Uptick in Demand for NYC Hotels with New Short-Term Rental Regulations

In the ever-evolving world of digital marketing, keeping an eye on key metrics is vital to understanding the impact of external factors on your industry. One of the most recent and intriguing developments in the hospitality sector is the implementation of stricter regulations for short-term rentals, such as Airbnb and Vrbo, in the vibrant city of New York. 


New Short-Term Rentals Regulations in NYC

On September 5th, 2023, New York City implemented a series of new regulations aimed at addressing concerns related to short-term rental activity within the city. Under these regulations, hosts of short-term rentals are now required to register with the Mayor’s Office of Special Enforcement.

Additionally, these rules prohibit booking service platforms, such as Airbnb and Vrbo, from facilitating transactions for unregistered short-term rentals. These regulations marked a significant shift in the landscape of the hospitality industry in the city that never sleeps.


Impact of New Regulations on Hotel Bookings

To assess the immediate impact of these regulations, we conducted a pre-and-post-period comparison using data from August 14th to September 5th (before the regulations) and from September 6th to September 28th (after the regulations). Our findings shed light on how NYC hotels have been influenced by this changing environment, as well as how users have responded to these shifts.

Our analysis revealed a few key changes in the metasearch data for NYC hotels in the post-regulation period versus what we see in the rest of the markets: 

  • Uptick in Demand: NYC hotels experienced a 4% increase in overall demand during the post-regulation period, while non-NYC markets saw a 7% decline in demand. This uptick in demand indicates that travelers may prefer hotels as an accommodation option following the implementation of stricter rules on Airbnb.
  • Bookings on the Rise: The most promising revelation was the 5% increase in bookings for NYC hotels, compared to a 9% decline in bookings for other markets. This metric signifies that users are not only showing more interest but also following through with reservations, demonstrating the level of intentionality with which they are conducting their searches.


Although we have not seen a substantial impact since the implementation of stricter regulations for short-term rentals in New York City, we are starting to see demand and bookings for hotels increase, with a 4% increase in demand and a 5% boost in bookings. Koddi will continue monitoring the impact of these regulations to see how this shakes up long term. 



As the landscape continues to evolve, NYC hotels have demonstrated their ability to not only survive but thrive, making the most of the opportunities that emerge from regulatory changes. In the world of digital marketing, staying agile and responsive to shifting market forces is key, and NYC hotels have certainly shown their prowess in doing just that.

Our dedicated team at Koddi is poised to help you make the most of this prime marketing opportunity in the NYC market. Reach out to our experts today to optimize your metasearch campaigns and ensure you’re getting the maximum value from your advertising budget. Don’t miss out on the uptick in demand — reach out to the Koddi team and let us help you capitalize on the growing interest in NYC accommodations!

Stay updated with all the latest product updates, insights, and trends from the Koddi team by following us on LinkedIn.