Airbnb's Future into 2023

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Airbnb's Future into 2023

Zachary Brown
New to Real Estate · Cary, NC · Member since 2023 · 21 posts · 28 votes

I'd love to hear from folks about what they think of Airbnb and it's use for STRs. As an avid user of Airbnb over the years, when it started, it was viewed as this amazing alternative to hotels that offered a very comfortable home type feel that you couldn't get with a hotel. I used it for years and always had very positive experiences as owners were very motivated to get five star reviews and build their value. However, more recently, I'm concerned that they've lost some of that charm and are going to suffer due to the structure of the platform/website. The glaring issue of course is the pricing. Airbnb's listing of properties at x price on the main page and then adding in sometimes outrageous fees when you click to reserve the property has to be the #1 issue I've seen from most folks as they find it frustrating and misleading. This coupled with the the fact that individual Airbnb Owners seem to have become jaded over the long term of owning properties, which has led to higher cleaning fees, hidden fees or exorbitant fees being threatened or charged to renters in an unprofessional manner I believe is going to cause a shift back to the hotel industry over time if they are not able to change course relatively quickly. 

One example I can provide of this is an Airbnb (3bdrm 2bthrm, $150 per night, 1 guest) I recently booked in Cary NC. Immediately after booking I received a message from the owner that was maybe a page or 2 long which outlined rules and potential fees we could get charged based on our activities in the unit. Some were reasonable, some were not, but here are a couple examples I found a little jaw dropping. $300-1000 fee for late checkout. Now obviously owners have risks with late checkout, that makes sense, but $1000? That seems extreme. $40 fee per person per night for any guests or visitors not listed on the reservation who are spotted by the properties external cameras. Again, management of the property to ensure abuse isn't occurring make sense, but external cameras feel very intrusive and uncomfortable. $2000 fee for pet damage, $3000 fee for any smoke damage. These are all threats made by the owner to let the renter know this is possible if damages are caused, so not flat rate fees, but implied. All of this coming after the booking is completed, not listed in the actual listing prior to booking, is so unfortunate and in my opinion so unprofessional. 

Finally, I'll just note that Airbnb has such strong market power that many folks don't see an alternative if they don't want to go to a hotel. I'm curious if that will change and we'll see another player de-throne Airbnb in the future. VRBO maybe? 

All of the above to say, what do folks think will come of Airbnb going forward? Are others seeing these issues as well? Forecasts/predictions? How will they impact the STR space in terms of investing? Appreciate thoughts from folks as this is on the forefront of my mind as I look at potential rental properties!

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Lauren Kormylo
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
3y

I agree that your host should have told you upfront about all of those fees.  Those are excessive.  It sounds like they've been burned before.  And at the low price of $150 a night for a 3 bedroom, there isn't much profit to cover damages.  Airbnb doesn't allow hosts to charge you a security deposit, unlike VRBO.  They also don't allow you to have a minimum age requirement for guests, unlike VRBO, to keep out the younger partiers.
VRBO is the OG in this space, and is now doing more advertising to combat Airbnb's market share.

Airbnb is a horribly run company.  They allow scammers and criminals as guests, which causes hosts to have outrageous fees like you cited above.  Airbnb won't protect hosts, so they've got to do it themselves.  And all it takes is a guest trying to get a refund by lying about a camera or bugs, and all of a host's rentals are frozen for weeks, and Airbnb won't even tell the host why.  So unprofessional.  They are causing more hosts to also have a direct booking site, which they can push repeat guests to.

As far as pushing people completely back to hotels, nope.  For 1-3 night stays, hotels may work out cheaper.  But for longer stays, or larger families, they can't beat renting a house and having all bedrooms under one roof, with a communal living room and kitchen where everyone can congregate.  Contrast that to a family staying in 2 or more hotel rooms.  Do you want to hang out in the other person's hotel room and watch TV?  Or have to eat out all meals?

