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Worldwide: Short Term Rentalz News reflects on 12 stories that shaped the short-term rental sector in 2025.
January:
OpenAI unveils AI agent Operator to book travel
US: OpenAI has officially unveiled one of its first AI agents called Operator, a system that can use its own browser to make travel reservations, fill out forms, order groceries and even create memes.
Operator, which is now available to ChatGPT Pro users in the United States at operator.chatgpt.com [a $200 monthly plan providing access to latest models], is designed to perform tasks autonomously, including looking at webpages and interacting with them by typing, clicking and scrolling. The agent also handles a range of repetitive browser tasks while using the same interfaces and tools that humans interact with on a daily basis, ensuring that the uses of AI increase and new engagement opportunities for businesses will open up.
OpenAI CEO Sam Altman has called the release “an early research preview” that currently has limitations and will evolve based on user feedback over the coming months. OpenAI also plans to launch more agents post-Operator launch, and it will be open to ChatGPT Plus, Team and Enterprise users across the world beyond that.
Powered by a new model called Computer-Using Agent [CUA] – built on GPT-40, Operator “sees” through screenshots and “interacts” via mouse and keyboard actions within a browser, enabling it to take action on the web without requiring custom API integrations.
Users can prompt Operator with requests, either by going through specific partner websites or going through a traditional search engine such as Google. If the AI agent encounters challenges or makes mistakes, it can use its reasoning capabilities to self-correct, although it is still in its early stages and has its own limitations
February:
Mayors debate affordable housing solutions in European Parliament
Europe: The mayors of Madrid and Barcelona debated solutions for the affordability housing crisis in the European Parliament this week, as the European Union seeks to drive greater transparency and help local authorities with targeted, balanced regulations as part of new short-term rental rules.
José Luis Martínez-Almeida, the centre-right mayor of Madrid [of the conservative party – Partido Popular – PP], called for an increase in supply by encouraging the construction of more new housing in Spain’s capital.
He said: “Housing can be solved by increasing supply and therefore by generating more land on which to build,” said Martínez-Almeida.
Martínez-Almeida is also advocating for greater “legal certainty” for landlords and tenants to prevent “illegal occupation”, and wants to build more social housing while also creating a “distinction” between social housing and affordable housing.
In November, Madrid City Council unveiled plans to restrict short-term holiday rentals in its historic centre, as part of a Special Plan for the Protection of the Residential Area – or Plan Reside. The plan, introduced by Martínez-Almeida and urban planning delegate Borja Carabante, replaces a previous plan implemented back in 2019.
The plan involves banning short-term tourist apartments [Viviendas Uso Turístico – VUTs] from all residential buildings in the historic centre – a measure aiming at prioritising the preservation of residential spaces.
March:
HotelTonight offers Airbnb credit reward for travellers
UK / US: Hotel booking app HotelTonight has launched a new benefit allowing users to earn Airbnb credit for every stay booked through its app, as part of its HT Perks loyalty programme.
The feature, now available to guests in the UK and US, gives travellers 10 per cent of the booking value back in Airbnb credit, excluding taxes and fees. Credits are valid for one year from the stay date and can be redeemed on any future Airbnb booking.
To access the credit, guests connect their Airbnb account after checking out via HotelTonight. Any future bookings will then generate credits automatically, allowing frequent travellers to accumulate savings over time.
The move is designed to offer “the best of both worlds” by combining discounted hotel stays with the flexibility of Airbnb. It caters to a growing group of hybrid travellers who mix hotel and short-term rental stays across business and leisure trips.
The new perk builds on HotelTonight’s existing HT Perks programme, which offers exclusive discounts based on user spend. The programme has no blackout dates and lets users retain their tier status as they unlock more rewards over time.
Founded in 2010, HotelTonight is known for offering last-minute and same-day hotel deals via its mobile app, often at discounts of up to 30 per cent compared to other platforms. Airbnb acquired HotelTonight back in 2019. Its new offering positions it to compete more directly with platforms blending traditional and alternative accommodation.
April
What do the new US tariffs mean for the short-term rental industry?
US: In April 2025, the US administration introduced a sweeping new round of import tariffs—marking one of the most significant shifts in trade policy in recent years. While the headline focus has been on manufacturing and consumer goods, the impact is filtering across multiple industries—including hospitality and short-term rentals.
