Jamie Lane, VP of Research, and Mariah Kamei, VP of Marketing, share implications for hosts and guests in the aftermath of many Airbnb updates. In addition to posting really strong Q3 financial reports, with 29% revenue growth year-over-year, the company also shared a slurry of updates in their Winter Release. Airbnb solidified its commitment to growing listing supply by taking short-term rentals into the mainstream.
Traditionally the value proposition for STRs has been their Value (compared to hotels), but Airbnb’s “All-in Pricing” update may actually contradict that stance. For example, on average, a 1-bedroom STR in urban areas is 30% less expensive than a hotel. Still, cleaning fees, on average, represent 15% of the reservation price and another 15% going to service fees, putting it more on par with the hotels. Will Airbnb’s efforts to go mainstream damage its value proposition? Time will tell, but we can tell you today that staying one step of their algorithm is key to long-term success in the short-term rental business.
Huge thank you to our podcast producers at hospitality.fm!
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Highlights from the AirDNA October U.S. Market Review:
- Available listings reached 1.37 million – up 23.3% YoY and +10.7% vs. 2019
- Total demand rose 21.3% YoY and sits 30.8% higher vs. 2019
- Occupancy declined 1.9% YoY to 56.7% but is up +12.8% vs. 2019
- Average daily rates rose 5.2% YoY to $254 and are up 31.3% vs. 2019
- Total revenue was 27.6% higher YoY and is up 71.7% vs. 2019
- Nights booked for future travel were up 15.8% YoY to 15.4 million
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Thanksgiving Holiday Performance to date:
Nearly two million nights have been booked for this Thanksgiving weekend (Thursday through Sunday), which is 16.4% higher than in 2021 and 29.9% higher than in 2019. The average daily rate paid is $304, up 33.3% from 2019, with growth year over year at 4.6%.
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Read the Airbnb Quarterly Finacial report
https://news.airbnb.com/airbnb-third-quarter-2022-financial-results/#:~:text=Q3%20net%20income%20of%20%241.2,in%20the%20last%20twelve%20months.
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Read how the strength of STR supply growth has continued year over year for most countries:
https://www.airdna.co/blog/short-term-rental-supply-reaches-record-levels-in-2022
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Read “Beating the #Airbnbust: 5 Tips for Improving Your Bookings
: https://www.airdna.co/blog/beating-the-airbnbust.
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Learn about the Phocuswright Conference: https://www.phocuswrightconference.com/
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Connect with Jamie on LinkedIn and Twitter:
LinkedIn: https://www.linkedin.com/in/jamiehlane/
Twitter: https://twitter.com/Jamie_Lane
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Connect with Mariah on LinkedIn:
LinkedIn: https://www.linkedin.com/in/mariah-kamei/
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Connect with AirDNA on LinkedIn, Twitter, TikTok, and Instagram:
LinkedIn: https://www.linkedin.com/company/airdna/
Twitter: https://twitter.com/airdna
TikTok: https://www.tiktok.com/@airdna.co
Instagram: https://instagram.com/airdna.co
Episode 8
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