Sonder’s bankruptcy has shaken the short-term rental world — and for good reason. Once the poster child of the “hotel-meets-Airbnb” model, Sonder’s downfall marks a pivotal moment for operators everywhere. In this episode, AirDNA’s Chief Economist Jamie Lane and co-host Scott Sage unpack what went wrong, what it signals for the rental arbitrage model, and how changing travel demand is reshaping the industry.

From a surprising partnership failure with Marriott to the ripple effects in urban markets still struggling post-COVID, Jamie and Scott connect the dots between Sonder’s story and broader market trends. They also dig into fresh October 2025 performance data, including occupancy declines, rate adjustments, and a critical PSA for hosts affected by Airbnb’s new service fee model.

The episode closes with a behind-the-scenes look at AirDNA’s latest data model upgrades, revealing how machine learning is improving accuracy and trust in industry insights — setting the stage for even more powerful analytics ahead.

You don’t want to miss this episode — especially if you rely on rental data to guide your business decisions.

Key Takeaways for STR Pros

🏚️ Sonder’s bankruptcy signals the end of rental arbitrage — operators tied to high-cost leases are struggling as demand and urban travel lag.
🏙️ Urban recovery is still uneven: international inbound demand to the U.S. fell 16% this year, weighing heavily on city performance.
💸 Watch your margins: many hosts haven’t offset Airbnb’s new 15% service fee, which could cut into real earnings this winter.
📉 October’s numbers show slowing demand (2.5%) and occupancy declines (~1.5%), mirroring weakness in hotels — but mountain markets saw a lift from fall “leaf peeping” travel.
🤖 AirDNA’s new data models boost accuracy, capturing longer-term stays and eliminating duplicate listings — giving hosts clearer, more reliable market visibility.