STR Impact, Guest Experience, and the Real Winners of Regulation

We break down Airbnb’s bold new economic claims and dig into why experiences—not just accommodations—are becoming the most powerful loyalty driver in travel.

Airbnb’s $90B Impact Claim—and the Regulatory Backlash

Airbnb has released one of its most ambitious economic impact studies to date, claiming that in 2024 alone, its platform:

• Generated $90 billion in U.S. economic activity

• Supported over 1 million jobs

• Contributed $25 billion in tax revenue

These headline figures are impressive—but the real story lies in the undercurrent of criticism aimed at STR regulation. Commissioned by Airbnb and conducted by Charles River Associates, the report argues that hotels—not communities—are benefiting most from short-term rental restrictions.

🔍 Spotlight: New York’s Local Law 18

The report highlights that after Local Law 18 went into effect:

• Hotel rates rose 14%

• Hotels gained $2.5 billion in annual revenue

• STR hosts lost bookings, income, and visibility in boroughs that once thrived on tourism

Far from improving housing access, the report argues, restrictive STR laws are simply concentrating economic benefits back into hotel zones, while local cleaners, cafes, and small businesses suffer from the drop in guest traffic.

The analysis extends to Boston and New Orleans, showing that more moderate, balanced regulation could have:

• Sustained STR income

• Maintained local tourism flows

• Preserved community-level economic diversity

“This isn’t just about hosts—it’s about who benefits from tourism: many or a few,” the report implies.

🏡 STR Takeaway:

• Use this data to advocate for fair, tech-informed regulation in your region

• Share the broader community impact of your guests—restaurants, cleaners, tours

• Consider getting involved in local or national STR advocacy groups pushing for transparency and balance

Experiences = Loyalty: The New Travel Equation

At Phocuswright Europe, leaders from Booking.com, Hyatt, and Amadeus came together to talk about the next frontier in travel loyalty—and it’s not points. It’s experiences.

In today’s market:

• Guests don’t want just accommodation—they want immersion

• Social media has replaced brochures; travellers now plan via TikTok, Instagram, and creator content

• The new loyalty loop starts with inspiration, is guided by AI, and is completed through seamless discovery-to-booking flow

Large language models (LLMs) and generative AI tools are starting to fill the gap between interest and conversion by:

• Recommending context-aware activities

• Matching guests with unique, location-specific experiences

• Creating multi-sensory previews that turn desire into action

But panelists also highlighted the challenges:

• How do you standardise experiences without losing authenticity?

• How do you turn fleeting inspiration into bookings within your platform?

🎯 STR Takeaway:

• Add local experiences to your offerings—either in-house or through partnerships

• Highlight these moments in your listing: workshops, nature, food, or cultural touches

• Use AI to send guests pre-arrival recommendations or allow them to book extras through messaging

What STR Hosts Should Do Next

✅ Stay Ahead of Regulation with Data

• Read the Airbnb report and understand how your region is impacted

• Educate your local officials about the economic ripple effect of STRs

• Proactively offer transparency in your operations—track tax contributions, guest nights, and local partnerships

✅ Turn Your Stay Into a Story

• Package experiences directly into your listing—don’t just offer a bed

• Use visuals and guest-generated content to market your experience on social media

• Reward return guests with curated itineraries or exclusive access to local activities

Final Thought: Experiences Drive Advocacy—and Loyalty

Whether it’s fighting for fair regulation or building guest loyalty, one theme stands out: experiences create value beyond the booking. They keep guests coming back, attract community support, and differentiate STRs from faceless hotel stays.

Your listing is more than a property—it’s a platform for impact, memory-making, and long-term guest relationships.