While May’s major headlines revolved around a few interesting structural changes, this month’s announcement that promises to be the biggest adventure is the expansion of the Airbnb Experiences program. Let’s find out more about Airbnb Adventures and the other major short-term rental news in June!
Vacasa has created a rental buyers report that shares information about the typical vacation rental buyer. The 2019 Vacasa Vacation Rental Buyers Report has been compiled using the info of more than 700 US buyers who have bought a minimum of one vacation rental. Shaun Greer, the senior director of Vacasa explains, “We wanted to not only learn more about today’s buyer and the market opportunity, but also understand the challenges they face when trying to make a decision on a short-term rental property.”
According to this report, buyers in their 30s and early 40s view the investment potential that a property boasts as more important, while buyers in their mid-50s view personal use as more important and are looking more towards acquiring a beach property. Irrespective of the reason for buying a property, the budget remains quite modest with most buyers not planning to spend more than $400k. That being said, according to this report more than 25% of buyers have stated that they are planning to buy more than one vacation home.
The report also looked at some of the concerns that buyers face today. Almost 40% admitted that they have found it hard to make the right choice as there is so much conflicting information.
And those buyers who are planning on buying a rental will be glad to know that Guild Mortgage has partnered with Airbnb to introduce a mortgage option. This option will look at the income that a host has generated via the Airbnb platform on refinancing applications for primary residences that are occupied by the owners.
Guild Mortgage specializes in creating niche packages and unique trial programs that will assist communities. In addition, they also strive to cater to homebuyers’ needs, in particular, first-time homebuyers. Erin Watts, the vice president of this independent mortgage lender’s product strategy explained, “As more people rent part of their home through partners like Airbnb, it’s important that lenders are proactive in recognizing this type of income.”
To qualify, you must be a US host who owns your home and lists your primary residence on Airbnb. Furthermore, you must also have a minimum credit score of 620 and your debt-to-income ratio must not be higher than 50%.
Shifting the focus to the eastern side of the globe, Airbnb has really taken off in Vietnam. AirDNA has released a report about the significant growth that short-term rentals in Vietnam have enjoyed. According to this report, the number of entire homes that have been listed on Vrbo/HomeAway and Airbnb has increased by more than 400% in just the past two years. This is three times more than the global average!
According to the current travel trends, travelers are searching for more authentic travel experiences, something which Vietnam can offer. As a result, they have enjoyed a year-on-year increase of about 30% in visitors. This boom has also benefited other supplementary services.
When it comes to Airbnb rentals, it is not so easy to be big in Japan. That being said, the good news is that Airbnb’s Japan 2020 plan is well on course and their investment of over US$30 million would appear to be paying off. Since Japan has passed new laws pertaining to home sharing a year ago, Airbnb has worked hard and today there are about 50 000 listings and an extra 23 000 rooms that fall under traditional categories such as traditional Japenese inns and hotels. Also, over 115 businesses have joined the Airbnb Partners program and will assist in growing the alternative accommodations industry in Japan.
Now for the news story that promises to deliver the most excitement. Airbnb has expanded its Airbnb Experiences program by introducing Airbnb Adventures. In short, Airbnb Adventures is a new set of multi-day experiences where a local knowledgeable expert will take a private group to a remote location to learn more about a unique community. It ties in with Airbnb’s vision of offering an alternative way of traveling that involves creating more authentic local experiences. Examples of Airbnb Adventures include: camping on a cliff in Colorado, exploring Jordan’s ancient ruins or enjoying a slow food safari in Galapagos.
One of the major aims of Airbnb Adventures is to make it super easy to plan a trip. Therefore, lodging and meals will be provided by the hosts. Plus, hosts will also arrange local transportation.