The U.S. government has implemented a 10% blanket tariff on a broad range of imported goods from most countries, including major trading partners such as the UK, Australia, and Canada.
In addition, heightened tariffs—reaching up to 54%—have been imposed on products from countries like China and several EU member states. These include everyday items frequently used in the short-term rental sector, such as furniture, electrical appliances, homeware, and construction materials.
The introduction of these tariffs comes at an already turbulent time for US tourism. In March 2025, overseas visits to the US fell by almost 12% compared to the previous year with travel from Canada down by 23%. The resulting price hikes risk intensifying existing hesitations around travel, casting uncertainty over the outlook for property managers in tourism-dependent areas.
May
Spain proposes 21% VAT on short-term rentals amid housing crisis
Spain: The Spanish government has unveiled a proposal to impose a 21 per cent value-added tax (VAT) on short-term tourist rentals, aiming to address the nation’s escalating housing shortage and the impact of mass tourism.
The proposed rate – more than double the 10 per cent currently applied to hotel stays – would apply to stays of fewer than 30 days, a common duration for holiday lets. At present, short-term rentals in mainland Spain are exempt from VAT, creating a significant disparity with the hotel sector.
The initiative forms part of a wider housing reform bill introduced by Spain’s Socialist-led minority government. It follows growing concerns that the proliferation of short-term rentals is reducing housing availability for local residents, particularly in high-demand areas such as the Balearic and Canary Islands.
Housing Minister Isabel Rodríguez said: “Homes are for living in… the measures seek to guarantee the right to rental housing for families.”
The Bank of Spain estimates a shortfall of around 450,000 homes nationwide. In some tourist-heavy regions, up to half of the housing stock is now used for short-term stays or owned by foreign investors.
The proposed bill also includes new taxes on vacant and second homes, as well as a clause to tax non-EU citizens up to 100 per cent on property purchases unless the property is their main residence..
June
Airlines reroute and cancel flights as Middle East conflict escalates
Middle East: Airlines are suspending or diverting services to the Middle East as rising conflict continues to disrupt key air corridors in the region.
Aviation concerns follow US strikes on Iranian nuclear facilities on Sunday, Israel’s ongoing military actions and Tehran’s pledge to defend itself.
Flight cancellations have already impacted major hubs, including Dubai International Airport, which is the world’s busiest for international travel, as well as Doha in Qatar.
Airspace between Iran and the Mediterranean has seen virtually no aerial activity since Israel launched strikes on Iran on June 13.
Several airlines have suspended flights in the area and haven’t announced when they’ll resume. These include Iberia, part of the IAG group, which cancelled its flights to Doha on Sunday and Monday and is still reviewing future schedules.
Air France-KLM also suspended flights to and from Dubai and Riyadh on both days, while Finnair halted its Doha services until at least Tuesday.
July
MakeMyTrip launches 200,000 experiences via global tours platform
India: Online travel agency, MakeMyTrip, has expanded its platform by introducing a new offering of 200,000 international tours and experiences across 130 countries.
This launch is part of the company’s goal to expand its services and move closer to becoming a comprehensive travel app by including a wider range of travel-related options.
The new platform allows users to find and book different types of travel activities through the MakeMyTrip app. These include tours, cultural experiences, adventure activities, and culinary classes. By offering a variety of experiences, MakeMyTrip is aiming to make it easier for travellers to plan and book all aspects of their trip in one place.
This launch builds on the introduction of Experiences in 2018, which focused on curated local activities in India. Expanding to international experiences marks a key step in MakeMyTrip’s strategy to become a one-stop solution for travel needs, with a broader selection of services available to users.
This move is part of a wider trend in the travel industry, where companies are expanding their services to meet the increasing demand for more integrated travel planning options.
August:
UK deputy PM under fire over seaside apartment purchase
UK: Deputy prime minister Angela Rayner has purchased a £700,000 seaside apartment in Hove, which will her third home during her tenure in the role.
Rayner divides her time between a £350,000 home in her constituency near Manchester and her central London “grace-and-favour” flat at Admiralty House in Whitehall, which is supplied as part of her government job.
Critics called on Rayner to answer questions about the properties she owns and where she pays council tax after she purchased the property. Shadow housing secretary James Cleverly said: “Angela Rayner is responsible for housing policy, yet she won’t even be straight about her own. Time and again she’s been asked to declare exactly what properties she owns and where she pays council tax, and time and again she’s dodged those questions,” he told The Mail on Sunday.