In true vacation markets, VRBO and Airbnb are not the first to do this concept.  Real estate companies and direct-by-owner rentals have been done for 100 years, and they continue today.  I booked a beach vacation this summer through a real estate company in that market, for less than what was available on either VRBO or Airbnb.  I did have to sign a contract by email, listing all occupants.  And pay a deposit or damage protection fee.  So don't think Airbnb is the entire market, it's not by a long shot.

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  • Gururaj Iyer
    Edison, NJ · Member since 2017 · 115 posts · 34 votes
    3y

    Its a very niche asset class for sure , folks who treat it to purely use real estate aspects & not chose to be inclusive of hospitality traits - will fall back.  Lack of creativity and over-saturation in certain markets will also lead to a lot of inexperienced folks opting out. It will be a tight year for sure however its not all doom and losses .  The example you cited above is clearly an inexperienced operator and I dont think thats a right approach to be so intrusive. 

    A lot of experienced operators will also move to have direct bookings expanded to avoid the pitfalls which Airbnb has . 

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    There are a lot of bad apples on Airbnb and many seem to make the news.

    Airbnb is  not very owner friendly and seem to be  more and more guests friendly.

    They need to right the ship or it will continue down this course.

    0Reply
  • Brian Barch
    Member since 2022 · 272 posts · 253 votes
    3y

    I wouldn’t make sweeping judgements about a bad exception. I’ve stayed at many amazing properties.

    AirBnb in Dec switched in an “all in” model with nightly rates, that problem has been fixed.

    But it’s not the Wild West anymore. It’s not a hotel alternative as much as it gives families the ability to stay in a bigger space, or for people to experience amazing views. When I got married 13 years ago, all we had was a pricy Bed and breakfast to stay at…literally one choice. If I can avoid shoving my family of 5 in a hotel, I always will.

    Operators are starting to get wise on diversifying OTAs since AirBnb changed their algorithm. There is going to be a huge rise Direct booking, which benefits both guests and hosts. Just look at Houfy (terrible name BTW). You can literally input your Airbnb listing and it will build a direct booking site for you in minutes. Guests save on fees. When we just booked in Hilton head, we used Houfy to find a space to bypass AirBnb fees. Many hosts leave business cards in their place that essentially say “if you liked your stay and want to save 15% next time, book here….” This is going to be airbnbs biggest challenge, not hotels.

    2Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Zachary Brown, so the various fees they list are for bad behavior. Don't smoke there. Don't allow a pet to go nutz on the couch. Leave on time.

    External cameras are necessary for many owners to protect their property and make sure things are copacetic. Now if they have 10 cameras looking at everything, then that is over the top, but you should expect a camera or 2 near the door etc.

    The late check out fee is over the top. They might have had a lot of abuse so they really want to curb that.

    Higher cleaning fees are just part of inflation. I agree with the misleading prices. We have a flat rate to try and keep that to a minimum.

    VRBO has been around quite a bit longer than AirBNB and we get 60% of our guests from that platform. AirBNB was an upstart and really took off, especially with younger folks.

    Booking.com is revamping to take a bigger role in the STR space.

    0Reply
  • Trent Reeve
    Atlanta · Member since 2022 · 706 posts · 634 votes
    3y
    Quote from @Zachary Brown:

    I'd love to hear from folks about what they think of Airbnb and it's use for STRs. As an avid user of Airbnb over the years, when it started, it was viewed as this amazing alternative to hotels that offered a very comfortable home type feel that you couldn't get with a hotel. I used it for years and always had very positive experiences as owners were very motivated to get five star reviews and build their value. However, more recently, I'm concerned that they've lost some of that charm and are going to suffer due to the structure of the platform/website. The glaring issue of course is the pricing. Airbnb's listing of properties at x price on the main page and then adding in sometimes outrageous fees when you click to reserve the property has to be the #1 issue I've seen from most folks as they find it frustrating and misleading. This coupled with the the fact that individual Airbnb Owners seem to have become jaded over the long term of owning properties, which has led to higher cleaning fees, hidden fees or exorbitant fees being threatened or charged to renters in an unprofessional manner I believe is going to cause a shift back to the hotel industry over time if they are not able to change course relatively quickly. 

