France and Romania Tighten the Grip on Short-Term Rentals with New Tax and Licensing Rules
- In Europe, France and Romania have introduced new regulations to tighten control over the short-term rental (STR) market.
- The French government is reducing the tax allowances (a percentage of rental income that property owners don’t need to pay tax on) for short-term rental properties. This effectively increases the amount of rental income that will be taxed.
- Classified tourist properties (officially recognized for meeting tourism standards) will see a tax allowance drop from 71% to 50%, and non-classified properties will drop from 50% to 30%.
- Additionally, mayors can now set limits on the number of short-term rentals in their areas, adding potential restrictions for operators in high-demand locations.
- Romania plans to fine property owners listing short-term rentals without proper authorization, targeting platforms like Airbnb, Booking.com, and even social media sites like Facebook.
- Property owners could face fines of 10,000 to 40,000 lei (€2,009–€8,037) for unregistered listings while booking platforms promoting unclassified properties may also be penalized.
- Concurrently, the government aims to make it easier for property owners to operate legally, including online applications for approvals and streamlined access to required documents.
Snigdha’s View:
- In Europe, France and Romania are tightening short-term rental (STR) regulations.
- Tax allowances for STR income are being reduced, effectively increasing taxable income.
- Officially classified tourist properties (recognized for meeting tourism standards) will see allowances drop from 71% to 50%, and non-classified properties from 50% to 30%.
- Mayors now have the authority to limit the number of STRs in their areas, potentially adding restrictions in high-demand locations.
- Romania plans to fine property owners listing short-term rentals without proper authorization, targeting platforms like Airbnb, Booking.com, and even social media sites like Facebook.
- Property owners could face fines of 10,000 to 40,000 lei (€2,009–€8,037) for unregistered listings, while booking platforms promoting unclassified properties may also be penalized.
- Concurrently, the government aims to make it easier for property owners to operate legally, including online applications for approvals and streamlined access to required documents.
New Journey Loyalty Program Promises More Direct Bookings for Property Managers
- Journey is launching a new loyalty program in spring 2025 to bring traditional hotel rewards benefits to short-term rental and boutique hotels.
- It will now help short-term rental managers attract high-value guests, increase direct bookings, and build guest loyalty through a ready-made rewards program.
- This new program seeks to attract repeat travelers by providing a points and perks system; guests will be able to earn points for bookings made through Journey’s network of STRs and boutique hotels.
- Points can be redeemed for flexible check-ins, room upgrades, and future stay discounts.
- Journey Rewards members earn at least 5 points per dollar on direct bookings, versus 1 point per dollar on third-party OTAs.
- The program also supports point transfers and pooling with friends and family.
About Journey:
Journey provides a loyalty platform tailored for short-term rental managers, designed to boost direct bookings and build guest loyalty. With flexible and personalized rewards, the program helps increase repeat stays, reduce dependence on OTAs, and connect with guests who are more likely to book again.
Snigdha’s View:
- Both Booking.com and Vrbo have seen strong growth, partly driven by their loyalty and rewards programs. Booking.com’s Genius program accounted for 50% of mobile bookings, while Vrbo’s Q3 growth was boosted by the expansion of its One Key rewards. This highlights the increasing demand for effective loyalty initiatives.
- With Journey, STR managers can now offer a structured rewards system without needing to develop one in-house, leveling the playing field against larger hotel chains.
- Property managers can access a pool of loyalty-driven travelers that could help boost occupancy & visibility, but this will depend on the program’s reach and guest interest.
- The program’s higher points for direct bookings incentivize guests to bypass OTAs, this can help managers boost direct bookings and cut commission costs.
- Property managers can join without upfront fees, paying a commission per booking. Managers should assess if increased bookings justify the commission costs.
- The program can assist with promotions during the low season by offering targeted discounts and special deals to loyal guests, helping to fill vacancies when demand is lower.
Quieter, Off-the-Beaten-Path Destinations Are in Demand, Reports Airbnb
- Airbnb has identified 10 lesser-known, quieter destinations that are now gaining traction among travelers seeking alternatives to overcrowded tourist spots.
- According to Airbnb’s analysis, these destinations are seeing increased interest, signaling a shift away from conventional tourist hotspots.
- This trend reflects a growing preference for tranquil settings, slower-paced vacations, and unique cultural experiences.
- The 10 destinations identified by Airbnb include: Lexington, KY, Berlin, Germany, Squamish, Canada, Uji, Japan, Scenic Rim, Australia, Bordeaux, France, Ensenada, Mexico, Almeria, Spain, Calabasas, CA, Jeju, South Korea
- Airbnb put together this list by focusing on destinations that typically have an “off-season” during December, meaning they don’t usually attract a lot of tourists at this time of year.
- Airbnb shared that younger travelers are all about finding “destination dupes”, budget-friendly alternatives to popular spots.
- A survey even showed that half of Gen Z (ages 12 to 27) and Millennials (ages 28 to 43) skipped overly crowded places last year. They’re hunting for unique getaways without the big crowds and hefty price tags.
Snigdha’s View: - The top 10 Un-trend destinations by Airbnb cater to different traveler preferences but share a common appeal: they offer a quieter, more relaxed experience, away from the typical tourist hustle.
- This trend aligns with the insights from Booking.com’s & Expedia’s 2025 travel trends, which highlight a growing demand for off-grid and nature-focused travel like Detour destinations.
- This is driven by a desire to escape crowded, mainstream locations and find unique, hidden gems that provide a sense of discovery.
- Managers should consider expanding their inventory to include more off-the-beaten-path or local properties to attract this segment of travelers.
- By offering tailored amenities, such as guided tours, outdoor activities, and local food experiences, property managers can appeal to travelers seeking something unique and memorable.
- Managers can collaborate with local businesses to provide exclusive experiences and create packages that highlight the slower pace and authentic charm of these destinations.