A Labour source defended Rayner, saying: “James Cleverly has some brass neck,” a Labour source said. “Unlike him, Angela has never been a landlord or owned a property in London. The second homes premium was introduced by the Tory government while James Cleverly was home secretary, and he supported it at every stage. Angela takes her council tax obligations seriously and she meets them in full.”
From 1 April 2025, UK local authorities in England are able to charge a council tax premium of up to 100 per cent (that is, up to 200 per cent of the normal bill) on second homes.
September:
TikTok launches travel ads to target trip bookings
Worldwide: TikTok has launched a new set of advertising products designed to capture travel bookings directly through its platform, expanding its role in the travel and hospitality sector.
TikTok has launched a new set of advertising products designed to capture travel bookings directly through its platform. The short-form video app, which has more than one billion users globally, said the new ads will allow brands to promote destinations, accommodation, and experiences with booking links integrated into the platform. The development builds on TikTok’s recent partnership with Booking.com to enable in-app hotel bookings.
TikTok’s move places it in closer competition with established online travel agencies and search platforms. The company said advertisers would be able to reach audiences using engagement and intent signals, enabling them to connect more directly with users already interacting with travel content.
The platform’s existing popularity as a source of inspiration has laid the foundation for the new service. Hashtags such as #TravelTok have generated billions of views, providing a large pool of travel-interested users. By adding a transactional element, TikTok is aiming to shorten the gap between trip planning and purchase.
October:
Airbnb introduces new social features for Experiences
US: Airbnb has introduced new social features for Airbnb Experiences, allowing guests to connect with one another before, during, and after their trip. The update forms part of a wider product rollout that includes enhanced search, flexible payment options, and expanded AI-powered customer support.
The new features mark Airbnb’s latest effort to position Experiences as a community-driven product, linking guests through shared activities. The “Who’s Going” feature shows where other booked guests are from before a trip, while direct messaging allows travellers to stay in touch through the app. A new “Connections” tab has also been added to users’ profiles to keep track of people they’ve met during Experiences.
Guests can control what information they share and how they appear to others, maintaining privacy within the app.
Beyond Experiences, Airbnb is introducing updates to improve booking flexibility. The company’s “Reserve Now, Pay Later” option, currently available in the US, will expand globally in 2026, enabling guests to reserve eligible stays with no upfront payment.
November:
England plans new ‘tourist tax’ for overnight stays
UK: England’s regional mayors were set to be given new powers to introduce a levy on overnight stays, enabling local authorities to raise funds for transport, infrastructure and the visitor economy, according to plans announced by the Ministry of Housing, Communities and Local Government ahead of this week’s Budget.
The new proposal would allow mayors in England to levy a charge on overnight stays, including in short-term holiday rentals, with the fee applying to all guests not only international tourists.
The proposed measure would align English regions with destinations such as New York, Paris and Milan, where visitor charges are already in place. The levy would apply to accommodation including short-term lets, hotels, B&Bs and guesthouses, with mayors deciding whether to introduce the fee in their area.
England is currently consulting on the proposals, with the consultation due to close on 18 February.
December:
Spain fines Airbnb €64 million over unlicensed short-term rental listings
Spain: Spain’s government has fined Airbnb €64 million (£56m) for advertising unlicensed short-term rental properties, as authorities continue to intensify enforcement amid ongoing concerns over housing availability and affordability.
The fine, issued by the Ministry of Consumer Affairs, relates to more than 65,000 Airbnb listings found to be in breach of consumer protection and housing rules.
Authorities said the adverts included properties without valid licence numbers, listings where licence details did not match official registers, and incorrect host information.
While the government said the fine is final at an administrative level, Airbnb said it intends to challenge the decision in court.
The ministry said the penalty represents six times the profit Airbnb allegedly generated from the non-compliant listings during the period between official warnings and their removal.
The enforcement action forms part of a wider national effort to tighten oversight of short-term accommodation. Spain introduced a new national registration system for short-term rentals in July, requiring listings to display valid registration numbers.
Airbnb said it has been working with Spanish authorities to support enforcement of the new system, adding that more than 70,000 listings on its platform have added a registration number since January.