    One example I can provide of this is an Airbnb (3bdrm 2bthrm, $150 per night, 1 guest) I recently booked in Cary NC. Immediately after booking I received a message from the owner that was maybe a page or 2 long which outlined rules and potential fees we could get charged based on our activities in the unit. Some were reasonable, some were not, but here are a couple examples I found a little jaw dropping. $300-1000 fee for late checkout. Now obviously owners have risks with late checkout, that makes sense, but $1000? That seems extreme. $40 fee per person per night for any guests or visitors not listed on the reservation who are spotted by the properties external cameras. Again, management of the property to ensure abuse isn't occurring make sense, but external cameras feel very intrusive and uncomfortable. $2000 fee for pet damage, $3000 fee for any smoke damage. These are all threats made by the owner to let the renter know this is possible if damages are caused, so not flat rate fees, but implied. All of this coming after the booking is completed, not listed in the actual listing prior to booking, is so unfortunate and in my opinion so unprofessional. 

    Finally, I'll just note that Airbnb has such strong market power that many folks don't see an alternative if they don't want to go to a hotel. I'm curious if that will change and we'll see another player de-throne Airbnb in the future. VRBO maybe? 

    All of the above to say, what do folks think will come of Airbnb going forward? Are others seeing these issues as well? Forecasts/predictions? How will they impact the STR space in terms of investing? Appreciate thoughts from folks as this is on the forefront of my mind as I look at potential rental properties!


    heard on a fairly recent podcast from Avery i believe, talking about Booking.com coming for some of Airbnb's market share. That they had revamped their STR area and payouts. Will be interesting to see if that comes to fruition.

    1Reply
  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    3y

    I agree that your host should have told you upfront about all of those fees.  Those are excessive.  It sounds like they've been burned before.  And at the low price of $150 a night for a 3 bedroom, there isn't much profit to cover damages.  Airbnb doesn't allow hosts to charge you a security deposit, unlike VRBO.  They also don't allow you to have a minimum age requirement for guests, unlike VRBO, to keep out the younger partiers.
    VRBO is the OG in this space, and is now doing more advertising to combat Airbnb's market share.

    Airbnb is a horribly run company.  They allow scammers and criminals as guests, which causes hosts to have outrageous fees like you cited above.  Airbnb won't protect hosts, so they've got to do it themselves.  And all it takes is a guest trying to get a refund by lying about a camera or bugs, and all of a host's rentals are frozen for weeks, and Airbnb won't even tell the host why.  So unprofessional.  They are causing more hosts to also have a direct booking site, which they can push repeat guests to.

    As far as pushing people completely back to hotels, nope.  For 1-3 night stays, hotels may work out cheaper.  But for longer stays, or larger families, they can't beat renting a house and having all bedrooms under one roof, with a communal living room and kitchen where everyone can congregate.  Contrast that to a family staying in 2 or more hotel rooms.  Do you want to hang out in the other person's hotel room and watch TV?  Or have to eat out all meals?

    In true vacation markets, VRBO and Airbnb are not the first to do this concept.  Real estate companies and direct-by-owner rentals have been done for 100 years, and they continue today.  I booked a beach vacation this summer through a real estate company in that market, for less than what was available on either VRBO or Airbnb.  I did have to sign a contract by email, listing all occupants.  And pay a deposit or damage protection fee.  So don't think Airbnb is the entire market, it's not by a long shot.

    2Reply
  • Carolyn Fuller
    Cambridge, MA · Member since 2015 · 651 posts · 735 votes
    3y

    When I started out over 10 years ago on HomeAway, the precursor to VRBO, all the tips and templates available to me encouraged me to set up house rules and lengthly cleanup instructions for checkout procedures. As the years have gone by, my biggest competitors have become the nearby hotels. I had to switch my headset. Now, my my house rules & checkout procedures are short and sweet:
    - quiet hours from 11:00 pm to 7:00 am
    - close door firmly behind you & text me that you have checked out

    There will be some quirky/delightful successful Airbnbs whose hosts are demanding & cranky but the vast majority are likely to fall by the wayside. 

