The Beach Rental Wave is Crashing! 🌊

Your daily dose of real estate vacation rental investing insights, served hot and fresh!

• Beach Vacancy Bonanza: The unexpected surplus of summer rentals in popular beach destinations. 🏖️

• AI Takes Over Travel: Booking.com ditches Google Bard for OpenAI's ChatGPT in its new AI Trip Planner. 🤖

• Barbie's Malibu Dream House: Airbnb partners with the Barbie movie for a real-life Barbie Dream House in Malibu. 💖

• 🔥 Deal of the Day! 🔥: bd | ba | ,

Surf's Down: The Beach Rental Wave is Crashing! 🌊

As real estate investors, we're always on the lookout for trends and shifts in the market. This summer, we're seeing an unusual pattern in the vacation rental industry, particularly in popular beach destinations. Let's dive into the details.

The vacation rental platform, Vacasa, recently reported a downturn in business after two years of record bookings and profits. This is surprising given that these rentals, especially in sought-after summer spots like Cape Cod or the Hamptons, are typically booked solid. However, this year, there's an unexpected surplus of peak season summer rentals still available.

This shift isn't just about a sudden lack of interest in beach vacations. It's a ripple effect from the turbulent housing market. During the pandemic, many people bought vacation homes, leading to a surge of new rentals on the market. Additionally, travelers are broadening their horizons, looking beyond traditional nearby destinations due to increased costs and a newfound comfort with flying.

According to local realtors and realty groups in the Jersey Shore, the Hamptons, and Cape Cod, bookings are indeed lower this year. For instance, the Cape Cod Chamber of Commerce reports that short-term rental sales are down between 10% and 20% for the peak season.

However, don't assume this means you'll find bargain deals on vacation rentals. The market is merely correcting after two years of unprecedented demand, which has driven costs sky-high. Despite the increase in vacancies, owners aren't significantly lowering their prices. Demand for vacation rentals remains high, even higher than pre-pandemic levels in some locations.

The pandemic has also altered travel patterns, affecting drive-in vacation destinations. As restrictions ease, more people are booking trips abroad instead of opting for domestic locations. An April report from AAA found that this year, international travel is up an astounding 200% compared to 2022. International hotel bookings have jumped 300%, and the increase in airfare demand has driven ticket prices for international trips up more than 30%.

The vacation rental market is experiencing a unique shift. As investors, it's crucial to understand these changes and adapt our strategies accordingly.

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Booking.com's AI Revolution: ChatGPT Takes the Wheel 🤖

In an exciting development in the travel industry, Booking.com is launching an AI Trip Planner for U.S. members of its Genius travel rewards program. The AI Trip Planner, which is in beta, is built on OpenAI's ChatGPT, along with Booking.com's proprietary AI tools. This choice is intriguing, considering Booking.com's longstanding relationship with Google. However, OpenAI's ChatGPT has received more favorable reviews than Google Bard.

The AI Trip Planner will answer travelers' questions about destinations and accommodations. It is seamlessly integrated into the Booking.com app, allowing users to switch between their chat with the AI Trip Planner and the app interface. This integration enables users to complete their reservation with a single tap on any accommodation they're interested in.

The CEO of Booking Holdings and Booking.com, Glenn Fogel, stated that their primary aim has always been to use technology to simplify travel. The advancements in generative AI are accelerating their work with machine learning to enhance every aspect of the customer experience on their platform. The AI Trip Planner is the next step in their journey to add more value to the entire trip planning process.

It's important to note that the AI Trip Planner will be released in beta to a limited set of users initially. Therefore, a direct comparison with Expedia's ChatGPT-based virtual assistant is challenging at this stage. Expedia's chatbot doesn't include pricing information or booking links, but users can save a chat and get redirected to the Expedia iOS app's Trip's feature to start the booking process.

This development marks an exciting time in the travel industry, as companies leverage AI to enhance customer experience and streamline the trip planning process.

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Live the Barbie Dream: Malibu Mansion on Airbnb 💅

Airbnb is making waves in the travel industry with its latest offering - a real-life Barbie Dream House in Malibu. This human-sized, hot pink mansion is part of a promotional partnership with the upcoming Barbie movie and will be available for a free one-night stay to U.S. members of Airbnb's Genius travel rewards program.

Located near El Pescador State Beach in Western Malibu, the house is surrounded by high-end homes, with neighboring properties estimated to be worth more than $5.2 million according to Zillow. The Barbie-themed mansion is decked out in pink from floor to ceiling and features toy-inspired decor, an infinity pool, and a wraparound balcony. However, it lacks a kitchen or washer and can only accommodate two guests.

This is the second time the property has been listed on Airbnb for a Barbie promotion. The house was previously listed in October 2019 for $60 a night to celebrate Barbie's 60th anniversary. The relisting is part of an extensive marketing campaign for the live-action Barbie film, directed by Greta Gerwig, which premieres in theaters next month with a $100 million budget.

Booking for the Barbie Dream House opens on Airbnb on July 17 at 10 a.m. PDT. In addition to the promotion, Airbnb is also making a one-time donation to Save the Children, a non-profit organization, to build girls' confidence and help them excel in school.

This unique promotion is a testament to the creative marketing strategies being employed in the travel industry and the potential for unique property listings on platforms like Airbnb.

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🔥 Deal of the Day! 🔥

Address: 31026 Valley Oak Dr, Running Springs, CA 92382

With its architecturally impressive A-frame style, recent upgrades, and a stunning 30-foot wall of windows offering breathtaking canyon, forest, and city views, this fully furnished 3-bedroom property in Running Springs, CA, is an ideal vacation rental, ready to provide guests with a unique and memorable stay.

Airdna data:

Estimated monthly payment: $3,800/month

Estimated monthly revenue: $4,400/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

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