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PressIs the Airbnb Dream Dead? (Bloomberg)
August 10, 2023
Airbnb hosts across popular vacation destinations are grappling with dwindling bookings and declining revenue as a glut of available properties leads to increased competition. Data from AirDNA reveals that short-term rentals in places like Orlando, Joshua Tree, Gatlinburg, and Pigeon Forge have seen revenue per available room drop.
The COVID-19 pandemic played a role in this trend, as initial demand surged while people sought refuge from crowded cities. However, as travel further afield resumed and more homeowners joined the market, oversupply caused a downturn. Hosts are adapting by lowering prices, improving amenities, and enhancing property features to attract guests. Airbnb's stock price remains strong, but a shakeout in the market is evident, rewarding those who can stand out in the saturated market.
"But lately hosts have hit a wall: Short-term rentals in Orlando and the surrounding suburbs saw revenue per available room drop 6.4% in the first half of this year, according to data compiled by economist Bram Gallagher at analytics firm AirDNA LLC. The revenue per available rental in cities such as Austin and Miami has fallen, but places like Boston and Oahu, Hawaii, are up more than 10% this year, according to AirDNA."