    A platform, whether it be Airbnb, VRBO, or any other, has absolutely no control over how professional and guest focused their hosts are. Hosts using these platforms are not employees that can be sent off to hospitality training. We can't be fired for being overly demanding or rude to our guests. But it won't take many bad reviews before we no longer get any bookings.

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    Airbnb exploded an existing industry with the use of technology, however they are losing market share.  They used to be 80% of our bookings and are now in the 40% range as we have taken on more OTA's and direct booking opportunities due to being sick and tired of them siding with guests and providing no customer support for us.  Agreed if they do not right the ship they will continue to operate, but with shrinking market share.

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  • Gururaj Iyer
    Edison, NJ · Member since 2017 · 115 posts · 34 votes
    3y
    this is the age and time of technology and companies who manage data well , VRBO is terribly lacking in the technology space and they were lucky that Airbnb is acting like utter douches with their guest centric policies . I personally do like VRBO but it’s crazy the pace at which they need to catch up with Airbnb . 13 app crashes in 6 months and their “boost” feature is an utter failure ! 


    Quote from @Lauren Kormylo:

    I agree that your host should have told you upfront about all of those fees.  Those are excessive.  It sounds like they've been burned before.  And at the low price of $150 a night for a 3 bedroom, there isn't much profit to cover damages.  Airbnb doesn't allow hosts to charge you a security deposit, unlike VRBO.  They also don't allow you to have a minimum age requirement for guests, unlike VRBO, to keep out the younger partiers.
    VRBO is the OG in this space, and is now doing more advertising to combat Airbnb's market share.

    Airbnb is a horribly run company.  They allow scammers and criminals as guests, which causes hosts to have outrageous fees like you cited above.  Airbnb won't protect hosts, so they've got to do it themselves.  And all it takes is a guest trying to get a refund by lying about a camera or bugs, and all of a host's rentals are frozen for weeks, and Airbnb won't even tell the host why.  So unprofessional.  They are causing more hosts to also have a direct booking site, which they can push repeat guests to.

    As far as pushing people completely back to hotels, nope.  For 1-3 night stays, hotels may work out cheaper.  But for longer stays, or larger families, they can't beat renting a house and having all bedrooms under one roof, with a communal living room and kitchen where everyone can congregate.  Contrast that to a family staying in 2 or more hotel rooms.  Do you want to hang out in the other person's hotel room and watch TV?  Or have to eat out all meals?

    In true vacation markets, VRBO and Airbnb are not the first to do this concept.  Real estate companies and direct-by-owner rentals have been done for 100 years, and they continue today.  I booked a beach vacation this summer through a real estate company in that market, for less than what was available on either VRBO or Airbnb.  I did have to sign a contract by email, listing all occupants.  And pay a deposit or damage protection fee.  So don't think Airbnb is the entire market, it's not by a long shot.


    0Reply
  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    3y
    Quote from @Gururaj Iyer:
    this is the age and time of technology and companies who manage data well , VRBO is terribly lacking in the technology space and they were lucky that Airbnb is acting like utter douches with their guest centric policies . I personally do like VRBO but it’s crazy the pace at which they need to catch up with Airbnb . 13 app crashes in 6 months and their “boost” feature is an utter failure ! 





     They do have a lot of problems, but so far it hasn't impacted me (that I know of).  But I do hope they get up to speed on technology.

    0Reply
  • Gururaj Iyer
    Edison, NJ · Member since 2017 · 115 posts · 34 votes
    3y
    Quote from @Lauren Kormylo:
    Quote from @Gururaj Iyer:
    this is the age and time of technology and companies who manage data well , VRBO is terribly lacking in the technology space and they were lucky that Airbnb is acting like utter douches with their guest centric policies . I personally do like VRBO but it’s crazy the pace at which they need to catch up with Airbnb . 13 app crashes in 6 months and their “boost” feature is an utter failure ! 





