TripAdvisor has just announced the abrupt closure of its hosted vacation rental services, including its long-time Hawaii player FlipKey, effective November 1, 2024. If you are holding one of their reservations, it’s now canceled. We’ll tell you more about what that means and what you can do.
This marks another change in Hawaii’s already complex vacation rental market. As one of the long-standing alternatives to Airbnb and VRBO, FlipKey had established itself as a platform for travelers and property owners in Hawaii over the years, both for renting and as a source of reviews.
Hawaii’s vacation rental landscape is unique, with a significant portion of the state’s tourism reliant on these accommodations. With FlipKey’s Hawaii listings showing no availability after October 2024 (per the image below) and the TripAdvisor website redirecting user reservations to VRBO, property owners and travelers alike must adjust. FlipKey, active in Hawaii since 2007, leaves another gap in the market, raising new challenges for the state’s vital tourism industry.
Implications for Hawaii visitors holding TripAdvisor/FlipKey hosted reservations.
The sudden business exit cancellation of bookings through FlipKey and TripAdvisor may come as an unwelcome disruption for travelers. Refunds will be issued for any bookings after November 1, 2024, but the news will undoubtedly create challenges for those who planned their Hawaii vacations far in advance.
“Vacation rental bookings hosted by TripAdvisor, that have a check in date on or after 1st November 2024 will be cancelled and travelers will receive full refunds.”
TripAdvisor
Travelers who have already booked flights and car rentals may now scramble to secure alternative Hawaii accommodations, potentially at higher costs.
This is also an unwelcome disruption to property owners, who suddenly have openings they thought were booked. Or it may give owners a chance to raise prices and secure a new reservation. That is all about to become clear.
If you have a reservation, our best advice is to contact the owner/manager and see what can be worked out. Since the price is not guaranteed, a new booking could further complicate things with your wallet. It is clear that TripAdvisor is washing its hands about the situation and is not getting involved.
TripAdvisor says, “Any booking or arrangement you make with the owner is directly between you and the owner. None of the TripAdvisor Vacation Rental Companies will have any involvement with, or bear any responsibility for, such bookings or arrangements nor any issues that arise from them.”
Sentiments arising on forums and social media have already revealed frustration among travelers, who feel left in the lurch by TripAdvisor’s sudden exit. Many have relied on these platforms to secure family-friendly or niche accommodations in Hawaii, and now, they must either turn to Airbnb, VRBO, or smaller, sometimes less familiar local platforms.
FlipKey and TripAdvisor’s Role in Hawaii’s Vacation Rental Market.
Since 2007, FlipKey has operated as part of the TripAdvisor vacation rental family. Hawaii property owners, in particular, used FlipKey’s integration with TripAdvisor’s “trusted” reviews, allowing for greater visibility and bookings. FlipKey attracted those seeking family-friendly rentals or luxury properties, offering options at a time when the then-budding vacation rental market was evolving.
For property owners in Hawaii, FlipKey was a mid-level competitor that offered what was then perceived as a more affordable listing service than Airbnb or VRBO. Its appeal was tied to lower fees and a global reach of over 830,000 properties. More importantly, those TripAdvisor reviews, unverified, gave a perception of credibility, something especially valuable for Hawaii homeowners looking to attract visitors.
However, with TripAdvisor’s decision to exit the vacation rental business, Hawaii homeowners who once relied on these as an alternative will reconsider their options. This leave Airbnb and VRBO as the primary choices in national marketing of Hawaii vacation rentals, together with the online travel agencies Booking and Expedia. This comes as the industry continues to shift from local to global marketing by companies holding greater control over pricing, fees, and terms.
TripAdvisor indicated it will continue to offer vacation rentals and hotel accommodations through third-party, affiliate partner websites.
Hawaii vacation rentals remain in transition.
The timing of FlipKey and TripAdvisor’s exit comes as Hawaii’s vacation rental market is already navigating a period of great transformation. Stricter regulations on short-term rentals have created uncertainty for property owners and travelers. That comes as Maui is still moving to cut up to 50% of its vacation rental permits to address concerns about housing affordability and the impact of over-tourism.
We welcome your input!
Yes. As a long time vacation rental owner and now a mid term landlord for travel nurses, the taxes we must collect and pay to the Hawaiii Go Tax, about 18%, the permits needed, that are no longer available, the insurances required… cleaners needed. Landscape people needed. Repairs … etc. It’s just not worth it any more.
Flip Key is closing.. it’s not just in Hawaii… their competition is tough, VRBO sucks.. they were founded and used to be Vacation Rentals By Owner, they got greedy, they charge an annual fee and a 3% fee on payouts to owners, they also charge the owners 3% of their fee that they pay the State for Hotel taxes!!!.. I predict Airbnb will win
I refuse to use Airbnb, because along with your credit card, they want a picture of your photo ID, driver’s license etc. If their website gets hacked you are pretty much screwed as far as your identity stolen and your accounts drained.
I hardly book a VRBO anymore. Their fees are horrendous. And the cleaning fees the homeowner wants is equally outrageous.
Do you use another service? I agree with you!
What do you think hotels do? They ask for your credit card, driver’s license, make, model, and license plate of your personal or rental car, etc. This info can and is stolen by internal personnel – much less secure than online. Are you also quitting going to hotels for the same reason?
I think the last paragraph in this well written article may provide the clue bird here…
Best Regards
Another blow for tourism to Hawaii especially on Maui where Daily Passenger Counts are plunging.
