Many Airbnb users with bookings in Recent York City this Christmas are scrambling to seek out latest accommodations.
The corporate announced plans to cancel and refund bookings for stays after Dec. 1, in line with the Associated Press, after long-planned regulations geared toward curbing illegal short-term rentals in the town went into effect on Sept. 5.
The regulations, which caused an uproar amongst travelers and short-term rental owners, require hosts be present for stays of lower than 30 days, with not more than two people staying in a dwelling at a time. Hosts must also register and get approval from the town — or each hosts and booking sites could also be subject to hefty fines.
The travel industry website Skift estimates Airbnb short-term listings in Recent York City dropped 77% from June 4 to Sept. 10, likely sending many searching for latest accommodations.
“Over the past week, we have seen the strongest booking pace for the forward six-month period than we have seen at any time going back to 2015,” Kevin Davis, CEO of JLL Hotels & Hospitality’s Americas, told “Squawk Box Asia” Monday.
“As well as, when you take a look at Google searches, just over the past week for Recent York City hotels, those are up 24%, relative to the past 60-day period,” he said. “We’re seeing an incredible amount of interest in people staying in Recent York City hotels.”
NYC hotel rates to go up
Recent York City has good enough hotels to fulfill traveler demand, Davis said, citing an unprecedented supply of recent hotel rooms in the town.
“Since 2020, 10,000 latest hotel rooms have been delivered, and over the following couple of years, one other 10,000 latest hotel rooms can be delivered to the town,” he said. “So there’s absolutely good enough supply of hotel rooms to accommodate all of the tourists that want to return to Recent York City.”
Still, with most short-term rentals off the table, Davis said hotel rates are more likely to rise.
“The message on your viewers is in the event that they’re serious about coming to Recent York City, they need to plan to make the reservation sooner quite than later,” he said, “We expect prices will likely increase, particularly as we get deeper into the 12 months.”
Demand may even get a lift from a drop in airfares in america, as airlines attempt to spur fall travel demand, Davis told CNBC’s Mandy Drury.
“In Recent York City, for instance, actually August relative to July, fares were down 14%,” Davis said. “For those who take a look at fares from major cities within the U.S. into Recent York City, they’re down about 17%, so consumers are definitely seeing a break in airfare today.”
Knock-on effect
From London to Paris and Dubai, cities internationally have regulated short-term rental markets.
But Recent York’s regulations go further than most, resulting in concerns that other cities may adopt similar measures.
“It’s definitely possible that they may follow the lead of Recent York City,” Davis said. “My best guess, though, is that they’re going to likely see what happens over the following six to 12 months when it comes to enforcement and what the implications are for the town before you truly see similar kinds of laws passed in other cities.”
What we’re seeing within the short-term rental space now could be, frankly, a correction.
Kevin Davis
CEO, JLL Hotels & Hospitality’s Americas
Stricter short-term housing rules are on the table in america — in cities like Atlanta, Dallas and Recent Orleans, Davis said — as well places like Florence, Italy and Melbourne, Australia.
Throughout the pandemic, many owners marketed their properties on Airbnb to make cash during a period of unprecedented demand for short-term rentals by leisure travelers, Davis said.
“What we’re seeing within the short-term rental space now could be, frankly, a correction and a reversion to the mean,” he said. “Leisure travel is beginning to pull back now, and in consequence, you are seeing a softening briefly term rental demand in lots of markets.”
CNBC’s Chiew Tong Goh contributed to this report.