     They do have a lot of problems, but so far it hasn't impacted me (that I know of).  But I do hope they get up to speed on technology.


     I agree ! the last thing we need in this space is monopoly by one company, Chesky and folks have been absolutely deaf to home owners and I hope Booking.com & VRBO pick up . 

    0Reply
  • Zachary Brown
    OP
    New to Real Estate · Cary, NC · Member since 2023 · 21 posts · 28 votes
    3y

    Wow thanks for all the feedback folks! It's fantastic to see all the different angles of this discussion. One theme that seemed to ring throughout is that owners don't feel protected by Airbnb and may be looking elsewhere. That's helpful feedback for me to understand as a potential investor, so I appreciate it greatly. Thanks all! 

    0Reply
  • Gururaj Iyer
    Edison, NJ · Member since 2017 · 115 posts · 34 votes
    3y
    Quote from @Zachary Brown:

    Wow thanks for all the feedback folks! It's fantastic to see all the different angles of this discussion. One theme that seemed to ring throughout is that owners don't feel protected by Airbnb and may be looking elsewhere. That's helpful feedback for me to understand as a potential investor, so I appreciate it greatly. Thanks all! 


    Its a love hate relationship - I have to admit -80% of my bread and butter of STR revenue ( 6 listings thus far ) come from Airbnb . Diversification helps a lot so my suggestion is go with a open mind & not existing bias which some of us ( including mine ) have . Good luck !

    0Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    Owner / operators and property managers in the space list via Airbnb or other channels. They can have their own rules based on market, property etc. When my company gets a booking we immediately send out a rental agreement and request for security deposit. These are our businesses rules for accepting bookings - it isn’t Airbnb it’s my business. Looks like you experienced an owner that had an issue in the past and now is trying to cover themselves by enforcing strict rules. 

    0Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    3y

    FWIW 99% of the time hosts put outrageous charges in their house rules they're just trying to scare guests into complying (likely because they've had a lot of issues with it) and they aren't actually going to charge it.  If it wasn't in the house rules on the listing (before you booked) then it's unlikely airbnb would allow them to collect it from you even if they tried.

    The upfront pricing stuff has been solved, but I always thought it was funny Airbnb took so much flack for that when every company does the same thing.

    Saving total pricing for checkout is an American thing, not an Airbnb thing.  In Europe Airbnb has had upfront total pricing for years, it was only in the US where every other website does the same thing that Airbnb followed suit.

    Booking a rental car with Avis.  $40/day for 3 days = $120 total.  Whoops after clicking through 6 pages of checkout (at least Airbnb put it on the first page of checkout) it looks like that's actually going to be $235.

    Airline companies show the price for the stripped version of sub-basic economy now, then upcharge for main economy, seats, bags, etc as you go.

    Heck even Target I can try and buy a $5 coffee mug and it doesn't tell me it's actually $11.36 after tax and shipping until the submit order page.

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  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    All of your points are very valid and are common complaints regarding bnbs.

    I almost always stay in a bnb if I'm travelling with children. It's so much better.

    Airbnb has received a lot of complaints about pricing not being transparent and they are working on getting that corrected. The cleaning fee, service fee, other fees will be included when you search for the nightly rate. That way there are no surprises when you go to check out. It is frustrating for sure, and I do hope they fix it as it will improve the user experience a ton. 

    0Reply
  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    It is becoming increasingly clear that Airbnb has a bias towards favoring guests over owners, and it's not just a perception. Real estate brokers have voiced their concerns about how this can negatively impact the market long-term, as it opens up an avenue for short-term renters to take advantage of homeowners who are seeking long-term tenants. It's also led to an increase in bad apples on Airbnb, such as those who cause property damage or break rental agreements. The reality is that Airbnb needs to adjust their policies and make changes that better protect both owners and guests alike if they want to stay competitive in this arena. Otherwise, they risk losing customers to other real estate services that are more balanced and accommodating.

