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š Insights from UK Q3 Performance
And what is Airbnbās CEOs āFounder Modeā?
Phil Jackson
November 02, 2024
š Welcome to this weeks newsletter. You are most welcome and we love bringing you helpful insights and useful information as you grow your holiday let business.
This weeks newsletter provides a roundup of the latest news as-well as some insights š from Key Dataās latest UK seasonal report.
See you next Saturday at 5pm?
Phil
Founder, My Holiday Guide
IN THE NEWS
Abolition of FHL Tax Allowances
Despite the sterling efforts of our trade associations, the budget announcement reiterated the governments plan to abolish the FHL tax allowances next year.
The announced increase in stamp duty on second homes may also impact property investors looking to add to their portfolio.
PASC and others are continuing to meet with MPs across all of the major parties on the tax changes and also the statutory registration scheme.
According to Ministers, an Economic Impact Assessment was completed and access to this has been requested under the freedom of information act.
Other News
Host & Stay is continuing to strengthened its UK portfolio by acquiring Guest Homes and Hartland Property Management. The purchases are being funded by a Ā£10.5m investment fund provided to Host & Stay by consumer-specialist investment firm Growth Partner
This article highlights one of the risks of Landlords using limited companies to purchase buy to let properties
If you are thinking of leaving a bottle of wine or similar for your guests this article by Out of Eden may be of help in explaining the alcohol licensing laws
The Verge recently conducted an interview with Airbnb founder and CEO Brian Chesky where they delved into Brianās style of leadership and what he calls āfounder modeā. If youāre interested in leadership and what makes the founder of Airbnb tick, hereās a few highlights on his leadership style :
Be in the details | Chesky believes that great leadership is about presence, not absence. Leaders need to be in the details of their businesses to set the pace and standards for their companies
Partner with experts | Chesky believes that āfounder modeā is not about micromanaging or telling experts what to do. Itās about working with them, challenging them, and weighing trade-offs
Skip-level management | Chesky is the co-hiring manager for all of the VPs at Airbnb, and they report to him as well as to their executive. This allows him to be more involved in the details of the business
Create a shared consciousness | Chesky wants Airbnb to operate as āone shared consciousness,ā where everyone is aligned on the companyās goals and how to achieve them. He does this by spending a lot of time with his senior team, debating first principles, and creating a culture of collaboration
Founder Mode isnāt just for Founders | Chesky emphasises that āfounder modeā is not just for founders. Itās a leadership style that can be applied to any organisation. He also acknowledges that itās important to gradually let go of control as team members develop muscle memory and prove that they understand the system
LISTING PERFORMANCE & GROWTH
Tips and strategies to enhance the visibility and attractiveness of your holiday let.
Key Data has released their U.K. Short-term Rental Quarterly Report. What does this tell us about the health of the UK furnished holiday let industry?
You can download the full report from here.
Calendar occupancy in the UK short-term rental market is beginning to decrease. In September 2024, calendar occupancy was lower than in 2023 (-6%) and 2022 (-4%). This downward trend is projected to continue in October and November, with occupancy pacing behind by 6% and 2% respectively.
Despite the decrease in occupancy, average daily rates remain higher than in previous years. September 2024 daily rates were Ā£158, a Ā£3 increase from the previous year. Rates are also expected to be significantly higher in November and December compared to last year.
RevPAR, a crucial metric reflecting the balance between supply and demand, is declining in line with occupancy rates. This decline is attributed to the increase in daily rates not fully compensating for the drop in occupancy. September 2024 RevPAR was down Ā£7 from the same month in 2023.
Average stay lengths are showing a slight increase compared to 2023 but are shorter than those observed in 2022. In September 2024, the average stay length was 4.6 days, slightly longer than the previous year but shorter than in 2022. This trend, combined with the decrease in occupancy, presents a challenge for property managers aiming to maintain consistent occupancy levels year-over-year.
Booking windows have remained relatively stable compared to 2023. The average booking window in September 2024 was about 67 days, just one day longer than in 2023.
Airbnb and Booking dot com still dominated the market, collectively representing 75% of guest check-ins in Q3 2024.
How do these figures stack up against your reality? Hit reply and let me know as itās always interesting to hear real world examples.
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