European Data Deal

Happy Thursday, folks! India did it, we made it to the finals of the men’s cricket world cup. You know what this means: Four years until I care about sports again.

Alright, let’s go.

On the menu today:

• European Commission’s deal with short-term rental industry
• RedAwning’s upgrades for superhosts
• San Antonio supervision

The European Handshake

The European Council and Parliament have reached a provisional agreement on a draft regulation for data collection and sharing for short-term accommodation and rental services within the European union. 

The purpose?

• Enhance transparency 
• Introduce standardized registration requirements for hosts and properties
• Facilitate improved data collection and sharing between hosts and platforms
• Contribute to the fight against illegal offerings and supporting a more sustainable tourism ecosystem

The agreement aligns with the Digital Services Act and the Services Directive, requiring platforms to transmit activity data to authorities regularly. The two institutions — the council and the European parliament — have to endorse and formally adopt the proposal and the regulation is expected to take effect 24 months after that’s done. 

The Council will approve the text formally on November 29 and the European Parliament in early December.

“The European Holiday Home Association (EHHA) welcomes last night’s Council and Parliament deal on the Commission’s Proposal for Regulation on short-term rental data collection and sharing,” said Viktorija Molnar, acting secretary general of EHHA.  “We hope that the EU data sharing framework for short-term rentals will lead to more justified, proportionate, and non-discriminatory short-term rental rules. The EHHA stands ready to further cooperate with policy makers to ensure a proper application of the EU Regulation.”

Stay tuned for developments to this story.

RedAwning’s Superhost Upgrades

California-based RedAwning has introduced updates to its communication features for Airbnb superhosts. 

The new communications hub communication features include:

• Centralized communications management where hosts can send messages from their email, mobile phone, or via the RedAwning Portal or the mobile app, to guests which will then appear on their booking platform or email or text inbox. 
• Automated messaging for hosts, with customization of design and text for all messages.
• Automatic conversion of PDF attachments to channel inboxes.

Although this particular launch doesn’t have ChatGPT add-ons, RedAwning CEO Tim Choate hinted at that being the second phase of this launch.

The San Antonio Supervision

The San Antonio City Council and community members are seeking to regulate short-term rentals, targeting owners operating without permits and evading taxes, San Antonio Express News reported. 

However, a task force will explore methods to enforce hotel occupancy taxes, increase permit fees, and potentially impose stricter rules on the concentration of short-term rentals in specific areas. Short-term rentals, often booked through platforms like Airbnb and Vrbo, involve overnight stays for fewer than 30 days but not less than 12 hours. 

The city has identified around 3,200 permitted operators, with an estimated 1,200 to 1,500 unpermitted rentals. Since the ordinance’s inception in November 2018, the city has collected $14.4 million in hotel occupancy taxes, reaching a record $5.5 million in the last fiscal year. Despite financial gains, concerns persist about unregulated operators, prompting the city to consider changes to the existing short-term rental ordinance.

Florida’s Tax Dollars

The Floridian Space Coast experienced a record-breaking year in tourism, propelled by robust winter and spring seasons. However, recent data on Brevard County’s tourist development tax collections, a key measure of the industry’s strength, reveals a slight softening, Florida Today reported. 

The tax reached a new high of $25.54 million for the 2022-23 budget year, marking a 9.5% increase from the previous record of $23.33 million. This 5% tax, collected on hotel rooms, vacation rentals, and short-term rentals, suggests a total revenue of $510.8 million generated by these entities in 2022-23. Despite the overall success, concerns linger about the sustainability of growth in Brevard County’s tourism industry.

Mexico City Regulates

The government in Mexico City is proposing new legislation to regulate digital short-term rental platforms, particularly focusing on Airbnb and similar services. Mayor Martí Batres aims to address concerns about the impact of short-term rentals on affordable housing and rising property prices, Short Term Rentalz reported.

The proposed regulations require hosts to register listings on an online database, inform neighbors about rental plans, and submit rental data to the Tourism Ministry twice a year. Hosts would be limited to registering three properties, apartments, or rooms as short-term rentals. Mandatory annual taxes for hotels and online platforms would remain at 3.5% and 5%, respectively. 

Mexico City is a major short-term rental market, with a 17.5% increase in listings reported this year. A decision on the proposed regulations is expected in an upcoming legislative session on December 15.