    [email protected]832-889-5607
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  • Zachary Brown
    OP
    New to Real Estate · Cary, NC · Member since 2023 · 21 posts · 28 votes
    3y
    Quote from @Jay Thomas:

    It is becoming increasingly clear that Airbnb has a bias towards favoring guests over owners, and it's not just a perception. Real estate brokers have voiced their concerns about how this can negatively impact the market long-term, as it opens up an avenue for short-term renters to take advantage of homeowners who are seeking long-term tenants. It's also led to an increase in bad apples on Airbnb, such as those who cause property damage or break rental agreements. The reality is that Airbnb needs to adjust their policies and make changes that better protect both owners and guests alike if they want to stay competitive in this arena. Otherwise, they risk losing customers to other real estate services that are more balanced and accommodating.


    Thanks Jay! It's so interesting seeing this from the other side. I've always only ever been a guest, never had to think about it from the owner perspective. I did not know that's how owners felt about Airbnb for instance. As a guest, while I tend to agree Airbnb does tend to take care of their guests if you push hard enough, some of their policies are challenging to work with. Will be interesting to see how the platform adapts into the future. Thanks for weighing in!
    0Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    3y
    Quote from @Jay Thomas:

    It is becoming increasingly clear that Airbnb has a bias towards favoring guests over owners, and it's not just a perception. Real estate brokers have voiced their concerns about how this can negatively impact the market long-term, as it opens up an avenue for short-term renters to take advantage of homeowners who are seeking long-term tenants. It's also led to an increase in bad apples on Airbnb, such as those who cause property damage or break rental agreements. The reality is that Airbnb needs to adjust their policies and make changes that better protect both owners and guests alike if they want to stay competitive in this arena. Otherwise, they risk losing customers to other real estate services that are more balanced and accommodating.


    Speaking of bias, hosts think Airbnb overwhelming favors guests.  Guests think Airbnb overwhelmingly favors hosts.  It's really a no-win situation for Airbnb.
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  • Zachary Brown
    OP
    New to Real Estate · Cary, NC · Member since 2023 · 21 posts · 28 votes
    3y
    Quote from @Ryan Moyer:
    Quote from @Jay Thomas:

    It is becoming increasingly clear that Airbnb has a bias towards favoring guests over owners, and it's not just a perception. Real estate brokers have voiced their concerns about how this can negatively impact the market long-term, as it opens up an avenue for short-term renters to take advantage of homeowners who are seeking long-term tenants. It's also led to an increase in bad apples on Airbnb, such as those who cause property damage or break rental agreements. The reality is that Airbnb needs to adjust their policies and make changes that better protect both owners and guests alike if they want to stay competitive in this arena. Otherwise, they risk losing customers to other real estate services that are more balanced and accommodating.


    Speaking of bias, hosts think Airbnb overwhelming favors guests.  Guests think Airbnb overwhelmingly favors hosts.  It's really a no-win situation for Airbnb.
    That does seem like a tough spot to be in for sure. Truthfully I've never felt (as a guest) that hosts were favored over me. I actually have noticed more about Airbnb being the problem vs the actual host. For instance, they did Airbnb Plus, which was an Airbnb creation that hosts could become eligible for I believe. However, the vetting wasn't very good or something because we had a stay that was listed as that and then didn't meet the qualifications. Whether that's Airbnb or the host's fault can be argued, but I was more upset with Airbnb than I was the host. Anyway, will be interesting to see where it goes in 2023! 
    0Reply
  • Joseph Stoll
    Member since 2019 · 9 posts · 5 votes
    3y
    Quote from @Zachary Brown:

