New York City Short-Term Rentals Go Underground

Good morning from Skift. It’s Wednesday, October 11. Here’s what you need to know about the business of travel today.

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Episode Notes

New York City’s recently enacted stringent host registration rules for short-term rentals has led to a substantial reduction in Airbnb’s listings in the city. They’ve also helped create an underground market for Airbnb alternatives, reports Executive Editor Dennis Schaal in his weekly Online Travel Briefing.

A recent article in Wired described New York City’s short-term rental regulations as “pure chaos.” Schaal cites a listing on Craigslist for a one bedroom property as one example of the booming underground market. Wired revealed that fewer than 500 hosts out of the 22,000 listings on Airbnb last summer are now registered. 

A spokesperson for an organization representing homeowners said short-term rentals are increasingly taking place in an unsafe environment for both hosts and guests.  

Next, tourism to Morocco – especially the city of Marrakech – was hit hard by the massive earthquake that struck the country in September. But the city has just reached some important milestones in its recovery, writes Global Tourism Reporter Dawit Habtemariam.

Although some areas affected by the earthquake remained closed to the public, Habtemariam reports several historic sites in Marrakech reopened to tourists recently. In addition, the city is hosting the 2023 World Bank and IMF Annual Meeting this week. One Moroccan tourism official said more than 14,000 people are expected to come to Marrakech for the event. 

Finally, Virgin Australia recorded a profit for its fiscal year ending in June, the airline’s first in 11 years. However, the company still has a long way to go to catch up to rival Qantas, reports Jay Shabat, senior analyst at Skift publication. 

Shabbat writes Virgin Australia notched an $87 million net profit and a 9% operating margin during the fiscal year. Virgin’s return to being in the black comes after it had restructured in bankruptcy during the pandemic. However, Virgin was less profitable than Qantas, which reported a 14% operating margin. Qantas also generated a little more than six times Virgin’s revenue during the fiscal year.