing the flexibility needed to adapt to seasonal fluctuations or increased bookings.

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Signup for AirDNA for FREE👇

https://app.airdna.co/data

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Connect with Jamie on LinkedIn and Twitter:

LinkedIn: https://www.linkedin.com/in/jamiehlane/

Twitter: https://twitter.com/Jamie_Lane

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Connect with Scott on LinkedIn:

LinkedIn: https://www.linkedin.com/in/sagescott

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Connect with AirDNA on LinkedIn, Twitter, TikTok, and Instagram:

LinkedIn: https://www.linkedin.com/company/airdna/ 

Twitter: https://twitter.com/airdna

TikTok: https://www.tiktok.com/@airdna.co

Instagram: https://instagram.com/airdna.co


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