    I'd love to hear from folks about what they think of Airbnb and it's use for STRs. As an avid user of Airbnb over the years, when it started, it was viewed as this amazing alternative to hotels that offered a very comfortable home type feel that you couldn't get with a hotel. I used it for years and always had very positive experiences as owners were very motivated to get five star reviews and build their value. However, more recently, I'm concerned that they've lost some of that charm and are going to suffer due to the structure of the platform/website. The glaring issue of course is the pricing. Airbnb's listing of properties at x price on the main page and then adding in sometimes outrageous fees when you click to reserve the property has to be the #1 issue I've seen from most folks as they find it frustrating and misleading. This coupled with the the fact that individual Airbnb Owners seem to have become jaded over the long term of owning properties, which has led to higher cleaning fees, hidden fees or exorbitant fees being threatened or charged to renters in an unprofessional manner I believe is going to cause a shift back to the hotel industry over time if they are not able to change course relatively quickly. 

    One example I can provide of this is an Airbnb (3bdrm 2bthrm, $150 per night, 1 guest) I recently booked in Cary NC. Immediately after booking I received a message from the owner that was maybe a page or 2 long which outlined rules and potential fees we could get charged based on our activities in the unit. Some were reasonable, some were not, but here are a couple examples I found a little jaw dropping. $300-1000 fee for late checkout. Now obviously owners have risks with late checkout, that makes sense, but $1000? That seems extreme. $40 fee per person per night for any guests or visitors not listed on the reservation who are spotted by the properties external cameras. Again, management of the property to ensure abuse isn't occurring make sense, but external cameras feel very intrusive and uncomfortable. $2000 fee for pet damage, $3000 fee for any smoke damage. These are all threats made by the owner to let the renter know this is possible if damages are caused, so not flat rate fees, but implied. All of this coming after the booking is completed, not listed in the actual listing prior to booking, is so unfortunate and in my opinion so unprofessional. 

    Finally, I'll just note that Airbnb has such strong market power that many folks don't see an alternative if they don't want to go to a hotel. I'm curious if that will change and we'll see another player de-throne Airbnb in the future. VRBO maybe? 

    All of the above to say, what do folks think will come of Airbnb going forward? Are others seeing these issues as well? Forecasts/predictions? How will they impact the STR space in terms of investing? Appreciate thoughts from folks as this is on the forefront of my mind as I look at potential rental properties!

    I think it helps to look at the numbers to judge

    Airbnb 2020 Revenue = $3.378B
    Airbnb 2021 Revenue = $5.99B
    Airbnb 2022 Revenue = $8.030B 
    Their net income is over $1B per year in the last few years so they're also very profitable.

    Whatever they're doing, it's been working. Not many companies grow like that. Now that they're publicly traded the pressure is on to perform Every. Single. Quarter. or Wall Street will slam the stock. It will be interesting to see how it unfolds but I wouldn't bet against them.
    0Reply
  • Gururaj Iyer
    Edison, NJ · Member since 2017 · 115 posts · 34 votes
    3y
    Quote from @Ryan Moyer:
    Quote from @Jay Thomas:

    It is becoming increasingly clear that Airbnb has a bias towards favoring guests over owners, and it's not just a perception. Real estate brokers have voiced their concerns about how this can negatively impact the market long-term, as it opens up an avenue for short-term renters to take advantage of homeowners who are seeking long-term tenants. It's also led to an increase in bad apples on Airbnb, such as those who cause property damage or break rental agreements. The reality is that Airbnb needs to adjust their policies and make changes that better protect both owners and guests alike if they want to stay competitive in this arena. Otherwise, they risk losing customers to other real estate services that are more balanced and accommodating.


    Speaking of bias, hosts think Airbnb overwhelming favors guests.  Guests think Airbnb overwhelmingly favors hosts.  It's really a no-win situation for Airbnb.

     well not really- the answer is pretty straightforward and avoid having both guests/hosts game the system.  case  in point - they listened from hosts and brought in the retaliatory review removal policy - Stumped me as to why it wasn't brought in all these years.  When there is 100% evidence of retaliation by guests - a review can be removed .  Stronger air cover policy .  For guests - the pricing summary while booking - is what they introduced. A company whose revenues have quadrupled in last few years can surely get out of a "no-win " situation . 

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