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š āJunkā fees are seen as top FHL gripe by travellers
And the latest on the abolition of the FHKL tax regime
Phil Jackson
September 14, 2024
š Welcome to this weeks newsletter which is packed full of news, information and tips to help you grow your holiday let business and to hopefully provide you with some food for thought.
We appear to be entering a critical time around the debate for the abolition of the FHL tax regime and the opportunity for any debate in parliament before the rules are set in place.
See you next Saturday at 5pm?
Phil
Founder, My Holiday Guide
IN THE NEWS
Abolition of FHL TAX Regime
Based upon the efforts of PASC, the ASSC and other trade associations, petitions from owners and direct contact with MPs, meetings continue with MPs at a local and national level.
A Westminster Hall debate took place this Thursday to debate the āRegulation of Short Term Letsā. From what I can tell the debate focussed more on the proposed registration scheme rather than the abolition of the FHL tax regime.
If you havenāt done so already, the trade associations are encouraging owners to sign the petition. The deadline is this Monday. It is currently at 8,850 and it really needs to be at 10,000 to enable your trade associations to push the issue with Government.
Other News
In Pembrokeshire, the volume of second homes on the market has trebled since council tax hikes, with 135 second homes on the market in July 2024 compared to 38 a year ago
On top of the AI guest communication tool property management tool Guesty launched a few moths ago; they have just launched two new artificial intelligence-powered features - an AI Assistant website builder and ReviewSmart AI allowing guest reviews to be analysed. Iām unsure if their AI features are āhome-grownā or if they are powered Besty AI
Airbnb has quietly given hosts the option to offer new Experiences for the first time since pausing the submission of new offerings back in April 2023 - and four months ahead of the prior plan to bring them back in 2025
Tripadvisor is removing itās ability to take and manage direct bookings - āTripadvisor has decided to discontinue the direct booking and management of vacation rentals on its platform. This strategic shift aligns vacation rentals with our existing hotels offering and ensures the best experience for our customers.ā
Hereās a global map highlighting the holiday hotspots clamping down on Airbnb-style rentals
One persons opinion on the āpatterned vs plainā bedding debate!
LISTING PERFORMANCE & GROWTH
Tips and strategies to enhance the visibility and attractiveness of your holiday let.
Highlights from the Skift State of Travel Report
This week we have delved in to the 408 page Skift State of Travel 2024 Report for you, and have plucked out some findings that you may find of interest.
According to the Skift State of Travel 2024 report, travel across many countries is now above 2019 levels, with the UK now being 5% higher than the 2019 baseline.
All charts credit : Skift
According to the Skift survey, 63% of millennialās (aged 28-43) and Gen Z would spend money on travel rather than other things. This affirms a previous article where we highlighted that younger generations put more value on āexperiencesā than material things.
Families make up 50% of total travellers, whilst travelling with a partner makes up 30%, solo travellers 14% and with friends 5%.
There appears to be an increasing amount of solo travellers in the 55-65 age category. This data set is US based but there will likely be a similar trend in the UK.
Will this drive a slight increase in guests looking for smaller, cheaper 1-bed studio apartments and activities? Is it also worth highlighting activities near you that individuals can join in with? E.g. walking groups, pub games nights, etc.
In a recent edition of the newsletter we discussed the growing importance of āexperiencesā to travellers. According to the Skift report 74% of travellers put a moderate to huge importance on experiences to measure the satisfaction of their trip.
When it comes to trip planning, Facebook is still top of the list of social platforms all generations go to.
If you donāt already have an active Facebook page, you can read our article here on how to create and grow a successful Facebook page.
The report includes a section specifically on short-term rentals. One of the survey questions asks travellers what their top issues are with holiday let properties. Top of the list were ājunkā fees and pricing inconsistencies.
The survey also asked travellers what the main reasons the traveller would choose to stay in a short-term rental.
The report findings state that Professional property managers are able to drive higher Average Daily Rates (ADRs) for the properties they manage compared to individual hosts.
According to the report, 76% of travellers check whether the property is managed by a professional manager or an individual host.
When asked why they preferred a professionally managed home, having a better service quality, being more trustworthy and a higher level of consistency and standardisation were the top reasons highlighted for choosing a professionally managed holiday let - perception is reality!
When looking at direct bookings vs via an OTA, the survey found that direct bookings are typically made further in advance, drive higher rates, and book for longer stays.
PROPERTIES OF THE NEWSLETTER
We all love looking at and getting inspiration from other properties so hereās our top pick for this edition.
NO FOMO
Missed last weeks newsletter? Hereās one thing you might like.
How To Boost Repeat Bookings By Contacting Guests After Their Stay
In last weeks newsletter we delved into how (subtly) contacting guests after their stay can increase your bookings and profit.
You can read the full article below: