AirBnB Revenue Collapse? Near 50% in some areas......?

Most Popular Reply

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

We are mostly in Tampa with 80 or so units.  Similar story: Solid until April, then fell off of a cliff.  In the beginning of May we hired a revenue manager in conjunction with our pricing software (RevMax).  Since then it has turned around considerably.  There are several issues at play IMO:

1 - Increased Supply - I would not quite say saturation (at least here) but higher supply means more options to guests and lower prices.

2 - Lower Demand - General Economic conditions coupled with high airfare cost and airfare hassle etc affecting demand.

Luckily for us FL is growing and has a strong historic tourist economy.  There will always be people wanting to visit Clearwater/Saint Pete/ Tampa beaches and other attractions. Our more unique/amenity rich homes with good locations are doing just fine.  The more run of the mill homes with cheap renovations and furnishings are suffering more.  To anyone suffering I highly recommend:

1 - Listing on more sites.  Airbnb brings in (across all properties) 40% or so of our bookings.  VRBO another 30%.  The other 30% are a mix from Marriott Homes and Villas, JetBlue/Allegiant Airlines, Google Vacation Rentals, Booking.com, out direct booking sites etc.  We are on 14 sites currently.

2 - Get serious on pricing.  We have had to lower our floor rates.  We have had to rent for prices lower than we would have ever imagined in June.  Inevitably the good properties will survive on slimmer margins and flourish again as the bad properties are forced out of the market.  Get good pricing software and consult with experts if that option is available.  


I hope this helps everyone!

[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
WebsiteView Page
30Reply
See this reply in the discussion

160 Replies

Jump to latestLatest
  • KiKi ChaseBusiness Member
    Real Estate Agent · Indianapolis, IN · Member since 2022 · 184 posts · 75 votes
    3y

    We haven't personally seen this in Indianapolis, IN (knock on wood!)! But, it is something to definitely keep in mind. 

    Brentwood Collective54 Reviews
    View Page
    1Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    3y

    Who would of thought? Some areas were saturated with STR. Still a great strategy but can't just buy a random property and expect it to work

    10Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    3y

    I don't know the STR market in most of those locales but assuming Orlando is what they consider my market (Four Corners) I think that's pretty accurate. Our bookings were solid and non stop into April. Then we had a couple of cancellations and since then booking has fallen off a cliff. We've had two guests since the beginning of May. June has been rock solid dead. My PM says all of her properties are like this right now.

    I don't terribly mind as I just use the income to offset some of the cost of having a winter place, and the tax write-offs are still pretty valuable, but I could see people that couldn't afford having a place empty panicking and dropping prices like a maniac or selling.

    Podcast Guest on Show #243
    Skyline Properties
    View Page
    6Reply
  • Carolyn Fuller
    Cambridge, MA · Member since 2015 · 652 posts · 736 votes
    3y

    How many of the places are unregulated and over saturated? My revenue is not off but my units are in a regulated market.

    5Reply
  • Wilson Hunter
    Investor · Greenville, SC · Member since 2020 · 210 posts · 302 votes
    3y

    I have a hard time understanding how Sevierville is almost -50% unless they are doing something weird like pulling data from within the city limits of the town of Sevierville. Like Luke mentioned in another thread, the Airdna data showing -8% seems more accurate.

    5Reply
  • Brian Barch
    Member since 2022 · 272 posts · 253 votes
    3y

    While still useful to see an understand, as a forecaster for a profession….I would never advise someone compare to an anomaly year, whatever the reason much less a once in a lifetime event like COVID.
    id love to see the data relative to 2019 though…

    5Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    We are mostly in Tampa with 80 or so units.  Similar story: Solid until April, then fell off of a cliff.  In the beginning of May we hired a revenue manager in conjunction with our pricing software (RevMax).  Since then it has turned around considerably.  There are several issues at play IMO:

    1 - Increased Supply - I would not quite say saturation (at least here) but higher supply means more options to guests and lower prices.

    2 - Lower Demand - General Economic conditions coupled with high airfare cost and airfare hassle etc affecting demand.

    Luckily for us FL is growing and has a strong historic tourist economy.  There will always be people wanting to visit Clearwater/Saint Pete/ Tampa beaches and other attractions. Our more unique/amenity rich homes with good locations are doing just fine.  The more run of the mill homes with cheap renovations and furnishings are suffering more.  To anyone suffering I highly recommend:

    1 - Listing on more sites.  Airbnb brings in (across all properties) 40% or so of our bookings.  VRBO another 30%.  The other 30% are a mix from Marriott Homes and Villas, JetBlue/Allegiant Airlines, Google Vacation Rentals, Booking.com, out direct booking sites etc.  We are on 14 sites currently.

    2 - Get serious on pricing.  We have had to lower our floor rates.  We have had to rent for prices lower than we would have ever imagined in June.  Inevitably the good properties will survive on slimmer margins and flourish again as the bad properties are forced out of the market.  Get good pricing software and consult with experts if that option is available.  


    I hope this helps everyone!

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    30Reply
  • John Carbone
    Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
    3y
    Quote from @Wilson Hunter:

    I have a hard time understanding how Sevierville is almost -50% unless they are doing something weird like pulling data from within the city limits of the town of Sevierville. Like Luke mentioned in another thread, the Airdna data showing -8% seems more accurate.

    I saw this the other day. 50 percent seems overboard. 
    3Reply
  • John Carbone
    Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
    3y
    Quote from @Carolyn Fuller:

    How many of the places are unregulated and over saturated? My revenue is not off but my units are in a regulated market.

    What happens when your “regulated” rentals decide to change laws and “regulate” you out of your rentals? Or is the model, get in an area, get established, then fight to keep it status quo and to keep competition out so you continue to flourish all thanks wonderful government regulation.

    sounds like mafia back in the old days. Not very progressive. 

    I’ll take my unregulated markets and let the market flush out the weak competition.  All of the Airbnb listings I’ve seen in the regulated markets are generally lower quality. 

    4Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y

    Fake news. This was already posted. It’s getting spread around like crazy. 

    My numbers are rockin that’s all I can say. 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    11Reply
  • Jason Luongo
    Investor · Lake Worth, FL · Member since 2015 · 107 posts · 54 votes
    3y

    This was debunked by the SVP of Analytics at Airdna. You can check it out here

    https://twitter.com/host_with_...

    9Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y
    Quote from @Jason Luongo:

    This was debunked by the SVP of Analytics at Airdna. You can check it out here

    https://twitter.com/host_with_...

    Thanks for the link. Kinda sick of seeing this. 
    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    5Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y


    Not sure if this will help but my calendars look like I want them to. 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    6Reply
  • Carolyn Fuller
    Cambridge, MA · Member since 2015 · 652 posts · 736 votes
    3y
    Quote from @John Carbone:
    Quote from @Carolyn Fuller:

    How many of the places are unregulated and over saturated? My revenue is not off but my units are in a regulated market.

    What happens when your “regulated” rentals decide to change laws and “regulate” you out of your rentals? Or is the model, get in an area, get established, then fight to keep it status quo and to keep competition out so you continue to flourish all thanks wonderful government regulation.

    sounds like mafia back in the old days. Not very progressive. 

    I’ll take my unregulated markets and let the market flush out the weak competition.  All of the Airbnb listings I’ve seen in the regulated markets are generally lower quality. 


     In Massachusetts, the cities and towns are responsible for the regulations. The towns in Cape Cod and the Islands chose to avoid strict regulations so many investors swept in and bought up properties. Cape Cod and the Islands are experiencing an over saturation of STRs with many rentals being empty while the local businesses are unable to hire staff because the staff are not able to find housing. Sure the free-market will work itself out but how long will it take? I kinda liked the Cape better when there was a better balance. Regulations can help create balance.

    6Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    OK, let’s start with what’s really important here. It’s just money--not your life, and everyone who loved you a week ago still loves you today—and that’s a heck of a lot more important than the numbers on a report.

    The birds will still sing, flowers will still bloom, children will still play, and puppies will still curl up in your lap and drift happily to sleep. Even when AirBnb seems to tank.

