Real Estate Investor Magazine May 2025 edition May 2025 | Page 91

INVESTING
INVESTING

2. Platforms are Investing in Hosts and Raising the Bar

One of the biggest shifts in the STR landscape is how platforms like Airbnb, Booking. com, and Vrbo are actively supporting hosts to become more professional and scalable.
Airbnb’ s initiatives include:
• Co-Host Marketplace: A game-changer for investors, this feature connects property owners with vetted Superhosts, enabling passive income without hands-on management.
• Global pricing transparency: Airbnb now displays total costs upfront, improving guest trust and boosting booking conversions. Hosts are encouraged to price competitively and strategically.
• Diversification investment: Airbnb is investing over $ 200M into expanding beyond traditional stays— expect new property types and verticals to emerge that open more investment channels.
Booking. com and Vrbo are also stepping up:
• AI-powered trip planning tools, review summaries, and pricing algorithms are helping hosts improve visibility and revenue.
• Vrbo is focused on quality control, actively delisting underperforming properties and boosting exposure for listings with high guest ratings, availability, and responsiveness.

The takeaway? As platforms mature, those who treat hosting like a business- not a hobby- will dominate search rankings and win the best guests.

3. Where to Invest in 2025: High-Yield Markets to Watch

Not all STR markets are created equal. In 2025, the strongest investment potential lies in destinations that combine high traveller demand, limited supply, and year-round appeal.

46 REI MAGAZINE MAY 2025