Lisbon Tests a Softer Regulation Approach by Reopening Select Neighbourhoods
● Lisbon City Council approved updated local accommodation (AL) regulations, raising the municipal containment ratio for short-term rentals from the 5% proposed during public consultation to 10%.
● The change allows 18 additional parishes to reopen to new AL registrations under the revised framework.
● Airbnb publicly welcomed the decision, saying it would enable more residents to share their homes legally under the new rules.
● In its statement, Airbnb emphasized that most Lisbon hosts list a single property and do not rely on hosting as their primary occupation.
● The approval follows years of tightening measures across Lisbon and Portugal, including licence freezes, moratoriums, and proposed bans introduced since 2019.
● Airbnb also cited examples from cities such as Barcelona, Edinburgh, and New York, arguing that stricter STR regulations reduced listings but did not correlate with improved housing affordability.
Snigdha’s View
● This update fits into a longer regulatory cycle we’ve been tracking in Portugal. At the national level, Decree-Law 76/2024 rolled back several restrictive elements of the Mais Habitação package, returning greater control over AL licensing to municipalities.
● Lisbon’s decision shows how that decentralised framework is now being applied locally, with cities adjusting thresholds rather than imposing blanket bans.
● Earlier in 2025, Lisbon had moved in the opposite direction, freezing licences in neighbourhoods exceeding a 5% STR threshold and exploring additional measures, including a proposed referendum that was ultimately rejected.
● Raising the containment ratio to 10% suggests a recalibration, not deregulation. Lisbon remains a tightly regulated market, but the city is signalling more flexibility within defined limits.
● For property managers, the key takeaway is policy volatility. Thresholds, zoning rules, and licence availability can shift as political, housing, and economic pressures evolve.
● While the revised framework may bring some additional supply back to the market, it also raises competition in areas that reopen.
Expedia Launches Vrbo API, Clarifies How Vacation Rentals Are Distributed to Partners
● Expedia Group published updated documentation explaining how Vrbo vacation rental listings are distributed through its Rapid API, the company’s B2B infrastructure used by external partners.
● The documentation confirms that Rapid now surfaces more than 900,000 vacation rental properties, combining Vrbo inventory with other Expedia Group supply.
● Rather than sending listings directly to third parties, Expedia allows approved partners to access Vrbo inventory via the API, while Expedia remains responsible for payments, booking rules, and compliance.
● Distribution is being rolled out cautiously, with strict requirements around payment handling, booking changes, guest communication, and local legal compliance.
● Partners must also follow clear property-type identification rules, ensuring vacation homes are not presented as hotel-style accommodations when no front desk or on-site services exist.
Snigdha’s View
● Earlier in 2025, we covered Vrbo’s expansion into Expedia’s B2B network and highlighted how increased exposure through Expedia helped support strong performance.
● What this Rapid API documentation adds is clarity on how that distribution actually works. Vrbo listings aren’t being syndicated freely; they’re being accessed through tightly controlled APIs that keep Expedia in charge of payments and guest flows.
● For property managers, this means broader, indirect exposure rather than a new channel to actively manage. Listings can surface inside loyalty programs, financial institutions, or corporate travel platforms without managers onboarding to each partner individually.
● While this won’t shift demand overnight, it strengthens the long-term foundation for non-traditional distribution, where vacation rentals appear alongside flights, cards, or benefits rather than inside a standalone OTA.
Yes Consulting Shares Report Suggesting Asset-Light, Flexible Models Are Winning
● Yes Consulting released its 2025 Global Short-Term Rental M&A & Investment Report, highlighting a clear shift in investor priorities across the flexible accommodation sector.
● The report points to a move away from high fixed-cost, asset-heavy operating models toward asset-light, decentralised structures, particularly franchise and management-led networks.
● High-profile failures such as Sonder and Homelike are cited as evidence of the risks associated with centralised, lease-heavy expansion strategies.
● Regulation emerges as a primary factor shaping where capital goes, with investors favouring predictable, pro-business markets and avoiding politically volatile urban cores.
● Capital is increasingly flowing toward technology platforms, especially property management systems and AI-driven automation, which are now treated as core infrastructure rather than support tools.
● The report also notes growing convergence between short-term rentals, mid-term rentals, serviced apartments, and broader “flexible living” models.
Snigdha’s View
● This report brings together several themes we’ve been tracking throughout the year and confirms that 2025 was less about scale and more about structure.
● Asset-heavy growth models haven’t just fallen out of favour — investors are actively pricing in regulatory risk, labour costs, and operational rigidity when assessing value.
● What’s being rewarded instead are local execution, flexible inventory models, and tech stacks capable of handling compliance, automation, and margin pressure.
● Regulation now functions as a first-order filter for capital, pushing investment toward leisure markets, rural and coastal destinations, and regions with clearer licensing frameworks, while large urban cores remain high risk.
● The report’s emphasis on “flexible living” also reflects a broader shift away from pure-play STR strategies, as operators blend short- and mid-term stays to manage volatility.
● For professional property managers, the message is clear: operational resilience, technology maturity, and regulatory adaptability are no longer optional if long-term growth — or exit potential — is the goal.
Uvika Wahi is the Editor at RSU by PriceLabs, where she leads news coverage and analysis for professional short-term rental managers. She writes on Airbnb, Booking.com, Vrbo, regulations, and industry trends, helping managers make informed business decisions. Uvika also presents at global industry events such as SCALE, VITUR, and Direct Booking Success Summit.
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