    And now that that’s fully in perspective let me say Ouch!

    I don’t do AirbNb it’s just not for me (own or stay), but Ouch to all of you who are experiencing this problem.

    It seems most logical to try to make sense out of this. To look behind the numbers and figure out why this is happening, and is it long term thing, or is it just a temporary blip on the radar?

    Why are the customers not staying, are they choosing motels, or just not paying for this service right now. How long will this last?

    Do you really think "Regulations" are causing this, or could it be spending money shortages of your customers, or something else?

    Good Luck!

    6Reply
  • Bruce WoodruffPro Member
    OP
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Carolyn Fuller:
    It wouldn't take long, a year or two of poor cash flow and investors are done. You're kind of a big Govt person though, so I can see why you'd want that control....overall the market is best though, always is the most natural way to settle things out. Like letting 'nature take it's course'...
    4Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Bruce Woodruff

    Not surprising- as others mentioned those who used 2021- 2022 as a measuring stick are going to be in for a rude awakening. I don’t see things getting better anytime soon as if you look at economic trends interest rates are stabilized for the time being, we are seeing increased job losses and inflation outperforming wages which eventually will cause more pain.

    Ie: things are getting worse before they get better

    7e investments53 Reviews
    WebsiteView Page
    3Reply
  • Bruce WoodruffPro Member
    OP
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    @Chris Seveney I agree....

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

    This topic is going on multiple threads. This data doesn’t seem accurate for my market or my portfolio. Travel this summer is down. But more like 15%. 

    3Reply
  • John Carbone
    Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
    3y
    Quote from @Bruce Woodruff:
    Quote from @Carolyn Fuller:
    It wouldn't take long, a year or two of poor cash flow and investors are done. You're kind of a big Govt person though, so I can see why you'd want that control....overall the market is best though, always is the most natural way to settle things out. Like letting 'nature take it's course'...

    According to airdna gatlinburg is already seeing a decline in active listings In Q1, down 6 percent. 2nd quarter numbers should be out soon. It’s safe to say, we have reached peak supply.

    0Reply
  • Scott JohnsonBusiness Member
    Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
    3y

    My mom certainly felt pain in Eastern Carolina. They must have updated the algorithm and she had zero bookings for about two months. 

    It was rough. 

    [email protected]
    1Reply
  • Scott JohnsonBusiness Member
    Specialist · Greenville, NC · Member since 2019 · 673 posts · 408 votes
    3y
    Quote from @John Carbone:
    Quote from @Bruce Woodruff:
    Quote from @Carolyn Fuller:
    It wouldn't take long, a year or two of poor cash flow and investors are done. You're kind of a big Govt person though, so I can see why you'd want that control....overall the market is best though, always is the most natural way to settle things out. Like letting 'nature take it's course'...

    According to airdna gatlinburg is already seeing a decline in active listings In Q1, down 6 percent. 2nd quarter numbers should be out soon. It’s safe to say, we have reached peak supply.


     And this is in summertime?

    [email protected]
    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    3y
    Quote from @Bruce Woodruff:

    @Chris Seveney I agree....


    no dog in the hunt but as a user ( only on fishing trips to Montana)  the pricing has gotten to high and the cleaning fee's rediculous.. so back to hotel motel lodges etc for us.. I mean we dont cook anyway. I wonder if this is part of it.. prices to high.
    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    12Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    This is not what I’m seeing in The Smokies or Gulf Shores 

    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y

    1) Never heard of the Source: AllTheRooms.  How reliable is the source?  The numbers seem inflated to me, but I am not an expert on the markets that have the large declines.

    2) 2022 had inflated numbers due to pent up demand from COVID. I suspect virtually all experienced STR owners/operators was expecting a decline in revenue. I know I heard from multiple sources that any projections would be better representative if based on 2019 data than 2022 data. If investors were expecting 2023 to match 2022, they were missing a lot of indicators that pointed to this being unlikely.

    My San Diego market is down a little from 2022 rates/occupancy but not more than I was expecting (granted I was hoping every year would build upon 2022, but I suspected it was unlikely).

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free