Where last year at this time post Lahaina fire tourism arrivals to Maui were starting to climb this year arrivals are falling to new lows.
I guess the messaging is loud in clear to Maui tourist we don’t want you we just want your money.
Richard C, it’s my belief that the entire State of Hawaii is stating exactly that, “just give us your money and stay in your accommodations!” As tourism dries up, Governor Green is anxious for 2 years to pass and Japanese Tourists to come and spend their money. His politics isn’t good for Hawaii.
This cutting back on sort term vacations rentals just gives the large hotel chains even more power to raise already high fees. In the long run they will end up pricing out most travelers. Get ready to lose tens of millions of dollars in state revenue and that means jobs.
Jerd C, it doesn’t look good for the “Mom and Pop” stores, for that matter many establishments. How long can places continue to stay in business, even with fees for everything tacked onto the bill, when fewer customers are there? Unemployment is rising due to Doctor Governor Green’s Policies, the only ones to benefit are the Hotel and Resort Industries. I “thought” that the duly Elected Politicians were “supposed to be in Control” of everything. How is it then that it’s the Hotel and Resort Industries that are controlling Them and Everything Else! Just look around at all of the newly constructed, and that which is still being, and realize that it was all planned, approved, and some begun prior to the new legislation aimed at eliminating STR’S. How much of this is going to be offered to the public as “fair priced rental units” or better yet “fair priced housing for sale” to those in need? Get my point?
Wealthy people that travel on yacht’s, private jets, and cruise ships already have sleeping quarters. Oh Yeah no green fees also. No hotel,No STR’s,or AirBnB needed. The only thing to decide is what restaurant to eat at and what they choose for entertainment. What’s next Hawaii?
Don,
The tourists you mentioned probably dine in a private club or employ their own chef. This will impact the small local restaurants and normal tourists.
Listen insurance companies have refused to write policy’s for certain automobiles, and write policy’s for area’s prone to fires, floods, hurricanes, etc. Businesses have the right to sell products or services that they wish. If Flipkey or Tripadvisor don’t want to sell rentals involving Hawaii that’s their choice. IMO the reward isn’t worth the risk.
Nothing is different than airlines dropping certain routes and marketing their services in different areas. Nothings different.
Hawaii will find out the Key to all this is Flip.
Wow! We’ve never used FlipKey / Trip Adviser for any of our vacation rentals, but what a blow to a vacationers plans and finances. Not to mention the stress of redoing your plans.
On a different note, any more news on potential hotel workers strike?
Unless the silent majority of Maui residents and Short Term Rental related employees speak up, Maui is in for a recession that will be difficult to recover from.
The concept of supply and demand (theoretical basis of modern economics) will negatively apply to Maui. There are plenty of locations to travel to other than Maui (supply) therefore reducing the demand t travel to Maui (demand). Less taxes to the County’s budget mean less services to the residents.
The only way to offset the loss
in taxes from STR’s is to pass along the taxes to residents via property tax or sales tax. And by the time the hit comes to residents, those politicians who approved this initiative, will be out of office. Unfortunately, none of them will be around so they can be told, “We Told You So!”
We have never rented a vacation rental via Flipkey. We also didn’t advertise our property on Flipkey. So a non issue for us. Hopefully, Flipkey was a minority player and won’t affect a lot of visitors.
Not everyone wants to own a home and have visitors all the time. 24/7. That’s the problem. Its Loud. That why we have Hotels. Mahalo
Alfred H, if Trip Advisor is willing to back out of the Hawaiian Rental Market, what does that bode for the Political Scene, never mind the Economics of Hawaii? I was once a member of the Trip Advisor Advisory Board, I have a distinct feeling that soon Trip Advisor may begin Advising possible Tourism of the pitfalls of a Hawaiian “Experience.” Their advise does carry much weight in decision making among many people. That is something that Hawaiians haven’t considered, yet.
The Maui Government will find themselves defending their actions in court as soon as the West Maui enforcement is implemented.
The injunctions will quickly become class action challenging the constitutionality of the action.
Exactly right, and once that class action is resolved they’ll be another right behind it if the Governor’s proposed “green fee” gets passed. I don’t think Hawaii is financially capable or administratively able to handle these issues.
John, that litigation will certainly put an additional draw upon Maui Finances, defending these claims is far from cheap.
Anyone even slightly familiar with Trip Advisor will know that they don’t make a decision like this without more than good reasons. Hawaii, as a State, has been consistent with their decisions towards Tourists and Vacationers, they are more of a nuisance than anything. Only the Wealthy should have a place to enjoy, middle and lower income individuals should stay away. Even at the local levels of Government, those sentiments and others are felt. The only industry benefiting from this is the Resort and Hotel Industry, they are Expanding! Best regards from afar, it’s a better place to be.
Its not TA/FlipKey just getting out of HI. They are out of everywhere. I just looked at TA Vacation rentals for Barbados, for later this year, and all the listed properties are booked through VRBO. Less choice, more profit for the big players, as noted.
Better a month and a half notice than a week and a half – or day and a half. I guess.
Still pretty incredibly disruptive.
There are additional resources for Hawaii rentals such Rentals Maui, Maui Beachfront Rentals, South Kohala Management just to name 3. Airbnb and VRBO are not the only options.
I don’t think hosts will try to jack up prices on these vulnerable people, nor do I think that guests will need to “scramble” to find alternate accommodations. The guests should just contact the host, and I’m sure the host can work something out for the same price. Maybe even less, if there were extra guest fees involved with TripAdvisor/Flipkey.